Author: Darrell R. Tierney CFP® CPA PFS

I came across this quote, and I really don’t think it could be said any better:

Those who judge their portfolio performance relative to some narrow benchmark are focusing on an issue that is largely irrelevant to their ultimate financial success.  The only benchmark that you should care about is one that indicates whether or not you’re on track to accomplish your financial goals.

Risk is measured as the probability that you won’t meet your financial goal.  Investing should have the exclusive objective of minimizing this risk.

From the book “Adaptive Asset Allocation” by Butler, Phillbrick and Gordillio, quoted by Ben Carlson in his posting “Your True Risk.”

At Windward, this means every portfolio is based on a plan. I can’t think of a better way to judge your advisor’s value and to know if your portfolio is on track.

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