U.S. News and World Report - 5 Ways Investors Can Rate Their Portfolio
How well has your portfolio performed this year?
That question is not always easy to answer, but it is important to know.
But measuring portfolio performance is not always easy. The S&P 500 is up 18% over the last 12 months, but for most of us saving for retirement, is that really a good benchmark?
Consider an investor 5 years from retirement, whose portfolio likely consists of stocks and bonds. Measuring the performance of that mix of stocks and bonds against the S&P 500 (which consists entirely of stocks) is useless. So what is a better way to gauge performance?
Matt Hylland of Hylland Capital Management was recently quoted in U.S. News and World Report about how investors can measure their portfolio performance against valid benchmarks, and the importance of doing so. Read the rest of Matt's advice here: