There is a vast amount of publicly available data. Learn how to benchmark your progress against what's going on in the market to truly understand your progress.
- So, how are your investments doing?…If they're growing, then you're doing a good job.…But could you be doing even better?…That's a good question to ask yourself.…Gauging how well you're doing depends on two things.…First, it depends on how much risk you've taken.…Risk is what creates potential for significant gains.…So you need to set your expectations based…on the amount of risk you've taken on.…If you take on little risk, you shouldn't expect…to generate tremendous growth in your investments.…At the same time, if you don't take on much risk,…you shouldn't expect your portfolio…to lose much value, either.…
By not taking on much risk, you lower your chances…of getting hit by an economic downturn.…Secondly, it depends on how well…the overall market is doing.…If you hold a lot of bonds,…you shouldn't expect outsized gains…when the economy is in good shape.…But if things turn negative,…you shouldn't expect to lose much either.…Conversely, if you have a lot of stock in your portfolio,…expect good returns when the market is positive,…
- Identify the class of investments with the highest risk.
- Explain the type of attitude to maintain in regards to risk.
- Recall the information typically not included in an account statement.
- Calculate the percentage of a management fee when provided the number of basis points.
- Recognize the types of assets to unload during a downturn.