Here’s one key practice that separates individual investors from the professionals: the latter get report cards. This is to say if you consider yourself serious about your investing decisions, you must evaluate your actual returns immediately and compare your performance on appropriate benchmarks.
Some key questions to ask: Are the past five-year annual portfolio returns still ahead of the benchmark Index returns? Are they getting superior (or averaging downwards) returns? How does the actual asset allocation compare to your benchmark asset allocation? Are you on track to reaching your financial goals? Are you minimising risks?
