Does Your Advisor Avoid Talking about Performance?
Monitoring the performance of an investment portfolio is a tricky task. On one hand, many investors would benefit from not becoming overly focused on performance. Doing so tends to lead to an unhealthy focus on short-term volatility/price movements, which can easily lead to an investor making a knee-jerk, emotional decision that runs counter to their long-term goals.
On the other hand, not tracking your performance on a regular basis could mean losing sight of whether your advisor is doing a good job for you. So, there’s a tradeoff and a balance to be found.
How often should you check your portfolio’s performance then? The answer is not necessarily a cut-and-dry number, like once a month, once a week or once a year. Instead, there are really two things to consider:
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