A number of studies indicate that beat the S & P 500 is almost impossible in the long term. However, almost every time I met new investors, they ask the question: “How do you market (S & P 500) did what?”
My answer is usually along the “stuff line What are you looking for? “their answer either confusion or the appearance of a resounding” yes. ” However, in further conversation, investors recognize that this is a wrong question. This inevitably leads them down (I detailed settings and understand the importance of your goals, in my previous column) failed expectations and missed the target path.
beat the S & P 500 sounds great, but it does little to help investors sit back and relax. In addition, it may not be realistic and accept the requirements of those who can not accept your risk.
From a distance, you do not have to come back, 2008-09 less than ten years behind us. If your portfolio in 2008, lost 35% in 2011, up 3%, you beat the S & P in the past two years, what are you waiting for? I do not seem attractive returns
As of 2009, the S & P flat, hardly impressive decade. And December 31, 2009, between May 2017 to 31, the index back to just over 26% of the year. While the latter is impressive, if you walked into my office, I tell you, I have returned more than 25% of strategies, each year you can take for granted that there must be risk associated with this strategy incredible.
My point is simply that your goals and expectations benchmark, the S & P 500 or any other DEX is foolish and unrealistic
Instead of chasing the expense of S & P, investment should:
- Taking into account their objectives
- Assess the costs associated with achieving these goals.
- Task and their investment advisers development plan, which is possible to achieve these goals the least possible risk.
This column is composed of six parts of the second series. In my next column, I will describe in detail focus on cash flow generated from your portfolio, rather than focusing on your desired return on investment, especiallyIt is the importance of retirement.
- 1 : Know your target
- 2 : Why benchmark S & P 500 index is not a good strategy
- 3 : It’s all about cash flow, rather than returning
- 4 : You pay how much of your portfolio
- 5: 5 key questions to ask your financial advisor
- 6.’High inflation’ not-so-silent killer retirement
