Your Report Card

Amar Pandit , CFA , CFP

What does your financial report card look like?

A basic and often useless report card that is sent monthly or quarterly to investors is the performance of a set of investments.

A world class report card comprises the answers to the following questions:

  1. Are you making progress towards living the life you have imagined with your money?
  2. Are you making progress towards your enough?
  3. Do you have a process to make good investment decisions?
  4. Do you have a process to avoid costly mistakes?
  5. Are you saving enough?
  6. Are you spending enough? This is super important too.
  7. Are you investing enough and well? Saving enough is good but the asset class you invest it in is also critical.
  8. Are you well diversified? Having a portfolio of Mutual Funds, PMS, and AIFs is not diversification.
  9. Are you insured enough?
  10. Are you giving enough?
  11. Are you addressing the key determinant of investment performance? The Behavior Gap.
  12. Finally, do you have the care of a Real Financial Professional who is looking at your overall financial well-being and financial life (I don’t mean someone who is simply managing a portfolio). Is this person your trustworthy guide in a changing landscape?

What about your report card?

Have you created a world class one yet?