Your Report Card
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:
- Are you making progress towards living the life you have imagined with your money?
- Are you making progress towards your enough?
- Do you have a process to make good investment decisions?
- Do you have a process to avoid costly mistakes?
- Are you saving enough?
- Are you spending enough? This is super important too.
- Are you investing enough and well? Saving enough is good but the asset class you invest it in is also critical.
- Are you well diversified? Having a portfolio of Mutual Funds, PMS, and AIFs is not diversification.
- Are you insured enough?
- Are you giving enough?
- Are you addressing the key determinant of investment performance? The Behavior Gap.
- 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?