What Benchmark Should You Use to Measure Investment Success?

Comparing apples to oranges is just bananas. Unfortunately, that's what investors do all the time, and it can be a risky prospect. Here's what investors should use as a measuring stick instead.

(Image credit: Christine Balderas 2016 (Christine Balderas 2016 (Photographer) - [None])

One of the biggest mistakes we see people make with their investments is to try and compare their portfolio performance to “the index.” We’ll hear comments from clients (and friends, and family and people in passing) that go something like, “The index did X, but my portfolio did Y and now I’m not happy about it.”

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Eric Roberge, Certified Financial Planner (CFP) and Investment Adviser
Founder, Beyond Your Hammock

Eric Roberge, CFP®, is the founder of Beyond Your Hammock, a financial planning firm working in Boston, Massachusetts and virtually across the country. BYH specializes in helping professionals in their 30s and 40s use their money as a tool to enjoy life today while planning responsibly for tomorrow. Eric has been named one of Investopedia's Top 100 most influential financial advisers since 2017 and is a member of Investment News' 40 Under 40 class of 2016 and Think Advisor's Luminaries class of 2021.