The first six months of 2016 were recently concluded. It’s time to take a look at the market performance and for you to evaluate the performance of your account and your financial advisor (if you use one).
The table should be easy to follow for the three time frames that were analyzed. The most recent six month period is represented in the center of the table.
The SPX was up 2.69% for the six months just concluded. Looking further the SPX has only been up 1.94% for the last 18 months, from 12/31/2014 to 6/30/2016. That performance reflects a slight improvement over the SPX performance in 2015. As you can see in the table the entire year of 2015 showed the overall market to be down a little under 1.0% (-.73%)
What does that mean for you and your investment/retirement portfolio? The table below represents the net account change for a hypothetical $100,000 account. You can easily calculate how your account performed by using these numbers, relative to your account size.
The performance shows that for every $100,000 in value in the first six months of 2016 your account should be up $2,690. However, if you take into consideration the last eighteen months your account would be only up $1,940.
These are net numbers and do not include any commissions or management fees. The average management fee is 2.0% and if your account is made up primarily of mutual funds you will incur some material “hidden fees”. If you are professionally managed then your account balances probably reflect a lesser return.
If you have read any of my previous articles, you no doubt realize my passion for every investor to become responsible for their own finances. I don’t want to see anyone incur the financial devastation that happened to me by using a professional firm.
I am 100% confident that the individual investor can not only meet but exceed the overall market benchmark but outperform 99% of the “self-proclaimed” professionals in the space. My goal is to help others actually achieve better than market results.
There are hundreds of billions (that is with a “B”) of dollars extracted each year that move from the accounts of the investors into the pockets of the “professionals” and their firms. This money does not come from thin air!
I have no issue paying a money manager if he or she can generate above market returns for individuals, net of their fees. What I vehemently object to is paying a fee for under performing the market. To me that is unconscionable!
In an earlier post I pointed out a simple strategy to meet or exceed the performance of the S&P 500. That must be your benchmark as an investor. Your financial future depends on it.
Don’t be afraid to open your quarterly statement. Be proactive and compare your results to the market performance I have outlined above. If your investment/retirement portfolio is languishing in mediocrity while supporting the lifestyle of your professional money manager I encourage you to take action.
I recently published a free online course that describes in flow chart form the process I use to generate consistent, profitable results. I have also published two other courses with many more to come. Simply go to my website, www.optionsmeister.com and click the link “OptionsMeister Online Courses“. Get started with my free course!
If you have any questions, or would like to discuss your trading/investing with me, please don’t hesitate to contact me on my website www.optionsmeister.com or give me a call 239.272.3424, I answer my own phone.