Ep. 17 – 21 Questions (Series) – 16. How do you report investment performance?

Welcome to the Real Retirement Financial Planning Podcast. This series covers the 21 Questions to Ask Your Financial Advisor. The list of questions was inspired by Jason Zweig of the Wall Street Journal, and his blog post: The 19 Questions to Ask Your Financial Adviser. Responses to Jason’s questions I read from other advisor websites lacked depth. “Yes,” or “no,” sometimes needs more context and a greater explanation into the whys. The goal of this series is to target the essence of what I think Jason is trying to protect you from, and help you make a better educated decision.

21 Questions to Ask Your Financial Advisor

16. How do you report investment performance?

Jason wants: “After all expenses, compared to an average of highly similar assets that includes dividends or interest income, over the short and long term.”
At MARGIN, we use a third-party to calculate all our investment performance. It’s calculated based on time-value weighted returns, and accounts for our fixed retainer fees (if billed from any account, and not paid out of pocket). We also provide quarterly formal performance reports, and daily access to portfolio performance through an online portal.
Do you know how your performance is being calculated?
Is your investment manager comparing your portfolio to the correct benchmark?