To view the benchmarks, visit Visit https://www.investorwatchdog.com/
Why five Benchmarks? Investors in their 30’s and 70’s have very different investment objectives and tolerances for risk. For example, younger investors have higher risk tolerances so they invest most of their assets in equities (stocks). Older investors have much lower risk tolerances so they invest most of their assets in fixed income (bonds). Watchdog needed five Benchmarks to cover all types: Very High Risk (investors in their 30’s), High Risk (investors in their 40’s), Moderate Risk (investors in their 50’s, 60’s), Low Risk (investors in their 60’s, 70’s), and Very Low Risk (investors in their 70’s and older).
19 types of investments (stocks, bonds, domestic, foreign), also called asset classes, are just one-way Watchdog built the Benchmarks. A second criterion is the allocation to each of the asset classes. As described above, Benchmarks for younger investors have higher allocations to various types of equities and Benchmarks for older investors have higher allocations to various types of fixed income investments.
Investors, who become Watchdog Users, read the description for each Benchmark and select the one that most closely matches their current situation (working, retired), age, preferences, and tolerance for risk. They can select recommended Benchmarks or not. For example, a 60 year-old investor selects a High Risk Benchmark (75% equities) and a 40 year-old investor selects a Low Risk Benchmark (75% fixed income).
Once an investor has selected a Benchmark, Watchdog’s performance reporting system only displays the results of that Benchmark. This facilitates the investor comparing his financial advisor’s investment performance to the results produced by his Benchmark. Advisors who consistently outperform their Benchmarks are better selections than advisors who consistently lag the performance of their Benchmarks.
Investors also have the option of using Watchdog’s free Performance Tracker service. In this case, the investor or the advisor can input the advisor’s performance into the tracking system. The system produces a report that compares the advisor’s performance to the Benchmark selected by the investor. After a period of time, the investor will have a track record that displays the relative performance of the advisor to the investor’s Watchdog Benchmark. To become a User, visit: https://www.investorwatchdog.com/
No other website offers sophisticated Benchmarks that investors use to monitor the performance that is produced by financial advisors. This free Watchdog service levels the playing field when investors depend on advisors to help them achieve their financial goals.
Investor Watchdog is an information services company that has provided free online tools, data, and guides to investors who use the services of financial professionals since 2003. Visit https://InvestorWatchdog.com for more information.