How To Evaluate Your Financial Adviser. How To Compare Reults

The wealth Management Section of The Wall Street Journal had an article by Charles Passy. In it the people he interviewed suggest all kinds of ways of finding indexes to match the portfolio. What no one suggests and what we at HFH Planning think is the only way to examine a portfolio is to compare each holding against the appropriate benchmark. Yes it’s not easy. Yes, it takes time an effort, but how can an investor know how the portfolio performed. The article talks about bonds (the media term for fixed income) and doesn’t differentiate between long, intermediate and short term investments. They are very different in the risk and therefor very different in their returns.

In the equity area, not differentiating between “Growth” funds and “Value” funds and using “Blend” index which suggests a combination of the other two.

We at HFH Planning Inc. use Morningstar’s categories returns as the benchmarks. In doing so each holding is compared with the return that is comparable so we (and you) know that the 8% return is good, bad, or mediocre.

Take a look at our website,, to see a quarterly report.

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