Managing Investor Expectations

 

Tracking investments against personal benchmarks

An investment portfolio should be tailored to the time lines, risk tolerance, and financial goals of the investor. The benchmark used to set investment expectations and track the progress of that portfolio should be just as customized.

 
 

Managing investor expectations with OnTarget Investing

Many investors compare their investment returns against a major index, which may have little connection to their personal financial goals.  For example, a conservative investor would never put their investments solely into the stock market—so why should they compare their returns to the S&P 500?

That’s why Flexible Plan Investments created OnTarget Investing: to help investors and their financial advisers define realistic investment goals and set appropriate personalized benchmarks for success. Setting and consistently communicating realistic goals is the key to helping investors stick to their financial plan. 

Here’s how the OnTarget Investing process works:

  • Creating a personal and realistic benchmark: Using the investor’s answers to our suitability questionnaire regarding their investment goals, time horizon, and risk tolerance, we help set custom expectations and benchmarks for the portfolio.
  • Designing your solution: A personal solution is designed using proprietary software to marry traditional and alternative investments with strategic and tactical strategies consistent with the investor’s benchmark.
  • Implementing the targeted investments: The investor and financial adviser will receive an investment proposal describing the management approach, current allocation, and investment expectations. Based on the expectations outlined in the investment proposal, we will allocate and continually manage the portfolio.
  • Managing to the target: Investment markets are dynamic, requiring continuous assessment to assure the investment portfolio is on target to reaching the investor’s goals. Our process applies multiple management approaches to reduce market risk while seeking opportunities for growth.
  • Reporting your progress: Evaluating progress is a crucial component of the OnTarget Investing process. The investor and financial adviser will regularly receive an OnTarget Progress Report that shows how the portfolio compares against the investor’s personal benchmark for success. Investors can also view their OnTarget Progress Report, get statements, retrieve account documents, and receive important account-related messages by logging in to ontargetinvesting.com.