Three Signs Your Investments May Be Underperforming

Three Signs Your Investments May Be Underperforming

Do you know how well your investments are doing?

This question isn’t easy to answer because with some investments you only see real results after a certain amount of time.  While performance is often measured in relative terms, here are three signs that may indicate your investments are underperforming:

Numbers don’t lie

Look at the figures. Are your investments doing worse than the average market return? If they are consistently underperforming, this is a clear sign that you need to reevaluate your portfolio.

Are you achieving your financial goals?

The first step towards reaching financial success is defining your financial goals. Once you know what you want to accomplish, you need to choose the appropriate investments that will allow you to achieve those goals. For instance, if you need to pay college tuition bills in the long-term, you’ll want an investment with high potential for growth, and if you are a retiree in need of dependable income, you might choose to use conservative dividend yielding stocks or bonds. To find out more about how to set goals, read this, and then use this free online strategic goal calculator.

When evaluating the performance of your investments, ask yourself whether you are on course to achieving your financial objectives. If the answer is no, then this is a sign that your investments are not doing well.

You are stressed and can’t sleep

While nothing is ever assured in this life (apart from death and taxes) your investments shouldn’t be a constant source of stress.  While you should keep on top of your financial situation, don’t drive yourself crazy worrying about what’s going to happen. If your investments cause constant anxiety, that is a sign that they aren’t working for you and need to be fixed.


Douglas Goldstein, co-author of Rich As A King: How the Wisdom of Chess Can Make You A Grandmaster of Investing, is an avid chess fan, international investment advisor and Certified Financial Planner (CFP®)