Measuring Success: There’s a Benchmark for That
A runner measures success by beating her best time, a golfer by scoring under par, a dieter by reaching his weight loss goal. But what about an investor who wants to measure the success of an investment strategy?
Having a handle on investment performance is important if you’re going to reach your goals. So how can you tell if an investment is doing better, worse, or the same as similar investments? Comparing your investments’ returns to a representative market index is a good place to start.
Here are some that you might consider.
Dow Jones Industrial Average® tracks the performance of 30 of the largest U.S. “blue chip” corporations and is considered a leading economic indicator of the market as a whole.
S&P 500 Index® tracks 500 financial, industrial, transportation, and utility company stocks. The S&P 500, an important benchmark for large-cap stocks, is a “value-weighted” index, giving stocks with the greatest market value the greatest weight.
NASDAQ® Composite Index measures more than 3,000 domestic and international stocks traded through its electronic system.
Wilshire 5000 Total Market Index® comprises nearly all stocks traded in the U.S.
S&P Midcap 400 Index® tracks the performance of stocks from 400 medium-sized U.S. companies.
Russell 2000® Index tracks 2,000 small company stocks.
NYSE Composite Index® follows stocks listed on the New York Stock Exchange and in four subgroup indexes: industrial, transportation, utility, and finance.
Morgan Stanley Capital International EAFE Index® tracks non-U.S. companies in Europe, Australasia, and the Far East.
Barclays Capital U.S. Aggregate Bond Index® tracks the investment grade, fixed rate taxable bond market.
Look Beyond the Present
Comparing your returns against a benchmark over one-, five-, and ten-year periods will give you a more complete picture of your investments’ performance. A few years of low returns may not matter if an investment has performed well over the long term. Of course, past performance cannot predict how well an investment will do in the future.
See Spot. See Spot’s Insurance Card
Pets are part of the family, so it’s good news that veterinarians can now treat many previously untreatable health conditions and injuries. But that treatment can sometimes cost pet owners hundreds or even thousands of dollars.
Pet insurance helps pay the costs of unexpected vet expenses. If you’re considering a policy, here are a few guidelines.
This But Not That
Find out exactly what the policy includes. Does it cover both illness and injury? How about vaccinations and annual checkups? Nearly all policies exclude pre-existing conditions, and some exclude hereditary conditions and conditions unique to specific breeds.
Out of Pocket
Generally, policies require that you pay deductibles
and copays, so make sure you know your share
of the costs.
Ask if reimbursement is based on
actual expenses or a set fee schedule.
Your Choice
Find out if the policy allows you to seek care from any vet or only from a vet on the insurer’s approved list.
To answer that question, it helps to look at
just what a stock split actually is. When a company
declares a stock dividend or split, current stockholders
receive additional shares of stock. A stock dividend
increases the number of shares a stockholder owns
but reduces the market value of each share. However,
the total market value of the stockholder’s
shares remains the same. 
