Measuring Your Retirement Portfolio Performance the Right Way
- Heather Asteriou
- Apr 14
- 2 min read
Checking your retirement account balances can feel a bit like stepping onto the scale after the holidays—nerve-wracking, uncertain, and sometimes confusing. But just like maintaining good health, regularly evaluating your retirement portfolio’s performance is essential to reaching your financial goals. Fortunately, tracking your portfolio doesn’t have to be intimidating. In this article, we’ll show you exactly how to measure your portfolio against the right benchmarks, making your financial checkups stress-free and productive.
Why Benchmarks Matter (Apples-to-Apples)
Think of benchmarks as financial measuring sticks—they help you see if your retirement account is performing as expected. The key, however, is choosing the right benchmarks so you're comparing apples to apples. For example:
Stocks (Equities): Compare to the S&P 500 Index.
Bonds (Fixed Income): Compare to the Bloomberg U.S. Aggregate Bond Index.
This approach gives you meaningful context, helping you quickly determine if your portfolio is on track.
Key Metrics You Should Be Checking Annually
When reviewing your retirement portfolio, there are a few key numbers you should focus on each year:
Annualized Return: This number shows your average yearly return. It smooths out the ups and downs and gives you a clear sense of overall progress.
Expense Ratios: These are the fees your funds charge annually. Lower expenses typically translate into better long-term performance.
Asset Class Returns: Check how your stocks, bonds, and other investments individually performed. This helps you see if your investment mix matches your retirement goals.
How to Check Your Portfolio’s Performance
Let’s keep this simple. Here’s your easy 4-step checklist:
Log in to your Fidelity or TIAA university retirement account.
Click on “Performance” or “Returns” tab.
Review your annualized returns compared to the recommended benchmarks (e.g., S&P 500, Bloomberg Bond Index).
Check your expense ratios and asset class breakdown to identify any areas that might need adjusting.
Set a calendar reminder for quarterly quick-checks and a thorough annual review.
When to Make Changes to Your Portfolio
If your investments are consistently underperforming their benchmarks, or you notice unusually high expenses, it might be time to reconsider your fund choices or asset allocation. But remember—don’t panic over short-term dips. Your retirement account is a marathon, not a sprint.
💡 Pro Tip:
Don’t panic if short-term performance dips. Retirement investing is a long-term game. Evaluate your portfolio over several years—not months.
Don't Go It Alone—We’re Here to Help!
Still unsure about your performance metrics? Provizr can help. This article is part of our Annual Tune-Up series inspired by our popular Annual Financial Tune-Up eGuide.
👉 Download your free Annual Financial Tune-Up Guide here and ensure your retirement account stays on the right track.
Your Provizr team is always here to guide you through every step. Let’s make sure your retirement savings are working as hard as you do!