How Comparisons Can Derail Your Plan

Comparisons are a natural part of how we measure progress. Students look at class averages to see how they did on an exam. Runners check their pace against others in a race. Even in everyday life, we notice what neighbors, coworkers, or friends are doing to help gauge our own path forward. These comparisons can be useful in many areas of life, but in investing, they can quietly work against you.

When you read a headline about the S&P 500 soaring or hear a friend boasting about big returns, it’s tempting to measure your portfolio against those numbers. That instinct is called benchmarking. While it might feel like a way to evaluate your progress, in reality, it often leads to frustration and second-guessing. The reason is simple: those benchmarks weren’t designed for you. They don’t reflect your personal goals, your time horizon, or your unique mix of investments. Measuring yourself against them is like judging your family road trip by the lap times at the Indy 500; it doesn’t make sense, and it can steer you off course.

What Financial Success Really Means

Instead of defining success by whether your returns match the latest headline, it helps to think about what financial success actually looks like in your own life. For most people, success means having enough wealth to support the lifestyle they want, now and into the future. It means being able to spend time with the people who matter most, without having financial worries dominate the conversation. It means confidence that your resources will carry you through life’s ups and downs, so money supports your life instead of dictating it.

How to Measure Progress

If comparing to benchmarks isn’t useful, what should you compare against? The answer is your own plan. Ask yourself: Is my financial plan helping me move closer to the life I want? If your plan is built around retiring at a certain age, funding education for children, or making a major purchase down the road, the real measure of progress is whether you’re staying on course toward those milestones, not whether you matched the market’s latest swing.

Another helpful measure is how secure your lifestyle feels. If you can comfortably cover your expenses, enjoy the activities you love, and still have room for future goals, that’s meaningful success. In fact, peace of mind is often more valuable than any percentage return printed on a statement.

And finally, think about how you respond when markets get rocky. A sound plan won’t make volatility disappear, but it should help you weather downturns without panic. If you can ride out turbulence without losing sleep or second-guessing every decision, then your portfolio is doing its job, even if it doesn’t look like the S&P 500 at that moment.

Focus on What You Can Control

Since markets will always rise and fall beyond your control, the most effective way to build financial success is to focus on what you can influence. Keeping investment costs low, following a personalized plan, and maintaining a portfolio designed for your specific goals will all have a far greater impact on your long-term success than chasing after every benchmark. By focusing on controllable choices, you free yourself from the frustration of trying to match something that was never meant to be your guide.

Your Portfolio Has a Different Purpose

Comparisons are useful in school, sports, and even day-to-day life. But in investing, they often do more harm than good. Your portfolio was not designed to track an index; it was designed to support your life. It should be no surprise when it deviates from the headlines, because its purpose is different.

Financial success isn’t about winning a race against a benchmark. It’s about running your race, at your pace, and crossing the finish line with the life you envisioned. The only comparison that matters is whether your money is giving you the stability, confidence, and freedom to live the life you want.