| Rate of Return | This is the rate you need to make on your portfolio in order to not lose purchasing power after subtracting your expenses, taxes, and cost of living increase. |
| Standard Deviation | This is a statistic that measures how much risk you are taking versus your return. The lower the number, the better. |
| Variance Drag Phantom Tax | This ratio calculates the degree of your standard deviation in proportion to your rate of return. Ideally, it will be at 0.8 or less. Anything over 1.5 is not acceptable. |
| Sharpe Ratio | You want this to be 1 or higher on your entire portfolio. Anything at 0.5 or less is unacceptable. |
| Probability of Any Loss in the Next 12 Months | This is the probability that your portfolio will experience any loss during the next 12 months. It should be 15% or less. |
| Amount of Money at Risk in the Next 12 Months | Based on historical data, this identifies how much money is at risk. |
| Upper and Lower Return | You want this range of returns to be as narrow as possible. |
| Correlation to S&P 500 | This shows the movement of one investment or index in relation to another. The scale is between +1 and -1. |
8 Metrics
Most people have a difficult time evaluating their portfolios, and there has never been until now a clear understanding of what the most important metrics are. These metrics are universally accepted as the best way to evaluate your investment portfolio.