(Disclaimer: At RPWM, our clients have outperformed the index and the big superfunds over time)

When it comes to investing, there’s a widespread belief that success hinges on one thing: outperforming a market index. You’ve probably heard it countless times—the idea that if you can consistently "beat the market," you’re set for financial success.

But here's a surprising truth: consistently beating an index might not help you reach your personal financial goals.

In a recent newsletter, author Carl Richards made a valuable point that aligns closely with our philosophy at Rasiah Private Wealth Management: financial success isn't about competing with market benchmarks; it's about achieving your personal goals.

What Does "Beating the Market" Mean, Anyway?

An index, such as the ASX 200 or the S&P 500, is simply an average measure of how a specific group of investments performs. Many investors and fund managers focus solely on surpassing this benchmark, convinced it proves investment prowess.

But does beating an average really matter in the context of your life?

Achieving Real Financial Success

Imagine this scenario: you manage to beat the market every quarter, year after year. Sounds impressive, right? But what if, despite this performance, you never actually achieved your own personal financial objectives—like retiring comfortably, travelling, supporting your family, or giving back to your community?

Suddenly, those impressive returns lose their significance.

Now let’s look at a different scenario. Imagine your portfolio performs just slightly below the index each quarter. On paper, you’re technically underperforming the market. But you’re meeting every financial goal you’ve set—living a comfortable lifestyle, retiring securely, supporting loved ones, and fulfilling your dreams.

Which scenario would you prefer?

What Truly Matters: Planning for Your Goals

At Rasiah Private Wealth Management, our approach to investing isn’t about chasing arbitrary benchmarks. Instead, it’s firmly grounded in your personal values, goals, and life aspirations.

We believe financial planning should be purposeful, personal, and meaningful. The goal isn’t to “win” at investing by beating a market index—it’s to achieve your own clearly defined objectives. Your financial journey should reflect your values, what matters to you and your family, and how you want your money to support your life.

The Bottom Line

Remember, investment success is not measured by beating some market average. True success means reaching your own unique goals through careful, personalised financial planning.

Rather than getting caught up in chasing market returns, focus instead on what genuinely matters: your life, your dreams, and the plan you’ve crafted to make them a reality.

We’re here to help you stay focused on what truly counts. If you’d like to review or discuss your financial strategy, please reach out. Let’s ensure you’re investing in alignment with your goals, rather than just an arbitrary benchmark.