i think that trustees, who set a financial target for the fund to be achieved each tax year, do better than those who don't. hence i think it important to set a financial target for the fund each tax year.
i keep it simple. i disregard contributions and pension payments when determining the return on equity. hence i measure how effective the trustrees have been in making money after paying any tax.
i think it best to set a target where you have a 50% chance of attaining it.
the current target we are chasing is ....
< The financial target of the fund is to out-perform the XJO by 15%, or for the fund to make an absolute return of 10%, whichever is greater. >
i find the most important consideration is to take it quarter by quarter and to ensure that we get a positive compound each quarter.
