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How does comparing against social benchmarks help me?

Up until now, market indexes comprised entirely of publicly traded stocks have been the only real benchmarks everyday investors have had to compare their portfolios. The problem is that most portfolios hold more than just stocks and, depending on an investor's goals and risk tolerance, their portfolio should not necessarily be performing in line with these market indexes. Essentially, it's a lot like comparing apples to oranges.

We have solved this problem by creating the first social benchmarks for investing. Our benchmarks are made up of real portfolios from real investors, just like you. Now, instead of comparing your portfolio against a basket of publicly traded stocks, you can make a more relevant comparison against the Openfolio Investor Average to see how you are doing relative to other real people. Furthermore, using the Investors Like You benchmark, you can compare your performance against a group of investors who share your similar characteristics such as age, income, assets, and investment goals to see how you are doing relative to your peers.

The end game from all of this is that now that we have created more relevant comparison tools, we can use our data to show how people can improve their portfolio performance to help them achieve financial freedom. We can highlight what the top investors are doing right and what the bottom investors are doing wrong to show the best ways to achieve long term success. Down the road we could apply this same type of social comparison data to help people find the appropriate financial planning tools as their wealth grows, the right insurance coverage for their assets, or the best places to refinance their student loans. In other words, we are starting with investing but our primary goal is to give people the tools and information to help them achieve financial freedom.


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