Would you like to make $170,000? On this episode, you’ll learn what you can do to save yourself 17% in lower returns over a decade. On a million-dollar portfolio that comes to $170,000!

In the Retirement Headline segment, we’ll dive into an article from Financial Advisor Magazine which explores Morningstar’s annual Mind the Gap study analyzing the performance of mutual and ETFs and comparing them to the returns achieved by individual investors. Press play to hear what you can do to improve your investor performance.

Outline of This Episode

  • [3:12] Bad timing cost investors 17% in gains
  • [14:45] When does a person need a financial advisor?

Please help me with my book!

Many of you know that I am currently writing a book. The premise is identifying with your future self through the lens of retirement planning. I don’t think any retirement books have touched on this theme and I’m excited to bring my expertise to a wider audience.

That’s where you guys come in. I would love to hear about anything unusual or off the wall that has happened in your retirement planning. Did you anticipate one thing, but find yourself living a retirement that looked vastly different? Have you learned new skills or had something unexpected happen?

Submit your stories using this link. I look forward to reading your anecdotes and possibly including them in my book.

Bad timing cost investors 17% in gains

You may have heard of the term behavior gap which is based on a book written years ago by Carl Richards.

A recent Morningstar study highlights the significance of this gap, indicating that investors missed out on about one-fifth of their fund investments’ average net returns due to timing issues. The research simply adds to the idea that timing the market is impossible.

The article goes to show that the best way to make sure you never sell at the wrong time is really easy–never sell! Don’t jump in and out of the market, no matter what you read in the news.

Buy the best companies in the world by investing in low-cost index funds and ETFs and never sell except to rebalance to create your monthly retirement income. That isn’t market timing because you are selling to create income, not selling to time the market and reinvest the money later.

The article offers some suggestions for investors to improve their returns and reduce performance gaps. One approach is to use allocation funds, which span multiple asset classes and regularly rebalance, reducing the need for investors to actively manage their portfolios.

Listen in to learn what you can do to avoid falling prey to the behavior gap so that you can maximize your investment returns.

Our firm will bring on 20 new clients next year. Will you be one of them?

If you are in the market for a financial advisor and would like to learn more about working with us watch the video in this link and schedule a meeting to see if we would be a good fit for each other.

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