5 Common Financial Planning Mistakes

Month: May 2013

May 22, 2013  |  

5 Common Financial Planning Mistakes

Do-it-yourself investors make some common mistakes with their investments. These mistakes usually lead to below average returns in the market. In fact, a recent study by the firm Dalbar shows that from 1992 – 2011 the average investor returned 3.49% annually whereas the S&P 500 Index returned 7.81%. Having a good advisor at your side […]

May 8, 2013  |  

Distribution of Market Returns

While no one can reliably predict the future, the past may offer perspective on recent market events and the long-term benefits of equity investing. The chart below shows the historical distribution of US market returns since 1926. The performance years are stacked in order of return range with the far left including the years with […]

May 6, 2013  |  

The False Hope of Market Timing

While I have mentioned the failure of market timing on many occasions in the past, it bears repeating. Market timing does not provide a good foundation for an investment strategy. Markets are too efficient to allow market timers to reliably forecast the future. In short, market timing offers false hopes to investors. The harsh reality […]