My Money Blog and Morningstar.com recently posted about the returns individual investors see compared to the performance of the fund.

High level summary:

In 2010, the average domestic fund investor saw a return of 1.1% less than the annual return for the fund.

Why?

Because investors try to time the market — selling quickly after value decreases and buying when the price is high again.

The Performance Gap is very real. Be aware of it … and have the discipline with your investments to “Set it and Forget it.”

You can read the full post on My Money Blog.