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.
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.
Betterment is the largest independent robo-advisor, helping people to better manage, protect, and grow their wealth through smarter technology. With more than 175,000
customers and over $5 billion
in assets under management, the service offers a globally diversified portfolio of ETFs, designed to help provide you with the best possible expected returns for retirement planning, building wealth, and other savings goals. Betterment also helps customers get on track for a comfortable retirement with RetireGuide™, a retirement planning tool that lets people know how much they should save and if they are investing correctly.
Betterment is a CNBC Disruptor 50 and Webby award winner, and it has been featured in the New York Times, Forbes, and the Wall Street Journal. Betterment helps people to achieve a smarter financial future with minimal effort and for a fraction of the cost of traditional financial services. Learn more here.