The S&P 500 returned an averaged of 10.16%/ year for the last 30 years BUT the average S&P investor only received a 3.98% return?

How is that possible? There are many reasons, but the biggest is that the average investor doesn’t invest in their fund long enough. And that they tend to chase the "hot" fund after 3 years.

If this seems amazing and would like to explore the topic more, lets catch up.

If you understand this, but find yourself part of the group, and need some help, lets catch up. Want to learn more … read on.

Fund managers are measured against an index, such as the S&P 500. This leads to managers deploying a large % of their inv in the index and then making a small % inv in some compelling investment thesis. Based on that thesis, they invest in a "cheap" stock that they expect to catch up (value inv) or in an "expensive" stock that they expect to "pop up" (growth inv). The issue is that it takes time for either of these approaches to play out.

If your approach to reallocating your money each year, is based on switching into the top funds described by any of the standard money magazines in the December or January issues, you and I really need to spend 15 minutes together.