[cgbg]

“if funds are invested over many years and decades and left to grow in a diversified groups of funds.”

I believe the history is that less than 10% of investors can or do make that happen.

The reason is that when the stock market crashes—and that will happen at least once over “many years”—most investors panic and sell. While fear is one factor another is that this is the exact time that there are many layoffs and folks need to tap that money to keep food on the table and pay their mortgages.

Most financial advisors are folks who tell you never to use past returns to predict future results—and then they go and use past returns to predict future results.

;-)

[kjam22]

The reason is that when the stock market crashes—and that will happen at least once over “many years”—most investors panic and sell. While fear is one factor another is that this is the exact time that there are many layoffs and folks need to tap that money to keep food on the table and pay their mortgages.

Investors is a term always used loosely to describe anyone with $49 in a 401k. The problem is most investors know more about physics than they do investing or portfolio management. That can include your Edward Jones guy. :)

[plain talk]

Yes lots of people want to speculate and get rich quick and think they can outsmart the market etc. I’ve screwed up and done those same things but learned from my mistakes.

If one can invest 10-20% of their paycheck while working in diversified index funds and leave it alone for 30 years or more they will be fine.