S&P 500’s 20 year average annual rate of return: 9.22%

The average equity Investor’s 20 year return: 5.02%

The average annual cost of market timing: 4.20%

Source: Dalbar’s 20th Annual Quantitative Analysis of Investor Behavior, 2014 Advisor Edition

The Cause:
Investor Behavior – Panicking out a market lows, buying into euphoria at market highs and plain old fashioned market timing.

The Solution:
A properly diversified, high quality portfolio, left alone to do it’s job.