05/01/2026
Index funds give you the average return of the market, but don't get it twisted. The average of the market is WAY better than the average investor's returns.
Most retail investors act emotionally when investing. This isn't an insult, this is just because we are all human and we make human decisions. We get worried, we act on impulse, and we have bias that are so deeply engrained that we don't even know they are there. That is EVERYONE.
The tough part is that when we let those human aspects control our investing decisions, on average, we will underperform. That's not an opinion, that's the data.
The average investor underperforms the market because the average investor is way too active in making investment decisions. The market is efficient, so acting in a way to try and beat the market will usually hurt you.
If 7.1% vs. 10.7% doesn't sound like a lot to you, over this 30 year period of investing $500 a month, it will make a difference of over $600k ($600k vs. $1.2m in terminal value).
Investing consistently in the market through the ups and downs can be hard, and that's why most people don't do it. For those who are able to do it though, it certainly pays off!
- Matt
P.S. Car insurance rates have been up a LOT in the past year. If you haven't price shopped your rate in a few months, comment "car" and I'll send a quick quiz to you on messenger so you can see if you can save any money (free quiz, takes
