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Too often, it persuades investors to make questionable moves.
Offered by T. Lloyd Worth, Worth Financial Partners

Fear affects investors in two distinct ways. A bulletin, headline, or sustained economic/market trend can make them question their investing approach causing them to sell low now and buy high later – or worse, derail their whole investing/retirement strategy.

Alternatively, some may experience the fear of being too involved in the market. People with this worry are often superb savers, but reluctant investors, amassing large bank accounts, yet their aversion to investing in equities may hurt them in the long run.

Impulsive investment decisions tend to carry a cost. People who jump in and out of investment sectors or classes tend to pay a price for it. A statistic hints at how much: across the 20 years ending on December 31, 2015, the S&P 500 returned an average of 8.91% per year, but the average equity investor’s portfolio returned just 4.67% annually. Fixed-income investors also failed to beat a key benchmark: in this same period, the Barclays Aggregate Bond Index advanced an average of 5.34% a year, but the average fixed-income investor realized an annual return of only 0.51%.¹

Worth FinancialThis data was compiled by DALBAR, a highly respected investment research firm, which has studied the behavior of individual investors since the mid-1980s. The numbers partly reflect the behavior of the typical individual investor who loses patience and tries to time the market. A hypothetical “average” investor who merely bought and held, with an equity or fixed-income portfolio merely copying the components of the above benchmarks, would have been better off across those 20 years. In monetary terms, the sustained difference in performance could have meant a difference of hundreds of thousands of dollars in earnings for an investor across a lifetime, given compounding.¹

Other people are held back by their anxiety about investing. They become great savers – but they never sufficiently invest their money.

How much interest are their deposit accounts earning? Right now, almost nothing. If they invested more of the money into equities – or some kind of investment vehicle with the potential to outrun inflation – invested dollars could grow and compound over time.

A large emergency fund is great, but arguably, a tax-advantaged retirement fund of invested dollars is better. Seen one way, a focus on cash is financially nearsighted, ignoring the possibility that greater abundance is possible through sustained investment.

Fear dissuades some from sticking with a long-term financial strategy and discourages others from developing one. Patience and knowledge can help investors contend with the fears that may risk hurting their retirement saving prospects.

T. Lloyd Worth may be reached at (303) 558-0214 or email:,

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Securities and Advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC ( /

¹ – [5/22/17]

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Worth Financial Partners