Investing Blog

Finance Blogs » Investing Blog » Americans confident about investing

Americans confident about investing

By Sheyna Steiner ·
Wednesday, July 23, 2014
Posted: 10 am ET

How can you know what you don't know? That is the problem at the heart of getting people professional help with investing. Well, it's one of them anyway.

A Harris Poll released earlier this month found that three-quarters of the population say they are concerned about having enough money to retire, but less than half of the poll respondents say they need guidance on investing their savings.© Getmanets/

Evidence points to the possibility that maybe people need a little bit more help than they think. This year's Quantitative Analysis of Investor Behavior from DALBAR, a financial services market research firm, showed, again, that investors tend to be their own worst enemies.

The average stock investor got a return of 25.54 percent in 2013 compared to 32.41 percent for the Standard and Poor's 500 benchmark index. In a year where it was hard to pick the wrong stocks, people probably took on more risk than was necessary, according to DALBAR's analysis.

But, the rubber meets the road when the market declines. That's when the most egregious investor mistakes are made, DALBAR reports. Not coincidentally, that is when investment advisers earn their keep as they advise clients to stay the course and talk them out of rashly selling investments when the market is down.

Get more Investing News with our free weekly newsletter.

Follow me on Twitter @SheynaSteiner

Senior investing reporter Sheyna Steiner is a co-author of "Future Millionaires' Guidebook," an e-book written by Bankrate editors and reporters. It's available at all the major e-book retailers.

Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
1 Comment