Achieving a Successful Retirement Part 5: Appropriate Investing Behaviour Is Key

Hi I’m Chad Ekren. Thanks for joining us.

A revealing study by DALBAR Inc. found that for the 20 year period ending in 2012, the S&P 500 had an average return of 8.21% per year while the average investor received an average return of just 4.25% per year. That’s only about half of what the market returned.

What caused this gap? Behaviour, bad behaviour - not good behaviour. What do I mean by “bad behaviour”? Unfortunately, as human beings, we’re hard-wired to fail when it comes to investing. We struggle with the many natural emotions including Fear, Panic, Over-Confidence, Greed and many more. These natural emotions result in us making many mistakes that keep us from achieving our financial goals.

Returns between 1992 and 2012

8.21% is a very good 20 year average return. What would you have to do to get such a return during this time period? The answer is simple, but it’s not easy: Nothing. That’s right, just live your life, ignore all the noise and do nothing.

Don’t try to time the markets, don’t get caught up buying the hottest 5 star funds, don’t become impatient and sell high quality investments when they go through a period of under-performance as most investments will.

If you’re willing to admit that your own emotions have caused a behaviour gap with your investment results, I suggest you consider hiring an investment advisor who focuses on behavioural counselling. Someone who is both experienced and knowledgeable, but most importantly understands that appropriate investment behaviour, not investment selection or market timing, is essential to achieving a successful retirement.

I encourage to watch our next video. But before doing so, do you know your successful retirement number? That is the amount of money you need to achieve a lifestyle sustaining income and a legacy for those you love. If you don’t know your number, give us a call and we can help you figure it out.


This video was prepared solely by Chad Ekren, Joe Goncalves, and Geoffrey Perrin who are registered representatives of HollisWealth®, a division of Industrial Alliance Securities Inc., a member of the Canadian Investor Protection Fund (CIPF) and the Investment Industry Regulatory Organization of Canada (IIROC). The views and opinions, including any recommendations, expressed in this video are those of Chad Ekren, Joe Goncalves, and Geoffrey Perrin alone and not those of HollisWealth®. Capital Concepts and Capital Concepts Group are personal trade names of Chad Ekren. HollisWealth®, a trade name of Investia Financial Services Inc.