Dalbar Inc., a private investment research company, has released its annual Quantitative Analysis of Investor Behavior survey, or QAIB, since 1984.
When it comes to investing, according to QAIB research, people are always their own worst enemies.
Many investors lack the experience and/or willingness to practice the discipline required to reap the rewards of markets over longer time horizons.
The QAIB for 2021 reaffirms previous studies that fund investors who stayed optimistic and didn’t concentrate on short-term market gyrations outperformed those who let their emotions overwhelm a longer-term wealth-building strategy.
Advisors believe that knowing your risk potential and using resources like the retirement analyzer to give you trust in your ability to achieve long-term financial success is critical.
For the past 20 years, the bar chart below shows the success and growth of $100,000 between the average equity investor, various commercial indices, and the IFA Index Portfolio 100. (through 2020).
As true fiduciaries to our clients, this behavioral finance research adds to the proof that IFA’s greatest benefit is in helping them stay disciplined and committed to their long-term financial goals.
To put it another way, our wealth advisors are committed to engaging with clients objectively to ensure that they do not become their own worst enemies.