How to Maximize Your Investment Performance

August 2, 2019

We have done a lot of shows on how much you should be saving, and plenty of people wonder how we come up with the rates of return we mention. We actually think these are great questions, so in this episode of The Money Guy Show, we get into historical averages and how we arrive at the rates of return we discuss in this episode and others.

Investing is a powerful tool that can help you put your army of dollar bills to work and build wealth. How much wealth? Well, join us as we take a look at the data. 

Yes, you can make money investing. And, no, it’s not gambling! Tune in today as we share all the tools you need to maximize your money in the investment universe! We have the numbers that will prove you can make money investing, the experience to teach you how it all works, and how to use the most popular investment tools to your advantage!

Here is what you will learn in today’s episode:

  • Historical asset class performance over the last 10 years and long term 
  • How to understand the impact behavior has on investor performance, as shown by Dalbar
  • What historically happens when investors try to outperform the indices
  • Over the last 20 years, how the average investor performed relative to the S&P 500 and what it reveals
  • All the reasons why the average investor underforms indices
  • The biggest mistakes people make when it comes to investing (even though they “know” better)
  • Why people tend to be skeptical and cautious about investing, but what the data reveals is actually the natural state of the economy
  • Why downturns and market volatility are beneficial to young investors
  • What the absolute worst thing you can do with your investments during a market downturn
  • What Dollar Cost Averaging is and how it works
  • Why investing isn’t random, but follows a cyclical pattern and what investors can do to capitalize on that
  • Which financial habits you should focus on more rather than chasing returns
  • When target date retirement funds are most useful and how to know when you have possibly outgrown them
  • How to overcome analysis paralysis when it comes to investing and just do it

Resources and Research Cited in this Episode

Related Money Guy Shows

Enjoy the Show?

Tune In and Go Beyond Common Sense with the Money Guys

This show would not be what it is today without the support of our wonderful listeners. We strive to continue making the show better and your feedback is an important part of that process.

If you have any questions/suggestions/comments/concerns (or just want to say hi!), feel free to reach out to us: [email protected] and [email protected] You can also join the conversation on The Money Guy Show Facebook page or connect on Twitter @MoneyGuyPodcast.

If you enjoyed this episode, be sure to join our community! You’ll never miss special announcements and offers, plus you’ll get future podcasts and blog posts delivered straight to your inbox so you can get in on the action right away.



Most Recent Episodes

Financial Advisors React to Money Advice from ChatGPT

Will ChatGPT be your new financial advisor? In this react episode, we’ll break down some money advice from ChatGPT and compare it to our own thoughts and opinions. Enjoy the Show? Sign up for the Financial Order of Operation (FOO) Online Course! Sign up for our Know...

Financial Planning 101 (By Age) 2023 Edition

Throughout every decade, there are different areas of your financial life that come in and out of focus. In this episode, we'll discuss what you need to focus on by age, pitfalls to watch out for, and how to know you're doing it right. In this episode, you'll learn:...

Is the 2023 Housing Crash Around the Corner?

Housing prices skyrocketed after the pandemic to all-time highs, and mortgage rates have more than doubled since 2020. Homes are harder to purchase for more Americans, which means it’s more important than ever to make sure you are ready to buy before purchasing. In...

Watch This Before Rebalancing Your Investment Portfolio!

85% of Americans don’t rebalance their 401(k). Are they making a huge mistake? In this episode, we’ll discuss the “why” behind rebalancing, how to do it, and the data on whether or not rebalancing can increase your return. In this episode, you’ll learn: What...

Don’t Make This HUGE 401(k) Mistake!

Americans are making a HUGE mistake in their 401(k) that could cost them thousands by retirement. We’ll talk about why this is happening and how you can avoid making the same mistake in this Q&A episode! For more information on how to make the most out of every...

Alex Hormozi’s Top Money Advice! (Financial Advisors React)

In this episode, we react to Alex Hormozi's financial advice. Enjoy the Show? Sign up for the Financial Order of Operation (FOO) Online Course! Sign up for our Know Your Number Course! Check out our Net Worth Tool! Get FREE downloads full of financial advice from...

Everything You Need to Know About Finances in Your 20s

In this episode, we discuss everything you need to know about finances in your twenties. In this episode, you’ll learn: The top financial advice for your twenties How to start building wealth and the steps you should take Enjoy the Show? Sign up for the Financial...

The Most Valuable Asset in Building Wealth!

This episode will show you how to maximize the most valuable resource you have - starting right at this moment. What is it, you may ask? It’s TIME. If you give your money time to grow, you’ll be amazed at how much your dollars can become - it’s incredible! How wild is...