To catch up, you need a quick five-year annualized return more like 23%. Today’s SPX would have to reach 3200 to meet that goal – and all-time high is only 1552. Plus you have to exercise perfect discipline and never try to time market swings yourself. Fat chance.

Dollar-cost-averaging in your IRA or 401K (buying more index fund shares every month) might smooth out bumps, but fundamental problem remains.

Since I took over my own portfolio full-time in 1998, I did two important things right (and dozens and dozens of things wrong, fewer each year I hope): I took advantage of fat years in 1999 and 2003 to rack up 150% and 99% returns. And my net returns for all other years were flat. Up or down a few percent, but no big annual losses. Ever. When markets went into freefall, I stayed mostly with value stocks and survived.

Let me shout to get your attention – FOR LONG-TERM RETURNS THAT REALLY MAKE YOU WEALTHY, YOU HAVE TO BEAT THE MARKETS YEAR IN AND YEAR OUT. Not just match what rest of herd gets.

You have to do what experts say can’t be done. Of course, if you listen carefully you find that they are really saying that most managers and individual investors DON’T beat market, not that it can’t be done.

Hundreds of millions of people invest in stocks worldwide. If only a relative handful ever do better than markets, that’s still several million. No reason you can’t be one of them.

All it takes is curiosity. And time. And effort.

You have to be curious enough to go looking for best stocks, best funds or best manager you can find to manage your retirement portfolio. You have to read more than headlines in financial press, and have some idea where broad market trends are going.

Most of all, you have to accept that in your lifetime, market may not just hand you a fat return for nothing. You will have to earn it. The good news is that there is always a way to do better.

If you don’t fall behind curve.

Dale Baker, co-editor at http://www.howtotradestocks.com, is a private portfolio manager with international clients invested in the US markets. His “50% Gains Investing” thread on SI dates back to 1997, including a model portfolio with a 400% overall return since inception.

"Yeah, but I want more! I want money and lots of it!" Come on admit it, how many of us have thought that to ourselves or maybe even said it out loud? Okay, so you don't just want to be spiritually rich or third world country rich, you want to be America rich. You do understand that you really have to give something of value in exchange for that money? Look at American people. What do they want? What do they need? What do they fall in love with? What are they obsessed with? How can you meet a need in American people that will equate to financial situation that you desire? Pick something and take action.

If you're working your buns off and money doesn't flow and you aren't having a good time doing it, then you need to chalk it up as a learning experience and move on to another idea. No harm done, just keep searching your own talents and skills until you find something that you can give to world that will return to you lifestyle you envisioned for yourself. Better make sure that you aren't working so hard that you never get to spend that money. Did you remember to affirm balance and harmony along with that paycheck? Did you remember to pray for adequate time off from your work so that you could laugh and play? Perhaps you should choose a gift that you love giving. You know what they say, do something that you love and it'll never feel like work again. I've also found that it's true, if you love your work, you will naturally excel. Maybe not at fast speed that you want, but expertise will come as will money.

If you've found your bliss in your career and you are grateful for gifts life has given you but money still isn't flowing, then maybe you need to look at whether or not you are really ready. Perhaps you need to learn some lessons about organization, time management, or balance first. Look at your life realistically, are you emotionally and spiritually mature enough to be given kind of money you're asking for? When you are, you will realize that you are fully and completely in flow. Take what you need from life's abundance and enjoy.

Copyright 2004, Skye Thomas, Tomorrow's Edge