2. Consider finding a fee-based investment advisor who uses a facts-based methodology and has a track record indicating those kinds of returns. For example, in my own practice I used a trend tracking approach to get my clients into market on April 29, 2003. Plus, our research and homework led us to recommending funds that gained anywhere from 11.50% to 22.00% over following 6 week period. How did you do during that time? Do you think any of my clients care whether one of these funds has a small 12b 1 charge? Or whether they have lowest expense ratios in industry? I know they don't. (If you are looking for an advisor, please see my article “How to find an Investment Advisor” at http://www.successful-investment.com/articles18.htm)

The bottom line is to look at costs as balanced by performance and that's where you find value. Then seek true value not simple savings, enjoy healthy dollar-level returns and don't sweat pennies.

So what can you do to get better results than those achieved by average investor?

Bogle is known for his support of index funds to reduce fund costs. We agree that this is certainly part of solution. We also feel that you should choose fund companies and products whose management fees are among lowest.

But, unfortunately, indexing to S&P 500 would not have helped you a great deal during last 5 years; total return for this itself somewhat undiversified index of U.S. large cap stocks has been a miserable -1.6%. And, unfortunately, human nature, and changing financial and personal circumstances make it all more difficult to hold any investment year after year for a decade or two, as would have been required to emulate results above.

Even if you are confident in your own research or rely on data provided by a trusted resource, I still recommend that you consider how above data might be affecting how well you are really doing in your investments, year after year.

For more thoughts on how to avoid losing above 6.6% annual return, largest part of why average mutual fund investor underperforms, you should invest a little time checking out some of relevant articles at my site at http://funds-newsletter.com