Comments on: Studies Show the Less You Do With Your 401(k), the More You Earn http://www.bemanaged.com/2010/02/19/studies-show-the-less-you-do-with-your-401k-the-more-you-earn/ 401k Advice You Can Trust Mon, 23 Jan 2012 23:10:37 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jeff http://www.bemanaged.com/2010/02/19/studies-show-the-less-you-do-with-your-401k-the-more-you-earn/#comment-20 Jeff Sat, 06 Mar 2010 03:26:42 +0000 http://bemanaged.com/index.php?option=com_wordpress&p=475&Itemid=68#comment-20 This has always been an interesting phenomenon with investing with any type of account. Fear of loss and greed for more gain create knee-jerk reactions by investors to trade AFTER significant market movements. Thereby setting the portfolio perfectly out of position for any subsequent swings in the opposite direction. One of the PRIMARY functions of an advisor is to become become a barrier between an investor and their portfolio, so fear and greed do not interfere with uneven portfolio growth. This has always been an interesting phenomenon with investing with any type of account.

Fear of loss and greed for more gain create knee-jerk reactions by investors to trade AFTER significant market movements. Thereby setting the portfolio perfectly out of position for any subsequent swings in the opposite direction.

One of the PRIMARY functions of an advisor is to become become a barrier between an investor and their portfolio, so fear and greed do not interfere with uneven portfolio growth.

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