Stocks can help, but be careful – Minneapolis Star Tribune

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Ask any investor how they have been doing recently and the answer is probably, “I’ve been crushing it.” But have they really?

Lately, out-earning the market hasn’t been easy. Over the past three years, the Standard & Poor’s 500 index has increased 26 percent as of mid-June. All you had to do to get those returns was invest in a low-expense S&P 500 index fund and sit tight.

We have all been dealt a hot hand. But for many investors, that’s not good enough. They take on unnecessary risk, sometimes without realizing it, to the point where excitement, excessive investing expenses and failed attempts at market timing leave them with market-trailing returns.