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138                                   Don’t Make Me Say I Told You So





               BloombergBarclays Aggregate Bond Index  Average Fixed-Income Fund Investor
                 Average Annual Total Return 1999 - 2018 – 4.5%  Average Annual Total Return 1999 - 2018 – 0.22%
              Assumption: $100,000 investment over 20 years, compounded annually.   Assumption: $100,000 investment over 20 years, compounded annually.
                     1  :  $104,550.00  11  : $163,141.48  1  :  $100,220.00  11  : $102,446.80
                 PLEASE REPLACE                        2  :  $100,440.48  12  : $102,672.18
                               12  : $170,564.42THIS WITH CHART #115 -
                     2  :
                        $109,307.03
                     3  :  $114,280.49  13  : $178,325.10  3  :  $100,661.45  13  : $102,898.06
                 BARCLAY'S INDEX VS. AVG INVESTOR - $100K - 20
                                                          $100,882.91
                                                       4  :
                                                                 14  : $103,124.43
                               14  : $186,438.89
                     4  :
                        $119,480.26
                                                                 15  : $103,351.31
                                                          $101,104.85
                     5  :
                               15  : $194,921.86
                        $124,916.61
                                                       5  :
                 YEARS. IT'S IN OUR SHARED DROPBOX FOLDER.
                     6  :  $130,600.31  16  : $203,790.81  6  :  $101,327.28  16  : $103,578.68
                     7  :  $136,542.63  17  : $213,063.29  7  :  $101,550.20  17  : $103,806.55
                     8  :  $142,755.32  18  : $222,757.67  8  :  $101,773.61  18  : $104,034.93
                     9  :  $149,250.69  19  : $232,893.15  9  :  $101,997.51  19  : $104,263.80
                     10  :  $156,041.59  20  : $243,489.78  10  :  $102,221.91  20  : $104,493.19

                     Final Portfolio Balance: $243,489.78  Final Portfolio Balance: $ 104,493.19
            If we assume that this portfolio never increased in value again,
            the average fixed-income investor would have approximately
            $139,000 less than if they had invested in a bond index fund
            that tracked the Barclays index and simply left it alone.
               Over a 20-year retirement, this means that the fixed-income
            investor would have approximately $6,950 less income per year
            than they would have by buying and holding. That translates
            to  approximately  $580  a  month  less  income  compared  with
            holding onto a bond index fund.

               Taken together, the average investor who invested $200,000

            in a portfolio of 50% bonds and 50% stocks 20 years ago would

            have approximately $224,000 less in their retirement accounts
            than they might have with a steadier approach. Over a 20-year
            retirement, that means $11,000 per year less income than if the

            investor had split the money between stock index funds and






                          Chapter 4: The Most Common Investor Mistakes
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