The Behavior Gap: Why Investors Underperform the Market

The behavior gap is the difference between the smart financial decision and the one you actually make, and it quietly erodes long-term investment returns for most people. In this episode, Ryan explains the concept as defined by Carl Richards and shows how emotional reactions to market drops, like selling at the bottom, create a gap between what the market returned and what the investor actually kept.Research from Vanguard and Fidelity suggests a financial advisor can add roughly 3 to 5 percent in annualized returns, and Ryan argues most of that value comes not from stock picking but from helping clients close the behavior gap. Aaron and Ryan talk through practical ways to recognize this pattern in your own decisions before it costs you.Find "Your Fiscal Physical" the book on AmazonIf you have suggestions or feedback, please email us at: [email protected], as always, Stay the Course!