You’re not as good a investor as you think

Today, I need to get something off my chest. Most of you will never become good wealth builders. Not because you don’t research enough. Not because the system is “rigged.” Not because you didn’t buy VWRA, CSPX, or VOO. Most will fail for three main reasons: 1. You miss the forest for the trees There are endless debates about which platform or fund is cheapest. Yes, paying 1.5–3.5% annually on ILPs or active unit trusts is a real issue. But obsessing over a 0.05% vs. 0.3% fee difference? It’s not wrong to care about efficiency, but our energy is finite. Many people spend so much time and energy nitpicking fees while bleeding hundreds or thousands elsewhere, whether through overpriced insurance plans or lifestyle creep. Congratulations, you bought the “perfect” instrument. But if your savings rate is weak, the single biggest driver of wealth, you’re still stuck. It’s like spending weeks choosing between Nike and Adidas, then only running once a month. 2. Mental accounting bias Too many investors are dishonest about their returns. If one-third of your money sits in cash “waiting for a dip,” another third is in speculative assets, and only the last third is in a proper diversified portfolio, you are likely not making 8-10% annually. You cherry-pick the best-performing slice, ignore the satellite portfolio when it tanks, and bury your losses deep in your subconscious. From the posts I see, I can deduce that most people’s real returns across your investible don’t even beat CPF SA or endowment plans once those hidden losses and opportunity costs are accounted for. 3. Your asset allocation doesn’t match your risk appetite Uncertainty is part of the game, that’s why equities outperform bonds and cash in the long run. Volatility is the price of admission. But many here can’t handle it, so they try to time the market, fail, and quietly vanish. The truth is, too many of you are 100% in equities when you shouldn’t be. A mix of stocks and bonds is sensible for most people, yet all I ever see here is: “VWRA VWRA VWRA.” Give me a break. In case it's not obvious enough, adding bonds as an allocation (90/10, 80/20, 70/30, 60/40) and rebalancing back to the intend allocation peridocially or even owning an indexed allocation fund or Robo if you're lazy, would go a long way. You would reduce your EXPECTED returns, but if that pushes you over the line to commit more into the markets, not market time, or not to sell during bear markets, it will go a long way in terms of what returns you actually REALISE. The multi-year bear markets will eventually come. We just don't know when. Be honest about your risk tolerance, especially now, in a bull market. Finding out your true risk profile in a bear market has terrible consequences. === At the end of the day, studies after studies show that the average investor is terrible. And joining this sub doesn’t make you an exception.