Most us want to invest in the markets, and we seek to invest to maximize returns. This is a rational desire. We are often faced by the paradox – invest broadmarket and be satisfied with average market returns vs cherry picking stock and timing the market with the hope of better than market average returns.
The market history shows us that over long periods of time you get a decent inflation adjusted, after tax/expense return. Alternative path is an active investing approach which takes time, effort, control over emotions and skill. Most of us simply don’t have it in us to be an active investor – nor can we take the expense & risk of hiring some to do it on our behalf.
So, the trick is to choose low-cost index funds, dollar cost average and stay in the game over a long time.