For instance, Vanguard’s study of Advisor’s Alpha identifies the most important factor explaining investor underperformance is a lack of behavioral coaching to help investors stay the course and stick with their plans. They estimate that having the wherewithal to stay the course in times of market stress could add 1.5 percent of additional annualized returns to the portfolios of typical investors. In other words, without behavioral coaching, the typical investor could expect to underperform the markets by 1.5 percent per year due to poor decision-making.
