Better Than Average

A useful statistic to keep in mind next time you're on the road: The vast majority of people believe they are an above average driver.

When surveyed, as many as 80% of Americans were confident they rank in the top 50%. And this confidence extends to a wide range of other areas as well.

Over a 15 year period, only 8% of actively managed, large-cap funds outperform the overall stock market. In other words, picking stocks is a losing game over a long enough time, compared to passive index funds.

Of course, there's only one way to find out if you're among the 8%. If that's the game you want to play, go for it! But be sure to enter into it with eyes wide open.

In this case, acknowledging you're probably not in the 8% will likely leave you with more money when you retire.

To be clear, confidence in oneself extremely important. But when confidence turns into hubris, we can lose the ability to see ourselves and the world clearly.