Being a successful investor was easy from 1982 to 2000. Pick a mainstream mutual fund and you would see 20 percent returns every year, or more. Pick a stock even a company that looked bad and it might well increase 20 percent per year. Although the market did drop from time to time most dramatically in October 1987 those who stuck with it were generally made whole and more than whole relatively soon.

The psychology of the day was simple: The stock market is the only place to be. You're a fool not to be playing the game.

In many ways, I believe this is still true. Every investor needs exposure to the markets. Yet at the same time, every investor needs to do some direct analysis. It is a big mistake to rely completely on the advice of others. You spend many hours every year making money. Shouldn't you spend time making sure it grows?

This do-it-yourself message may not sit well with mutual fund managers. After all, the theory of the mutual fund is that for a small fee you get diversification and professional management. This is true. Despite this, of the more than 5,000 mutual funds, do you know which ones to pick? You see, even if you decide mutual funds are your bag, you still need to do some homework.