I averaged about a 12% return last year from the stock market, is this above or below average for an investor?

That's an excellent question. If you spread your money across the US stock market then the answer is you did very good.

Do you know your beta (risk) and alpha (return relative to risk) numbers for your investment portfolio? If you have a beta of 2, lets say, and the market was up 6.5% then you did poorly. A beta of 2 would suggest you should have gotten twice the market's return. But let's say your beta is a 1, meaning your investments were about equal to the market in risk (up and down volitility), then you did well and you have positive alpha.

Get to know these numbers. Utilize Morningstar to help you analyse your portfolio.

I'm a professional, and I'll admit I got less than 12% last year. If our beta is about the same, then you had more apha than I had and that makes you an alpha investor! ;-)

Best of luck in 2008

I'd say 12% is fairly average return. Not know what type of investments, it really hard to tell. Should check out yahoo finance, probably find a better answer there cuz you will know which type of investments you had so you can compare apples to apples.

For last year, its par. But not all years are like that.

Not bad is it? Compare it with the rise in the FTSE 100 Index. You will see if you have outperformed the Market or not. Can you do it again or is it beginners luck?

10-12% a year is the historical average. Since the market was broadly flat, you did well. The way to make the most money is to pick an "asset allocation" suitable for your circumstances, and stick to it. Review & adjust it once a year or so, and otherwise enhance growth by not wasting money paying for trades...