Your Average Rate of Return is a LIE: Average vs. Actual Return

#investing #roi #averagereturn #investing101

Have you ever wondered why average rates of return get thrown around and advertised and then your portfolio doesn't seem to grow to the level you thought it would?

This is a little exercise I like to show people why your average rate of return is a lie. If you have 1 negative year or number in an average the numbers become skewed and inaccurate.

The only way to really achieve a true average rate of return is by never having a loss. You can achieve this in the case of indexing with certain caps and floors so you will never lose when the market goes down and only participate in the gains when it goes up. More on that in other videos.

What do you think of this exercise? Let me know in the comments! 💬

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⚠ If everything you believed to be true about money and retirement turned out to not be true, when would you want to know?

There are so many myths and misconceptions around the subject and our goal is to provide you with the FACTS and teach you why it's more important to learn "how to invest" versus "what to invest in."

If I were to send you out to play in a pro golf tournament tomorrow... would you want your favorite golfers clubs or their swing? You see most people out there are selling "clubs" or an investment product without fully educating you on the "swing" of how money works. If you know anything about golf, the SWING is what makes the golfer.

If you believe like most financially educated people that taxes will be higher in the future, what is your plan?

There are only 3 ways to grow your money:
🌱 TAXABLE
🌱 TAX-DEFERRED
🌱 TAX-FREE

Are you going to be reactive or proactive? It really is your choice.
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👇 Use the links below to connect with us further and to get more education or to set up a 1 on 1 no-cost, no-obligation appointment with James where he can review your current plan and give you more clairty, balance and focus going forward.

💻 https://www.yoursafemoneypeople.com
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