16: The Dangerous Illusion of Average Returns
Manage episode 489691428 series 3639347
Average rates of return are a dangerous illusion based on flawed statistics. In most cases throughout history, real returns were lower than market averages, and the difference was in the millions.
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- (00:00) - Introduction and Common Financial Advice
- (01:19) - Debunking the Average Rate of Return Myth
- (02:15) - Statistical Errors in Rolling Averages
- (05:52) - Real-World Consequences of Misleading Averages
- (06:37) - Examples of Misleading Market Returns
- (09:39) - The Reality of Long-Term Market Performance
- (12:59) - Yes, Invest, But Also Do This
- (13:57) - Building a Safe Financial Foundation
- (14:30) - Stacked Life's Approach to Financial Security
- (15:02) - Free Financial Assessment
17 episodes