16: The Dangerous Illusion of Average Returns

19/06/2025 15 min
16: The Dangerous Illusion of Average Returns

Listen "16: The Dangerous Illusion of Average Returns"

Episode Synopsis


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.LINKS:1. Get a free one-on-one Financial Assessment2. Get my free weekly newsletter with exclusive content on financial education3. Free mini-course: Supercharge Financial Growth with Whole Life4. Work with me: Schedule a consultation(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