Josh Scandlen Podcast

In the previous episode  (https://youtu.be/S34U7tDqr4w) we discussed how Dave Ramsey made the HUGE mistake in mixing average market returns with volatility. It is true the market has returned over 10% a year since 1926.  However, the mistake Dave makes is assuming that means one can take a distribution of anything less than 10% and NEVER TOUCH PRINCIPAL.  This is a horrendous mistake to make. And for those who follow that advice they could easily find themselves out of money before they are out of time.  In this episode I bring back the Vanguard report that shows the volatility of the market going back nearly 100 years.  What Vanguard shows us is that while the average return has been a bit over 10% only 6% has the market actually given us a return in ANY given year of between 8 and 12%!   This means the VAST, VAST majority of times the market gives us numbers way above, or way below, average.    What this means is you simply can not use an average rate of return t