Ben Felix | Geometric vs. arithmetic returns @BenFelixCSI | Uploaded November 2023 | Updated October 2024, 2 hours ago.
Yesterday I posted a video explaining why Dave Ramsey’s claim that retirees can safely spend 8% of their portfolios did not make sense.
I realized after posting that his claim was even worse than I initially thought.
The S&P 500 returned around 12% per year 1926-2022 measured as an arithmetic average.
Measured as a geometric average, which is what matters to investors, it has been closer to 10%.
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------------------
Yesterday I posted a video explaining why Dave Ramsey’s claim that retirees can safely spend 8% of their portfolios did not make sense.
I realized after posting that his claim was even worse than I initially thought.
The S&P 500 returned around 12% per year 1926-2022 measured as an arithmetic average.
Measured as a geometric average, which is what matters to investors, it has been closer to 10%.
------------------
Follow Ben Felix on
- Twitter: twitter.com/benjaminwfelix
Visit Rational Reminder: rationalreminder.ca
Join the Rational Reminder Community: community.rationalreminder.ca
Follow the Rational Reminder on:
- Twitter: twitter.com/RationalRemind
- Instagram: instagram.com/rationalreminder
Visit PWL Capital: pwlcapital.com
Follow PWL Capital on:
- Twitter: twitter.com/PWLCapital
- Facebook: facebook.com/PWLCapital
- LinkedIn: linkedin.com/company/pwl-capital
You can find the Rational Reminder podcast on
Google Podcasts:
google.com/podcasts?feed=aHR0cHM6Ly9yYXRpb25hbHJlbWluZGVyLmxpYnN5bi5jb20vcnNz
Apple Podcasts:
itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582?mt=2
Spotify Podcasts:
open.spotify.com/show/6RHWTH9iW7hdnA7eAg7ukO?si=hjZNfLKuSjSeWX38GPqhVA
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