Latest / Retire Smarter with Kevin Kroskey, CFP® & Tyler Emrick, CFA® CFP®
Ep 66: Proper Investment Expectations & Standard Deviation
If your head is in the freezer and your feet in the oven, on average you may feel quite comfortable despite suffering from two extremes. San Diego type weather on the other hand will leave you consistently comfortable over time.
Averages are commonly used to discuss investment returns, but they are an oversimplification. You don't receive average returns. Compound returns drive your dollar growth and the variability in returns -- or standard deviation -- causes the compound return to always be less than the average return.
Listen to Kevin discuss this core building-block concept and how it…
The skinny
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