Retire Smarter with Kevin Kroskey, CFP® & Tyler Emrick, CFA® CFP®
Business:Investing
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 relates to your investments, risk, diversification, and retirement planning success. You may hear the geek alert on this episode, but having an understanding of standard deviation can help you be a better, more disciplined investor and put the odds of retirement success more in your favor.
Timestamps:
3:54 - Re-Cap On Topics From Episode 65
6:28 - Bell Curve
10:49 - Health Analogy
15:00 - Proper Expectations
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
Ep 67: Beyond Diversification: Terminal Wealth Dispersion
Ep 65: Should You Continue To Hold An Underperforming Investment?
Ep 64: Investment Lessons To Learn From 2020
Ep 63: 3 Ways To Tax-Optimize Your Charitable Giving
Ep 62: Pension Lump Sums: 2021 May Be The Best Year Ever
Ep 61: The True Wealth Team Is Growing - Welcoming Ron Wyatt
Ep 60: Why The Cheapest Investment Option May Not Be The Best
Ep 59: Retiree Health Insurance Part 2: Pre-Medicare
Ep 58: Retiree Health Insurance Part 1: Medicare
Ep 57: A Tale of Two Decades
Ep 56: Should The Election Influence Your Investing Strategy?
Ep 55: Roth Conversion: Why 2020 Could Be The Best Year
Ep 54: Should You Delay Retiring?
Ep 53: Investing Vs. Speculating Part 2
Ep 52: Investing Vs. Speculating Part 1
Ep 51: Case Study: Retiring Before Age 60 & Before You Ever Thought You Would
Ep 50: What To Do When Your Spending Goals Change After You Retire
Ep 49: Potential Inheritance: Include In Your Retirement Plan Or Not?
Ep 48: Why Big Tech Stocks Must Underperform
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