The term Average Rates of Returns and Actual Rates of Returns are two totally separate things.

Just because we are told that an Average Rate of Return is 8% doesn't mean that's what we ACTUALLY achieve.

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Excellent compliment articles to go with the video above:

CAGR vs. Average Annual Return: Why Your Advisor is Quoting You the Wrong Number by Hans Wagner

Did Your Broker Mislead You? Why Real Returns Don't Equal Average Rates of Return by Kim Butler‍

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It's important to understand the concepts of compounding, average rates of returns and lost opportunity cost.

Understand in the video above that finding an average rate of return at 7% in a tax-deferred or taxable bucket, deteriorates the actual rate of return.

You'll need a higher average rate of return to combat taxes.

Compounding is not as successful in an account that appreciates and depreciates.

Most people put their money in a qualified plans that are not liquid assets to you--you're losing opportunity cost, your money only has one job.

What if your money could grow, compound, tax free returns, and be used to leveraged opportunity?

TL;DR....If you haven't started saving early. And you don't have more than 2M saved for retirement (i.e., a 60k/year retirement). You have to start finding alternative saving ideas. Passive income is the answer if you don't have time on your side.

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