In the financial plans that we build with our clients many assumptions are used. One of the most important being the investment return you may receive.
We use an average return which is an estimate of what the long run average might be. We also spend time discussing how variable investments returns can be year to year and that we only achieve the average returns by enjoying the positive years and tolerating the negative years.
This short 1 minute video by one of our investment partners Dimensional shows how infrequently an average return is actually received on a year by year basis.
Click on this link to view –