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Listen to the Episode Below (00:26:18)
Dave Ramsey Tweeted “Saving 100 dollars per month from age 25 to age 65 at 12 percent growth will turn into 1.176 million dollars.
This Tweet caused a huge uproar in the financial community.
To get to the bottom of this, OG from the Stacking Benjamins podcast shares his thoughts about:
- Average equity returns over the past 20 years
- Average investor returns over the past 20 years
- Studies that show that investor behavior doesn’t make 12%
- The average investor can retire if they save some money every month
OG also shares two of his sources for this information:
- A Dalbar study: Quantitative Analysis of Investor Behavior 2013
- Wall Street Journal article: Small Investors Flee Stock
Thanks for the fantastic interview with OG. You didn’t need to do this, Steve. His head was already big enough….now we’ll never get him into the basement. The show is now live and I hope people give it a spin. We’ve had some nice comments today about Episode #1.
You guys nailed it. 12% is irrelevant. Save money. Invest responsibly. Get your life moving. Great show.