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