E6: Don’t be Deceived by Rate of Return
In this episode of Dollars and Nonsense, Nate and Holly discuss how your investor could be deceiving you when it comes to your average rate of return. This manipulative trick can disrupt your financial goals without you even knowing it. Tune in to hear how you can be proactive in your banking and separate yourself from the crowd to gain real wealth.
Plus, learn the “Wal-Mart approach” to becoming wealthy that has created one of the most prosperous businesses in the world.
- How you can still lose money with a positive average rate of return
- Why investors are lying about your rate of return
- How not to fall for your investor’s advice
- How to recapture money that’s leaving
- Why you should choose a whole life insurance policy instead.
“Instead of everyone trying to go find a place to get the highest rate of return, people should really be focusing on getting a consistent rate of return on more money.”
“With the average rate of return there are a lot of issues … It’s always before fees, and [it] doesn’t even include the impact of a down year—any time you have a down year in your portfolio, if someone hands you an average rate of return report, you can just rip it up, because it doesn’t mean anything.”“You don’t have to earn a huge rate of return and take a lot of risk to become wealthy if you just learn to make a rate of return on a higher amount of the dollars that end up flowing through your pocket.”
“Everyone’s trying to show you a great picture of a return number to get you to invest with them, and now that everyone knows that the populace is so focused on rate, they’ll manipulate the numbers and use deceiving measures to get you to invest with them, and most of the time it’s not true.”“Make more money by increasing how much money you’ve got coming back to you. Don’t go out and try to get the highest rate and put in as little into the game as you can. Learn to be able to put more in by the process of banking and recapturing.”
“It’s very easy to have a positive average return, which is displayed, but actually end up losing money. And people don’t understand that. This is probably the first and biggest myth out there about rate of return: rate of return is a very manipulative number, a deceptive number, because people can just pull it out of their hat.”
“One of the things we like about using life insurance policies [is] it’s not really built on a rate of return. Rate of returns are deceptive, and people can manipulate those numbers. But inside of a participating whole life insurance policy, you don’t have a guaranteed rate of return necessarily; it’s actually a guaranteed cash value.”
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