ABOUT HOSTS

Joe Anderson
ABOUT Joseph

As President of Pure Financial Advisors, Joe Anderson has led the company to achieve over $2 billion in assets under management and has grown their client base to over 2,160 in just ten years of the firm opening. When Joe began working with Pure Financial in 2008, they had almost no clients, negative revenue and no [...]

Alan Clopine
ABOUT Alan

Alan Clopine is the CEO & CFO of Pure Financial Advisors. As CEO he currently leads Pure Financial Advisors along with our executive team. As CFO he is responsible for the financial operations of the company. Alan joined the firm about one year after it was established. At that time the company had less than [...]

CFP® Joe Anderson answers the following true/false question: “Since the stock market has earned almost 10% annually over the last 80 years, that’s a good number to use for investment returns.”  Is 10% really a good rate of return for your portfolio?  Find out in this episode short.


12:53 “It’s the sequence of returns.  Even though the average may be 10%, some years you may get 12%, some years you might get minus 20%, depending on the markets.  So no, do not use 10%”

13:06 “We feel a lot more comfortable using probably anywhere from a 5 ½ to 6 1/2 % rate of return, of course depending on your age”

13:16 “Don’t use those big numbers, even though they might look good on your spreadsheet”

13:24 “The markets are uncharted waters, we really don’t know what’s going to happen with the market on a day to day basis”

13:41 “Be careful when using these crazy big assumptions when it comes to market returns, because that’s recency bias”