Advisor: ... and the average gain over the past twenty years has been 15.9%. Look:"
Poor Joe: Wow! How much will I have in the next twenty years?"
Advisor: If you start with $10K you'll have - let me calculate, 15.9% for 20 years ... $191,279.63! "
Poor Joe: Gee. That's great.
Advisor: Of course, past performance is no guarantee ..."
Poor Joe: I understand, but $191 thousand ... wow!"
See Average and Annualized
and note that, using "annualized return", the $191K is overstated by about $27K.
