One of the reasons Traditional Financial Planning Fails has to do with the "Accumulation Issue" and our flexible currency.
Average vs Actual
We hear over and over again from financial institutions and even the cable gurus about the "Average Rate of Return". This mysterious number is used to determine long-term market performance and our own portfolio's success; however, the average means NOTHING! What matters is the ACTUAL Rate of Return.
Taxes play a huge role and can destroy our financial future if we aren't prepared and educated. It you're following a Traditional Financial Plan in attempts to reach your goals then you'll most likely succeed at being the perfect taxpayer and NOT one who is financially self sufficient.
Every day we hear either on the way home from work in the car or on the news at night how the market performed..... so what's the problem?