She can get me a 25% annual return in 4 years. Now I know at this time she was going to play with numbers but this is how she did it. I have 100k, market goes up 100% now I have 200k, Next year market goes down 50% I have 100k, Next year market goes up 100% I have 200k Next year market goes down 50% and I am back to my 100k BUTtttttt she says, I just gave you your 25% annual return and you have nothing to show for it. There was a lot more involved in the conversation but it just started to get me thinking. "They" say the market has returned on average about 8% a year. Now is it really a true 8% of your money? Or is it just a 8% but not a whole lot to show for it?