Quote:
Originally Posted by 250rr
Very true in the short term. But, if the 24 year old invested the $500k into a mutual fund that averages 6% net return long term, and (this is crucial) didn't spend a dime of the $500k until he or she retires, here is what it would look like in:
10 years: $895k
20 years: $1.6 million
30 years: $2.9 million
40 years: $5.1 million
So, the 24 year old has far more dollars to lose by not taking the initial $500k.
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All that money out of the economy. For decades. And then they give you
more for keeping it out of the economy. It doesn't make sense. This would be considered hoarding if it were anything else.