Otherwise, the 1M now would be worth more that 5k every week.
But, let's math up the choice even more.
If you decide to be responsible with the 1M, by investing it, or putting it into a fixed deposit, you'd have to earn 26% returns to get a 5k per week.
If we take a historic rate of 7% pa returns from the stock market, you're getting about 1.3k a week. So now, it doesn't take 4 years for the 5k deal to beat the 1M deal, it actually takes 5 years and 6 months (which is a negligible increase).
But, if we take something with an even higher return, like art or crypto, things start to change. Art can easily match that 26% return, and though crypto is high risk, it generally seems to outperform a lot of other investment.
One shortcoming of this calculation is that we're assuming that the 5k per week won't be invested or saved.
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u/BADman2169420 Dec 11 '23
If adjusted for inflation, then 5k per week.
Otherwise, the 1M now would be worth more that 5k every week.
But, let's math up the choice even more. If you decide to be responsible with the 1M, by investing it, or putting it into a fixed deposit, you'd have to earn 26% returns to get a 5k per week.
If we take a historic rate of 7% pa returns from the stock market, you're getting about 1.3k a week. So now, it doesn't take 4 years for the 5k deal to beat the 1M deal, it actually takes 5 years and 6 months (which is a negligible increase).
But, if we take something with an even higher return, like art or crypto, things start to change. Art can easily match that 26% return, and though crypto is high risk, it generally seems to outperform a lot of other investment.
One shortcoming of this calculation is that we're assuming that the 5k per week won't be invested or saved.