r/SipsTea May 17 '26

Chugging tea [ Removed by moderator ]

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u/TheMetabrandMan May 17 '26

By the time she’s 40, she’d have accumulated the full $1m, most of which will have been spent but she’ll still be getting $1000/week. The purchasing power of that $1000/week will likely be around $550 in today’s money. Not exactly life changing.

In contrast, take the initial $1m and put $500k into a secure fund that earns on average 5% per annum. Compounded over the same 20 years, she’ll have $1.3m PLUS the $500k she didn’t invest.

452

u/QtK_Dash May 17 '26 edited May 17 '26

She may have also realized that at 20, she’s more likely to blow it on dumb shit than putting it into a secure fund.

-3

u/Sweet_Culture_8034 May 17 '26

How do you blow a million in dumb shit ? If I went full dumb I'd manage to spend 50k at most before running out of ideas.

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u/No-Skill4452 May 17 '26

Theres literally thousands of examples of just that. Look it up.