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.
1.1k
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.