$1.19 mil dropped in his acct this morning
Quote:
If Bonilla had accepted the $5.9 million in 2000 and invested the entire amount at 8% interest, the original investment would have grown to $104.1 million by 2035*. If instead, Bonilla takes his annual payment and invests that with an 8% annual return, he would have $95.2 million by 2035.
aggie1906 said:
Not always easy to get 8%
The real issue so many people face isn't the return side of things. Sure, the S&P may give 8%, and may provide for pretty large withdrawals. But people don't think about risk.Tribe2013 said:
8% CAGR is virtually impossible over that long of a time horizon, not even considering the 2008-2010 market drop. And, that future value calculation assumes that the $5.9 MM would be left untouched with no disbursements for 30 years, which is a ridiculous assumption.