@DWeller9199@soychulo@BriggsOnchain@mrbayoa1 I didn't say which is wrong or right. I just gave the numbers. Each investor should invest in a way that suits their own lifestyle and life goals. Maybe the steady check is better than the long-term investing. To each, their own.
@soychulo@BriggsOnchain@mrbayoa1 However, she won't be able to invest the $1k per week in total, because it will be taxed as she receives it. Adjusting for tax and assuming a 7% market return, she will make $9.6M over the 40 year period.
@soychulo@BriggsOnchain@mrbayoa1 You would have $11.3M assuming 7% interest after 40 years. Conversely, if you invested the $650K and left it untouched for 40 years, you have $9.7M.
@Ohjuless_@BriggsOnchain@mrbayoa1 Then you lose out on opportunity cost. It is what she prioritizes and knowing yourself. Will she be able to invest and be disciplined, or does she prefer to have steady chunks. Either way, she is winning. The potential is there for a larger overall accumulation with the lump sum.
@BriggsOnchain@mrbayoa1 If she takes the lump sum, she is only taking home about $650k after withholding/taxes. If invested - 7% growth & she made 4% withdrawals, after 40 years, she would have a $4M investment and have pulled a yearly draw on it. That versus $52k for 40 yrs is ($2.8M).
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