Re: I\'m a trustafarian
[ QUOTE ]
[ QUOTE ]
Keep in mind that the difference between an investment at 10% and an investment at 3% is only $7000 on 100k, but that you're guaranteed to have that money there.
[/ QUOTE ]
100k after 40 years at 10% = 4.5M
100k after 40 years at 3% = 325,000
[/ QUOTE ]
I know.
Keep in mind a few things though... it's tough to tell how much 4.5 million will be worth in 40 years. It's also tough to say that you'll get 10% cumulative over 40 years.
The other thing is that life isn't about huge amounts of money (if it were, he wouldn't have asked the question, he'd have just put the money into the stock market, right?). He may want to use the money for something relatively soon. That's the key.
If someone had posed me with this question a few years ago I probably would have had your same answer: Pick up The Warren Buffet Way, The Intelligent Investor, Security Analysis, Common Stocks and Uncommon Profits... take some time off work and make a decision about how to invest it.
However... right now I may be more inclined to tell him to do some travelling in 3rd world countries or something like that, where the money goes a long ways and there's a ton of things to experience, other than just sitting on a beach.
I'm not a financial moron, just so you know. I'm poker moron. Quite the difference. [img]/images/graemlins/smile.gif[/img]
|