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Congratulations djrogers! By sucking at math you just cost yourself nearly 1.5 million dollars in retirement savings! https://docs.google.com/spreadsheets/d/1y
by harryh 11y ago
Congratulations djrogers! By sucking at math you just cost yourself nearly 1.5 million dollars in retirement savings!
https://docs.google.com/spreadsheets/d/1y3PFiRhnixOcqeVrxZ2jc0f9Hf6ZAoJeGsjZ_NNSWd4/edit#gid=0 https://docs.google.com/spreadsheets/d/1y3PFiRhnixOcqeVrxZ2j...
I think one of the kind men from Access Funding would like to buy you a steak dinner.
- IkmoIkmo 11y agoYour monthly interest rate isn't quite right, it's 7% / 12, rather than 1.07^(1/12). i.e., if the annual interest rate is 100% (doubles every year), then it'd be incorrect to say the 6-month interest is half that (50%). As two terms of 50% would be a 125% increase, not 100%. To get to 100% you'd need two terms of 41%. If you apply this to the monthly rate it drops by a little. Compounded over all those years, the total amount drops to by about 6%. As the one value drops by a larger amount in absolute terms, the earnings difference actually drops by about $50k. Either way, it's still a ridiculous difference and your point fully stands.
- harryh 11y agoYa, good point. I was being a lil' quick and dirty when I put my spreadsheet together. Fixed.
- astrange 11y agoIs that $63k taxed as ordinary income? There could be a significant immediate loss there.