3 ms·
The individual is pretty flawed in his reasoning and examples... "Since the lifetime of the average person is roughly 78 years, net present valuing a lifetime
by jmspring 11y ago
The individual is pretty flawed in his reasoning and examples...
"Since the lifetime of the average person is roughly 78 years, net present valuing a lifetime of $12,000 yearly basic income payments works out to roughly $287,000 assuming that yearly payments total $10,000 and applying a 4% yearly discount factor. That is enough to purchase a median priced single family home"
While factually true, in total, $12k a year isn't going to buy you a house anywhere near the median in your life time. Too much hyperbole in the read.
- jmspring 11y agoYep, point out a non millennial point, so much down voting... #win
- icebraining 11y agoI have no idea what a "millennial point" is, but you'd probably get a better response if you explained why not.
- bryanlarsen 11y agoMost mortgage payments are under $1K a month, so you can easily buy a house with $12K of excess income.
- dawnbreez 11y agoHe's saying that if you take out a loan for 12k * 78 = 287k, you can buy a house.