3 ms·
That math really doesn’t work - $6,300 67 years ago (1951) in today’s money would be $61,478.82 (https://www.bls.gov/data/inflation_calculator.htm https://www.b
by sologoub 8y ago
That math really doesn’t work - $6,300 67 years ago (1951) in today’s money would be $61,478.82 (https://www.bls.gov/data/inflation_calculator.htm https://www.bls.gov/data/inflation_calculator.htm).
She would definitely have to do well in the market, but I wonder what her earnings looked like as well over time - Cleary Gottlieb is a VERY successful law firm. If there was any kind of profit sharing or other incentives, it could have been fairly lucrative. Stock would have been better, but still.
- nostrademons 8y agoIf the 7% number he's quoting is real returns rather than nominal returns (which historically it is), inflation is already factored in. Total nominal returns (including dividends) have been 11% over 1950-2009, with inflation running at 3.8% over the time period: http://www.simplestockinvesting.com/SP500-historical-real-total-returns.htm http://www.simplestockinvesting.com/SP500-historical-real-to...
- chubot 8y agoYeah, that's the point I mentioned in "6K is easy to save today but wasn't in 1955". I'm interested to see an analysis that takes that into account. But I don't think it changes the overall conclusion. I think that starting in 1951, on a secretary's salary, you could have used an indexing strategy to end up with $8.2M. Should be pretty easy to prove or disprove. One thing I don't know is how much secretaries made back then. Presumably her wages increased a non-neglible amount over time.
- verelo 8y agoIn 1955 $6k was very much likely over 50% of her yearly income. Agreed, unlikely.