4 ms·

I want to push back against this a little. He gets $500/month now, there is no guarantee he will keep receiving that number when he stops maintaining and improv

I want to push back against this a little. He gets $500/month now, there is no guarantee he will keep receiving that number when he stops maintaining and improving his app. I would assume the number will go up if he keeps improving it, but if he stops it will eventually become 0$/month.

jackblemming 4y ago
There's no guarantee $150k invested will have 4% returns either.
- p_j_w 4y ago
  No, but if I had to bet on one over the other, I'm going with 4% returns.
  - beambot 4y ago
    To be fair: It will probably be easier for him to go from $500/mo to $1000/mo much easier than it will be to go from 4% APY to 8% APY.
jhgb 4y ago
Doesn't time value of money decrease this effect? Assuming a fixed revenue over time, future revenue is much less relevant, so is its loss.
- nonameiguess 4y ago
  That's what the 4% is. A perpetuity that pays out $6000 a year is valued at $150,000 assuming a 4% discount rate. Without a discount rate, the value of any perpetuity would be infinity.