4 ms·
FWIW, these are 100-year CDs, not 40-year--you can't withdraw the money early without significant penalty (10 years' interest in this case). 1.045^100 is 81.5.
by saulpw 3y ago
FWIW, these are 100-year CDs, not 40-year--you can't withdraw the money early without significant penalty (10 years' interest in this case). 1.045^100 is 81.5. For reference, USD$1,000 in 1923 is $17,785 in 2023 [0], or 17.7x as much.
[0] https://www.usinflationcalculator.com/ https://www.usinflationcalculator.com/
- dataflow 3y agoI used 40 years because realistically a 1-year-old is not going to invest $150k to get a return when they're 101. Most likely it'll be like a 30yo investing for when they're 70 or something. Anyway, the point of the question was literally to understand whom this is good for. Is this meant for (say) 40-year-olds trying to invest in their children's retirements rather than their own?
- deleted 3y ago[deleted]
- saulpw 3y agoAs per the OP, it's a "Ben Franklin" instrument--he famously left money in his will, not to be used for 200 years, to demonstrate the power of compound interest. So imagine buying $10k of these CDs and leaving them to your alma mater or your children's grandchildren.