4 ms·
Your analysis is incorrect because having to spend 25k + inflation 30 years from now is not the same as spending it today. To calculate properly, future expend
by anatari 14y ago
Your analysis is incorrect because having to spend 25k + inflation 30 years from now is not the same as spending it today. To calculate properly, future expenditures need to be discounted according to return minus inflation compounded over the duration. So unless you're claiming that you can't safely get a return above inflation, his parents will come out ahead.