4 ms·
So I ran this program: p = 100000 w = 0 for i in range(50): p = p * 1.07 w = w * 1.07 w = w + (p * 0.02) p = 0.98 * p print "Year: " + str(i+1) print "
by SapphireSun 14y ago
So I ran this program:
p = 100000
w = 0
for i in range(50):
p = p * 1.07
w = w * 1.07
w = w + (p * 0.02)
p = 0.98 * p
print "Year: " + str(i+1)
print "\t You: {:.2f}".format(p)
print "\tWall St.: {:.2f}".format(w)
And what is remarkable is that around year 35, wall street starts making more money than you do even though you're the one putting the money into it (assuming wall street is earning the same interest you are. If you account for (reasonable) salaries and overhead, It changes the numbers quite a bit.)
- rayiner 14y agoThis is assuming you can get the same return, pre-fees, as Wall Street can. This is generally true, but what they're selling you is the idea that this isn't true. Which is my point. It's not some evil Wall Street thing, it's like every other sector of the economy. Ralph Lauren sells jeans made in the same Chinese sweatshop as Levis, but you pay a premium for the illusion that it's different.
- antiterra 14y agoI get your point but paying more for financial services is very different than paying more for a retail product. If you pay more, you can buy jeans made in the USA from both Ralph Lauren and Levi. The fabric may be from a Cone Denim factory in China instead of the White Oak Cone Denim factory in the US, but my impression of the denim mills is that it's far from your stereotypical sweatshop. Further, there are brands that are entirely made in the US from mill to assembly, from the affordable brands like Gusset to high end like Raleigh Denim.