Extreme Time Value of Money: Late-stage Career Planning
A billion dollars in 30 years. Would you take it? I wouldn’t.
"A dollar today is better than a dollar tomorrow. It’s worth more. If I have a dollar today, I can invest it and make more by the time tomorrow comes around. I should prefer less than a dollar today to exactly a dollar tomorrow, less by a discount rate (which, spoiler alert, is hard to figure out and shouldn’t be modeled as a constant, but please keep reading).
If you accept this truth, then you do exactly the opposite of “spend more now to (maybe) make more later”. Those dollars you spend now are more expensive than the dollars you earn later."Posted on 2021-01-05T04:38:30+0000