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0 pointsquickthrowman3y ago0 comments

It should read “If I was alive in 1923 and invested $8M in 100y bonds that return the exact rate of inflation, I’d have $140M today”

Plugging it into a USD inflation calculator checks out.

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jldugger3y ago

Unfortunately we don't have such a thing. Especially in 1922, we didn't even have TIPS, or 100 year bonds. The best case scenario you're looking at something like 10 year treasuries at 4.3 percent[1] in 1922. Shorter durations will help match dramatic inflation moves things get weird in the great depression -- a bout of 10 percent deflation happened in 1933.

    [1]: https://www.multpl.com/10-year-treasury-rate/table/by-year

bobleeswagger3y ago

$8 million in cash will always be $8 million in cash. "Stashed it away" is pretty vague but cash is cash.

tarboreus3y ago

Only if you literally mean physical cash. Banks offered pretty significant interest rates historically.

kgwgk3y ago

Why say “stash away” if not to suggest the literal “hiding the money somewhere” meaning rather than “opening a savings account”?

jldugger3y ago

With the slight caveat that the FDIC wouldnt exist until a decade after you put your money in and in no case would it protect all 8 million dollars.

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jldugger3y ago

    [1]: https://www.multpl.com/10-year-treasury-rate/table/by-year

bobleeswagger3y ago

$8 million in cash will always be $8 million in cash. "Stashed it away" is pretty vague but cash is cash.

tarboreus3y ago

Only if you literally mean physical cash. Banks offered pretty significant interest rates historically.

kgwgk3y ago

Why say “stash away” if not to suggest the literal “hiding the money somewhere” meaning rather than “opening a savings account”?

jldugger3y ago

With the slight caveat that the FDIC wouldnt exist until a decade after you put your money in and in no case would it protect all 8 million dollars.

j / k navigate · click thread line to collapse