this clickbait article asked how much would you have for retirement if you saved $100 a week in your 401k:
https://www.cnbc.com/2021/06/08/you-don ... ement.html
the assumptions are:
1. you will start investing in your 401(k) at age 22
2. your investments will earn 6% in returns (really bad writing, should have at least said "annually")
3. you plan to retire at 67.
the calculation may be slightly different if you look at weekly contributions rather than annual, but the video says you invest $5200 a year ($100 a week). It doesn't say how many years, but aren't we assuming from 22-67 is 45 years??
a future value calculation showing a yearly investment of $5200 for 45 years earning 6%:
=FV(.06,45,-5200)
yields $1,106.266.27.
even doing a weekly calculation like:
=FV(.06/52,45*52,-100)
would have yielded $1,200,904.42.
But the cnbc article (+acorns) says you'd only have $654,100.
Can cnbc's math be so far off??
the math is really off in this cnbc (and acorns) article regarding compounding interest
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the math is really off in this cnbc (and acorns) article regarding compounding interest
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Re: the math is really off in this cnbc (and acorns) article regarding compounding interest
I tried a random online calculator and came up with 1.13M after 45 years.... so I agree with you....
There are a ton of media outlets out there. And they have to keep cranking out content to drive traffic and get ad sales.
A lot of people making this content have no idea what they are talking about. None. Zero. They aren’t all journalists or have subject matter expertise.....
There are a ton of media outlets out there. And they have to keep cranking out content to drive traffic and get ad sales.
A lot of people making this content have no idea what they are talking about. None. Zero. They aren’t all journalists or have subject matter expertise.....
Re: the math is really off in this cnbc (and acorns) article regarding compounding interest
Well, they did get you to repost their link here for people to click... So, mission accomplished??
Re: the math is really off in this cnbc (and acorns) article regarding compounding interest
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