Of Benjamin Franklin, Jonathan Holden, and Compound Interest
It seems that neither courts nor stiffed heirs like the last when carried to extremes.
N.B.: While the article refers to the donor's 1936 endowment of $2.8 million now being worth "an impressive $9 million", the BLS.com inflation calculator says that $2,800,000 in 1936 was equal to over $45,000,000 in 2011.
N.B.: While the article refers to the donor's 1936 endowment of $2.8 million now being worth "an impressive $9 million", the BLS.com inflation calculator says that $2,800,000 in 1936 was equal to over $45,000,000 in 2011.
posted by TTB at
6:56 AM
1 Comments:
If you read the article carefully, the 1936 amount went into a series of trusts, not just the one that is now worth $9 million after paying out annually to reduce the effect of compounding.
I find it interesting that compound interest over the long term is compared to Armageddon, while over the short term it is common practice. At what point (how many year?) does it change from a good thing to a bad thing?
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