08-15-2023, 10:08 AM
Why are you being so negative about a great deal for a WBB player? Is this one deal supposed to buy her a house in Palo Alto? How many people here could buy a house in the Bay with their first paycheck? This is great $$ for a WBB. Definitely “secured a bag.”
(08-15-2023, 08:08 AM)jacket3ree Wrote: It's usually a problem when you start a reply post with "Not to be that guy, but...."
Where is this house?
Average rate of stock market return is 10 percent. Parking the $130k net NIL proceeds in a market at 10% for say 10 years (her early 30s) gets you $340,000. Say for 15 years (her late 30s) gets you $540,000.
To have $1.5 million for a decent house somewhere decent and giving it 15 years, the annual ROR starting with $130k needs to be 18%. Not impossible, but pretty risky. Could just as easily wind up with $15,000.
She'll be fine and earn far more than $200,000 over the next decade.
And I'll get better hobbies than calculating compound interest for internet sport.
