• notabot@piefed.social
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    26 days ago

    Compounded gains truely are the wonder of the financial world.

    If you put $1 in the bank 2777 years ago, at 1% a year you’d have $1t now, handily beating musk. At 5% pa it would take a mere 567 years! Easy! A bit of sensible financial planning by your great-great-great-something grand parents would have seen you very comfortable now.

    • zart@sh.itjust.works
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      26 days ago

      True, if you managed to find a bank that lasted that long, or a currency that lasted that long. Look at the history of both banks and currencies and you’ll see that the miracle compound interest is not easy to uphold.

      • notabot@piefed.social
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        26 days ago

        Those are, indeed, issues, but they could be addressed with careful management. See my reply to a sibling comment, but basically, investing a couple of hours of wages back then, and carefully moving it from investment to investment over the millenia would do the trick.