Tomorrow night the $1.3 Billion Powerball drawing happens. If someone wins the jackpot outright and chooses the cash option
they will be paid $800 Million. After federal/state/local taxes are assessed, the winner will probably be looking at a nice $350 Million in the bank.
Just to show how powerful the term “compund interest” is in investing, take just half of the $350 Million and put it into a simple 10 year fund earning 2% annually. Let each years gains rollover and here is what your return would be:
So while you’re away for ten years partying on $175 Million, you’ll be earning $35 Million on the side.