何毓琦的个人博客分享 http://blog.sciencenet.cn/u/何毓琦 哈佛(1961-2001) 清华(2001-date)

博文

The 100 year certificate of deposit (CDs)

已有 1344 次阅读 2024-8-6 21:43 |个人分类:生活点滴|系统分类:海外观察

Recently a US Bank is selling 100 year CDs with ~4.00% annual interest. The CD take 100 years to mature. The minimum amount is US$1,000. which in 100 years when it matures will become US$10,000+ (approximate 10 times due to compound interest.) Now the question here is: "Is this a good investment for the investor?" Of course, the intnetion of the the investor is for some beneficiary who will inherit this CD. Historically, the US stock market appreciates around 8% per year which according to the rule of 72 investing in the stock market will double approximately every 9 or10 years. or 1000 times in 100 years  - a much better return even though unlike CDs, such return is not guaranteed. My own experience with my Harvard pension in a diversified portfolio is that it increased approximately 10 times in 46 years. Basically at such long intervals you are betting on the future of the country you live in. I say these 100 year maturing CD  is not a good investment. If you doubt the future of the country in 100 years any guarantee of payment probablky is not worth much. 



https://blog.sciencenet.cn/blog-1565-1445371.html

上一篇:The 80/20 Principle:
下一篇:Scams and Fraud Targeting Senior citizens
收藏 IP: 96.237.235.*| 热度|

2 许培扬 郑永军

该博文允许注册用户评论 请点击登录 评论 (0 个评论)

数据加载中...

Archiver|手机版|科学网 ( 京ICP备07017567号-12 )

GMT+8, 2024-10-10 03:03

Powered by ScienceNet.cn

Copyright © 2007- 中国科学报社

返回顶部