S
Stinky T
Okay, I got this letter from the AMA today. This letter offered lifetime membership at supposedly huge savings. I'll use the 30 year-old example they used. They claimed that if you pay up front, you will save nearly 70%.
Either pay $5,070 now or pay $16,285 in fees later. Sounds like a bargain, huh?
If you take into consideration that by conservative estimates (assuming 5% interest) you should be doubling your money a little under 15 years. Thus, your $5,070 would actually be worth about $27,966.20 after 35 years. Yes, I know I didn't take into account the fees paid each year but you get the point.
Also, any good financial advisor would tell you that you could do much better than an average of 5% per year. Historically, the stock market has an annualized return of between 10-15%. Although, with the way the stock market is going this year, no one would believe it.
In fact, I remember two years ago when people would be pissed if their stock only went up 40% for the year. If we go with the more realistic return of 10% per year, that $5,070 would be worth $142,479.35 by the time you are 65. Speaking of retirement, don't forget to contribute to that Roth IRA before tax day.
So, to all the MS IVs out there, throw away that packet you just got in the mail about massive savings on lifetime memberships.
Stinky "The Tax Man" Tofu
Either pay $5,070 now or pay $16,285 in fees later. Sounds like a bargain, huh?
If you take into consideration that by conservative estimates (assuming 5% interest) you should be doubling your money a little under 15 years. Thus, your $5,070 would actually be worth about $27,966.20 after 35 years. Yes, I know I didn't take into account the fees paid each year but you get the point.
Also, any good financial advisor would tell you that you could do much better than an average of 5% per year. Historically, the stock market has an annualized return of between 10-15%. Although, with the way the stock market is going this year, no one would believe it.
In fact, I remember two years ago when people would be pissed if their stock only went up 40% for the year. If we go with the more realistic return of 10% per year, that $5,070 would be worth $142,479.35 by the time you are 65. Speaking of retirement, don't forget to contribute to that Roth IRA before tax day.
So, to all the MS IVs out there, throw away that packet you just got in the mail about massive savings on lifetime memberships.
