• matpro@lemm.ee
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      2 months ago

      Your math is ignoring compound interest. 40 years of monthly installments of 554 earning 8% would ultimately compound to $3.2M

      • Archerwell@feddit.org
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        2 months ago

        Your calculation is ignoring inflation adjustment. net interest rate would be %4 at most.

    • Chekhovs_Gun@lemmy.world
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      2 months ago

      He’s not suggesting to put that $554 under your mattress. He means to put it in some sort of retirement account, where that sweet sweet compounding interest goes to work.