…ney on CNBC, speaks with the fervour of a televangelist. In an episode on the magic of compounding, his voice shrilled at the obviousness that “the next 40 years aren’t too different from the last 40 years.” If compound interest were a religion, then the disciples of personal finance would light candles at its altar and sing paeans to its glory.
oof, he's so wrong though. The interest rates, & therefore the compound-interest returns, we saw over the last 40 years are long gone in the US. The GFC changed everything -- yields are 1/100 of what they were over the past 40 years. So 40 years of saving from now to 2060 will actually devalue your money (the ~$1,000 of interest from a savings account will be easily outpaced by inflation) 🤦🏻♂️ 🙃