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To: DFG
In 1985, I was offered $16,000 to re-up in the Marine Corps.

I was flattered at the time but this $600,000 makes me feel like a simple grunt.

17 posted on 12/09/2023 11:27:48 AM PST by SamAdams76 (6,508,933 Truth | 87,456,907 Twitter)
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To: SamAdams76

Just to ease your mind, that’s $600,000 over 12 years or $50,000 per year and $1 in 1985 is worth $2.86 today.

So your $16,000 is worth $45,760 today. Today’s retention is 9% higher than what you were offered (in constant dollar terms).

BUT, you have to take the Net Present Value of that twelve-year cash flow stream. At 7%, that $600k spread over 12 years nets to $397,000 today. Divide that by 12 and you get $33,000. Divide that by 2.86 and today’s value of that cash flow stream is $11,572 in 1985 dollars.

Bottom line...you were offered a better deal in 1985 than what is being offered today.

You should feel a lot better now.


37 posted on 12/09/2023 1:17:46 PM PST by ProtectOurFreedom (“Occupy your mind with good thoughts or your enemy will fill them with bad ones.” ~ Thomas More)
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