Ah, but now you are neglecting the additional value of having the million dollars now, instead of 5.5 years from now. At 4% interest this neatly cancels out the additional $220k.
I don’t believe so, but maybe someone smarter than me can explain this. The magic 4% of a million = 40k value indeed should factor in, but it shouldn’t dominate the expected value to the degree that you’re making it.
Ah, but now you are neglecting the additional value of having the million dollars now, instead of 5.5 years from now. At 4% interest this neatly cancels out the additional $220k.
I don’t believe so, but maybe someone smarter than me can explain this. The magic 4% of a million = 40k value indeed should factor in, but it shouldn’t dominate the expected value to the degree that you’re making it.