The New Ideas Blog

Would you rather receive a gift of a million dollars or five hundred thousand dollars? You might think that the former is better, but I didn’t say that all other factors were equal. Suppose the gift of five hundred thousand was immediate and all at once, but the million was to be paid to you or your designated heirs at the rate of five thousand dollars annually for 200 years?

Obviously, “income velocity,” meaning how fast it comes into our hands, is important. When we are asked how much we make, we always indicate (more…)