re: Friend gave his daughter $275k when she graduated college.

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7k/yr does not equate to $275k unless he more than doubled the money he put in.

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Private highschool is much closer to $10-15k and if he truly deposited SMU tuition, well, that’s a frick ton.

quote:

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$7 k/yr does not equate to $275k unless he more than doubled the money he put in.

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The money wasn't under a mattress, people, it was invested. The level of financial illiteracy in the general population is astounding.

If you'd invested over the last 20 years (since 2000-2001), achieving an average annual return of 10-12% is not difficult at all, so your money would've doubled approximately 3 times in this ~20 year period. Obviously the math is slightly different if one is investing annually or in lump sums but those returns aren't particularly spectacular for the last 2 decades.