Regardless of inflation and assuming the previous facts, you will have $3.2 million in the bank. Agreed. The debate is over the present value computations. I'm almost positive that using the net interest rate (8%) doesn't work because of the way compound interest works. Here's the present value formula:



Future Value = $3.2 million
i = 4%
n = 35 years

I still say having $3.2 million 35 years from now is the same as having $811k today, assuming inflation is 4%.

I will talk to my finance prof Monday and get a definite answer.

Your first sentence after you listed the formula is 100% correct. The difference in the amount of today's dollars that our theoretical investor would have at 65 manifested itself because the calculator i was using was making inflation adjustments to the periodic contributions as well. in other words. the 500 per month became more per month over time such that each monthly deposit was the present value of today's 500. my head hertz'... I'm done. i should have made that more clear.

Alright, I follow now. Sorry for the headache.

Another big factor in my decision making was that when I started there was no such thing as an APC forum. It was unheard of to seek employment anywhere outside the known world. All information about jobs and hiring came from word of mouth. The only airlines I really knew of were Western Airlines, Wein Air Alaska and of course Alaska Airlines.

And of course Home is home. Who cares about being a 777 captain for a million dollars per year if is means that you will have to spend your days in someplace you are not happy about?

Today

Sky,

You know that most people would take the million and find a way to make themselves happy in a new home. But your general point is valid -- the only reason money has value is that it can contribute to a happy life. That's why it's hard to convince airline pilot wannabees to give up the dream and take that lucrative cop or fireman job instead. They are sure they won't be happy on the ground, because they would always wonder "What if...?" They will just have to try it, as you did, and then they'll know -- one way or the other.

I suppose. I know I would sure would like to get all the years I wasted back.

Skyhigh

My hat is off to the regional guys and gals who are married, When I flew in the commuters I didn't have time to take care of a houseplant let alone a wife and kids. Unfortunately of the two biggest factors in making it in the flying game, Luck and determination; Luck probably has the edge.

It is better to be lucky than good.

SkyHigh