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The article tells us that Mr. Bonilla's deferred compensation deal works out to earning an 8% return on his money. Since 2000 , the S&P
The article tells us that Mr. Bonilla's deferred compensation deal works out to earning an 8% return on his money. Since 2000 , the S\&P 500 has returned almost 9% and real estate investments have returned 10\%. One rumor about the deal is that the owners of the Mets were only willing to do the deal because they were earning 12% on their investments with Bernie Madoff. Given these alternate returns, was the deal a good one at the time for Mr. Bonilla? If you were offered a similar investment choice, what factors would you consider in determining whether to take your money upfront, or defer payment? The article tells us that Mr. Bonilla's deferred compensation deal works out to earning an 8% return on his money. Since 2000 , the S\&P 500 has returned almost 9% and real estate investments have returned 10\%. One rumor about the deal is that the owners of the Mets were only willing to do the deal because they were earning 12% on their investments with Bernie Madoff. Given these alternate returns, was the deal a good one at the time for Mr. Bonilla? If you were offered a similar investment choice, what factors would you consider in determining whether to take your money upfront, or defer payment
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