Take your finances seriously. Don’t be like this woman.

December 28, 2007 at 11:08 am (General nonesense)

82-Year-Old Woman Sues Chase To Recover Life Savings

From the article:

Chase is refusing to honor a cashiers check for $19.700.22, 82-year-old widow Willie Floyd’s life savings. Willie stored the check, originally drawn by her late-husband in 1985, in a $10 per year safe deposit box at the local bank. When she tried to shift the funds into a regular savings account last year, she was told that the check expired after five years, and that her life savings now belonged to the state.

“I didn’t even cook dinner last night,” she said recently. “I should have just buried that money in the backyard.”

Now for the really depressing fact.

Check my math, but as far as I can tell — if she had just put the money in an index fund and LEFT IT THERE for the last 22 years (say, in the S&P 500 index fund http://en.wikipedia.org/wiki/S%26P_500 ) and let’s be really cynical and assume an average return of only 12% or so (I actually think it’s much higher) …

She’d have close to $250,000 sitting in a bank account right now.

And the lesson she takes away from this is that “I should have just buried that money in the backyard.” ?!

This just about makes me want to cry.


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