Time Value of Money
Though both situations are enviable, having a million dollars in the bank is not the same as someone promising to give you one million dollars a year from now. In fact, all else be equal and depending on what a bank is paying in interest on large balances, having $950,000 in the bank today might actually be the same as having $1,000,000 one year from now. That’s because if you invest it wisely, the $950,000 is going to earn a bunch of interest and be worth roughly the same as the million dollars you’r