It ain't a bear market for Bobby Bonilla. How the former Mets player's financial feat illustrates the magic of compound interest.

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July 1 marks the annual $1.2 million payday for former Mets third baseman Bobby Bonilla — an event that has increasingly attracted interest from average Americans, even some who don’t know anything about baseball.

Bobby Bonilla was trending on Twitter early Friday , because July 1 marks the annual $1.2 million payday for the former third baseman — an event that has increasingly attracted interest from average Americans, even some who don’t know anything about baseball.

On Friday, Bonilla, now 58, will collect a check for $1,193,248.20 from the New York Mets, as he has and will every July 1 since 2011 and running through 2035, as ESPN has detailed.Some have described Bonilla’s payout as one of the great examples of compound interest, because the baseball player opted to defer a $5.9 million payment in 2000 in favor of spreading payments out over 24 years, starting in 2011, with an 8% annual interest rate.

To be sure, we have written about this time and time again, but it is worth reiterating, as compounding is a key concept for investors, including those investing in equities or in such stock benchmarks as the Dow Jones Industrial Average DJIA, +1.05%, the S&P 500 index SPX, +1.06% and the Nasdaq Composite COMP, +0.90%, even with stocks getting crushed in recent months as inflation and rising interest rates buffet markets.

 

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Bobby Bonilla Day LPontheleft

This day happens every 3 months…

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