Join Paul Petillo, Dave Kittredge and Dave Ng every week on Financial Impact Factor Radio as they to discuss everything from retirement to insurance, investing to estate planning, from getting started to preparing to stop.
In the world of personal finance, asking what's the worst that could happen is not the same as asking: "will I be able to afford this?" or "have I saved enough for retirement?"
More personal finance
If things are good, for some they won't be good enough. If it turns out that things are not so good, someone will ultimately benefit for this off-chance negativity.
More on retirement planning
on mortgages
American dream or not, the games you may have once played with financing your home are not available for the vast majority of homeowners.
More on mortgages and homes
The mutual fund investor has a great many more options available to them in the post-Great Recession marketplace. The question is: are they right for you as you make a retirement plan using 401(k)s or IRAs?
More on investing
The Time Value of Money is relatively easy to explain. If you stuff it under a mattress, it will be safe but will not grow. In fact, inflation will eat away at its value. Only by investing over time, will money increase in value. Sounds simple enough. Yet it isn't as easy as you might think.
On this edition of the Financial Impact Factor Radio with Paul Petillo, Dave Kittredge and Dave Ng, we look at the time value of money and where we might have gone wrong. I believe as I wrote recently that "We've lost our sense of timing. Not in the genetic sense; we still follow the rhythms of our daily lives. Those patterns are intact.
The loss of timing we are experiencing relates to the time value of money. According the economic question, posed in a number of different ways depending on how you might search for the term, asks the reader to answer: would you take X-number of dollars today or wait for a period of time to receive the same amount?"
Of course we're smart enough to know that this money is needed now, not later. That all sorts of things begin to work away at the future value of that amount not the least of which is inflation is well known. Inflation refers to the worth of that dollar and how much it might buy. Yet that isn't the question that crosses our minds as our instincts kick in. It should be: what you would do with the amount now? And this is where our sense of timing as it relates to when the time value of money begins to falter.
The reason anyone would ask such a question becomes illustrative in the follow up to that query. It suggests that you know what that dollar amount can do if you use it properly. But we have been improper of late, seeing the value of every dollar in present terms rather than in the future.
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