Introduction In an earlier post, I defined what future value and what present value is. In this post, I’m going to go through some of the mathematics of how you can calculate those values. How to Calculate Future Value The … Continue reading
What is Present Value/Future Value? With any asset, it will get more or less valuable over time (due to appreciation/depreciation and/or cash flow). Present Value is the value of that asset today. If you put 1000 dollars into an investment … Continue reading
Definition When you buy a security there is time between when you buy the security and when you pay for that security. The date you buy is the buy date. The date you pay the money is the settlement date. … Continue reading
In Short Probably. I would generally not suggest taking out a loan to create a portfolio (although I did exactly that once). The Investment Returns Cannot Be Counted Upon to be Higher Than the Loan Interest It would make sense … Continue reading
Determine An Inventory Of Your Situation Think of it like a balance sheet in accounting if you are familiar with the set up. List all your assets at fair market value. Then list all your debts, amounts AND interest rates. Finally list … Continue reading