Join Jane Barratt for an in-depth discussion in this video Time value of money, part of Learning to Manage Personal Investments.
- Some of the more mind-bending…economic and financial concepts are the ideas of…compound interest, inflation,…present value, and future value.…It's important to understand them,…as so many of our big money questions…that are fundamentally emotional,…can be answered clearly with math.…I promise I'm not going to make you learn…tricky formulas in this video,…but I am going to share ideas…on how to think about the relationship…between time and money in a different way.…First, you've heard the expression "time is money."…It's usually applied to time wasted…when you could be earning money,…or doing something productive.…
It's even more applicable when it comes to investing.…Let's start with the idea of compound interest,…which is basically the way that money you invest…grows exponentially versus in a straight line.…Exponential growth means that you earn money…on the money you've already earned.…To put it in real terms, with compound interest,…$1,000 invested today, assuming a conservative 4% return…will be $1,480 in 10 years,…
Jane is the founder of GoldBean, an online investing platform that helps first-time and experienced investors alike take their investments into their own hands. In this course, she shares her investment strategies with you. She breaks down the market into its five basic building blocks—cash and equivalents, stocks, bonds, funds, and insurance products—and the different vehicles where you can invest these building blocks. She also covers topics such as the importance of a balanced portfolio, understanding and managing your risk, identifying value in the market, and building your "money muscles" over time. Plus, learn how to calculate the rate of return of a portfolio vs. general market performance. Last, Jane outlines the options for DIY investing, when it makes sense to work with an advisor, and how to avoid costly investment fees.
- Why should you invest?
- Understanding compound interest
- Comparing stocks, bonds, and funds
- Managing risk
- Building a portfolio
- Finding where to invest money
- Working with a financial advisor