Comments on: 3 Investment Principles Every Young Person Should Know: #1 Time Value of Money http://www.schaefersblog.com/3-investment-principles-every-young-person-should-know-1-time-value-of-money/ Learning Resilience in the Age of Turbulence Wed, 01 Sep 2010 21:52:50 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Cameron Schaefer http://www.schaefersblog.com/3-investment-principles-every-young-person-should-know-1-time-value-of-money/comment-page-1/#comment-133 Cameron Schaefer Tue, 29 Jan 2008 03:23:47 +0000 http://www.schaefersblog.com/?p=22#comment-133 Lily, So glad to take you back to the college years, haha! Great points, thanks so much for your comment. I too had my professors hammer principles like this home during my finance classes. I hope you check out the other two principles and offer your thoughts. Checked out your blog as well, enjoyed the perspective of someone who's in the middle of the action. Lily,
So glad to take you back to the college years, haha! Great points, thanks so much for your comment. I too had my professors hammer principles like this home during my finance classes. I hope you check out the other two principles and offer your thoughts. Checked out your blog as well, enjoyed the perspective of someone who’s in the middle of the action.

]]> By: Lily http://www.schaefersblog.com/3-investment-principles-every-young-person-should-know-1-time-value-of-money/comment-page-1/#comment-129 Lily Mon, 28 Jan 2008 22:38:23 +0000 http://www.schaefersblog.com/?p=22#comment-129 Blast from the past! (Specifically, my intro corporate finance course in college.) Even without compounding interest, there's a time value to money. $1 today is worth more than $1 tomorrow in a positive-inflation environment. $1 today is worth more than $1 tomorrow because you gain liquidity (although a more real-world example would be that a CD earns returns because you need to be compensated for the liquidity you give up). $1 today is worth more than $1 tomorrow because there's always the chance that the person who promised you $1 tomorrow goes back on his or her word. All of my professors pretty much hammered TVM into us. It's so fundamental to how money works - you're doing a great service by explaining the concept to the world! :) Blast from the past! (Specifically, my intro corporate finance course in college.)

Even without compounding interest, there’s a time value to money. $1 today is worth more than $1 tomorrow in a positive-inflation environment. $1 today is worth more than $1 tomorrow because you gain liquidity (although a more real-world example would be that a CD earns returns because you need to be compensated for the liquidity you give up). $1 today is worth more than $1 tomorrow because there’s always the chance that the person who promised you $1 tomorrow goes back on his or her word.

All of my professors pretty much hammered TVM into us. It’s so fundamental to how money works – you’re doing a great service by explaining the concept to the world! :)

]]> By: Cameron Schaefer http://www.schaefersblog.com/3-investment-principles-every-young-person-should-know-1-time-value-of-money/comment-page-1/#comment-122 Cameron Schaefer Mon, 28 Jan 2008 18:35:23 +0000 http://www.schaefersblog.com/?p=22#comment-122 D4L, Thanks so much for your interest and checking out Schaefer's Blog. Please let me know if there are any other posts you'd like to use or if I can be of any help. Enjoyed your blog as well! D4L,
Thanks so much for your interest and checking out Schaefer’s Blog. Please let me know if there are any other posts you’d like to use or if I can be of any help. Enjoyed your blog as well!

]]> By: Dividends4Life http://www.schaefersblog.com/3-investment-principles-every-young-person-should-know-1-time-value-of-money/comment-page-1/#comment-121 Dividends4Life Mon, 28 Jan 2008 18:28:23 +0000 http://www.schaefersblog.com/?p=22#comment-121 Excellent post! Thanks for sharing it. I plan to include your article in my weekly carnival review this Friday. Best Wishes, D4L Excellent post! Thanks for sharing it. I plan to include your article in my weekly carnival review this Friday.

Best Wishes,
D4L

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