Posts Tagged ‘compound interest’

College Savings v. Retirement Savings

College Savings v. Retirement Savings

By The Banker | Blog Posts, Personal Finance, Taxes

An astute reader pointed out some qualifications to my Friday post on 529 college savings accounts – specifically, reasons not to fund them.  The most compelling reason, coincidentally covered in the next day’s New York Times, is that funding your 529 accounts is not as important as funding your 401K retirement account. The New York [&hellip

College Savings and Compound Interest

College Savings and Compound Interest

By The Banker | Blog Posts, Personal Finance

My littlest one turned four years-old last weekend[1], and my eight year-old is taking a Texas-Public-Schools-3rd-Grade-State-Mandated-Standardized-Test this week[2], so you can probably guess what’s on this ex-banker’s mind: That’s right! Good guessing![3] Time is quickly running out for me to save money for their college tuition.[4] The only thing scarier than those scary scary clown [&hellip

Video: Think Like A Bank

Video: Think Like A Bank

By The Banker | Audio Posts, Investing, Personal Finance, Video

When I was a ‘debt buyer,’ acquaintances would occasionally ask ‘Oh, could you buy my debt?’ (and I would think, “uh, that’s not how it works.”) That question told me two things: 1. Most people do not know that all banks and most investors are ‘debt buyers’ one way or another. 2. Most people don’t [&hellip

Video: The Time Value of Money

Video: The Time Value of Money

By The Banker | Audio Posts, Investing, Personal Finance, Video

Why is money today more valuable than money in the future? In this lecture to students at Trinity University (in San Antonio, TX) I review four reasons why in any real-world scenarios I can think of, a reasonable person would give me less than $100 today in order to receive $100 from me one year [&hellip

Video: The Compound Interest Formula - A Rainbow Bridge

Video: The Compound Interest Formula – A Rainbow Bridge

By The Banker | Audio Posts, Investing, Personal Finance, Video

In my ongoing, epic, lonely, quest to convince an indifferent world that the compound interest formula will  clothe the downtrodden, feed the grey whales, prevent the coughing sickness and otherwise save the planet, I offer this video explanation for what the compound interest formula does.     I’m teaching personal finance to college kids this [&hellip