Posts Tagged ‘discounted cash flows’

Guest Post - Annuities Are Expensive

Guest Post – Annuities Are Expensive

By Lars Kroijer | Blog Posts, How Not To Invest, Insurance, Investing, Personal Finance

Annuities are an important and sometimes dominant part of the investment portfolio for millions of savers.  While in certain instances there is a requirement for pension scheme participants that they put a part of their pension savings into an annuity, others decide to have them because they find great comfort from having a secured cash [&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

Part V - Discounted Cash Flows, using an annuity to learn the math

Part V – Discounted Cash Flows, using an annuity to learn the math

By The Banker | Blog Posts, Investing, Personal Finance, Wall Street

Please see my earlier posts Part I – Why don’t they teach this in school? Part II – Compound Interest and Wealth Part III – Compound Interest and Consumer Debt Part IV – Discounted cash flows – an example using a pension buyout Preamble In the last post I used the example of a pension [&hellip

Part IV - Discounted Cash Flows - Golden parachute or silk umbrella?

Part IV – Discounted Cash Flows – Golden parachute or silk umbrella?

By The Banker | Blog Posts, Personal Finance, Wall Street

Please see earlier posts Part I – Why don’t they teach this math in school? Part II – Compound Interest and Wealth Part III – Compound Interest and Consumer Debt Preamble In the last two posts I wrote about how, using the compound interest formula, you can compute precisely how large your money will grow [&hellip

Part III - Compound Interest and Consumer Debt

Part III – Compound Interest and Consumer Debt

By The Banker | Blog Posts, Inequality, Personal Finance, Wall Street

Part III – Compound interest and Consumer Debt Please see earlier posts Part I – Why don’t they teach this in school  And Part II – Compound interest and Wealth So in the last post I wrote about the the incredible power of compound interest, and the possibility it suggests about wealth creation over time. [&hellip