Time Value of Money
Question From a Reader: Paying Back a Debt After Twelve Years
Monday, August 30th, 2010I was cleaning out my email inbox and found this email from way back in July: Hello, I have a question. If a person owed money to someone in 1998, but did not repay that amount until 2010, how can he calculate what amount to return now (in 2010) considering that much inflation has taken [...]
Avoid Cashing Out Your 401(k)
Sunday, July 13th, 2008Check out this quote from a recent Wall Street Journal article by Andrea Coombes: …about 40% of workers in their 20s and 30s said they had cashed out their 401(k)s or 403(b)s when they switched jobs, according to an online survey of about 1,200 people conducted in January for Fidelity Investments by CMI, a research [...]
College Funding Math – Part 2
Tuesday, February 21st, 2006With the last post, we figured out that four years of college was expected to cost $105,655. Now we need to know how to reach that goal.
How to Calculate the Time Value of Money
Monday, December 12th, 2005It is amazing how the math we all thought was useless back in high school is really pretty useful today. Understanding mathematical concepts is very important in understanding personal finance. It is also very liberating to be able to do different “complex” calculations with the aid of a spreadsheet.