Series 66: Time Value Of Money

Time Value of Money

Though both situations are enviable, having a million dollars in the bank is not the same as someone promising to give you one million dollars a year from now. In fact, all else being equal and depending on what interest rates are on large balances, having $950,000 in the bank today might actually be the same or more than having $1,000,000 one year from now. That’s because if you invest it wisely, the $950,000 is going to earn a bunch of interest and could possibly be worth more than the million dollar