Financial Planner and Time Value of Money

Financial planners always stressed that the time value of money or the Time Value of Money is very important in family financial planning and also influence the success in achieving the goals of family life.

Then what is the time value of money? Illustration is this if we have money now amounting to Rp. 100 million, then if we put this money into investments that provide the assumption of return of 12% per annum (nett assumption), then within a year the amount of money we will be Rp.112 million, so within two years would be USD 125 , 44 million, within three years to Rp. 140.49 million and so on up to 20 years if it becomes Rp. 964.63 million and so on so forth. So the sooner we invest, the more money we will collect in the future. Now if only the presumption that the IDR lumpsum money. 100 million had been, let's also continue to invest every month USD. Currencies other than USD 3 million. 100 million which we had invested over 20 years how much money or value of our investments until the end of year 20 of the USD. 3932.40 million. Wow .... Great as well ... .. nah is relatively large or small breed but showed his money ... that is caused by the effect of time value of money.

Then use what dong for family financial planning, its use is to facilitate financial planning itself so that financial planning can be done. Without the assumption of return or opportunity cost, the technique of counting the time value of money used in financial planning can not be done. Now we return to the example above where the latest example of money or value of investment to Rp. 3932.40 million in 20 years, assuming 12% return per year. Well now live behind aja if you want the value of your investment to Rp. 6 billion in 20 years, how much additional investment that must be done each month, assuming the same return? Easy is not it, just stay behind it ...? but wait a minute ... ... the fact that all the assumptions of financial planning assumption is more complex than that because there are other things that must be considered as the level of inflation which lowers the purchasing power of money and other things that came back were also associated with family life purpose. When combined with other assumptions asumsil the Time Value of Money is going to work more effectively in assisting the planning of your finances. What is your plan? Time Value of Money will of the make your plan possible.

Tags: Family Financial Planning Articles, deposits, securities compounding, investment real estate, mutual fund investing, leveraging, the economic value of the assets, financial planner, time value of money

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Financial Planner | Investment Is Right For me?

Many people ask what is a good investment? Actually the question should be investing what is right for me? Because it is relatively lo ... good in the short term or long term, and for Who? and for what purpose? May suppose that the right equity fund investment for Mas Andi courageous and aggressive and wants to obtain an optimal return within the next 20 years. But mutual fund shares are not appropriate for Mr. Ali, who wants a safe, fear can not sleep, afraid to go down in value and want to keep the money that has been collected to retire three years. As we know the stock investment has a great chance to experience price declines or fluctuations in the price, so this investment instrument is contrary to the risk profile of Mr. Ali.

So it was an appropriate investment for the right people, for proper purposes and within the appropriate time. Sure there ... High Risk applicable law or the Low Risk High Return of the Low Return, well if it dared to risk or a risk taker of course there might well be a big return that although the risk is too great. While risk avoidance or risk averse may well return at least low-well in accordance also with a lower risk. So all will return to Who You, what is your risk profile? For the purpose of your investment Do What Is Your Plan? When?

Well .. well .... Each of us has its own size, maybe a glass of water is enough for eliminating hunger Mr. Ali, but not enough to make Mas Andi glass of water but must use the syrup and ice cubes and given a new orange juice thirst is lost ... ...

Financial Planner will help you so that you are not going the wrong way in determining the right investment for you in achieving the purpose of life in the future.

Tags: Family Financial Planning Articles, deposits, securities compounding, investment real estate, mutual fund investing, leveraging, the economic value of assets, financial planners, risk profile, time value of money, life purpose

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