The Time Value Of Money

To understand this concept, think of the flow of in the terms of the old bridesmaids. A bird in the hand is worth more than two in the bush!You know you won't go hungry. You also know that you won't have to spend any more time trying to catch your dinner!

What about those two bird in the bush? They present a whole series of decisions. for example,do you have to let go of the birds you have if you can catch two in the bush? Can you catch both? If you only catch one, will it be a better bird than the one you already have, and so on.


The point is simple; All investment involve a certain amount of risk. You are giving up money you already have,for an anticipated future that is greater. And in deciding the worth of the expected additional benefit,you must evaluate risk of loss,depreciation and opportunity cost.

Balancing these considerations is through yield. The yield is your rate of return over a given period of time. Yield is used to judge use of particular investment in itself as well as comparison to competing investment opportunities.



THE TIME-VALUE -OF MONEY


Intrinsic to yield calculation is time. Why is that? Well, lots of thing can happen over time,and nobody knows with absolute certainty what it will bring. The longer you have to wait for your money,the greater the risk that you may not receive it or at least, not all of it. Likewise don't be deprived of the use of your money for the investment period and the collateral risk of lost opportunity with respect to alternatives.

The relationship between time,risk and value is a natural consequence. Two basic mathematical formulas bear this assumption out. Fortunately, it works the same whether you are in Tranquility New Jersey,or Bountiful Utah. Even better, the formulas are plugged into simple financial calculators, which are easy to use, inexpensive, and available anywhere.


The first formula is where we take $1 invest it at a set rate of interest over a period of years. We will know exactly how much the future will be at the end of that time.







LIQUIDITY


Is what my company provides to investors we will cash you out of investment now so we give you access funds to your investment. Approximately 60 identifiable debt and cash flow instruments-including the non-debt-related instruments. Business notes,medical receivable,automobile,lottery winnings,structured settlements,marine and aviation paper. This is called the cash flow business it is a secondary market with investor's interest in purchasing non-debt related forms of cash flow instruments. This market can assist in both forward planning and mitigating situations where liquidity may not be the primary issue,such as avoiding excessive taxation and other forms of transactional friction,estate planning,family law issue partnership dissolutions,portfolio building, and even asset protection under the right circumstances.



James Jones
jrj7121@netzero.com
www.cash4casflows.com/jamesjones
877-720-4053

This release was published on openPR.