1. Financial Goals

2. Time Value of Money
Calculate Present Value
Calculate Future Value

3. Future Value
Need to know Present Value
Interest Rate
Length of time

4. Present Value Need to know future goal Example 3 Million in retirement
Need to know length of time
Need to know interest rate

5. Financial Calculators
Can buy a financial calculator
$30 to $120
Lot of free calculators online
Zenwealth.com

6. Example
$23,000 Today
8% interest rate
40 Years
Future Value =$500,000

7. Example 2 You want to save $2,000,000 for retirement
You start working at age 23 and retire at age 65 (42) years
At 6% you need $173,000
At 10% you need $36,520
At 15% you need $5,654

8. 15% Return
Over the last 45 years the S&P 500 has averaged a return of 15%
Some years were as high as 34
Some years were negative
You need to start early

9. Starting at a young age is more important than putting in more money later
You can not control time

10. Interest rates Interest rates are at all time lows
Most banks less than 1% on savings
Most checking accounts offer not interest
Certificates of deposits are less than 3%
Many CDs don’t even cover inflation

11. Stock Investments
Investing in stock offer you a chance to get a large return
Also a risk of a loss
DON’T PUT all you money in one place

12. Stock Investments Great way to take advantage of TVM
Need to think of goals
Risk tolerance changes as you age