Time Value of Money
InvestingThe principle that money available now is worth more than the same amount in the future due to its potential earning capacity.
Example
Example: Consider an investor building a $100,000 portfolio. Time Value of Money — the principle that money available now is worth more than the same amount in the future — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.