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Unformatted text preview: stream would be as follow: • Time value of money. The salary I earn from the work may be not worthy it should be as in the past. Maybe it because of the inflation of extra money in the financial system. A financial instrument I might consider is to invest the money in the bank for interests or loans. • The money I deposit in the bank, but the interest rate may decrease accordingly. In order to transfer this kind of risks, I can also use all the income I did not spend to buy insurance contracts. • This kind of income stream would take very long time to accumulate enough money to afford a house or an apartment. By the time I have enough money from this stream, my money may be worthy less or more. In order to reduce this kind of risks and make the current money value more, we can also take the mortgage or loan to buy a house first. By using the future money, we may decrease the inflation risks....
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This note was uploaded on 02/13/2012 for the course MANEC 453 taught by Professor Jerrynelson during the Winter '10 term at BYU.
- Winter '10