Time Value of Money (TVM): A Primer
Would you rather receive $1,000 today or the promise that you’ll receive it one year from now? At first glance, this may seem like a trick question; in both instances, you receive the same amount of money. Yet, if you answered the former, you made the correct choice. Why does receiving $1,000 now provide more value than in the future?
10 Options Strategies to Know
Traders often jump into trading options with little understanding of the options strategies that are available to them. There are many options strategies that both limit risk and maximize return. With a little effort, traders can learn how to take advantage of the flexibility and power that stock options can provide.
6 top financial planning mistakes physicians make
Planning for your financial future is a personal priority for most physicians, but ensuring the security of the lifestyle you wish to maintain is a complex process fraught with risk. AMA Wire® spoke to an expert in physician finances, who shared the top mistakes physicians make—and ways to ensure they don’t derail you from your financial goals.
What Is the Time Value of Money and Why Does It Matter?
The time value of money -- the idea that money received in the present is more valuable than the same sum in the future because of its potential to be invested and earn interest -- is one of the founding principles of Western finance. Let's say you lent your friend $2000. Would you rather he repaid you today, or tomorrow? The logical choice would be today, because you'll be able to use your money, and potential gains that come with it, sooner.
Financial Literacy and Its Role in Maintaining a Physician’s Desired Lifestyle
With COVID-19’s appearance, healthcare’s financial footing has been losing grip, frequently leading to frightening and harmful outcomes for physicians. A California Medical Association survey found that 64% of physicians expressed a need for financial assistance, 47% of physicians required temporary housing, and 95% of physician practices reported concern about their financial wellbeing.