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PV of Beginning of Period Annuities over n years = A + A

This present value will be higher than the present value of an equivalent annuity at the end of each period.

The future value of a beginning-of-the-period annuity typically can be estimated by allowing for one additional period of compounding for each cash flow:

FVof a Beginning - of - the - Period Annuity = A (1+r)

This future value will be higher than the future value of an equivalent annuity at the end of each period.

Consider again the example of an individual who sets aside $2,000 at the end of each year for the next 40 years in an IRA account at 8%. The future value of these deposits amounted to $ 518,113 at the end of year 40. If the deposits had been made at the beginning of each year instead of the end, the future value would have been higher:

Expected Value of IRA (beginning of year) = $2,000 (1.08)

Retirement Planning For The Golden Years

Retirement Planning For The Golden Years

If mutual funds seem boring to you, there are other higher risk investment opportunities in the form of stocks. I seriously recommend studying the market carefully and completely before making the leap into stock trading but this can be quite the short-term quick profit rush that you are looking for if you am willing to risk your retirement investment for the sake of increasing your net worth. If you do choose to invest in the stock market please take the time to learn the proper procedures, the risks, and the process before diving in. If you have a financial planner and you definitely should then he or she may prove to be an exceptional resource when it comes to the practice of 'playing' the stock market.

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