My $400,000 Mistake: A Time Value of Money Lecture

A lecture on the time value of money, from the five variables to the retirement math they drive. Devon uses his own decision to sell $200,000 of Google stock to pay off a 3% mortgage, forfeiting the upside when the stock later tripled, to show what opportunity cost really costs.

In This Episode

• The five time value of money variables: N, PMT, I/Y, PV, FV
• How time and return rates compound into large differences in wealth
• The opportunity cost of paying off a 3% mortgage with stock that later tripled
• Why starting earlier beats contributing more
• Applying annuity math to retirement planning

• Time value of money
• Investing
• Lecture