So-the-time-value-of-money-is-more-or-less-zero-no #

So the time value of money is more or less zero now and loan rates depend much m… | Hacker News #

Created: March 31, 2020 11:00 AM URL: https://news.ycombinator.com/item?id=22738370 So the time value of money is more or less zero now and loan rates depend much more on default risk than any opportunity cost in loaning the money. A savings account at 0% doesn’t build wealth, but it didn’t really do that 3 months ago at 1.5%. Personal loans at 9% aren’t much better than loans at 11%. I’m not saying bet on them (I don’t know if they’ll happen, nor can I predict the future and time them). As an example, everyone in this life needs a roof over their head, so if you don’t own anything real estate related, a bubble in real estate prices is a risk. A homeowner who plans to stay in their house 20 more years doesn’t have to care about annual changes in the real estate market…but a renter does. If your time horizon is long enough, not being able to buy stocks at a decent price is a bigger threat to your retirement than a short term drop, so make sure you have some amount of money in the market while the market isn’t at all time highs.