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Future value

Although, the future value is a great concept in economics, investors are exposed to two major risks; inflation and currency exposure.

If the price of goods and services do rise up, it means the investors will take home less. Future value does not guarantee inflation cushion like investing in higher risk investments like shares and stocks, unless it is in the government investments whereby the government makes adjustments to cover the inflation.

But also, investing in government bonds and securities does not promise good interest income. Also, if a currency losses value then international investors will receive lower amount of their investments.

David Waithera

David Waithera is a Kenyan author. He is an observer, a participant, and a silent historian of everyday life. Through his writing, he captures stories that revolve around the pursuit of a better life, drawing from both personal experience and thoughtful reflection. A passionate teacher of humanity, uprightness, resilience, and hope.

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