The ‘time value of money’ is all that matters when it comes to annuities. Does that term rings a bell? It’s something that is considered very important when it comes to equating the value of finances today and, may be, twelve years later. The present value of perpetual annuity explains the value of a bond today, for which you may recover the principal at the end of a particular period. If the equation suits you, you may decide to invest in the bond. The same works for an annuity. The comparison of the present or future value of a dollar and a stream of future payments may help you decide the worth of an annuity in future, when you have retired. If you are planning to invest in an annuity today, to secure your income for the approaching phase of retirement, the time value of money is one thing that can help you. Otherwise, you can refer to the annuity growth rate from expert analysis.

Annuity growth rates are estimated on the basis of the future value of money compared to the present and the market’s reaction to it. Experts spend considerable time in predicting the future rates of interest relevant to different aspects of the economy. You will find annuity tables and several calculations on the Internet that guide the growth and decision of several income and investment factors.

Annuities can be confusing and risky. Yet, they may be beneficial for the individual investing in them as well as for the economy. In the ‘Journal of the Academy of Business and Economics’, published in Jan, 2003, economists Ali Nejadmalayeri and Caroline Patrick confirm that “growth annuity payment plans akin to graduated mortgage payments reduce the overall lending risk by alleviating the borrower's life-time likelihood of default particularly during the early years of the mortgage.” They further have argued in this paper that such lending practices reduces the overall default risk in the economy and also provides an alternative growth mechanism which is appealing to a much wider demography than traditional mortgage loans.

If you are looking to invest safely in some long-term savings plan, to secure your future income, annuities can be of great use. You just need to understand that a certain level of risk is involved, which can be mitigated by being alert and wise. A fixed annuity promises to be the safest, yet other forms of annuities can give you higher yields. While you need to compare the annuity growth rate or interest rate promised by the insurance company offering the annuity, you can also consult annuity specialists for their expert analysis and opinion. For annuity advice from experts, Click here or call us at the toll-free number 1-800-998-4056. Annuity experts at the www.AnnuityLibrary.com can guide you with comparing growth rates of annuities and suggesting which will work well for you.