About the Time Value of Money

You will hear it on the news at least once a day; the value of the dollar is declining. It is the US dollar, which is used to give equities and commodities their value. Inflation and the declining economy, which may fear will turn into a recession the future value of money is shaky at best.

Gold might be the only investment worth hanging onto, because it has kept its value regardless of the financial situation of the United States and the rest of the world as well. The US dollar is one of the legal tenders used to give gold it’s worth. When the US dollar declines in value, the value of gold rises.

It is odd; the value of money can vary. It can appear strong one year and then loose its value in a few months. Smart investors are aware of the times we live in, when the dollar is decreasing in value along with those currencies of other countries. So they will consider alternative investments and they think in terms of the returns. The certainty of your future payments are loosing they’re worth now, what will their value be in the future when you actually see those payments.

So why hang on to them? It seems the smartest move would be to cash the future note in and reinvest it in an area, which is more stable. The declining housing market here in the United States is an area, which it would be safe to say, you will not be considering as a stable investment.

The president elections are fast upon us and the candidates are making promises, which will remedy the sick economy. Unfortunately that information may not make you feel any better. They don’t have a crystal ball any more than we do. At best they can try to fix the economy, but we, the American people are the ones controlling the spending of our money and we choose how our money will be invested. You are the one responsible for knowing the value of your investments and you are the one who should make an intelligent and educated decision about your investments.

At one time the Feds didn’t print money in order to keep the economy a float. There was a joke during that time, the makers of Monopoly printed more money than the US treasury. Today however is not the case. The Feds are printing money to keep the economy from failing.

With the recession loaming largely over us, the little bit of cash we have today will decrease in value even more than it is. Regardless of what many people might think their annuities and structured settlements may not be increasing in value as time goes by. If you need advice regarding the current situation of the economy and your annuities value, you will need to talk to a financial expert