DEFINITION of 'Ad Infinitum'
A Latin phrase meaning "to infinity"  in other words, forever. In finance, the term is associated with a perpetuity, in which the payments derived from an asset at fixed intervals are assumed to go on forever and ever, or ad infinitum.
INVESTOPEDIA EXPLAINS 'Ad Infinitum'
Payments received ad infinitum do indeed go on a very long time. But it's important to realize that, because of the time value of money, the present value (i.e, the value today) of those payments very far off in the future (say, 50 years from now) is negligible. Thus the present value of an ordinary annuity (i.e., one with a fixed end) of 50 years is not very much less than that of a perpetuity whose payments go on ad infinitum.
RELATED TERMS

Perpetual Preferred Stock
A type of preferred stock that has no maturity date. The issuers ... 
Perpetual Bond
A bond with no maturity date. Perpetual bonds are not redeemable ... 
Perpetuity
A constant stream of identical cash flows with no end. The formula ... 
Ordinary Annuity
A series of equal payments made at the end of each period over ... 
Monthly Income Plan  MIP
A type of investment vehicle that provides a specified monthly ... 
Subaccount Charge
Fees charged for the management of an investment fund.
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