An annuity is a financial product that pays out a fixed stream of payments to an individual, primarily used as an income stream for retirees.
 | | Annuity | An annuity is a financial product that pays out a fixed stream of payments to an individual. These financial products are primarily used as an income stream for retirees. Annuities are created and sold by financial institutions, which accept and invest funds from individuals. Upon annuitization, the holding institution will issue a stream of payments at a later point in time.
The period of time when an annuity is being funded and before payouts begin is referred to as the accumulation phase. Once payments commence, the contract is in the annuitization phase. | | Read More » | | An Overview of Annuities | | An annuity can provide steady income during retirement, but make sure you understand the different types and how they work before purchasing one. | | Read More » | | | Income Annuity | | An income annuity is an annuity contract that is designed to start paying income as soon as the policy is initiated. Discover more about it here. | | Read More » | | | Variable Annuity | | A variable annuity is a type of annuity contract that allows for the accumulation of capital on a tax-deferred basis. | | Read More » | | | Annuity Due | | Annuity due is an annuity with payment due immediately at the beginning of a period instead of at the end. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
No comments:
Post a Comment