A financial product designed to pay for out a stream of payments to the holder at a later point in time. Annuities are used primarily as a way of securing a regular cash flow for an individual during his or her retirement years.
Something offered by an insurance company or an employer to which makes contribution and immediately or later begins receiving payments, which will last the rest of the annuitant's life. An annuity usually describes a retirement account into which the annuitant makes payments over his/her working life. Payments are then invested and the annuitant begins for the principal plus earnings after retirement. An eligible retirement account is an annuity that makes for either contributions or withdrawals to be tax exempt up to and including certain amount. However a wide selection of annuities exists. An annuitant can make a onetime contribution or monthly contributions over an amount of time. Likewise one may begin for payments immediately or defer them to a later date such as retirement. It's possible to elect to create fixed or variable contributions along with for fixed or variable payments.
Something offered by an insurance company or an employer to which makes contribution and immediately or later begins receiving payments, which will last the rest of the annuitant's life. An annuity usually describes a retirement account into which the annuitant makes payments over his/her working life. Payments are then invested and the annuitant begins for the principal plus earnings after retirement. An eligible retirement account is an annuity that makes for either contributions or withdrawals to be tax exempt up to and including certain amount. However a wide selection of annuities exists. An annuitant can make a onetime contribution or monthly contributions over an amount of time. Likewise one may begin for payments immediately or defer them to a later date such as retirement. It's possible to elect to create fixed or variable contributions along with for fixed or variable payments.