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Annuity
Definition
A simple annuity definition is
that it is an amount
of cash that you
receive for money invested. The amount that you invest resides with an
insurance company. The insurance company is in charge of your
money and responsible to see that you get paid the agreed upon amounts.
The derivation of annuity comes from Medieval
Latin annuitas, from Latin annuus, (yearly) from annus (year).
Annuity means a specified
amount of money that is paid
during specific
intervals. The amount depends on the type of annuity
and amount of
funds you make available. Annuities are often a major part of retirement
income streams,
providing dependable income.
You can receive
a set monthly
amount for the rest of your life if that is how you wish your annuity
to be set up.
An annuity can be paid at the beginning of the term: Annuity
Due.
Or it can be paid at the end of each term: Ordinary
Annuity.
Variety of
Options
- Pay out as long as one's
spouse is alive...
- Pay out for a fixed amount of years
regardless if the investor passes away during the term...
- Fix in high interest rates
to give you an advantage when rates are low...
- Guarantee a payment to your
heirs...
- Some will not pass to your heirs, but provide
you with better payment options while alive...
The above are some typical examples.
Work Out Your
Goal
A good approach is to work out your
goal...
Do you want to grow a small monthly amount to a
large
retirement nest egg
(deferred
annuity)?
Or, are you interested in steady monthly income
starting in the very near future (immediate
annuity)?
Determine what you want your money to do for
you...
Get a good
annuity quote and get the best options
available
for
you!
Or, get a free consultation from a Certified
Financial Planner to go
over your plans to help you make the best decision for
your needs.
"You'll be glad you did the right
thing!"
Return
to An Annuity is...
Return
from Annuity Definition, to Annuities
Financial Planning
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