Annuity
What is it? A type of investment that guarantees payment of specific amounts at specific times, or a single lump sum payment. Annuities are sponsored by insurance companies and other financial instituitions and sold by agents, banks, savings and loans, stockbrokers, and financial planners.Fixed annuities work like certificates of deposit (CDs); you invest a lump sum, and the insurer guarantees a fixed rate of interest for one to five years.Variable annuities let you direct your investment into fund-like portfolios of stocks, bonds, and cash equivalents. Your return, as with a fund, depends on the performance of the portfolios you choose. Variable annuities come with annual charges.Added By: Isabelle
The Annuity definition has been viewed 371 Time(s)!
Send To Friends!
If you'd like to send the Annuity definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -We hope you now understand the meaning of Annuity. If you need any more information on this term, please don't hesitate to contact us.