deferred annuity
An annuity contract where the insurance company holds your money and begins sending you regular payments at a future date you choose, rather than right away.
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Words beside it
- Annuity
A contract with an insurer that pays you a stream of income; simple ones are cheap, complex ones often are not.
- Deferred compensation
Pay an executive agrees to receive later; it is an unsecured promise from the employer.
- fixed annuity
A fixed annuity is an annuity where the insurance company promises your money will grow at a set interest rate. It is the simplest kind because the rate does not change with the market.
- immediate annuity
An annuity contract where the insurance company begins sending you regular payments right away, rather than waiting years to start.
- indexed annuity
An indexed annuity is an annuity whose growth is tied to a market index like the S and P 500, but with limits on how much you can gain or lose. It sits between a fixed annuity and a variable one.
- tax deferred
When your money grows inside an account and you do not pay taxes on that growth until you take the money out later. It is like getting to delay a bill instead of paying it right now.
- variable annuity
A variable annuity is an annuity where your money goes into investment choices that can rise or fall in value like a stock fund. Your payments depend on how those investments do.
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