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.
 | | Term of the Day | Words to Know | | |  | | 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 » | | | SPONSORED BY FIDELITY INVESTMENTS | | Putting Your People Skills to Work | | Do you thrive on helping people? Financial services has an array of roles that could be a great fit. Here's why being a people person is perfect for a job in finance. | | Learn More » | | | Accumulation Period | | An accumulation period is the phase in an investor's life when they build up their savings and investment portfolio to save for retirement. | | Read More » | | | Immediate Payment Annuity | | An immediate payment annuity is an annuity contract that is purchased with a single payment and pays a guaranteed income that starts almost immediately. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
