The amount of one per period refers to the compound amount that accumulates when one unit of currency is invested at the end of each period for a certain number of periods at a specific interest rate. This concept is critical in understanding the future value of annuities in finance.
A deferred group annuity is a retirement income product where income payments start at a future date and continue for life, funded through annual contributions that purchase single-premium deferred annuities.
Fixed-income refers to a type of investment or income stream where payments are received on a regular schedule and are typically not adjusted for inflation. Common examples include most bonds, certain annuities, and some pension funds.
A comprehensive overview of general retirement systems, including pension and annuity funds established by states or political subdivisions for their employees.
Investment refers to the purchase of assets such as stocks, bonds, mutual fund shares, real property, collectibles, or annuities, with the expectation of obtaining income, capital gain, or both in the future. Investment tends to be longer term and less risky than speculation.
An annuity that provides payments to two or more beneficiaries, typically a husband and wife. When one of the annuitants passes away, the survivor continues to receive annuity payments; however, the payments made to the deceased are not transferred to the survivor.
A level-payment income stream is a series of equal cash flows received or paid at regular intervals over a specified period. Often associated with annuities, it ensures a constant amount of payment or income in each period.
Passive investment income refers to the earnings derived from investments in which the individual or entity does not actively participate. This includes royalties, rents, dividends, interest, annuities, and gains from the sale of stocks and securities.
A perpetuity is a financial instrument that provides continuous payments indefinitely. It has no end date, meaning it theoretically continues forever. The Rule Against Perpetuities restricts the length of time properties can be held or devised to lineage.
A personal pension scheme is an arrangement where an individual contributes a portion of their salary to a pension provider, like an insurance company or bank, to secure funds for retirement.
Retirement income refers to the various sources of funds that a retired individual receives, which can include Social Security benefits, pensions, annuities, and investment income. This income is critical for maintaining an individual's lifestyle once they are no longer earning a regular paycheck.
