Annuitize refers to the process of converting the accumulated capital in an annuity into a series of periodic payments. These payments can be for a fixed amount, over a fixed period, or for the lifetime of one or more annuitants, ensuring a guaranteed income stream that cannot be outlived.
A mathematical figure showing the present value of an income stream that generates one dollar of income each period for a specified number of periods.
The term 'carve out' refers to the separation of a specific interest, such as the current income stream of a property, from the property itself. For instance, an owner might sell a portion of future mineral production from a property for a set number of years, creating a carved-out interest in that mineral property.
A fixed annuity is an investment contract sold by an insurance company that guarantees fixed payments, either for life or for a specified period, to an annuitant. It provides a stable and predictable income stream, making it a popular choice for retirees seeking financial security.
An income stream refers to the regular flow of money generated by a business or investment, essential for evaluating financial health and planning future strategies.
