See also
 | This disambiguation page lists articles associated with the title Annuity. If an internal link led you here, you may wish to change the link to point directly to the intended article. |
An annuity is a financial contract guaranteeing a series of regular payments made at equal intervals over a fixed period of time.
An annuity is a series of payments made at equal intervals. Examples of annuities are regular deposits to a savings account, monthly home mortgage payments, monthly insurance payments and pension payments. Annuities can be classified by the frequency of payment dates. The payments (deposits) may be made weekly, monthly, quarterly, yearly, or at any other regular interval of time.
It may also refer to:
A life annuity is an annuity, or series of payments at fixed intervals, paid while the purchaser is alive. A life annuity is an insurance product typically sold or issued by life insurance companies. Life annuities may be sold in exchange for the immediate payment of a lump sum or a series of regular payments, prior to the onset of the annuity.
A perpetuity is an annuity that has no end, or a stream of cash payments that continues forever. There are few actual perpetuities in existence. For example, the United Kingdom (UK) government issued them in the past; these were known as consols and were all finally redeemed in 2015. Real estate and preferred stock are among some types of investments that effect the results of a perpetuity, and prices can be established using techniques for valuing a perpetuity. Perpetuities are but one of the time value of money methods for valuing financial assets. Perpetuities are a form of ordinary annuities.
| | This disambiguation page lists articles associated with the title Annuity. If an internal link led you here, you may wish to change the link to point directly to the intended article. |
In economics and finance, present value (PV), also known as present discounted value, is the value of an expected income stream determined as of the date of valuation. The present value is always less than or equal to the future value because money has interest-earning potential, a characteristic referred to as the time value of money, except during times of negative interest rates, when the present value will be more than the future value. Time value can be described with the simplified phrase, "A dollar today is worth more than a dollar tomorrow". Here, 'worth more' means that its value is greater. A dollar today is worth more than a dollar tomorrow because the dollar can be invested and earn a day's worth of interest, making the total accumulate to a value more than a dollar by tomorrow. Interest can be compared to rent. Just as rent is paid to a landlord by a tenant, without the ownership of the asset being transferred, interest is paid to a lender by a borrower who gains access to the money for a time before paying it back. By letting the borrower have access to the money, the lender has sacrificed the exchange value of this money, and is compensated for it in the form of interest. The initial amount of the borrowed funds is less than the total amount of money paid to the lender.
A charitable trust is an irrevocable trust established for charitable purposes and, in some jurisdictions, a more specific term than "charitable organization". A charitable trust enjoys a varying degree of tax benefits in most countries. It also generates good will. Some important terminology in charitable trusts is the term ‘corpus’ which refers to the assets with which the trust is funded and the term ‘donor’ which is the person donating assets to a charity.
The time value of money is the greater benefit of receiving money now rather than an identical sum later. It is founded on time preference.
Powerball is an American lottery game offered by 44 states, the District of Columbia, Puerto Rico and the US Virgin Islands. It is coordinated by the Multi-State Lottery Association (MUSL), a nonprofit organization formed by an agreement with US lotteries. Powerball's minimum advertised jackpot is $40 million (annuity); Powerball's annuity is paid in 30 graduated installments or winners may choose a lump sum payment instead. One lump sum payment will be less than the total of the 30 annual payments because of the time value of money.
The U.S. Railroad Retirement Board (RRB) is an independent agency in the executive branch of the United States government created in 1935 to administer a social insurance program providing retirement benefits to the country's railroad workers.
A structured settlement is a negotiated financial or insurance arrangement through which a claimant agrees to resolve a personal injury tort claim by receiving part or all of a settlement in the form of periodic payments on an agreed schedule, rather than as a lump sum. As part of the negotiations, a structured settlement may be offered by the defendant or requested by the plaintiff. Ultimately both parties must agree on the terms of settlement. A settlement may allow the parties to a lawsuit to reduce legal and other costs by avoiding trial. Structured settlements have become part of the statutory tort law of several common law countries including Australia, Canada, England and the United States.
The Federal Employees Retirement System (FERS) is the retirement system for employees within the United States civil service. FERS became effective January 1, 1987, to replace the Civil Service Retirement System (CSRS) and to conform federal retirement plans in line with those in the private sector.
Arrears is a legal term for the part of a debt that is overdue after missing one or more required payments. The amount of the arrears is the amount accrued from the date on which the first missed payment was due. The term is usually used in relation with periodically recurring payments such as rent, bills, royalties, and child support.
In the United States, an annuity is a structured (insurance) product that each state approves and regulates. It is designed using a mortality table and mainly guaranteed by a life insurer. There are many different varieties of annuities sold by carriers. In a typical scenario, an investor will make a single cash premium to own an annuity. After the policy is issued the owner may elect to annuitize the contract for a chosen period of time. This process is called annuitization and can also provide a predictable, guaranteed stream of future income during retirement until the death of the annuitant. Alternatively, an investor can defer annuitizing their contract to get larger payments later, hedge long-term care cost increases, or maximize a lump sum death benefit for a named beneficiary.
Under European Union law, an annuity is a financial contract which provides an income stream in return for an initial payment with specific parameters. It is the opposite of a settlement funding. A Swiss annuity is not considered a European annuity for tax reasons.
Substantially equal periodic payments (SEPP) are one of the exceptions in the United States Internal Revenue Code §72(t)(1) that allows receiving payments without the 10% early distribution penalty from a retirement plan or deferred annuity before the usual 591⁄2 age restriction under certain circumstances. The rules for SEPPs are set out in Code section 72(t) and section 72(q), and allow for three methods of calculating the allowed withdrawal amount:
A structured settlement factoring transaction means a transfer of structured settlement payment rights made for consideration by means of sale, assignment, pledge, or other form of encumbrance or alienation for consideration. In order for such transfer to be approved, the transfer must comply with Internal Revenue Code section 5891 and any applicable state structured settlement protection law.
Longevity insurance, insuring longevity, also known as a longevity annuity, Qualifying Longevity Annuity Contract or QLAC and deferred income annuity, is an annuity contract designed to provide to the policyholder payments for life starting at a pre-established future age, e.g., 85, and purchased many years before reaching that age.
Indian removals in Indiana followed a series of the land cession treaties made between 1795 and 1846 that led to the removal of most of the native tribes from Indiana. Some of the removals occurred prior to 1830, but most took place between 1830 and 1846. The Lenape (Delaware), Piankashaw, Kickapoo, Wea, and Shawnee were removed in the 1820s and 1830s, but the Potawatomi and Miami removals in the 1830s and 1840s were more gradual and incomplete, and not all of Indiana’s Native Americans voluntarily left the state. The most well-known resistance effort in Indiana was the forced removal of Chief Menominee and his Yellow River band of Potawatomi in what became known as the Potawatomi Trail of Death in 1838, in which 859 Potawatomi were removed to Kansas and at least forty died on the journey west. The Miami were the last to be removed from Indiana, but tribal leaders delayed the process until 1846. Many of the Miami were permitted to remain on land allotments guaranteed to them under the Treaty of St. Mary's (1818) and subsequent treaties.
Fixed annuities are insurance products which protect against the risk of outliving your income. They are insured by licensed and regulated insurance companies, similar to how your home, auto or health is insured. And just like your home, auto and health insurance, they are backed by the insurance company up to stated policy limits. State insurance guarantees vary from state to state, and may not cover 100% of the Annuity Value. For example, in California the fund will cover "80% not to exceed $250,000."
Walton v. Commissioner, 115 T.C. 589 (2000), a decision of the United States Tax Court in favor of taxpayer Audrey J. Walton, "ruled that a grantor's right to receive a fixed amount for a term of years, if that right is a qualified interest within the meaning of Section 2702(b), is valued for gift tax purposes under Section 7520, without regard to the life expectancy of the transferor." More simply, a grantor's estate's contingent interest in a grantor-created annuity upon the grantor's death does not constitute a gift to anyone; but rather, is a retained interest of the grantor.
The 24 Geo 2 c 15 is an Act of the Parliament of Great Britain.
A secondary market annuity is a term used by salespeople to describe an investment in structured settlement payment rights. The use of the term secondary market annuity is wholly misleading, because what is being sold and what the investor is buying is not an annuity, but structured settlement payment rights, a derivative of a structured settlement. The term “structured settlement payment rights” means rights to receive payments under a structured settlement. When the ownership of structured settlement payment rights is transferred, the ownership of the actual insurance product, the structured settlement annuity, does not move. It stays the same as it was when the structured settlement was established. The structured settlement derivatives being marketed to investors as "Secondary Market Annuities" do not have the same statutory protections as legitimate annuities.