An annuity ladder is a strategy that can be used to minimize the risk of having all of your money invested in a single annuity. An annuity ladder works by investing a portion of your money in a series of annuities with different maturity dates. This allows you to have access to a portion of … Read more
A term certain annuity is an annuity that pays out regular income payments for a specific length of time. After the term is up, the annuity contract ends and the annuitant (person receiving payments) no longer receives income payments. What are the two most common types of annuities? The two most common types of annuities … Read more
An individual retirement annuity (IRA) is a retirement plan that allows an individual to make annual contributions to a designated account, with the earnings on the account accumulating tax-deferred. The individual can then use the funds in the account to provide income during retirement. There are two types of IRAs: traditional IRAs and Roth IRAs. … Read more
Commutation is the process of converting an annuity into a lump sum payment. This may be done for a number of reasons, such as if the annuity holder needs access to a large sum of money for a one-time expense. In most cases, commutation will result in the annuity holder receiving a smaller total payout … Read more
A stretch annuity is an annuity that allows for payments to be made over a period of time that is greater than the life expectancy of the annuitant. This type of annuity can be useful for people who want to ensure that their beneficiaries will receive payments from the annuity even after they die. What … Read more
A Registered Retirement Income Fund (RRIF) is a retirement savings vehicle that is registered with the government. A RRIF allows you to convert your Registered Retirement Savings Plan (RRSP) into an income stream. You can choose how much income you want to receive from your RRIF each year, and you can withdraw your funds at … Read more
An annuity is a contract between an individual and an insurance company in which the individual agrees to make regular payments (usually monthly or yearly) over a specified period of time, and in return, the insurance company agrees to make periodic payments to the individual (usually monthly or yearly) over a specified period of time, … Read more
A payout is the periodic payment made to the holder of an annuity contract, typically on a monthly or quarterly basis. The size of the payout depends on the investment performance of the underlying assets, as well as the terms of the contract. How are annuities paid to beneficiaries? Annuities are paid to beneficiaries in … Read more
A secondary market annuity (SMA) is an annuity that is purchased from another annuity holder, rather than from an insurance company. The holder of the SMA may be an individual, a financial institution, or another type of entity. The secondary market for annuities has grown in recent years, as more investors have become interested in … Read more
An annuitant is an individual who receives periodic payments from an annuity. The payments may be made for a fixed term or for the annuitant’s lifetime. What is the legal definition of annuitant? An annuitant is an individual in receipt of income from an annuity. An annuity is a financial product that provides a stream … Read more
