{"id":877,"count":1,"description":"\r\n\r\nJump to: \r\nWhat is annuity?<\/a>\r\nWhat types of annuities are there?<\/a>\r\nWhat are fixed annuities?<\/a>\r\nWhat are variable annuities?<\/a>\r\n\r\nWhat is annuity?\r\n\r\nAnnuity is a financial investment instrument\/tool that is designed as a reliable means of securing a steady income stream for life. This financial product is somewhere between insurance and investment and is largely marketed as a nontraditional way to generate income during retirement.\r\n\r\n\r\n\r\n\r\n\r\nWhat types of annuities are there?\r\n\r\nAnnuities can be structured in different ways, depending on several factors. Annuities that are created to turn a large sum into steady cash flow can be structured to pay out funds for a fixed amount of time, either immediately or as deferred benefits.\r\nExample: winning the lottery and setting up annuity so that the money is gradually paid out, like a salary or a pension. Alternatively, setting up annuity of a large cash settlement to be paid out over a set period of time (10-20 years) instead of all at once.\r\n\r\nThe various types of annuities typically fall into two categories: fixed and variable.\r\n\r\n\r\n\r\n\r\n\r\nWhat are fixed annuities?\r\n\r\nFixed annuities work much like a certificate of deposit, but generally have a higher interest rate. The payments from a fixed annuity are for life and they are stable and secure. However, the returns are capped at a fixed rate and not adjusted for inflation over time. \r\n\r\n\r\n\r\n\r\nWhat are variable annuities?\r\n\r\nVariable annuities allow for the money deposited to be invested in stocks, bonds and\/or market funds. If the investments made by the annuity fund do well, the annuity owner\u2019s future returns can be greater. However, if the investments underperform, the annuity returns will be lower. Through the payout is potentially higher, the cash flow of a variable annuity is less stable than a fixed annuity and carries a higher risk.\r\n\r\nIt is generally advised to carefully read all terms and conditions about fees, charges and expenses, before deciding on investing in either type of annuity.\r\n\r\n\r\n\r\n\r\nYou might also be interested in:\r\n\r\nWhat are intangible assets?<\/a>\r\nWhat are liquid vs. illiquid assets?<\/a>\r\nWhat are pros and cons of hard money loans?<\/a>\r\n\r\n\r\n\r\n\r\n\r\nSearch other terms\r\n\r\n\r\nA<\/a>\r\nB<\/a>\r\nC<\/a>\r\nD<\/a>\r\n\r\n\r\nE<\/a>\r\nF<\/a>\r\nG<\/a>\r\nH<\/a>\r\n\r\n\r\nI<\/a>\r\nJ<\/a>\r\nK<\/a>\r\nL<\/a>\r\n\r\n\r\nM<\/a>\r\nN<\/a>\r\nO<\/a>\r\nP<\/a>\r\n\r\n\r\nQ<\/a>\r\nR<\/a>\r\nS<\/a>\r\nT<\/a>\r\n\r\n\r\nU<\/a>\r\nV<\/a>\r\nW<\/a>\r\nX<\/a>\r\n\r\n\r\nY<\/a>\r\nZ<\/a>\r\n\r\n\r\n\r\n\r\n\r\nPopular terms\r\n\r\n\r\n\r\n\r\nAmortization<\/a>\r\n\r\n\r\nEquity <\/a>\r\n\r\n\r\nNotary Public <\/a>\r\n\r\n\r\nProgression\/Regression<\/a>\r\n\r\n\r\nAcquisition <\/a>\r\n\r\n\r\nAnnuity <\/a>\r\n\r\n\r\nAsset <\/a>\r\n \r\n \r\n Fiduciary <\/a>\r\n\r\n \r\n Inflation <\/a>\r\n\r\n \r\n Contingency <\/a>\r\n\r\n \r\n Escrow<\/a>\r\n\r\n \r\n Power of attorney <\/a>\r\n\r\n \r\n Real Estate Agent <\/a>\r\n\r\n \r\n Eminent Domain <\/a>\r\n\r\n \r\n Liability <\/a>\r\n\r\n \r\n Statute of Limitations<\/a>\r\n\r\n \r\n Valid <\/a>\r\n\r\n \r\n Variance<\/a>\r\n\r\n \r\n Contiguous <\/a>\r\n\r\n \r\n Deficit<\/a>\r\n\r\n\r\n\r\n\r\n","link":"https:\/\/www.commercialcafe.com\/blog\/tag\/cre-term-annuity\/","name":"Annuity","slug":"cre-term-annuity","taxonomy":"post_tag","meta":[],"yoast_head":"\nWhat is Annuity? 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