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annuity
(redirected from annuitizing)

   Also found in: Legal, Financial, Encyclopedia, Wikipedia, Hutchinson 0.03 sec.
an·nu·i·ty  (-n-t, -ny-)
n. pl. an·nu·i·ties
1.
a. The annual payment of an allowance or income.
b. The right to receive this payment or the obligation to make this payment.
2. A contract or agreement by which one receives fixed payments on an investment for a lifetime or for a specified number of years.

[Middle English annuite, from Anglo-Norman, from Medieval Latin annuits, from Latin annuus, yearly, from annus, year; see at- in Indo-European roots.]

annuity
Noun
pl -ties a fixed sum payable at specified intervals over a period [Latin annuus annual]

annuity
an investment that bears a fixed return yearly, for a fixed period or for the life of the recipient.
See also: Finance
ThesaurusLegend:  Synonyms Related Words Antonyms
Noun1.annuity - income from capital investment paid in a series of regular payments; "his retirement fund was set up to be paid as an annuity"
regular payment - a payment made at regular times
annuity in advance - an annuity paid in a series of more or less equal payments at the beginning of equally spaced periods; "rent payable in advance constitutes an annuity in advance for the landlord"
ordinary annuity - an annuity paid in a series of more or less equal payments at the end of equally spaced periods
reversionary annuity, survivorship annuity - an annuity payable to one person in the event that someone else is unable to receive it
tontine - an annuity scheme wherein participants share certain benefits and on the death of any participant his benefits are redistributed among the remaining participants; can run for a fixed period of time or until the death of all but one participant
Translations
Spanish annuity [əˈnjuːɪtɪ] nrenta or pensión f vitalicia
French annuity [əˈnjuːɪtɪ] nrente f;
life annuity → rente viagère

German annuity [əˈnjuːɪtɪ] nRente f;
life annuity → Rente f auf Lebenszeit

Italian annuity [əˈnjuːɪtɪ] nannualità f inv;
life annuity → vitalizio

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Annuitizing conservative assets allows them to work harder, "and then you've allowed those other less-conservative investments to grow and to build, hopefully," he said.
For instance, if a company annuitized one-third of a plan's liabilities (by annuitizing its retirees), then one-third of the deferred gain is immediately recognized as income under FAS 88.
You can avoid this dilemma by annuitizing a private pension, but since annuity-purchasers tend to live longer, insurance companies charge a steep premium for this service.
 
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