Questions tagged [annuity]
An annuity is a contract between you and an insurance company that requires the insurer to make payments to you, either immediately or in the future. You buy an annuity by making either a single payment or a series of payments. The payout may come either as one lump-sum payment or as a series of payments over time.
134 questions
2
votes
4
answers
281
views
Financing an interest free loan with money from either a 15% interest credit card or a money market yielding 2%
This question is from the MIT Open Courseware Finance 101 course. The question is as follows:
Two dealers compete to sell you a new Hummer with a list price of
$45,000. Dealer A offers to sell it for ...
- 29
0
votes
0
answers
65
views
Is there a general guideline for how much to put in annuities? [duplicate]
A google search, and the wonderful AI that answers questions now, 20%-40% is the answer that spits out, which is - generally about what I think. But 20%-40% is a fairly broad range.
I'm talking about ...
- 101
0
votes
1
answer
175
views
How the annuity payment is computed here?
How the payment of $-89,200.13per annum is computed here?⇒ Annuity
Note: If you uncheck hide data table, data table will be shown.
Using Fin.Cal package in 'R', I got the approximately same answer.
...
- 151
2
votes
0
answers
179
views
Should I cash out this annuity?
Here’s my situation. I’m 60 and retired for 3 years due to health issues. Im on SSD getting $2600 a month. My wife still works and has no intention of retiring. She makes around $125k. When I retired ...
- 21
2
votes
3
answers
1k
views
Why is an amortized loan an annuity problem?
I am currently learning about amortized loans and my textbook models it as an annuity problem. For example, supposing someone takes out of a loan of $25,000, with an interest rate of 8% to be paid ...
- 121
5
votes
4
answers
2k
views
Definition of annuity
To my understanding, an annuity is a contract you make with, let's say, an insurance company. You pay the principal and they commit to pay you regularly a certain for a period of time, which might be ...
- 161
0
votes
1
answer
219
views
Explain GUARANTEED MINIMUM CASH SURRENDER VALUE in an annuity in the US
I have a multi-year guaranteed annuity at a fixed rate of interest. I am allowed to withdraw the full value at three years without a surrender charge.
The annuity includes the statement:
GUARANTEED ...
9
votes
5
answers
3k
views
Rate of return on an Life Insurance Annuity
So as I approach retirement age, many people are out there suggesting annuities as a way to fund retirement. It's seductive, as they typically have around a 6% payout, that is 100K buys you 6k worth ...
- 80.2k
-2
votes
3
answers
2k
views
Can you cancel a fixed-income annuity contract anytime? [closed]
Can you cancel a fixed-income annuity contract anytime? Why or why not?
- 719
0
votes
1
answer
165
views
Present value of an annuity by formula and calculator different
I'm having some issues understanding how TVM calculators as compared to the present value formula works, they should give the same result but they don't. The questions is:
Suppose you are considering ...
- 123
0
votes
1
answer
123
views
Why payout rates from income annuities largely depend on corporate bond yields?
Why is that payout rates from income annuities largely depend on corporate bond yields? Thanks.
- 719
0
votes
1
answer
180
views
Why it's best to buy fixed-rate annuities when long-term interest rates are significantly higher than short-term interest rates?
Why it's best to buy fixed-rate annuities when long-term interest rates are significantly higher than short-term interest rates?
- 719
-2
votes
2
answers
569
views
Why buy an annuity contract instead of invest the money? [duplicate]
Inspired by Why buy an annuity contract when you have money to spend?
Take the contract described in that question: you have $100k, and you are buying a contract that pays you $600/month for the rest ...
- 3,044
13
votes
3
answers
5k
views
Why buy an annuity contract when you have money to spend?
If a person has $100K to spend for retirement, why buy an annuity contract that pays a fixed income like $600 per month when the person can just take out $600 per month from the $100K to spend?
- 719
1
vote
0
answers
128
views
Is there an equivalent to a Living annuity in Germany?
Is there a similar product in Germany to the South African living annuity versus a guaranteed annuity?
We have double citizenship, South African and German. Born in South Africa and emigrated to ...
- 11