Gimme shelter. (annuities)(includes related article) (CEO Finance)

From: Chief Executive (U.S.) | Date: November 1, 1993| Author: | Copyright information

An annuity is a contract under which an investor pays a certain amount of money for an agreed period of time in exchange for periodic payouts that will start when the annuitant reaches a certain age. Annuities come in two common forms: fixed-dollar annuities that guarantee the return of the invested principal plus interest, and variable annuities which base payments on a portfolio's capital appreciation. These insurance products are quite popular among the rich seeking protection against the recent increase in the upper-bracket personal tax rates. The main appeal of annuities lies in the ...

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