Financial Dictionary

This dictionary contains:
24549
financial terms

Deferred annuities




Deferred annuities

Tax-advantaged life insurance products. Deferred annuities offer deferral of taxes with the option of withdrawing one's funds in the form of a life annuity.

RELATED TERMS
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Insurance
A contract in which payment of premiums covers the insured against something which may, or may not occur.

Offer
1) A bid. 2) An amount offered. 3) To propose something that can be accepted or refused.

Option
The right but not the obligation to buy or sell a fixed quantity of a commodity, currency or security at a fixed price on or until a particular date.

Annuity
To commence a series of payments from the capital that has accumulated in an annuity. The payments may be a fixed amount, for a fixed period of time, or for a lifetime.



SIMILAR TERMS
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Defeasance
1) The setting aside by a borrower of cash or bonds sufficient to service the borrower's debt. 2) In securities trading, where a clearing house becomes counterparty to each side of a trade, after the trade has been agreed.

DEFENSE CONTRACTS SOUTH Credit Union
DEFENSE CONTRACTS SOUTH is a credit union with head office in DALLAS, TX

DEFENSE LOGISTICS Credit Union
DEFENSE LOGISTICS is a credit union with head office in PICATINNY, NJ

Defensive securities
Low-risk stocks or bonds that will provide a predictable and safe return on an investor's money.

Deferred account
A type of account that delays taxes on that account until some later date. An example is an IRA account.

Deferred call
A provision that prohibits the company from calling the bond before a certain date. During this period the bond is said to be call protected.

Deferred charge
An expenditure treated as an asset that carries forward until it becomes pertinent to the business at hand.

Deferred compensation
An amount that has been earned but is not actually paid until a later date, typically through a payment plan, pension, or stock option plan.

Deferred equity
A common term for convertible bonds, which recognizes their equity component and the expectation that the bond will ultimately be converted into shares of common stock.

Deferred futures
The most distant months of a futures contract.

Deferred interest bond
A bond that pays interest at a later date, usually in one lump sum, effectively reinvesting interest earned over the life of the bond.

Deferred nominal life annuity
A monthly fixed-dollar payment beginning at retirement age. It is nominal because the payment is fixed in a dollar amount at any particular time, up to and including retirement.

Deferred payment annuity
An annuity that stipulates payments be made to the annuitant at a later date, such as when the annuitant reaches a certain age.

Deferred tax expense
A non-cash expense that provides a source of free cash flow. Amount allocated during the period to cover tax liabilities that have not yet been paid.



PREVIOUS AND NEXT TERMS
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Default premium
A differential in promised yield that compensates the investor for the risk inherent in purchasing a corporate bond that entails some risk of default.

Default risk
The risk that an issuer of a bond may be unable to make timely principal and interest payments. Also referred to as credit risk (as gauged by commercial rating companies).

Defeasance
1) The setting aside by a borrower of cash or bonds sufficient to service the borrower's debt. 2) In securities trading, where a clearing house becomes counterparty to each side of a trade, after the trade has been agreed.

Defensive securities
Low-risk stocks or bonds that will provide a predictable and safe return on an investor's money.

Deferred account
A type of account that delays taxes on that account until some later date. An example is an IRA account.

Deferred annuities

Deferred call
A provision that prohibits the company from calling the bond before a certain date. During this period the bond is said to be call protected.

Deferred charge
An expenditure treated as an asset that carries forward until it becomes pertinent to the business at hand.

Deferred compensation
An amount that has been earned but is not actually paid until a later date, typically through a payment plan, pension, or stock option plan.

Deferred equity
A common term for convertible bonds, which recognizes their equity component and the expectation that the bond will ultimately be converted into shares of common stock.

Deferred futures
The most distant months of a futures contract.

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This dictionary contains 24549 terms.







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