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Investments glossary

Annuities: Insurance for Retirement


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An annuity is a financial product that pays out a fixed stream of payments to an individual, and these financial products are primarily used as an income stream for retirees. Annuities are contracts issued and distributed (or sold) by financial institutions, which invest funds from individuals. They help individuals address the risk or outliving their savings. Upon annuitization, the holding institution will issue a stream of payments at a later point in time.

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