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Simple English definitions for legal terms

annuity

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A quick definition of annuity:

An annuity is a long-term agreement between an individual and an insurance company. The individual pays money to the insurance company, which invests it and guarantees to make regular payments to the individual for a set period of time. Annuities are often used for retirement planning to ensure a steady income during retirement. There are different types of annuities, including fixed, variable, and indexed, each with its own benefits and risks. Annuities are subject to income tax, and it is recommended to contribute to pre-tax retirement accounts before buying an annuity. Annuities can also be non-probate assets that pass to designated beneficiaries at death.

A more thorough explanation:

An annuity is a long-term contract between an individual and an insurance company. It is usually used as part of retirement planning. The individual pays money to the insurance company, which invests it. The insurance company then pays the individual regular amounts of money for an agreed period of time. This guarantees income during retirement and removes the risk of running out of money. However, the payments are subject to income tax.

There are different types of annuities:

  • Fixed annuities: guarantee a fixed rate of interest for a specific period of time.
  • Variable annuities: allow individuals to invest in various securities, with the payments dependent on the success of the investments.
  • Indexed annuities: combine the benefits of fixed and variable annuities because the returns are based on the performance of a stock market index.

There are also different terms of annuities:

  • Fixed-period annuities: guarantee payments for a set length of time.
  • Life annuities: end at the death of the owner.
  • Life with period certain annuities: guarantee payment for the owner's life but also allow them to choose a fixed period of guaranteed payment.

John wants to make sure he has enough money for retirement. He decides to buy a fixed annuity from an insurance company. He pays $100,000 to the insurance company, which guarantees him a fixed rate of interest for 10 years. After 10 years, the insurance company will start paying John a fixed amount of money every month for the rest of his life. This guarantees John income during his retirement years and removes the risk of running out of money.

Another example is Mary, who wants to invest in the stock market but also wants a guaranteed income during her retirement years. She decides to buy an indexed annuity from an insurance company. The returns on her annuity are based on the performance of the S&P 500. If the stock market does well, Mary will receive a higher payment. If the stock market does poorly, Mary will still receive a guaranteed minimum payment. This allows Mary to invest in the stock market while also having a guaranteed income during her retirement years.

These examples illustrate how annuities work and how they can be used as part of retirement planning. Annuities provide a guaranteed income during retirement and remove the risk of running out of money. However, they are subject to income tax and there are different types and terms of annuities to consider.

annuitant | annulment

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14:47
Yoooo I’m a lifter too
14:47
I'm all good, I'm tipsy in Zanzibar finishing an app and laughing my ass off to this:
babycat
14:48
renard what are you drinking?
BulbasaurNoLikeCardio
14:50
Feeling like sad drinking tonight, wife accidentally tossed out my truck keys and those are expensive as fuck to replace. The crappiest part is that the key chain had the "remove before flight" tab from my first aircraft's rocket pods overseas from 6 years ago. Then find out people fucked around and back dated reports at work making me look like a shit bag so I am working later tonight and missing range time which is my weekly relax/me time. Add in my sleep meds stopped working, so I am thinking vodka (so I stay skinny and hot) and pizza by the fireplace kind of friday.
1a2b3c4d26z
14:51
Renard if you're not drinking margs Im gonna throw hands
14:51
Was at a restaurant and they decided to have me try something called "Double Kick" free of charge, it's like a sugar cane liquor with pineapple flavor
1a2b3c4d26z
14:51
missing range time :(
1a2b3c4d26z
14:52
That sounds good renard but unfortunately I'll still have to throw hands
Tonight I’m Having a date with this guy who asked me out couple times
BulbasaurNoLikeCardio
14:54
What made you give in and go out after he asked a couple times?
Other failed dates
babycat
14:55
That’ll do it
Question, how many of u would sleep on first date
babycat
14:57
honestly my answer is it depends
babycat
14:57
there has to be a very specific vibe to make me want to do that. not like a regular date
babycat
14:59
and sometimes you want to and you still don’t do ir
babycat
14:59
it
babycat
15:00
but I don’t use dating apps so all my first dates are with people I’ve already met in some context, which it sounds like is your situation too
Dkk
15:00
I could never imagine myself doing that on a first date.
Dkk
15:01
@BulbasaurNoLikeCardio: hope things get better
babycat
15:01
@Dkk: what if it’s someone you’ve known for a long time but never dated?
Dkk
15:03
Maybe but things would have to go like perfectly. I could not imagine them going perfectly.
15:04
Sleeping on the first date just isn't my style, idk. I take things painfully slowly and much prefer to befriend and really get to know a girl first before doing any of that
Ok another question, what do u tell the ppl u sleeping with already that ur going on dates
Dkk
15:05
The bigger issue is if I sleep with them will I have the emotional connection to finish cus it is harder for me to finish if I do not know the person.
bigroger100
15:05
Anyways when the fuck are either of the colorados schools releasing their shit. Smh
BulbasaurNoLikeCardio
15:05
@Rightfullytherlauren: If the person is clean or has a good vibe I will do it the first date
15:06
Yeah sorry I can't answer that Lauren, I don't sleep with anyone if I'm not already dating them
Dkk
15:06
@Rightfullytherlauren: This is like a stupid thing that only really hot guys and women have to think about. I have never had to think about this before. No answer.
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