Investment term of the day: Annuity

An annuity is a financial contract, which provides an income stream in return for an initial payment with specific parameters. There are different types of annuities including variable, deferred and fixed.

Annuities are often used at retirement to convert pension savings into a regular income that will last for the rest of the individual’s life.

Investopeida definition

Wikipedia page

Photo: doctor-a via Freeimages