How Do You Spell DEFERRED ANNUITY?

Pronunciation: [dɪfˈɜːd ɐnjˈuːɪti] (IPA)

The spelling of "deferred annuity" may seem tricky at first, but it can be broken down phonetically using the International Phonetic Alphabet (IPA) as /dɪˈfɜːrd əˈnuːɪti/. The first syllable, "de," is pronounced as "dih" with a short "i" sound. The second syllable, "ferred," sounds like "furred" with a long "e" sound. The final syllables "an" and "nuity" are pronounced "uhn" and "oo-i-ty," respectively. When pronounced correctly, the spelling of "deferred annuity" becomes more understandable.

DEFERRED ANNUITY Meaning and Definition

1. A deferred annuity is a financial investment product, typically offered by insurance companies, that allows individuals to save and accumulate funds for their retirement. It serves as a contractual agreement between an individual, or the annuitant, and the insurer.

   In a deferred annuity, the annuitant makes regular premium payments over a specific period, known as the accumulation phase. During this phase, the funds accumulate and grow on a tax-deferred basis, meaning that the growth is not taxed until the annuitant begins receiving distributions. This feature allows the annuitant to potentially benefit from compound interest on the investment, enhancing the growth potential of their savings.

   The distribution phase of a deferred annuity occurs when the annuitant decides to start receiving income from the annuity. At this point, the funds that have accumulated within the annuity are converted into a stream of regular payments, which can be received for a fixed period or life. The timing and amount of these payments are determined by the specific terms of the annuity contract.

   Deferred annuities provide individuals with a reliable income stream during retirement by allowing them to systematically accumulate savings over time. Additionally, they offer potential tax advantages and can act as a long-term financial planning tool for retirement goals. However, it is important for individuals to carefully consider the terms and fees associated with deferred annuities as they are a long-term commitment and may not be suitable for everyone's financial needs.

2. An a., the payments of which do not begin until some time in the future specified in the contract.

   A practical medical dictionary. By Stedman, Thomas Lathrop. Published 1920.

Common Misspellings for DEFERRED ANNUITY

• deferr ed annuity
• deferre d annuity
• deferred a nnuity
• deferred an nuity
• deferred ann uity
• deferred annu ity
• deferred annui ty
• deferred annuit y

Etymology of DEFERRED ANNUITY

The word "deferred" comes from the Latin word "deferre", which means "to postpone" or "to delay". "Annuity" is derived from the Latin word "annus", meaning "year". In the context of finance, an "annuity" refers to a series of payments made at regular intervals, usually yearly.

Thus, the term "deferred annuity" originates from the idea of postponing or delaying payments and receiving them at a future date, typically after a certain period of accumulation or investment. In the case of a deferred annuity, the payments or income are scheduled to begin at a later time, often at retirement age.

Plural form of DEFERRED ANNUITY is DEFERRED ANNUITIES