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annuity investment & finance definition
A
financial instrument that pays out the investor’s earnings on a regular,
periodic basis for a set amount of time. Annuities typically are used to
provide funds for retirement. Annuities may be paid for the duration of a
person’s life or may be set for a certain period of time. Annuities are
tax-deferred, so the earnings from investments in these accounts grow without
tax liability until the benefits are paid out.
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