28
December
2018

Annuity /

Anuita

Business Term of the Day

Definition

An annuity is a payment under a contract in which one party provides regular payments to another party over a specific period of time.

Example sentence

After reviewing my financial situation, the financial advisor recommended that I steer clear of annuities and instead consider investing in dividend stocks.

Comment

The term “annuity” is used to describe both investment instruments and a type of payment arrangement that fundamentally involves payments of a fixed amount at specified time intervals and until a specified principal amount is paid (or repaid). Examples of annuity-type financial instruments include certain retirement investments and old-age pensions, leases, and mortgages. The term is widely applied to a broad range of investment products that may be entirely suitable for some investors but inappropriate for others and sometimes deceptive or even fraudulent in their contractual conditions.  Although the basic mechanism of a simple annuity is rather straightforward, additional features and complexities are frequently attached to investment products that are sold as annuities. One result can be to make these products impenetrably complicated for the average investor to understand.

Definice

Anuita je platba podle smlouvy, jíž jedna strana poskytuje pravidelné platby jiní straně po určenou dobu.

Příklad použití ve větě

Poté, co posoudil mou finanční situaci, mi finanční poradce doporučil, abych se vyhnul anuitám a místo toho zvážil investice do dividendových akcií.

Poznámka

Termín „anuita“ se používá pro popis jak investičních nástrojů, tak platebních mechanismů, které v zásadě zahrnují platby pevné částky ve stanovené intervaly až do vyplacení (nebo splacení) jistiny. Příklady anuit zahrnují určité důchodové investice a starobní důchody, pronájmy, a hypotéky. Tento termín se často používá pro širokou oblast investičních produktů, které mohou být naprosto vhodné pro některé investory ale nevhodné pro jiné, a někdy i s klamavými nebo podvodnými smluvními podmínkami. Ačkoli základní mechanismus anuit je vcelku jednoduchý, k investičním produktům, které se prodávají jako anuity, se přidávají další funkce a komplikace. To může mít za následek, že jsou tyto produkty pro průměrného investora příliš složité na pochopení.

Business Term of the Day

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Simply subscribe to receive our Business Term of the Day at no charge to your inbox each business day, with explanation in English and Czech.

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