Posts Tagged ‘Fixed Income’

An Annuity is…

Tuesday, May 24th, 2011

An annuity is a kind of tax-deferred retirement plan, but it’s usually operated through an insurance company. You pay the insurance company a certain amount of money, and in return that company promises to pay you back with interest over a period of time. An annuity is a simple way to save money for retirement without paying taxes on it right away.

You can pay into your annuity all at once (“lump sum”) or in a series of payments. Depending on your contract, an annuity might start paying you back right away or start at a later date – such as when you plan to retire.

A Government Bond is…

Friday, October 2nd, 2009

A government bond (in the U.S.) is issued by the United States Treasury and is considered one of the safest securities in the investment world. Bonds are issued to raise money and in exchange, the purchaser receives a predictable fixed interest rate for the duration of the bond.

A Fixed Income Security is…

Friday, June 12th, 2009

A fixed income security is an investment that promises to pay interest at a set rate for a certain amount of time. Think of it as buying an IOU plus a bonus. If you give me $10 today, in three months, I’ll pay you back your $10 plus 5% interest.

Fixed Income is…

Tuesday, June 9th, 2009

Fixed income refers to any investment or instrument that pays a regular (fixed) return over a specific period of time.