Annuity In Arrears

AAA

DEFINITION of 'Annuity In Arrears'

An annuity that has periodic payments of either interest and/or principal that must be paid at the end of a set period of time. An annuity in arrears is one of the most common forms of annuities. They are also known as ordinary annuities.

INVESTOPEDIA EXPLAINS 'Annuity In Arrears'

Annuities in arrears are not marketed as such by most annuity carriers, but they do exist nonetheless. They get their name from the fact that the first full annuity payment is not due until the end of the first term. For example, an annuity that pays out a combination of interest and principal one month from the start of the payment period is an annuity in arrears.

RELATED TERMS
  1. Annuity Ladder

    An investment strategy for retirees or near-retirees that entails ...
  2. Annuity

    A financial product sold by financial institutions that is designed ...
  3. Distribution

    1. When trading volume is higher than that of the previous day ...
  4. Annuitization

    The process of converting an annuity investment into a series ...
  5. Income Annuity

    Annuities designed to start paying income as soon as the policy ...
  6. Subaccount Charge

    Fees charged for the management of an investment fund.
Related Articles
  1. Home & Auto

    Watch Your Back In The Annuity Game

    Find out how to get the upper hand when dealing with this payout challenge.
  2. Retirement

    Immediate Annuities: More Income and Lower Taxes

    These instruments may shed their bad rap to bring you a hefty tax break.
  3. Investing Basics

    Calculating The Present And Future Value Of Annuities

    At some point in your life, you may have had to make a series of fixed payments over a period of time - such as rent or car payments - or have received a series of payments over a period of time, ...
  4. Home & Auto

    An Overview Of Annuities

    These contracts provide a guaranteed income stream. Learn how they work and their benefits.
  5. Options & Futures

    Selecting The Payout On Your Annuity

    Make sure you understand your options for withdrawing your funds from this complex instrument.
  6. Insurance

    Who are the best-rated life insurance companies in the US?

    Learn about what makes an insurance company the best. Read about the best life insurance companies in the U.S. in 2014, following ratings by Weis.
  7. The Treasury and the IRS have issued new guidance on pairing annuities with target date funds.
    Investing Basics

    Guidance On Pairing Annuities, Target Date Funds

    The Treasury and the IRS have issued new guidance on pairing annuities with target date funds. Here's a look.
  8. How can investors close to retirement protect the purchasing power of their savings? Here are some tips for near-retirees and their financial advisors.
    Investing News

    Tips To Beat Inflation For Near-Retireees

    How can investors close to retirement protect the purchasing power of their savings? Here are some tips for near-retirees and their financial advisors.
  9. Retirement

    Are annuities qualified or nonqualified retirement instruments?

    Learn the basics of annuity investments and the tax-deferral they offer, and discover the differences between qualified and non-qualified annuities.
  10. Retirement

    Where else can I save for retirement after I max out my Roth IRA?

    Max out your Roth IRA first, then look to other retirement accounts like 401(k) plans, IRAs and annuities to sock away as much cash as you can for retirement.

You May Also Like

Hot Definitions
  1. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  2. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  3. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  4. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  5. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  6. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
Trading Center