Delayed Perpetuity
Definition of 'Delayed Perpetuity'A perpetual stream of cash flows that start at a predetermined date in the future. For example, preferred fixed dividend paying shares are often valued using a perpetuity formula. If the dividends are going to originate (start) 5 years from now, rather than next year, the stream of cash flows would be considered a delayed perpetuity. |
|
Investopedia explains 'Delayed Perpetuity'The net present value (NPV) of a delayed perpetuity is less than a comparable ordinary perpetuity because, based on time value of money principles, the payments have to be discounted to account for the delay. Retirement products are often structured as delayed perpetuities. |
Related Definitions
Articles Of Interest
-
10 Bank-Breaking Money Myths
Just because a belief is common, doesn't mean that it's true. Here we separate fact from fiction. -
Retire In Style
Set your sights on the golden years and get there sooner. -
Borrowing From Your Retirement Plan
Left with no alternative but to take money out from your retirement savings? Here are some guidelines. -
The 5% Solution To Financial Freedom
How can you save the recommended 10% of your income? We'll show you how to get there. -
Executive MBA Programs: Managers Going Back To School
If you're working in management and want to move forward in your career,this degree may give you the boost you're looking for. -
What To Expect From A Financial Internship
A college internship can be a wide-open gateway into your dream financial services industry post. Find out what you can expect, if you handle it right. -
5 Financial Gifts Dad Really Wants
Want to give a unique Father's Day gift? These financial gestures may make Dad's day. -
3 Seemingly Non-Financial Decisions Everyone Should Take More Seriously
None of these decisions should be considered as being purely financial, but there are severe consequences to ignoring the financial side all together. -
Experience Or Education: Which One Lands You The Job?
When job hunting, does education trump experience? Here are some factors to consider when it comes to this duel of credentials. -
Should You Buy An Annuity?
For many cash strapped seniors an annuity sounds like the perfect solution. And it can be if you think you’ll outlive your mortality date. The only trouble is that the insurance companies offering ...
Free Annual Reports