Valuation Period


DEFINITION of 'Valuation Period'

The time between the end of the business day of the first business day and the end of the business day of the second business day. The valuation period refers to variable annuities. Annuities are financial products that provide an income source in retirement. Variable annuities are annuity products that provide annuity payouts based on the current value of the annuity's investments.

BREAKING DOWN 'Valuation Period'

The contract value of a variable annuity depends on the performance of the investments. The owner of the annuity can choose the investment vehicles and allocate certain percentages or amounts towards various investment products. A variable annuity offers the potential for greater earnings (and larger payouts) but at the same time involves more risk than other annuity products such as fixed deferred annuities.

  1. Annuity

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  4. Variable Annuity

    An insurance contract in which, at the end of the accumulation ...
  5. Life Annuity

    An insurance product that features a predetermined periodic payout ...
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  1. Is it wise to put an IRA account into a fixed or variable annuity?

    The answer to this depends on an individual's investment goals, requirements and risk tolerance. During the 1990s, the majority ... Read Full Answer >>
  2. How liquid are variable annuities?

    Variable deferred annuities and variable immediate annuities are not considered liquid. Variable deferred annuities carry ... Read Full Answer >>
  3. Do variable annuities have RMDs?

    Variable annuities are not subject to required minimum distributions (RMDs) unless they are held in qualified plans, such ... Read Full Answer >>
  4. Can variable annuities be rolled into an IRA?

    Variable annuities are often found in government or nonprofit employer retirement plans such as 403(b) or 457(b) plans. With ... Read Full Answer >>
  5. How do I calculate the future value of an annuity?

    When planning for retirement, it is important to have a good idea of how much income you can rely on each year. There are ... Read Full Answer >>
  6. Are variable annuities protected from creditors?

    Whether your variable annuity is protected from creditors depends on the state in which you live. About three-quarters of ... Read Full Answer >>

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