Valuation Period

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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.

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RELATED FAQS
  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 >>
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    The best ways to sell an annuity are to locate buyers from insurance agents or companies that specialize in connecting buyers ... Read Full Answer >>
  3. How are non-qualified variable annuities taxed?

    Non-qualified variable annuities are tax-deferred investment vehicles with a unique tax structure. After-tax money is deposited ... Read Full Answer >>
  4. Can a variable annuity be rolled into an IRA?

    You can roll qualified variable annuities, such as other qualified retirement plan accounts, into a traditional IRA. Non-qualified ... Read Full Answer >>
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    Variable annuities are insurance contracts that provide tax-deferred growth of assets that can later generate a guaranteed ... Read Full Answer >>
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    Discretionary income is the money left over from your gross income each month after taking out taxes and paying for necessities. ... Read Full Answer >>

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