Annuity Payout Options
Life only pays the most per month; joint and survivor pays the least.
What is Annuity Payout Options?
Life only (straight life) pays for the annuitant's life and stops at death - the highest payment. Life with period certain guarantees payments for a minimum term. Unit refund returns any unpaid value to a beneficiary. Joint and last survivor pays until the second of two annuitants dies - the lowest payment, because the insurer expects to pay longest.
Annuity Payout Options: a worked example
A married couple wanting income for both lives chooses joint and last survivor, accepting a smaller check.
More terms in Equities, Funds & Alternatives
Shareholder Rights (Statutory vs. Cumulative Voting)
Voting, preemptive rights, dividends when declared, inspection, limited liability.
Types of Preferred Stock
Cumulative, convertible, callable, participating, and floating-rate preferred.
American Depositary Receipt (ADR)
A dollar-denominated receipt for foreign shares, traded in the US.
Rights vs. Warrants
Rights: short-term, below market. Warrants: long-term, above market.
Restricted & Control Stock (Rule 144)
Unregistered or insider-held stock with resale limits.
Employee Stock Options (ISO vs. NSO)
Incentive options get capital gains treatment; nonqualified options create income at exercise.
Technical Analysis
Forecasting prices from charts, trends, and trading volume.
Fundamental Analysis
Valuing a company from its financial statements, management, and industry.