annuitizing

Creating income stream

Annuitizing is converting a lump sum of money into a series of regular payments, typically for retirement income.

When you annuitize a 401(k) or other retirement account, you exchange the balance for guaranteed periodic payments: She annuitized her savings at sixty-five to ensure steady income.

The decision is usually irreversible.

longevity

life expectancy

Average anticipated survival duration

survival rateShare of survivors measured
death benefitPayment upon policyholder's passing
single lifeState of being unpartnered

age factor · life insurance · lifespan · aging population

retirement

pension

Retiree's ongoing benefit

lifetime incomeTotal career compensation
401(k)Tax-advantaged retirement savings account
IRATax-advantaged retirement fund

withdrawal · Social Security · nest egg · drawdown · decumulation · retirement planning · guaranteed income · monthly payments · retiree · fixed income

financial

premium

Added cost for better

insurance companyEntity selling risk protection
contractEnforceable written agreement
principalChief school administrator

interest rate · payout · beneficiary · rider · actuarial · insurance carrier · policy

income

stream

Steady continuous flow

periodic paymentsRecurring scheduled transfers
cash flowMoney entering and exiting
payment scheduleTimetable for installments

income security · disbursement · installment · income stability · quarterly payments

Opposites

distribution method

annuitizingcashing out

Converting assets to cash

liquidating · commuting · spending down · drawing down

control and flexibility

annuitizingaccumulating

Gathering in increasing quantity

saving · hoarding

asset structure

annuitizingrolling over

Rotating to another side

Family

annual, perennial, anniversary, annals, annuity, biennial, annuities, annuitant, annualize

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