annuity ladder

Definition

A strategy for maintaining annuity payments while avoiding the negative effects that interest rate changes can have on long term annuity products. Annuity laddering involves maintaining investments in equities, and periodically purchasing serial annuities to ensure regular payments. The annuity ladder strategy also protects the investor from problems with the issuer of any one annuity, reducing potential losses.
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annuity income annuity method of depreciation