an·nu·i·ty
/əˈno͞oədē/
Learn to pronounce
noun
a fixed sum of money paid to someone each year, typically for the rest of their life.
"he left her an annuity of $1,000 in his will"
a form of insurance or investment entitling the investor to a series of annual sums.
"an annuity plan"
Definitions from Oxford Languages
------------------------------------------------
in·ter·est
/ˈint(ə)rəst/
....
noun
1.
the state of wanting to know or learn about something or someone.
"she looked about her with interest"

2.
money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.
"the monthly rate of interest"

verb
excite the curiosity or attention of (someone).
"I thought the book might interest Eric"
Definitions from Oxford Languages

On Wed, 21 Dec 2022 00:37:34 -0800 (PST), bruce bowser
<bruce2bowser@gmail.com> wrote:

>an·nu·i·ty
>/??no?o?d?/
>Learn to pronounce
>noun
>a fixed sum of money paid to someone each year, typically for the rest of their life.
>"he left her an annuity of $1,000 in his will"
>a form of insurance or investment entitling the investor to a series of annual sums.
>"an annuity plan"
>Definitions from Oxford Languages
>------------------------------------------------
>in·ter·est
>/?int(?)r?st/
>...
>noun
>1.
>the state of wanting to know or learn about something or someone.
>"she looked about her with interest"
>
>2.
>money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.
>"the monthly rate of interest"
>
>verb
>excite the curiosity or attention of (someone).
>"I thought the book might interest Eric"
>Definitions from Oxford Languages

You have left out the essential difference: an annuity provides a
return on money you invest, and interest results from money lent.
--

Tony Cooper - Orlando Florida

I read and post to this group as a form of entertainment.

On Wednesday, December 21, 2022 at 8:18:18 AM UTC-5, Tony Cooper wrote:
> On Wed, 21 Dec 2022 00:37:34 -0800 (PST), bruce bowser
> <bruce2...@gmail.com> wrote:
>
> >an搖u搏暗y
> >/??no?o?d?/
> >Learn to pronounce
> >noun
> >a fixed sum of money paid to someone each year, typically for the rest of their life.
> >"he left her an annuity of $1,000 in his will"
> >a form of insurance or investment entitling the investor to a series of annual sums.
> >"an annuity plan"
> >Definitions from Oxford Languages
> >------------------------------------------------
> >in暗er搪st
> >/?int(?)r?st/
> >...
> >noun
> >1.
> >the state of wanting to know or learn about something or someone.
> >"she looked about her with interest"
> >
> >2.
> >money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.
> >"the monthly rate of interest"
> >
> >verb
> >excite the curiosity or attention of (someone).
> >"I thought the book might interest Eric"
> >Definitions from Oxford Languages
>
> You have left out the essential difference: an annuity provides a
> return on money you invest, and interest results from money lent.

I think that it goes without saying that: 'lending' and 'investing' all results in the lender temporarily parting from something of value. However, I think that it does not go without saying that: annuities pay more or less than said interest.

Den 21.12.2022 kl. 14.18 skrev Tony Cooper:

> You have left out the essential difference: an annuity provides a
> return on money you invest, and interest results from money lent.

Isn't another difference that an annuity eats away on the principal
amount while interests do not touch it.

--
Bertel

On 21/12/2022 4:49 pm, Bertel Lund Hansen wrote:
> Den 21.12.2022 kl. 14.18 skrev Tony Cooper:
>
>> You have left out the essential difference:  an annuity provides a
>> return on money you invest, and interest results from money lent.
>
> Isn't another difference that an annuity eats away on the
> principal amount while interests do not touch it.

Yes, but the principal might be lodged in an investment trust,
for example. If the trust outperforms the annuity payments, the
principal can still grow.

--
Richard Heathfield
Email: rjh at cpax dot org dot uk
"Usenet is a strange place" - dmr 29 July 1999
Sig line 4 vacant - apply within

In article <tnvdfj$12otm$1@dont-email.me>,
Bertel Lund Hansen <gadekryds@lundhansen.dk> wrote:
>Den 21.12.2022 kl. 14.18 skrev Tony Cooper:
>
>> You have left out the essential difference: an annuity provides a
>> return on money you invest, and interest results from money lent.
>
>Isn't another difference that an annuity eats away on the principal
>amount while interests do not touch it.

I would say that the prototype of "annuity" is an investment that
guarantees a fixed annual payout over a specified period of time.
Typically these are provided by insurance companies, and one of the
ways in which they vary a lot is in what happens if the beneficiary
dies before the agreed term; another is what happens to the balance if
the investment earns more than originally projected.

Americans who still watch commercial television will be familiar with
the sleazy companies offering to "buy your structured settlement",
i.e., convert a court-supervised annuity into a (lower value) lump
sum. In the case of annuitized court settlements, like with pensions
and lottery prizes, the payer normally gets to keep any excess
earnings, whereas with pure investment annuities, that excess may go
directly to the beneficiary (or to their estate) depending on the
contract terms.

-GAWollman

--
Garrett A. Wollman | "Act to avoid constraining the future; if you can,
wollman@bimajority.org| act to remove constraint from the future. This is
Opinions not shared by| a thing you can do, are able to do, to do together."
my employers. | - Graydon Saunders, _A Succession of Bad Days_ (2015)

On Wed, 21 Dec 2022 17:49:55 +0100, Bertel Lund Hansen
<gadekryds@lundhansen.dk> wrote:

>Den 21.12.2022 kl. 14.18 skrev Tony Cooper:
>
>> You have left out the essential difference: an annuity provides a
>> return on money you invest, and interest results from money lent.
>
>Isn't another difference that an annuity eats away on the principal
>amount while interests do not touch it.

Commonly. But there also exists the phrase, "perpetual annuity".

--
Rich Ulrich

Rich Ulrich <rich.ulrich@comcast.net> wrote:

> On Wed, 21 Dec 2022 17:49:55 +0100, Bertel Lund Hansen
> <gadekryds@lundhansen.dk> wrote:
>
> >Den 21.12.2022 kl. 14.18 skrev Tony Cooper:
> >
> >> You have left out the essential difference: an annuity provides a
> >> return on money you invest, and interest results from money lent.
> >
> >Isn't another difference that an annuity eats away on the principal
> >amount while interests do not touch it.
>
> Commonly. But there also exists the phrase, "perpetual annuity".

Not just as a phrase, also in real life.
Some of those are very old, going back to the Middle Ages.

The reason for inventing them in those days
was that they were not interest, hence not sinful.

The sum is usually not worth collecting nowadays , usually.
Ten guilders may have been a sizable sum five hundred years ago,
nowadays it is less than five euro,

Jan

Den 21.12.2022 kl. 18.19 skrev Garrett Wollman:

> I would say that the prototype of "annuity" is an investment that
> guarantees a fixed annual payout over a specified period of time.

I mostly have met annuities when I take a loan in the bank and have to
pay a fixed sum every month.

--
Bertel

In article <to00c0$14m1a$1@dont-email.me>,
Bertel Lund Hansen <gadekryds@lundhansen.dk> wrote:
>Den 21.12.2022 kl. 18.19 skrev Garrett Wollman:
>
>> I would say that the prototype of "annuity" is an investment that
>> guarantees a fixed annual payout over a specified period of time.
>
>I mostly have met annuities when I take a loan in the bank and have to
>pay a fixed sum every month.

Well, that would not be called an annuity in English. (AmE, anyway.)
An annuity is a financial product you buy, possibly for your own
benefit, possibly for someone else's benefit.

-GAWollman

--
Garrett A. Wollman | "Act to avoid constraining the future; if you can,
wollman@bimajority.org| act to remove constraint from the future. This is
Opinions not shared by| a thing you can do, are able to do, to do together."
my employers. | - Graydon Saunders, _A Succession of Bad Days_ (2015)

Den 22.12.2022 kl. 00.27 skrev Garrett Wollman:

>> I mostly have met annuities when I take a loan in the bank and have to
>> pay a fixed sum every month.
>
> Well, that would not be called an annuity in English. (AmE, anyway.)
> An annuity is a financial product you buy, possibly for your own
> benefit, possibly for someone else's benefit.

Okay. We call it "annuitets-lån".

--
Bertel

On 22/12/22 07:34, J. J. Lodder wrote:
> Rich Ulrich <rich.ulrich@comcast.net> wrote:
>
>> On Wed, 21 Dec 2022 17:49:55 +0100, Bertel Lund Hansen
>> <gadekryds@lundhansen.dk> wrote:
>>
>>> Den 21.12.2022 kl. 14.18 skrev Tony Cooper:
>>>
>>>> You have left out the essential difference: an annuity
>>>> provides a return on money you invest, and interest results
>>>> from money lent.
>>>
>>> Isn't another difference that an annuity eats away on the
>>> principal amount while interests do not touch it.
>>
>> Commonly. But there also exists the phrase, "perpetual annuity".
>
> Not just as a phrase, also in real life. Some of those are very old,
> going back to the Middle Ages.
>
> The reason for inventing them in those days was that they were not
> interest, hence not sinful.
>
> The sum is usually not worth collecting nowadays , usually. Ten
> guilders may have been a sizable sum five hundred years ago, nowadays
> it is less than five euro,

That's why I'm pleased to have a pension that has an annual
cost-of-living adjustment.

Although I don't fully approve of the way they calculate cost of living.
The cost of living is going up faster than the official cost of living.

--
Peter Moylan Newcastle, NSW http://www.pmoylan.org

Garrett Wollman <wollman@bimajority.org> wrote:

> In article <to00c0$14m1a$1@dont-email.me>,
> Bertel Lund Hansen <gadekryds@lundhansen.dk> wrote:
> >Den 21.12.2022 kl. 18.19 skrev Garrett Wollman:
> >
> >> I would say that the prototype of "annuity" is an investment that
> >> guarantees a fixed annual payout over a specified period of time.
> >
> >I mostly have met annuities when I take a loan in the bank and have to
> >pay a fixed sum every month.
>
> Well, that would not be called an annuity in English. (AmE, anyway.)
> An annuity is a financial product you buy, possibly for your own
> benefit, possibly for someone else's benefit.

Long ago some states sold annuities, when urgently in need of money.
I know the Dutch republic did in the 17th century.
In consequence, the Grand Pensionary, Johan de Witt
faced the problem of determining the value of human life expectancy.
He laid the foundation for what was to become actuarial science.
(he had the talents to have been a mathematician)

Rich families would buy 'jaargelden' (year moneys) even for babies.
The advantage to parents was that it gave their children
a lifetime income that they could not waste
like an ordinary inheritance.

Especially for women it was advantageous
to have a personal income of their own
that their husbands could not touch,

Jan

Den 22.12.2022 kl. 11.53 skrev J. J. Lodder:

> Long ago some states sold annuities, when urgently in need of money.

The Danish state has sold "state bonds" in my lifetime, but I think it
was some decades ago.

--
Bertel

On Thursday, December 22, 2022 at 6:37:34 AM UTC-5, Bertel Lund Hansen wrote:
> Den 22.12.2022 kl. 11.53 skrev J. J. Lodder:
>
> > Long ago some states sold annuities, when urgently in need of money.
> The Danish state has sold "state bonds" in my lifetime, but I think it
> was some decades ago.

I am sure that the Central Bank of Denmark has had regular issuances. [Jeg er sikker på, at Danmarks Nationalbank har haft regelmæssige udstedelser.] Issuances are when governments seek investment. [Udstedelser er, når regeringer søger investeringer]

Den 22-12-2022 kl. 00:27 skrev Garrett Wollman:
> In article <to00c0$14m1a$1@dont-email.me>,
> Bertel Lund Hansen <gadekryds@lundhansen.dk> wrote:
>> Den 21.12.2022 kl. 18.19 skrev Garrett Wollman:
>>
>>> I would say that the prototype of "annuity" is an investment that
>>> guarantees a fixed annual payout over a specified period of time.
>>
>> I mostly have met annuities when I take a loan in the bank and have to
>> pay a fixed sum every month.
>
> Well, that would not be called an annuity in English. (AmE, anyway.)
> An annuity is a financial product you buy, possibly for your own
> benefit, possibly for someone else's benefit.

....which would in Danish be a "ratepension" or a "livrente" (lit. "life
interest", but called "life annuity" in English, I believe).

/Anders, Denmark