Business and Personal Finance Dictionary

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• DEFERRED ANNUITY
  
  Unlike an immediate annuity, which starts paying you income right after you buy it, a deferred annuity contract allows you to accumulate tax-deferred earnings during the term of hte contract and sometimes add assets to your contract over time. Your deferred annuity earnings can be either fixed or variable, depending on the way your money is invested. Deferred annuities are designed primarily as retirement savings accounts, so you may owe a penalty if you withdraw earnings before you reach age 59 1/2.
  
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