Annuitize is a financial term that is often used in the context of retirement planning. It refers to the process of converting a lump sum of money into a stream of regular payments, typically for the rest of one’s life. This article will explore the definition and meaning of annuitize, as well as its origins, associations, synonyms, and antonyms.
Definitions
The term annuitize can be defined in several ways depending on the context in which it is used. In general, it refers to the process of converting a sum of money into a series of regular payments, typically for the purpose of providing income during retirement. More specifically, it can refer to the act of purchasing an annuity, which is a financial product that provides a guaranteed stream of income for a specified period of time.
Origin
The word annuitize is derived from the Latin word annuus, which means “yearly.” It is related to the word annuity, which is a financial product that provides a guaranteed stream of income for a specified period of time. The term annuitize has been in use since at least the early 20th century.
Meaning in different dictionaries
The meaning of annuitize can vary slightly depending on the dictionary consulted. According to Merriam-Webster, annuitize means “to convert (an investment, such as a retirement account) into an annuity that provides a fixed income for a specified period of time or for life.” The Oxford English Dictionary defines annuitize as “to convert (a sum of money) into an annuity or regular income.”
Associations
Annuitize is often associated with retirement planning and financial security. It is a popular strategy for individuals who want to ensure a steady stream of income during their retirement years. Annuities are often marketed as a way to provide guaranteed income for life, which can be appealing to those who are concerned about outliving their savings.
Synonyms
Some synonyms for annuitize include convert, transform, and change. These terms all convey the idea of turning one thing into another, which is essentially what annuitization involves.
Antonyms
Antonyms for annuitize might include withdraw, disburse, or distribute. These terms suggest the opposite of annuitization, which is to take money out of an account or distribute it in a way that does not involve regular payments.
The same root words
Annuitize shares its root word with several other financial terms, including annuity, annual, and anniversary. All of these words are derived from the Latin word annuus, which means “yearly.”
Example Sentences
Here are a few example sentences that illustrate the use of annuitize:
- After retiring, John decided to annuitize his savings in order to ensure a steady stream of income.
- The financial advisor recommended that Sarah annuitize a portion of her retirement savings to provide guaranteed income for life.
- When you annuitize your account, you give up control of the principal in exchange for a guaranteed stream of income.