Accumulation Period

Accumulation Period
1. The phase in an investor's life when he/she builds up his/her savings and the value of his/her investment portfolio with the intention of having a nest egg for retirement.

2. In the context of a deferred annuity, the period of time when the annuitant is making contributions to the annuity and building up the value of his/her annuity account. This is usually followed by the annuitization phase, when guaranteed payments are paid out to the annuitant for a specified period of time (usually the rest of his/her life).

1. By choosing to defer spending until later in life, individuals create savings that can be invested in the marketplace and therefore grow over time. If they periodically invest money over the duration of their working lives, individuals can create a very lengthy accumulation period during which their savings can grow to substantial proportions.

2. In a deferred annuity, the greater your contributions are during the accumulation period (and the longer the accumulation period is), the greater your income stream will be once you begin the annuitization phase.


Investment dictionary. . 2012.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • accumulation period — England, Wales The period during which the trustees of a trust may accumulate the trust income (that is, add it to the trust capital, rather than pay it out to or for the benefit of the beneficiaries (beneficiary) (see accumulated income)). After …   Law dictionary

  • Accumulation Phase — 1. A period of time when an annuity investor is in the early stages of building up the cash value of the annuity. This is followed by the annuitization phase where payments are paid out to the annuitant. 2. The period of time when an investor… …   Investment dictionary

  • Accumulation Unit — 1) In the case of a variable annuity, a measurement of the value invested in the account during the accumulation period of the contract. The more funds you contribute to your annuity account, the more accumulation units you will build. 2) In the… …   Investment dictionary

  • Accumulation — 1. An individual investor s cash contributions to invest in securities over a period of time in order to build a portfolio of desired value. Dividends and capital gains are also reinvested during this process. 2. An institutional investor s… …   Investment dictionary

  • accumulation — [[t]əkju͟ːmjʊle͟ɪʃ(ə)n[/t]] accumulations 1) N COUNT: oft N of n An accumulation of something is a large number of things which have been collected together or acquired over a period of time. Gamekeeping is not some sort of science, but an… …   English dictionary

  • accumulation — In the context of corporate finance, refers to profits that are added to the capital base of the company rather than paid out as dividends. Bloomberg Financial Dictionary See: accumulated profits tax. Bloomberg Financial Dictionary In the context …   Financial and business terms

  • accumulation factor — noun : the factor (1 + r)n by which any principal must be multiplied to give its amount at compound interest after n periods, r being the interest for one period the accumulation factor for 10 years at 6 percent compounded quarterly is (1.015)40 …   Useful english dictionary

  • Accumulation/Distribution — A momentum indicator that attempts to gauge supply and demand by determining whether investors are generally accumulating (buying) or distributing (selling) a certain stock by identifying divergences between stock price and volume flow. It is… …   Investment dictionary

  • accumulation of liquid — collection of fluid, amount of liquid that has accumulated over a period of time …   English contemporary dictionary

  • Guaranteed Minimum Accumulation Benefit - GMAB — A rider on a variable annuity, which guarantees the minimum amount received by the annuitant after the accumulation period, or a set period of time, is either the amount invested or is locked in gain. This protects the value of the annuity and… …   Investment dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”