Dictionary. com defines an annuity in two ways, firstly: a specified income payable at stated intervals for a fixed or a contingent period, often for the recipient's life, in consideration of a stipulated premium paid either in prior installment payments or in a single payment… come again? (Since this sounds a bit confusing, we’ll define this in layman’s terms: the annual payment of an allowance or income.) Secondly, the site defines an annuity as the right to receive such an income, or the duty to make such a payment or payments.
- Every birthday I’ve had, my grandmother has issued me an allowance of between $5 and $100
- One thing I miss the most about going back to school is the “annual allowance” my parents gave me to use toward supplies and new clothes.
- After filing my taxes by April 14, the IRS returns me what they declare to be my annual allowance.