In this episode, we demystify the concept of the annuity, defined broadly in finance as any series of equal payments made at equal intervals. While often associated with retirement income products issued by insurance companies, we explore how annuities actually underpin everyday financial structures, including monthly mortgage payments, regular savings deposits, and insurance premiums.

Tune in as we break down the essential classifications that determine how these financial instruments work:

• Timing of Payments: Learn the difference between an annuity-immediate (payments at the end of a period, like most mortgages) and an annuity-due (payments at the start, like rent).

• Risk and Variability: We compare fixed annuities, which o ...