BROWSE

Valuation Period

What is 'Valuation Period'

The time between the end of the business day of the first business day and the end of the business day of the second business day. The valuation period refers to variable annuities. Annuities are financial products that provide an income source in retirement. Variable annuities are annuity products that provide annuity payouts based on the current value of the annuity's investments.

Explaining 'Valuation Period'

The contract value of a variable annuity depends on the performance of the investments. The owner of the annuity can choose the investment vehicles and allocate certain percentages or amounts towards various investment products. A variable annuity offers the potential for greater earnings (and larger payouts) but at the same time involves more risk than other annuity products such as fixed deferred annuities.


Further Reading


Optimal financial policy and firm valuation
www.jstor.org [PDF]
… This almost total neglect of firm valuation is attributable perhaps to the overwhelming influence of the research programme initiated by the development of the capital asset pricing … Attempts to iterate the single period capital asset pricing model over several periods in order …

Taxes, market valuation and corporate financial policyTaxes, market valuation and corporate financial policy
www.jstor.org [PDF]
… This almost total neglect of firm valuation is attributable perhaps to the overwhelming influence of the research programme initiated by the development of the capital asset pricing … Attempts to iterate the single period capital asset pricing model over several periods in order …

International corporate diversification, market valuation, and size-adjusted evidenceInternational corporate diversification, market valuation, and size-adjusted evidence
www.jstor.org [PDF]
… This almost total neglect of firm valuation is attributable perhaps to the overwhelming influence of the research programme initiated by the development of the capital asset pricing … Attempts to iterate the single period capital asset pricing model over several periods in order …

Financial valuation of guaranteed minimum withdrawal benefitsFinancial valuation of guaranteed minimum withdrawal benefits
www.sciencedirect.com [PDF]
… This almost total neglect of firm valuation is attributable perhaps to the overwhelming influence of the research programme initiated by the development of the capital asset pricing … Attempts to iterate the single period capital asset pricing model over several periods in order …

Valuation waves and merger activity: The empirical evidenceValuation waves and merger activity: The empirical evidence
www.sciencedirect.com [PDF]
… This almost total neglect of firm valuation is attributable perhaps to the overwhelming influence of the research programme initiated by the development of the capital asset pricing … Attempts to iterate the single period capital asset pricing model over several periods in order …

Tests of the Black-Scholes and Cox call option valuation modelsTests of the Black-Scholes and Cox call option valuation models
www.jstor.org [PDF]
… This almost total neglect of firm valuation is attributable perhaps to the overwhelming influence of the research programme initiated by the development of the capital asset pricing … Attempts to iterate the single period capital asset pricing model over several periods in order …

Information asymmetry and valuation effects of debt financingInformation asymmetry and valuation effects of debt financing
onlinelibrary.wiley.com [PDF]
… This almost total neglect of firm valuation is attributable perhaps to the overwhelming influence of the research programme initiated by the development of the capital asset pricing … Attempts to iterate the single period capital asset pricing model over several periods in order …



Q&A About Valuation Period


What does a variable annuity provide?

A variable annuity provides an income source in retirement.

What is the time period between the end of the business day of the first business day and the end of the business day of the second business day?

The valuation period.

Is there any way to reduce risk associated with a variable annuity?

Yes, by diversifying your investments across different asset classes, such as stocks, bonds, and cash equivalents (such as CDs).

When would you consider purchasing a variable annuity instead of another type of product such as a fixed deferred annuity?

If you want higher returns than what you could get from other types of products but are willing to accept increased risks associated with them.

What is risk involved with a variable annuity compared to other types of annuities?

Variable Annuities involve more risk than fixed deferred annuities because they have greater potential for earnings but also more potential for loss.

Are there ways to increase returns on your investment when using a variable product like an equity-indexed or market-linked contract versus investing in only one asset class such as stocks or bonds alone?

Yes, by investing in multiple asset classes including stocks and bonds together rather than just one alone will help increase your return over time since both have their own unique characteristics that may perform better at certain times than others depending on market conditions at those times."

How do you allocate percentages or amounts towards various investment products with a variable annuity?

You can choose which investments to make and how much money to invest in each one.

What are investment vehicles?

Investment vehicles are financial products that provide annuity payouts based on current value.