Definition
Lump sum
A large one-time payment made for a total amount due, instead of making smaller periodic payments.
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A lump sum, in general, is a single payment which satisfies all of the benefits owed to the recipient. Lump sum payments are often seen in cases of corporate retirement packages, lottery winnings and court-ordered financial settlements.
Lump sum Large payment of money received at one time, for example upon retirement.
Lump Sum: a superannuation benefit taken in cash rather than being rolled over to a pension or annuity.
Lump Sum Tax : tax payable on a lump sum benefit payment from a superannuation fund.
Lump Sum: a cash payment from a superannuation fund.
Lump Sum Tax: tax payable on a lump sum (ETP) benefit payment from a superannuation fund.
Lump sum distribution: A single payout from your retirement plan that transfers all your assets out of the plan.
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Lump sum
A large one-time payment of money.
Lump-sum distribution
A single payment that represents an employee's interest in a qualified retirement plan.
The lump sum investor bought 200 shares of ABC at $50.00 a share, watched the stock drop to $36.00, then recover back to $50.00 and when all was said and done ended up right where he started with 200 shares \ of ABC worth $10,000.
Buydown
A lump sum payment made to the creditor by the borrower or by a third party to reduce the amount of some or all of the consumer's periodic payments to repay the indebtedness.
Buy hedge
See: Long hedge ...
Most plans set lump sum and installment payments prior to purchase based on age of beneficiary and number of years of college tuition purchased.
Many plans have contribution limits in excess of $200,000.
seller's points A lump sum paid by the seller to the buyer's creditor to reduce the cost of the loan to the buyer. selling flat The action of selling a security when the price is neither rising or falling; Also known as sideways.
At maturity, the unpaid principal is due in a lump sum. [OTS] balloon payment A large extra payment that may be charged at the end of a loan or lease. [FRB][FRBC][FRBM][FRBSF] Large final payment (e.g.
Term Life Alternative, for example when a policy owner wants to use interest income from a lump sum of cash to pay a term life premium.
Many people consider home equity loans as a lump sum loan, which they can set monthly payments for a certain period of time.
Imagine you have inherited a $100,000 lump sum and want to invest it. You are 25 years old. If you invest in no-load mutual funds, your money will go into the fund and every penny - the full $100,000 - will immediately be working for you.
Fixed costs (such as rent or an audit fee) vary on a percentage basis because the lump sum rent/audit amount as a percentage will vary depending on the amount of assets a fund has acquired.
The rate used to convert an income stream into a present value lump sum. For example, a capitalization rate of 10% and an income stream of $2,000 annually provide a present value of $2,000/0.1 , or $20,000.
Using Dollar Cost Averaging, and starting with the same lump sum of $10,000 and then adding that same $100 a month (but with no cash balance this time), we would have ended up with $14,646, a return of 4.6%.
Employment Termination Payment (ETP) Certain lump sum payments by an employer to an employee on cessation of employment.
At maturity, an investor will receive one lump sum payment at maturity equal to principal invested, plus interest compounded semiannually at the original interest rate.
You can annuitize, roll over the account balance to an IRA, or take the money all at once as a lump sum distribution.
We've established in our first example that when prices are increasing over time, the technique results in a higher average stock price than a lump sum purchase.
A type of annuity contract that delays payments of income, installments or a lump sum until the investor elects to receive them.
This theory works great when you don't have a lump sum to invest with. Instead taking a few hundred dollars a month and investing it into the market can help you invest for retirement by constantly letting you get into long term investments.
com readers are investing their income - and not lump sums. $10,000 could be a day's pay or several months of accumulation.
Term Life is for a set period of time and if the insured person dies the beneficiary named on the policy receives a lump sum of tax-free money. This type of insurance is ideal for young families with a limited budget.
The entire issue is retired in one lump sum several years later.This is the way US Treasury bonds are retired-the money is borrowed in 1980 ...
Theoretical Value ...
This means that a private investor puts aside either a lump sum or an amount each month and the money is invested into a fund. That fund contains the savings of lots of other private investors and is managed by a professional stock market investor.
Annuity: A contract that guarantees a series of payments in exchange for a lump sum investment.
Ask price: A proposal to sell a specific quantity of securities at a named price.
Assets: What a firm or individual owns.
Single Premium A type of life insurance where one lump sum payment is made and coverage is provided for the duration of the policy with no additional payments required.
Reverse mortgage
A loan against a home that can be paid to the homeowner as a lump sum, a cash advance or a line of credit. Used by some homeowners as a source of income in retirement.
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This is the ideal type of fund for a lump sum investor. Therefore, a fund manager with a long history of strong investments and trading history will be better. There is nothing to beat smart investments in any field.
Any payments remaining (or their "commuted value" - the equivalent lump sum of future payments) under the guarantee period upon your death are paid to your spouse or other beneficiary.
Zero coupon bonds or zeros don't make regular interest payments like other bonds do. You receive all the interest in one lump sum when the bond matures.
All one has to do is chose a 529 plan, sign up through the enrollment form and begin making paying for the plan, either through a lump sum investment or through periodic contributions.
Annuity: A contract by which an insurance company agrees to make regular payments to someone for life or for a fixed period in exchange for a lump sum or periodic deposits.
Each of these investments then pays a single lump sum, so it is effectively a zero coupon bond. This method of creating zero coupon bonds is known as stripping and the contracts are known as strip bonds.
The after-tax portion can be taken as a lump sum distribution and retained by the individual immediately.
The portfolio, that had grown into an important lump sum of money had fallen back down to about its original value of $5,000.
The disadvantage is that, because in the long run stocks tend to rise, most of the time investors are better off investing a lump sum all at once.
An automatic monthly withdrawal service will be set up by most banks. DCA proves just perfect for those of the investors who cannot afford a big lump sum at the start. It enables them to invest small amounts on a regular basis.
A retirement plan, such as an IRA or 401(k), pays your beneficiary the value of the accumulated assets or requires the beneficiary to withdraw assets either as a lump sum or over a period of time, depending on the plan.
 See also: Investment, Vesting, Investing, Market, Interest
  
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