An annuity is a product that can provide you with a lifetime income, typically on retirement. You pay a lump sum to an insurance company and in return receive regular payments for an agreed period. With a life annuity, you would receive payments for the rest of your life whereas with a deferred annuity, your insurer will not start giving you money until either a specified later date, or when you reach a certain age.
In the first of three interviews with Merryn Somerset Webb, Hugh Hendry, manager of the Eclectica Fund, talks about what it takes to be a good hedge fund manager – and how he learned to stop worrying and love central banks.
More from David Thornton
|How to buy and sell penny shares|
|A beginner's guide to investing in gold|
|How to invest in British fracking|
A milestone in the formation of the internet, the first permanent Arpanet link was established on this day in 1969 between researchers in the United States.