Defined terms for the annuity market and lifetime income landscape.
A fat-tailed distribution is a probability distribution in which extreme outcomes — very large or very small results — happen more often than common intuition or the bell-curve normal distribution would suggest, so that rare large events are not as rare as they look.
Fear of outliving assets is the individual's anticipation of exhausting savings before death, expressed as a psychological weight on decisions about how to draw down retirement capital.
Federal funds rate is the overnight interest rate at which depository institutions lend reserve balances to one another, used by the Federal Reserve as the primary instrument of US monetary policy.
Fee disclosure under ERISA 408(b)(2) is the required disclosure that covered service providers to an ERISA-covered retirement plan must give to the responsible plan fiduciary, describing the services provided, the direct and indirect compensation received, and the fiduciary status of the provider.
Fee-based is a compensation model in which a financial professional is paid through ongoing fees — typically a percentage of assets under management or a flat retainer — rather than through commissions on individual placements, distinguished from fee-only by the possibility of accepting commissions.
