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Deferred financing costs or debt issuance costs is an accounting concept meaning costs associated with issuing debt (loans and bonds), such as various fees and commissions paid to investment banks, law firms, auditors, regulators, and so on. Since these payments do not generate future benefits, they are treated as a contra debt account.
A deferred expense, also known as a prepayment or prepaid expense, is an asset representing cash paid in advance for goods or services to be received in a future accounting period. For example, if a service contract is paid quarterly in advance, the remaining two months at the end of the first month are considered a deferred expense.
Redemption Fee—another type of fee that some funds charge their shareholders when they sell or redeem shares. Unlike a deferred sales load, a redemption fee is paid to the fund (not to a Stockbroker) and is typically used to defray fund costs associated with a shareholder's redemption. [2]
Deferred annuities: Begin payouts at a future date, often years or even decades in the future. Deferring an income annuity allows interest to accumulate and compound over time, which leads to ...
Deferred annuities postpone payments until a future date you select. The earlier you buy your annuity and the longer you defer, the more interest it builds. ... However, their high fees and ...
The fees and complexity of variable annuities can far outweigh potential benefits. ... Any growth from those investments are tax-deferred, meaning you won’t pay taxes on earnings until you take ...
In insurance, deferred acquisition costs (DAC) is an asset on the balance sheet representing the deferral of the cost of acquiring new insurance contracts, ...
During this time, your investment grows tax-deferred, meaning you won’t pay taxes on the interest until you withdraw it. ... Fees: Understand any administrative costs, surrender charges or ...