A fixed annuity calculator is a computer tool, mostly in form of a spreadsheet that helps an investor calculate his returns from his fixed annuity for retirement plan after a period of time. If you are keen about knowing exactly how much you can or will make from your investment, then a fixed annuity calculator is the right tool you need. By using a fixed annuity calculator, you can be properly guided in your decision as to which financial product best suits your needs or fits into your plans for your annuity for retirement.
Thanks to the calculator, financial decisions have become clearer and more comprehensive. Licensed insurance agents are now able to convince potential customers to buy their products with the use of the calculator as they can quickly demonstrate the benefits of their financial products to them. It should be noted however that even though annuity calculators are very useful and important, they should never take the place of an investor’s good judgment and discretion.
Some very important variables must be provided to enable the calculator compute the values that will help you with making the best decision. These include the investor’s age, the initial principal amount invested, the interest rate, the length of time between investment and first payment, and the amount paid monthly etc. We have outlined below some of the key terms that you need to understand in order to effectively use a fixed annuity calculator.
• Annuity: is a product obtainable from an insurance company that gives investors an opportunity to invest a particular sum of money to be withdrawn at a later date after a period of time.
• Fixed annuity: is a type of annuity in which the investor has the option of getting payments or making withdrawals after a relatively short period of time, say one month or, making a lump sum withdrawal at the end of a longer time period.
• Current Tax Rate: is the tax rate that is applicable if you were to make withdrawals now, as compared to taking payouts at a later date.
• Retirement Tax Rate: is the expected tax rate that would be applicable when you make withdrawals at retirement.
• Surrender Charge: is the percentage of your annuity value that you would be charged if you make withdrawals earlier than expected.
• Initial interest rate: is the guaranteed interest rate that you can receive for the annuity at the beginning of the plan.
• Current Age: is the investor’s current age.
• Withdrawal Age: is the age at which you are allowed to start withdrawing funds according to the contractual agreement.
• Number of pay periods: is the number of times you can make withdrawals.
Our fixed calculators can compute and compare values obtainable from investing in annuities to that of other investment plans. Prospective investors can find fixed annuity calculators online as provided on the links below.
To get started, enter your zip code on the top of this page, and then answer some basic questions. This will help you to compare annuity plans from multiple providers for FREE to determine your highest eligible rate. It is important to provide accurate questions to these answers as our pool of providers will provide you with different rates depending on your individual circumstance and situation.