Fixed Annuity
A fixed annuity is an insurance product designed to provide
long-term, tax deferred savings. A fixed annuity can provide
a guaranteed minimum rate of return but may, however, have
few investment options. You do not receive a tax deduction
on the money you deposit, but you pay no taxes until you
begin making withdrawals. There are no annual contribution
limits or income limits. A fixed annuity could be a good
option if you wish to increase your tax deferred savings.
Fixed annuity contracts will have different rules, restrictions
and expenses that will vary by insurance company and by
product within an insurance company. To fully understand
a fixed annuity, make sure you fully understand all options,
restrictions and expenses for your specific annuity before
you enter into such a contract. This calculator is not
designed to describe a specific insurance product and should
be used as a general illustration of the tax deferred feature
of a fixed annuity.
Starting balance
This is the initial amount that you will contribute to your
Fixed Annuity.
Annual contribution
The amount you will contribute to your annuity each year.
Current age
Your current age.
Withdrawal age
Age you wish to withdraw your annuity balance. This calculator
assumes that the year you start withdrawing funds, you
do not make any contributions to your annuity. So if you
start withdrawals at age 65, your last contribution would
have happened when you were actually age 64.
Current tax rate
The current marginal tax rate you expect to pay on your taxable
investments.
Retirement tax rate
The marginal tax rate you expect to pay on your investments
at retirement.
Surrender charges
Press the "Enter Data" button to input surrender
charges for this Annuity. You are allowed to enter the year
and percent of the surrender charge. Surrender charges are
a percent of the annuity balance you will be charged if you
withdraw your annuity balance early. The actual surrender
charges vary widely from annuity to annuity. Make sure to
check with your investment advisor if you are unsure of the
surrender charges that may apply to your particular annuity.
Taxable account's expected rate of return
The annual rate of return you would expect if you deposited
this money into a taxable account. This calculator assumes
that your return is compounded annually and your contributions
are made at the beginning of each year.
Initial interest rate
This is the initial guaranteed interest rate for your fixed
annuity.
Years initial rate is guaranteed
The number of years the initial interest rate is guaranteed.
Expected average interest rate
This is the interest rate you would expect to average after
the initial interest rate is no longer guaranteed.
Minimum guaranteed interest rate
This is the interest rate that is guaranteed after the initial
rate has ended. |
