What is the annuity calculator?

Anuity calculator is a computer tool, usually a table that is used to provide numerical solutions for specific annuits questions, such as how much initial investment must be held for a certain period of time to provide a guaranteed monthly income of a certain amount. The annuity calculators are used primarily as marketing tools licensed by insurance agents who sell annuity, and also show how Annuits can grow over time. With the advent of computers and their potential for use in marketing financial and insurance products, such as life insurance and annuity, the annuity calculators among the general public got much more widespread. With a useful tool for the potential buyer of Anuit when budgeting their investment resources and pension income, the annuity calculators should not be replaced with the buyer's best judgment and experience.

Annuity is an insurance product. In return for bonuses, usually lump -sum and usuamnoho tenEC or hundreds of thousands of dollars, the insurance company promises to pay the buyer a regular monthly income for life. Most of the annual buyers postpone income and instead prefer to let the annuity grow over time, thus using preferential tax policies. With the exception of variable annuities that may lose value, all annuity are essentially guaranteed against the loss of principle, making them an attractive long -term opportunity for risk aversion.

The annuity calculator returns a number of different values ​​after providing certain variables. The value that will always be necessary to provide is the buyer's age, because the annuity payments are based on life expectancy. Other variables are the amount of the initial investment, the anticipated interest rate, the period for which the annuity may grow before the launch of the monthly payments, and the amount of these monthly payments. If it is equipped with some of these variables, annuity toAlculator solves for the remaining variables or variables. For example, an annuity calculator could be provided with an initial amount of investment, an estimated annual interest rate, the current age of the owner and the expected retirement age and returns the value of the monthly income that the annuity can be expected if the owner reaches the retirement age. On the other hand, the required monthly income could be provided by most other variables and the sought -after information would be the amount of the initial investment necessary to ensure this monthly income.

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good annuity calculator takes the data provided and performs an annuity growth projection that anyone with the table can easily duplicate. What distinguishes them is to include their life expectancy. It is relatively easy to determine how much annuity grows to the periodicist reaches retirement age; It is more difficult to find out lifelong monthly income that annuity will reasonably finance. Good annuity calculators also provide a reliable comparison with others afterDiscovered investments such as deposit certificates (CD) and savings accounts. This illustrates how preferential tax treatment provides annuity, which gives them an advantage over other energy -saving plans.

Investor considering the purchase of annuity can find the annuity online, but can expect most of the website they provide them are hosted by insurance stores that are determined to capture contact information to call. This is frustrating both for an occasional research worker and for a disproportionate prospect. However, online annuity calculators can help buy and identify those companies with whom they are most and least likely to do business.

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