The best fixed-annuity online calculators are those that provide the user with an extensive report calculated from multiple categories and factors, as AARP notes. AARP's own calculator and reporting feature includes 11 such factors.
Continue ReadingThe best fixed-annuity online calculators include starting balance, annual contribution, current age, withdrawal age, current tax rate, retirement tax rate, surrender charges, taxable account's expected return, initial interest rate, years initial rate is guaranteed, expected average interest rate and minimum guaranteed interest rate, as shown on AARP's calculator.
The starting balance is the initial contribution. The annual contribution is the total yearly contribution. Current tax rate is the account holder's tax liability on taxable funds. Retirement tax rate is the anticipated rate the account holder is likely to pay at retirement age. Surrender charges accrue when the account holder takes an early withdrawal. The taxable account's expected rate of return calculates the annual annuity's return if it were placed in a taxable account. Expected average interest rate is the estimated rate of interest the annuity incurs when the initial rate of interest is no longer in effect. The minimum guaranteed interest rate is the lowest rate that the annuity can have after the initial rate ends.
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