Immediate Annuity Calculator – Make Smart Decisions for Your Retirement
Before we go using the immediate annuity calculator, are you sure you understand what you are getting into? Say, you have a lump sum, around $200,000 or more. You decided that you will have it invested on annuities. The immediate annuity is a contract that you purchase with a single lump sum payment and in exchange, the guaranteed income begins flowing immediately. This is very ideal for those retirees who might be concerned of outliving their savings. However, there is also a disadvantage with the use of such a product: it is irreversible and that means you cannot change the plan when you have purchased it. Thus, you might want to use an immediate annuity calculator so that you can assess the risks, make better investment strategies and find out the best options for your retirement.
The immediate annuity calculator is a simple web application that you can use to make assessments regarding your annuity strategies. There is nothing much to say about how the immediate annuity calculator works. It calculates factors such as intended years of payout, the amount of money you plan to invest or the amount of money that you wish to receive in a monthly basis. If you already know the interest rates, then it is better to get an immediate annuity calculator that allows you to input those factors. However, you can also find an immediate annuity calculator that can automatically check average rates depending on the state where you reside. It is ideal to choose an immediate annuity calculator that fits your needs.
Immediate annuities can sound very simple but you have to be strategic with the amount of money that you are willing to put in the annuities. The immediate annuity calculator can be used to determine how much money you actually need to get a certain amount for monthly payments. You have to assess your lifestyle and your financial needs. Let us say you need $1000 a month. Ideally, you have to invest around $200,000 or more. If you want $500 a month, then you should invest around $130,000 on a 4.5% interest rate. If you have other investment products and you also have your 401K, then you might not need to invest too much on this annuity. The immediate annuity calculator can give you some quick answers to guide you in your decisions.
You can also use the immediate annuity calculator to determine how much you can get if you wish to deposit a certain amount of money. You just change the variables but the equation is still the same. Before you use the immediate annuity calculator, you have to analyze your financial condition. Do you have enough money if you get sick? Will the money that you get monthly from your annuity be enough to have a comfortable life each day of your retirement life? Always assess your needs. The immediate annuity calculator can give you some very good ideas about what could happen if you invest a lump sum amount immediately.
Let us help you make more accurate decisions than the immediate annuity calculator. Select your state and receive quotes from top insurance companies in your locale.