Immediate Annuity Calculator
Are you interested to invest a lump sum amount and start receiving returns immediately from the investment? If your answer is “yes”, you should invest in immediate annuity plan. Our immediate annuity calculator will assist in exploring the total and cumulative payments from such investment.
- Amount to invest
- The single payment you want to invest in immediate annuity.
- Your life expectancy
- Number of years you expect to live. Payments from the investment stops immediately with your death.
- Annual rate of return
- The rate of return earned annually from the investment. If the calculation is being performed before entering into any investment, this is only a prediction of future account balances. The investments you select will be a determining factor in the actual rate of return. The annual compound rate for the S&P 500 for the ten years ending on the 31st of December 2012 was an average of 7.1% and included reinvestment of dividends. The S&P 500’s average annual compound rate of return from January of 1970 to the 31st of December 2012, with reinvestment of dividends included, were roughly 10.1% (source: www.standardandpoors.com). The highest return for a 12 month period since 1970 was 61% (for the months of June 1982 through June 1983). March 2008 through March 2009 rendered the lowest return of 43%. Although bank savings accounts can pay as little as or less than 0.25%, they carry a lower risk of loss of principle balances.The scenarios above are hypothetical, as the rates of return cannot be accurately forecasted for the future. As well, investments that yield higher rates of returns are subject to having a higher risk and volatility. Over time, particularly for long-term investments, the rate of return will vary greatly. The possible loss of principle on your investments should be considered. Other fees and sales charges may be required by investment or funds companies and are not indicated in the compound rate of return mentioned above, and a direct investment in an index is not possible.
- Frequency of payments
- How regular you gain payments from your investment. Insurance firm can give you monthly, quarterly, or annual return for the investment in immediate annuity.
- Delay payments
- Check this box to start receiving from the investment after one year from the date of signing the deal.