Best Annuity Calculators

Best Annuity Calculators – Making it Easy

Everyone plans about their future and their source of income. This becomes important, especially in the case of old age. DaProfitClub brings you some awesome annuity calculators for this purpose.

What is an Annuity? – A Brief Introduction

An annuity is a sum paid to retirees on a monthly basis. This is the result of the payments that the person has made to the company. It is paid for a specific period of time. This payment is either made in the form of a lump sum or regular installments. This is a method to save money for retired age and retrieve it once you need it. The special thing about annuities is that they are paid on a regular basis in a specific amount. They fulfill the needs of the annuitant and the remaining amount remains in their account.

Annuities are a good option for retirees. They are able to invest money in annuities while they are working. This invested money becomes their investment once they retire. This saves the individuals from losing the money that they have. Instead, this money can be utilized when they need it most. The initial stage, when the person is supposed to pay, is called the accumulation phase. The next phase is the annuitization phase. In this phase, the invested money begins to be returned to the investor.

Annuity ensures that the money is kept safe for needs in a reliable manner. If the person keeps this money in their account, then it is prone to use. If this is invested in stocks, then there are chances of loss. But annuities ensure that the amount of money invested remains the same. annuities are made for different reasons. Some might put them because they have no other use of money, while some do it for their own needs.

Types of Annuity

There are different types of annuities. These are based on the needs of the investors and the types of payments made. The important factors in differentiating these types are when you want to receive the payments and the type of growth of the annuity. These are deferred annuities, immediate annuities, fixed annuities, and variable annuities.

Immediate annuities refer to those types of annuities where you don't have access to full funds. Instead, these funds are paid on a lifetime basis. You will figure out for yourself an estimate of how long you will live. Based on this estimate you will be able to sign an agreement with the company. In this case, you won't be able to get the whole sum even if you face an emergency situation. These are good in the case that you are able to get money for your whole life. If there is some money remaining after your death, then you have the choice for it to be sent to your loved ones.

Deferred annuity refers to that type of investment where you have two choices in getting your money back. You can avail the opportunity to receive it back in complete amount. Or you can choose to get it back in the form of installments.

The important factor that you must consider is that you will receive the money in accordance with the type you have chosen for investment. If you invested it in installments, then you will necessarily receive it in installments. If you have paid the lump sum, then you will have the choice to receive the whole amount in a single go.

Fixed annuities are the simplest type of investment. In this type of investment, you will receive a fixed interest rate on the amount that you have invested. This contract is made for a specified period of time. Once that period is over, you will have two choices. These are the withdrawal of money or its reinvestment. You can make an exact estimate of the amount you will own in this case.

The fourth type, variable annuity, is a bit of risk. It is tax-deferred, but the problem is that like business there are equal chances of loss or gain. There are a lot of benefits in this case like death benefit, income to beneficiaries, etc.

Benefits of Annuity

There are a lot of benefits of an annuity. The biggest of these is saving money for the future. In this case, you will be able to secure money without any worries about paying taxes. There is no specific limit set to an annuity, and you can invest any amount in it. Through annuity, you are able to save money for retirement without any worries of loss or deduction. There are no tax bills, instead, the money adds to it in the form of interest.

Annuities are a guarantee to a secure retired life. You won’t have to worry about the source of income in your retired life. thus, in short, it is the best possible investment for your retired life. 

Calculation of Annuity

There are two types of an annuity based on the calculation of the amounts. Investors are interested in the calculation of the present value of the annuity and the future value of the annuity. This is calculated using complex formulae. We have brought you a simple solution, i.e., online calculators made for this purpose.

Some of the Best Annuity Calculators

Here are the two best online calculators for calculations related to annuity. Here you go!

• DaProfitClub

DaProfitClub is a dedicated calculator website that provides free calculators to its users. One of these calculators is an annuity calculator. these include interest coverage ratio calculator, annuity calculator, the future value of annuity calculator, present value of annuity calculator, the future value of annuity due calculator, future value of lump sum calculator, etc.

As evident from the names, these calculators cover different areas of annuity calculation. these are available for free and can be used without any worries of error.

• SunLife Annuity Calculator 

SunLife annuity calculator is a simple calculator that can be used for the calculation of annuity. To use this calculator the user will have to input the basic data required. After the entry of the data, the user will be able to get an estimate of their funds in the present as well as the future.

The data required includes the age to buy an annuity, the gender of the person, the amount of premium, and the estimated marginal tax rate when the person retires. It will calculate the data after it processes the data.