Facts About Deferred Annuities And Annuity Calculator

By Author: Mike Anderson
Total Articles: 32
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While buying annuities you can choose between immediate annuities and Deferred Annuities. You can choose immediate annuities if you want the income right away or you can choose Deferred Annuities if you want to accumulate funds over time and then convert it into income in future. In immediate annuities you are required to make a payment in lump sum and payouts will start within 13 months. However in Deferred Annuities you can build the retirement savings over a certain period of time and the time for receiving the income is deferred and the time period between signing the contract and converting the investment into series of income the funds grows either in a fixed account, variable accounts or both.

Immediate annuities can be purchased only with a lump sum amount whereas Deferred Annuities can be purchased with both a lump sum amount or by a regular series of payments. Thus, the combination of options of one time and regular periodic contributions provides flexibility in developing retirement annuities account. In Deferred Annuities you have limited access to the funds until the accumulated amount ...
... of money is converted into a series of income which means that you can make some annual withdrawals. However, if there are withdrawals the retirement annuity fund will be reduced.

If you want your life to be peaceful and relaxed after retirement then it is better to save funds beforehand to meet the then requirements because there are very few people who have enough money to meet the expenses of the old age. Annuity is the way by which you can plan your finances and make your life after retirement tension free. You can calculate the amount of money you will receive after paying a certain amount of money by using an Annuity Calculator.

In order to understand the amount of money you need to pay to receive a certain amount it is important to calculate the annuity rates which you can do so with the help of an Annuity Calculator. The annuity rates offered by different companies are different. These companies have websites where you can find Annuity Calculator. All you need to do is to enter some personal information and based on that the Annuity Calculator calculates the annuity rates suitable for you. The Annuity Calculator provided by different websites is absolutely free to use.

Thus, while investing in Deferred Annuities you can compare the annuity rates of different companies by calculating them using an Annuity Calculator.