On line Calculator
Is there an on line calculator that will help me compute what I would lose by annuitiizing? I’m trying to figure out a way to compute what I will lose if I choose option to annuitizing over just RMD withdrawls. I cant find a site that would let me input numbers to figure this out.
Permalink Submitted by Alan - IRA critic on Wed, 2022-11-16 17:12
You would have to know your DOD, whether the annuity was based on your life only or joint with beneficiary, or if you choose an allowed period certain, what the annuity payment is, and what you would have invested in and the return of that investment had you not annuitized the funds. I do not know if such a calculator exists, eg in which you could enter various DODs. You might also want to know how much your beneficiary stands to gain or lose when they inherit.
Permalink Submitted by sandi tompson on Wed, 2022-11-16 18:57
Thankyou verymuch!
Permalink Submitted by Urban Fleming on Wed, 2022-11-16 17:47
As Alan, pointed out a stand alone calculator is going to be a difficult to find/apply to your needs. Requesting an illustration from the annuity company that incorporates your annuitization selection and cost of living option (if any), is a decent starting point. From there, I would transfer that data (cash flows for each year and the associated ages) to an excel sheet for convenience. Then you can compare other investments and various longevity scenarios. Financial planning software would make this task exponentially easier and if you are wanting to DIY, inquire on if the financial institutions you currently use offer free client access to software.
Permalink Submitted by sandi tompson on Wed, 2022-11-16 18:58
Thank you very much!