Annuity Comparison
An annuity can turn a lump sum into a steady stream of income. Some start paying right away (immediate) and others grow for a while first (deferred). Set up two options to see how the value at payout and the yearly income might compare.
About these numbers
A simplified illustration, not a quote for any real annuity. Assumes the stated rate is credited every year during growth and payout, with payments made at the end of each year and no fees, charges, or taxes. Real annuities have contract limits and fees (such as administrative, investment management, mortality and expense, and optional benefit charges), and most charge surrender fees for early withdrawals. Any guarantees depend on the issuing insurance company’s claims-paying ability, and annuities are not insured by the FDIC or any government agency. Withdrawals and income payments are taxed as ordinary income, and a 10% federal penalty may apply before age 59½ unless an exception applies.
This calculator is a hypothetical illustration for educational purposes only. Results are based on the assumptions you enter and the method described above, may vary with each use and over time, do not reflect any specific investment or the deduction of fees or taxes unless stated, and are not a guarantee of future results. The tool does not consider every investment, account type, or strategy that may be available to you. It is not investment, tax, or legal advice. Investing involves risk, including possible loss of principal. 4:8 Financial does not provide tax or legal advice; please consult your CPA or attorney regarding your specific situation.
Have a question about this?
A calculator can only go so far. We are happy to walk through your real numbers with you, at no cost.