Making Best Use of a Good Annuity Calculator
An online annuity calculator is perfect for planning your retirement. Choose a good site first. Find a professional web service that does not work as a third party representative. It should be an independent no-obligation financial service. Remember to check whether these wordings are actually mentioned on the service website. Annuity is a very effective tool and is largely free of complex calculations, like you would see in insurance plans. Do you know that it is actually a very ancient concept? From ancient Rome to medieval Europe and the church ministers of early 20th century America, annuity plans have been utilized since a long time.
How it works?
Probably, you already have an idea about how it works. Still, here is a primer on its method of operation, in case you feel your concept is vague. Essentially, an individual would set aside a fixed sum of money on agreed terms and conditions with a preferred provider. This fund would be initially in an illiquid phase. This is the reason why this primary duration is also called the ‘surrender phase’. Accessing your invested funds would incur loss because of the heavy penalties levied. In this duration, the provider would circulate your investment in the money market, to use it for profit.
The process of circulation is usually confidential, but it depends on the quotes offered to you, and the duration of surrender phase specified. Once the waiting period is over, you are eligible to receive the profited money in the payout phase. You can either choose to receive it in a regular stream of payment or have it in lump sum. This is the basic breakdown of annuities. However, you should always consider consulting clearly with an independent expert regarding any specific clarification.
Fantastic financial consultation is available online these days. All you have to do is to find a real professional site. It would have an annuity calculator, but so would many other sites. One needs to be careful because like any other financial field, there are always loopholes where you can lose all your savings to a swindler. Since it is a retirement plan, many unsuspecting seniors often fall into a trap to freeze their assets in an illiquid fund, left helpless in case of monetary crisis.
Sometimes, you simply choose a wrong plan based on apprehensions of over-living. Over-living is the state of financial decision where an investor feels that he or she would not live long enough with the savings, and thereby subscribe to a scheme where the savings get locked for a significant period. Discuss your apprehensions with an independent consultant for best assistance.
After you receive the probable best quotes on filling the details at the calculator, discuss the options further. Several factors come into play. You need to decide based on an open minded perception of your life after retirement. Do you want the money to be available for starting a new business? Do you want to simply stop all work and travel the world with your savings? Your decision should back up the plan you have for future.