Variable Annuity Calculator
Calculate variable annuity growth, required contributions, and tax-deferred investment projections
Variable Annuity Analysis
Initial amount to invest in the annuity
Your current age
Age when you plan to start withdrawals
Amount contributed each period
How often you make contributions
Expected gross annual return rate
When payments are made during each period
Variable Annuity Results
Variable Annuity Analysis
Example Variable Annuity Scenario
Retirement Planning Example
Starting Balance: $10,000
Monthly Contribution: $500
Investment Period: 30 years (age 35 to 65)
Expected Return: 8% annually
Management Fees: 1.5% annually
Result: Approximately $650,000 at retirement
Tax Benefits
Tax-deferred growth means no annual taxes on gains
Withdrawals in retirement may be taxed at lower rates
Suitable for high earners in peak tax years
Annuity Types
Variable Annuity
Returns fluctuate with market
Higher potential returns, more risk
Fixed Annuity
Guaranteed fixed returns
Lower returns, guaranteed
Indexed Annuity
Returns tied to market index
Moderate risk and returns
Variable Annuity Tips
Consider fees carefully - they compound over time
Best for long-term investors (10+ years)
Understand surrender charges before investing
Tax-deferred growth benefits high earners
Compare with low-cost index funds
Understanding Variable Annuities
What is a Variable Annuity?
A variable annuity is an insurance product that offers tax-deferred growth through investment in mutual fund-like subaccounts. Unlike fixed annuities, returns fluctuate based on the performance of underlying investments.
Key Features
- •Tax-deferred growth during accumulation phase
- •No contribution limits (unlike IRAs/401ks)
- •Investment choice among subaccounts
- •Optional death benefit protection
Calculation Formulas
Future Value:
FV = PV × (1 + r)^n + PMT × [((1 + r)^n - 1) / r]
Net Return:
Net Rate = Gross Rate - Management Fees
- FV: Future value of annuity
- PV: Present value/starting balance
- PMT: Regular payment/contribution
- r: Interest rate per period
- n: Number of periods
Note: Variable annuities involve investment risk and fees can significantly impact returns.