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The best annuity to do this right now is a Fixed Indexed Annuity with a Lifetime Income rider.
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What type of annunty pays an equal annual amount until death?
Life annuity
What Annuity plan pays equal amount until death?
It is called a life annuity.
An annuity may be defined as?
which may be defined as a series of consecutive payments or receipts of equal amount.
What is the annuity type called that guarantees to pay out an income equal to the purchase price of the annuity?
Refund Life Annuity
What is the difference between ordinary annuities and annuities due?
An annuity due is an annuity where the payments are made at the beginning of each time period; for an ordinary annuity, payments are made at the end of the time period. *an annuity due of (n) periods is equal to an ordinary annuity of (n-1) periods plus the payment.
Is a deferred annuity an annuity in which the equal payments will begin at some furture point in time?
A deferred annuity is a product by which the money within the product grows at a tax deferred rate. This means that you do not have to pay taxes on the portion of money that is taxable until you begin to withdraw it. With an annuity there are many ways to remove money from them.
Can you give money from your annuity with out claiming it as income?
All distributions from ANY annuity are either - a. "amounts received as an annuity" - these distributions are taxable under the "regular annuity rules" of IRC 72, where each payment is not taxable as a return of principal, or b. "amounts not received as an annuity" are taxed in one of two ways, depending upon when the annuity was purchased i. If annuity was purchased after 8/13/1982. These distributions are fully taxable as Ordinary Income until all "gain" (profit) has been distributed ii. If annuity was purchased prior to 8/14/82. Distributions are non-taxable until all of owner's "basis"has been distributed. In addition, ALL distributions are subject to a penalty tax equal to 10% of the taxable amount of the distribution unless one of 10 exceptions applies (IRC Sect. 72(q)). One exception is if the taxpayer is over age 59.5. But there are nine others. Do a Google search on "IRC Sect. 72(q)" If, by "can you GIVE money", the questioner is asking if a GIFT of money withdrawn from an annuity can be made without the donor's being liable for tax on the amount withdrawn, the answer is generally "no". (There's an exception if the annuity is in an IRA and the taxpayer is over 70.5). You might get a charitable deduction for the amount of the gift, and that deduction MIGHT equal the tax on the withdrawal (if no penalty tax was payable), so to that extent, you are avoiding the tax by generating an offsetting deduction, but the withdrawal must still be declared as income.
One characteristic of an annuity is that an equal sum of money is deposited or withdrawn each period?
yes
When a series of equal periodic payments is put into an interest bearing account for a specific number of periods?
Annuity
What is the formula for calculating Equated annual Instalment?
Equated Annual Installment = Loan Amount/PVIF(Interest&Time Period) Ex : Loan Amount Rs. 5,00,000 Interest Rate 8% Time period 5 equal instalments The Answer will be EAI = 5,00,000/PVIF(8%.5) This Implies EAI = 5,00,000/3.9927 The Answer will be EAI = 1,25,228.20
How do you calculate annuity payments?
An annuity is a series of equal cash flows over time that comes at regular intervals. The cash flows must be either all payments or all receipts, consistently occur either at the beginning or the end of the interval and represent one discount period. Payments made at the beginning of the period indicate an "annuity due" which can include rents and insurance payments. Payments at the end of the period indicate an "ordinary annuity" which include mortgage payments, bond payments, etc.Although loan payments, mortgages and similar financial instruments can be regarded as an annuity, the term is mostly applied from the perspective of being an asset. For example, payments from a lottery or distributions from a lump-sum amount can be considered as an annuity. Annuities can also be an investment used to guarantee a regular income during a retirement.Calculating annuity payments can come from two perspectives: the future value of an annuity or the present value of an annuity.Calculating Ordinary Annuity Payments From Future ValueIf the desired ending amount is known together with the discount rate and number of periods, the payments can be calculated as follows:PMT = FV / (((1 + r)^n - 1) / r)Where:PMT = Payment amount made at the end of the periodFV = The future value of the annuity (how much the balance will be after all payments have been made)r = the discount rate^ = raises the value to the left to an exponential number on the rightn = the number of paymentsIn this calculation, the present value (PV) is assumed to be zero.Calculating Ordinary Annuity Payments From Present ValueIf the sum of money or balance on hand is known together with the discount rate and the number of periods, the amount of payments to reduce the balance to zero can be calculated as follows:PMT = PV / ((1-[1 / (1 + r)^n] )/ r)Where:PMT = Payment amount made at the end of the periodPV = The present value of the annuity (how much is currently on hand)r = the discount rate^ = raises the value to the left to an exponential number on the rightn = the number of paymentsIn this calculation, the future value (FV) is assumed to be zero.Calculating Annuity Due Payments From Future ValueBecause the payment earns interest for one additional period than the ordinary annuity, the future value should be adjusted as follows:FV annuity due = FV ordinary annuity X (1+r)The new value for future value can now be inserted in the original equation to compute the annuity due payments.Calculating Annuity Due Payments From Present ValueTo remove the additional discount period for each payment made on an annuity due, the present value of the annuity must be adjusted as follows:PV annuity due = PV ordinary annuity X (1+r)The new value for future value can now be inserted in the original equation to compute the annuity due payments.Alternate MethodsBecause calculating the payments for ordinary annuities and annuities due, a financial calculator such as the HP 10bII can be used to simplify the process. When many calculations must be performed, the process can be expedited through the use of a spreadsheet such as Microsoft Excel which is equipped with time value of money functions.See the related links below for an annuity calculator for different types of contracts that compute the balance, distributions, or present value using the amounts you specify.
When do you use fvif and fvifa?
An Annuity is a series of payments of a fixed amount for a specified number of equal length periods When the FV of an annuity is known, and you need to calculate the value of each payment, or the FVIFA, then: FVIFA = Future Value Interest Factor Annuity FVIFA = ((1 + r)t -1)/r FVA = Future Value of an Annuity FVA = PMT x (FVIFA r, t) * where: PMT = Regular payments r = discount rate - (interest rate of your choosing) t = number of periods (time) of annuity - (number of years for example) When the PV of an annuity is already known, and you need to calculate the value of each payment, or the PVIFA, then: PVIFA = Present Value Interest Factor Annuity PVIFA = ((1/r) - 1/r(1+r)t ) PVA = Present Value of an Annuity PVA = PMT x (PVIFA r, t) * where: PMT = Regular payments r = discount rate - (interest rate of your choosing) t = number of periods (time) of annuity - (number of years for example)
