mechanics and compounding
It all depends with the amount of the annual or daily compounding. In most cases it is however the daily compounding that pays more than the annual compounding.
Yes, an annuity value calculator can show you the present value of an annuity. As you may know, the present value of an annuity is the current value of a set of cash flows in the future, based on a specified rate of return.
Yes, you do earn a higher interest rate with a variable annuity than with a fixed annuity. It depends on what kind of interest rate you have at the moment.
It increases
An immediate annuity calculator will help determine your income when your annuity comes due. Find a reputable place to help plan your future. www.fidelity.com is a good place to reserach.
At the end of the second period
True
An annuity that will not begin until some time period in the future.A deferred annuity is an annuity in which the taxes due on any taxable portion is deferred until you start to withdraw from the annuity. It is a way of compounding interest on the money you would normally paid taxes on if not in a ta deferred annuity. In a way it is like using the government's money to make you money.
The interest rate in the annuity formula represents the rate at which your money grows over time. It is calculated by dividing the annual payment by the present value of the annuity, and then adjusting for the number of compounding periods per year.
It all depends with the amount of the annual or daily compounding. In most cases it is however the daily compounding that pays more than the annual compounding.
If the annuity is a non qualified tax deferred annuity (an annuity that taxes were paid on the money before they were placed into the annuity) you will pay taxes on any interest growth when it is removed from the annuity. If the annuity is a qualified annuity (no taxes were paid prior to placing the fund into the annuity) you will pay taxes on all withdrawals from the annuity.
difference between an annuity and a compound annuity?Read more: What_is_the_primary_difference_between_an_annuity_and_a_compound_annuity
ordinary annuity
The option to get annuity every month is called monthly annuity.
ordinary annuity we paid at the end of the period annuity due we paid at the begging of the period
ordinary annuity we paid at the end of the period annuity due we paid at the begging of the period
Yes, it is possible to lose money with an annuity if the investments within the annuity perform poorly or if there are high fees associated with the annuity.