How to Calculate Your Annuity Payments
Annuities provide periodic payments for an agreed-upon period of time, either now or in the future, for the annuitant or beneficiary. You can annuitize the annuity by making monthly, semiannual, or annual payments, and interest keeps accruing on the balance. On the other hand, you can calculate an annuity’s payout to see if it’s better than a lump sum. Why should you calculate your annuity payments? First, calculating an annuity’s monthly payout may help you decide whether the annuity’s payout is adequate for your investment goals. Studies have shown that retirement plan participants who see t...