See Tax Savings in Action with an Annuities Calculator

Fixed annuities are a great alternative to traditional savings accounts, bank CDs and money market accounts. CD-type annuities, a type of deferred annuity, offer a fixed interest rate that is guaranteed for a multi-year period of time. And, as an added bonus, interest earnings in annuities are tax-deferred – you don’t owe income taxes on the annuity or its interest earnings until money is withdrawn from the account. Tax-deferred interest sounds good, but how much will you actually net from tax deferment? Find out easily using an annuities calculator from AnnuityAdviceOnline.com.

Intellectually, the advantages of a tax-favorable account are easy to understand. But when it comes to real numbers, how much will you actually benefit from tax deferment? That’s why AnnuityAdviceOnline.com’s annuities calculator is so useful. Simply by inputting the original deposit amount, your current age, age you expect to withdraw the money and the annuity rate of return, the annuities calculator will provide you with an accurate estimate of how much your annuity will be worth at the end of the term.

When you use the annuities calculator to estimate the amount your deferred annuity will be worth, you will receive two account balances to compare. The first one, the expected annuity worth, is what the deferred annuity will be worth after the term expires. The second balance is how much the same deposit would be worth in a taxable account paying the same rate of return, but withdrawing the necessary amount to pay income taxes on the interest earnings each year. For an original deposit of $100,000 paying 5% for ten years, your deferred annuity would be worth $162,889 at the end of the ten-year term. The same deposit and same interest rate in a taxable account (assuming a 33% combined federal/state income tax bracket) would only be worth $139,029 at the end of ten years.

Interested in seeing how much more you’ll garner as a result of buying a deferred annuity? Visit the annuities calculator page to find out. Or, call the Annuity Specialists at 1-888-837-4226 for a free personalized report of what you can earn with a deferred annuity.