How to do calculate what I will really yield on an annuity?
January 10, 2010 by Annuity and Structured Settlement Tips
Filed under More Annuities Answers
Can you answer Sarah L’s question about Annuities?:
Let’s say I have $100,000 to invest; say the annuity would pay me 5%.
I guess it would be a fixed-rate type in this case. After the commission is taken out, how do I figure the bottom line of what I am making, so I can compare it to another fixed-rate product?
To figure the tax, would I just use the tax bracket I expect to be in this year and get a % from that and deduct that from the yield figure I got from dividing what I got yearly by what I invested?
Joint And Survivor Annuity
Let’s say I have $100,000 to invest; say the annuity would pay me 5%.
I guess it would be a fixed-rate type in this case. After the commission is taken out, how do I figure the bottom line of what I am making, so I can compare it to another fixed-rate product?
To figure the tax, would I just use the tax bracket I expect to be in this year and get a % from that and deduct that from the yield figure I got from dividing what I got yearly by what I invested?
Joint And Survivor Annuity
Annuities Feedback: You will also need to calculate how much tax if the product is not tax-exempted. The final amount that you get per annum divided by the amount that you invested will be the yield.
Updated: The tax may be based on income tax or capital gain tax. You can get the information by asking or reading the prospectus.