|payments made on fixed annuities are||1.73||1||3806||95|
Money that’s held in an immediate or a deferred annuity can be invested in three basic ways and are either called fixed, variable, or indexed: A fixed annuity pays out a fixed rate of return on your money. A variable annuity pays out a variable rate of return on your money.Are annuities a good investment?
The only real way to determine if an annuity is a good investment for you is to have a plan. Your plan should dictate what your investment goals are and show you how to make choices that help you accomplish those goals. If you want to ensure part of the outcome, an annuity might be a good choice.How do you calculate annuity payment?
Calculate the amount of the payments based on your specific situation. For example, assume a $500,000 annuity with a 4% interest rate that will pay a fixed annual amount over the next 25 years. The manual formula is Annuity Value = Payment Amount x Present Value of an Annuity (PVOA) factor.