How to Use the Fixed Index Annuity Calculator？

1. Initial Investment: Enter the amount of money you plan to invest initially in the annuity. This is your starting principal.

2. Annual Contribution: Input any additional amount you plan to contribute each year. If you don’t plan to make additional contributions, enter 0.

3. Number of Years: Specify the number of years you plan to keep the annuity before starting withdrawals. This is typically your investment horizon or the time until retirement.

4. Expected Annual Interest Rate: Enter the projected annual return rate. This is usually based on historical performance of the linked index, but remember that past performance doesn’t guarantee future results.

5. Cap Rate: Input the maximum interest rate the annuity will credit in a given period, regardless of how well the linked index performs. This is a key feature of many fixed index annuities.

6. Participation Rate: Enter the percentage of the index’s gain that the annuity will credit. For example, if the index gains 10% and your participation rate is 80%, your annuity would be credited with 8% growth (subject to the cap rate).

After entering all the required information, click the “Calculate” button. The calculator will then process your inputs and display the results, including:

• Total Value: The projected value of your annuity at the end of the specified period.
• Total Contributions: The sum of your initial investment and all annual contributions.
• Total Earnings: The difference between the total value and total contributions, representing your potential profit.

The calculator also provides a brief explanation of the results, helping you understand how your investment could grow over time based on the provided inputs.

It’s important to note that this calculator provides estimates based on the information you input and assumes consistent returns. In reality, market performance can vary significantly from year to year, and actual returns may differ. Additionally, this calculator doesn’t account for fees, taxes, or other potential costs associated with annuities.