Annuity Payout Calculator with Fees

[Zeigh Owensby]

I have certainly been able to find a variety of online calculators or spreadsheets that estimate annuity payouts, but none so far have any fees in the formula. Unfortunately I don't have the brain capacity anytime soon to get my geek on and create a spreadsheet with these details. Does anyone know of a resource (online calculator or download file) that already has this in one package?


Peace,
Dr. Z.

 

[Tahoe Ray]

I have certainly been able to find a variety of online calculators or spreadsheets that estimate annuity payouts, but none so far have any fees in the formula. Unfortunately I don't have the brain capacity anytime soon to get my geek on and create a spreadsheet with these details. Does anyone know of a resource (online calculator or download file) that already has this in one package?


Peace,
Dr. Z.

Fees are built into those calculators. For FIAs, fees don't impact your income (income is based on benefit base and not account value) and for SPIAs, everything is baked in so I'm not sure what you're looking for.

 

[Zeigh Owensby]

Thanks for the reply.

I just started taking monthly excess distributions from my (Transamerica) annuity and there is a quarterly fee for this. It is based upon a percentage of the withdrawal base and like allot of annuities, almost insultingly steep. Being able to estimate how the pending years will march out with such fees will help me determine the sweet spot for getting my money back before I die.

 

[Tahoe Ray]

Thanks for the reply.

I just started taking monthly excess distributions from my (Transamerica) annuity and there is a quarterly fee for this. It is based upon a percentage of the withdrawal base and like allot of annuities, almost insultingly steep. Being able to estimate how the pending years will march out with such fees will help me determine the sweet spot for getting my money back before I die.

Again, the fees should not impact your distributions if you have a living benefit or you've annuitized. If you are taking distributions exceeding those limits (or you're paying surrender fees because you're taking out a lot more than what's allowed) then yes, the fees can be egregious.

If you had a pension, there are no fees that you can see but the carrier is certainly making a lot of money on your account value.

Getting your money back is great if it happens. Not running out of money is why people normally buy annuities.

 

[scagnt83]

Thanks for the reply.

I just started taking monthly excess distributions from my (Transamerica) annuity and there is a quarterly fee for this. It is based upon a percentage of the withdrawal base and like allot of annuities, almost insultingly steep. Being able to estimate how the pending years will march out with such fees will help me determine the sweet spot for getting my money back before I die.

You need to be more specific about what you have and what you are doing with it.

The term "Excess Distributions" is not a technical industry specific term for just 1 thing.

What type of Annuity is this? Variable Annuity? Indexed Annuity? Fixed Annuity?

Is this an IRA? Pension? 401k? 403b? Normal Non-Qualified Annuity?

What are these "in excess" of? Free Withdrawal Amount? RMDs? Lifetime Income Payments from an Income Rider?

The way you describe them, it sounds like you are being charged for taking out more than allowed under the Early Surrender Provisions of the Contract. Especially since you used the term "Withdrawal Base"... which implies you are taking Withdrawals from the contract and did not Annuitize to create a guaranteed income stream for life.

It might be that you are taking the wrong type of distribution and do not realize it.

 

[scagnt83]

If you had a pension, there are no fees that you can see but the carrier is certainly making a lot of money on your account value.

Some TPAs charge fees for withdrawals that are not set up on a monthly EFT or an annual basis. But not % based fees that use the "withdrawal base" as the calculation.