While buying annuities, an investor should always check the annuity table. Annuity tables give a clear picture of how much annuity an investor can expect from the annuity provider after a certain number of years. As we know, annuities are investment instruments which are used by investors to secure their financial future after they retire. They are very important instruments and can either make or break an investor’s future after retirement. Let us see how we can best use annuity tables.
These tables give graphical and tabular representation of returns based upon various factors such as demographics, amount of money to be invested and the expected return. There are various payment options that are offered by insurance companies and using an annuity table an investor can find out how much exactly one can earn in the different payment methods.
It should be noted that an annuity table may not give the exact figure of how much return that one can expect from a product, but it will certainly help to form a rough idea and help the investor in taking a prudent investment decision. The annuity table that an investor uses should be current. An old version of an annuity table will contain old rates which may not be relevant in the present scenario. If an investor is using a table of 2002, it will not have much relevance in 2008 because the rate offered on different products may have changed over time. Annuity tables are of two types. The first one is immediate annuity and the second one is a deferred annuity table.
We are all aware of immediate annuity. In these kinds of annuities the products are designed to give immediate returns to the investor. Therefore the annuity tables which are designed for immediate annuity cannot give the returns for deferred annuity and vice-versa. A deferred annuity table will display the accumulation one can obtain after a specific period. An annuity factor table gives the present value annuity factors. The table maps the investment horizon and the rate of annuity for the time period. It is an excellent table which will allow knowledgeable investors to put their money in the right products. Most annuity providers have their own annuity table. They are shared with investors and prospects and are also mapped with various products.
We as intelligent investors must be aware of the annuity products that we want to buy. Whether our requirement is immediate annuities or deferred annuities is a decision that we need to make. There are numerous products that are offered by various companies across the country. Annuity sales agents will try to hard sell their products because of the fat commission that they get on the sales. If we have an annuity table handy, we can make our own choices without any handholding from the agents. Since annuity tables are available online we can simply get the rates and returns of various plans at the click of the mouse. So, if you are planning an annuity buy do not forget to use an annuity table to help you make your decision.