Our annuity calculator helps agents and advisors determine their clients’ potential income after retirement based on the amount of savings they invest. The calculator can also reveal how much savings are required to achieve a specific monthly income after retirement. Remember, an annuity may be just one aspect of a retirement portfolio, so keep this in mind.
To use the calculator, first fill out the investment details. Start by entering the Hub Code of the annuity product you’re considering for your client. Change the purchase date, amount, and/or compounding frequency, if necessary. You’ll see the effective rate of return and nominal rate of return, followed by the aggregate amount at the end of the accumulation phase.
The Cash Flows area below shows the start date, initial monthly payments, number and frequency of payments, and end date, followed by the total interest received. Cash flows can be added using the “Add Cash Flows” button up to a maximum of 10 rows.
Click any checkbox to solve for the investment amount, interest rate, or one of the cash flows. Selecting a checkbox sets the value to “unknown.” Hitting “Solve” calculates the unknown value or values. You can also save and delete cash flow calculations using the buttons at the top of the calculator. Cash flows are saved using the Hub Code.
Click on the Amortization Schedule tab to see the information from the investment details and cash flows charts broken down more thoroughly.
The Year-End Summary tab shows a chart and table breaking down the year-end valuation, remaining payable interest, and aggregate payments remaining over the course of the annuity’s accumulation phase.Read More +
Annuities are financial products that pay out a fixed stream of income to individuals, usually retirees. The money comes from a substantial lump sum or monthly payments put into the annuity during the accumulation phase. Once payments commence at a specified date, the contract enters the annuitization phase.
Secondary market annuities originate from existing annuities that become available for purchase. They offer fixed-term payment streams, up to several decades long, from top-quality insurance carriers.
SMAs could be the right fit for your client’s profile if he or she is looking for above-average returns with relatively low risk. Investors must also have enough resources to tie up funds in this illiquid investment.
SMAs offer many of the same benefits as primary market annuities—including payment certainty and a guaranteed yield—without all the restrictions associated with insurance contracts. While insurance products often translate to low returns for the investor, SMAs routinely provide yields 1-4% higher than comparable original issue annuities at a lower cost and without introducing a high level of risk.
SMA Hub is far from merely a “middleman” in the process of transferring structured settlement cash flows. We acquire original issue annuities in their entirety using an independent business trust. Then, our experienced, on-staff attorney navigates the complexities of transitioning the financial product into a secondary market annuity.
Only once the review process is complete and the sale of the payment stream has been court-approved do we list SMAs in our inventory. This adds additional layers of protection to your practice and ultimately your clients. By the time you see SMAs for sale on our website, all due diligence has been performed. Therefore, you can expect to close your client’s case within 24 to 48 hours, pending liquidity of funds.