Use this calculator to help you determine whether switching from one variable annuity to another makes sense. The current balance of the new annuity should reflect the amount you’ll actually have to invest. Contact the annuity company to see how much you’d have left to transfer after any surrender charges. If you’re investing in a new variable annuity with a front-end sales fee, subtract that fee from your initial lump sum contribution as well as from any future, periodic contributions. However, if the new annuity offers a bonus for new investors, add that to the total amount you’d roll over.
To estimate your annual rate of return, use 11% if your annuity is invested in aggressive growth holdings, 8% for more conservative investments and 5% for fixed-income investments. You can find the annuity expenses in the table at the front of the prospectus.
