Athene 5 Year Fixed Annuity Rates Calculator

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Athene 5-Year Fixed Annuity Rates Calculator

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Understanding the Athene 5-Year Fixed Annuity

A fixed annuity is a type of insurance contract that offers a guaranteed rate of return on your investment over a specified period. The Athene 5-Year Fixed Annuity is designed for individuals looking for a predictable way to grow their savings with a secure, fixed interest rate for five years. This can be an attractive option for those who want to avoid market volatility while ensuring a specific growth for their principal.

How it Works

When you purchase an Athene 5-Year Fixed Annuity, you provide a lump sum premium to Athene. In return, Athene guarantees a specific annual interest rate for the next five years. Your money grows tax-deferred, meaning you don't pay taxes on the earnings until you withdraw them. At the end of the 5-year term, you can choose to receive the accumulated value, renew the annuity, or convert it into a stream of income payments (annuitization).

Key Features of the 5-Year Fixed Annuity

  • Guaranteed Growth: Your principal is protected, and you earn a fixed interest rate that is declared at the time of purchase and remains constant for the entire 5-year term.
  • Tax Deferral: Earnings grow without being taxed annually, allowing for more compounding growth over time.
  • Principal Protection: Unlike market-based investments, your initial investment is generally safe from market downturns.
  • Defined Term: The 5-year term provides a clear horizon for your investment, making it easier to plan for future financial goals.

Who is it For?

The Athene 5-Year Fixed Annuity is suitable for conservative investors who:

  • Are nearing retirement or are already retired and seeking stable, predictable returns.
  • Want to preserve their principal while earning a better rate than traditional savings accounts or CDs.
  • Are looking for tax-deferred growth opportunities.
  • Have a specific financial goal within the next five years that requires a guaranteed return.

Important Considerations

While fixed annuities offer safety and predictability, it's important to be aware of potential drawbacks:

  • Liquidity: Accessing your funds before the end of the term may incur surrender charges.
  • Inflation Risk: The fixed rate may not keep pace with inflation, potentially eroding the purchasing power of your earnings over time.
  • Opportunity Cost: By locking into a fixed rate, you may miss out on higher potential returns from other investments if the market performs well.

Using the Calculator

This calculator helps you estimate the future value of your premium based on the guaranteed annual rate and the 5-year term. Enter your initial premium amount and the current guaranteed annual rate offered by Athene to see how your investment could grow over five years. This tool provides a clear illustration of the potential returns from a fixed annuity.

Example Calculation:

If you invest $25,000 in an Athene 5-Year Fixed Annuity with a guaranteed annual rate of 4.75%, after 5 years, your estimated total payout would be approximately $31,582.84, with a total interest earned of $6,582.84.

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