Fidelity Annuity Calculator

Fidelity Annuity Accumulation Calculator

Use this calculator to estimate the potential future value of an annuity, considering an initial lump sum investment and regular monthly contributions, based on an assumed annual growth rate.

function calculateAnnuity() { var initialInvestment = parseFloat(document.getElementById("initialInvestment").value); var monthlyContribution = parseFloat(document.getElementById("monthlyContribution").value); var annualGrowthRate = parseFloat(document.getElementById("annualGrowthRate").value); var yearsToGrow = parseFloat(document.getElementById("yearsToGrow").value); if (isNaN(initialInvestment) || isNaN(monthlyContribution) || isNaN(annualGrowthRate) || isNaN(yearsToGrow) || initialInvestment < 0 || monthlyContribution < 0 || annualGrowthRate <= 0 || yearsToGrow <= 0) { document.getElementById("result").innerHTML = "Please enter valid positive numbers for all fields."; return; } var r = annualGrowthRate / 100; // Annual rate as decimal var m = 12; // Monthly compounding and contributions var n = yearsToGrow; // Number of years // Calculate future value of initial lump sum var futureValueOfLumpSum = initialInvestment * Math.pow((1 + r / m), (n * m)); // Calculate future value of monthly contributions (ordinary annuity) var futureValueOfContributions = monthlyContribution * ((Math.pow((1 + r / m), (n * m)) – 1) / (r / m)); // Total future value var totalFutureValue = futureValueOfLumpSum + futureValueOfContributions; // Total contributions made var totalContributionsMade = initialInvestment + (monthlyContribution * n * m); // Total earnings var totalEarnings = totalFutureValue – totalContributionsMade; document.getElementById("result").innerHTML = "Estimated Future Value: $" + totalFutureValue.toFixed(2).replace(/\B(?=(\d{3})+(?!\d))/g, ",") + "" + "Total Contributions Made: $" + totalContributionsMade.toFixed(2).replace(/\B(?=(\d{3})+(?!\d))/g, ",") + "" + "Total Estimated Earnings: $" + totalEarnings.toFixed(2).replace(/\B(?=(\d{3})+(?!\d))/g, ",") + ""; } .fidelity-annuity-calculator-container { font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif; background-color: #f9f9f9; padding: 25px; border-radius: 10px; box-shadow: 0 4px 12px rgba(0, 0, 0, 0.1); max-width: 700px; margin: 20px auto; border: 1px solid #e0e0e0; } .fidelity-annuity-calculator-container h2 { color: #0055a5; /* Fidelity blue */ text-align: center; margin-bottom: 20px; font-size: 1.8em; } .fidelity-annuity-calculator-container p { color: #333; line-height: 1.6; margin-bottom: 15px; } .calculator-inputs label { display: block; margin-bottom: 8px; font-weight: bold; color: #555; } .calculator-inputs input[type="number"] { width: calc(100% – 22px); padding: 12px; margin-bottom: 15px; border: 1px solid #ccc; border-radius: 5px; font-size: 1em; box-sizing: border-box; } .calculator-inputs button { background-color: #0055a5; /* Fidelity blue */ color: white; padding: 14px 25px; border: none; border-radius: 5px; cursor: pointer; font-size: 1.1em; display: block; width: 100%; margin-top: 20px; transition: background-color 0.3s ease; } .calculator-inputs button:hover { background-color: #003f7a; } .calculator-results { margin-top: 30px; padding-top: 20px; border-top: 1px solid #eee; } .calculator-results h3 { color: #0055a5; font-size: 1.5em; margin-bottom: 15px; text-align: center; } .calculator-results #result p { background-color: #e6f2ff; /* Light blue background for results */ border: 1px solid #b3d9ff; padding: 12px; border-radius: 5px; margin-bottom: 10px; font-size: 1.1em; color: #003f7a; font-weight: bold; } .calculator-results #result p:last-child { margin-bottom: 0; }

Understanding Fidelity Annuities and Your Retirement Planning

An annuity is a contract between you and an insurance company, designed to provide a steady stream of income, often during retirement. Fidelity, a leading financial services company, offers various types of annuities that can play a crucial role in your long-term financial strategy.

How Annuities Work: Accumulation vs. Payout

Annuities typically have two main phases:

1. Accumulation Phase: This is when you contribute money to the annuity, either as a lump sum or through regular payments. Your money grows tax-deferred, meaning you don't pay taxes on the earnings until you withdraw them. This calculator focuses on estimating the growth during this phase.
2. Payout (Annuitization) Phase: At a future date, usually in retirement, you can convert your accumulated value into a stream of regular income payments. These payments can last for a set period or for the rest of your life.

Why Consider a Fidelity Annuity?

• Tax-Deferred Growth: Earnings within an annuity are not taxed until withdrawal, allowing your money to potentially grow faster over time.
• Guaranteed Income: Many annuities offer options for guaranteed income streams that can last for life, providing financial security in retirement.
• Customization: Fidelity offers different types of annuities, such as fixed, variable, and indexed annuities, each with unique features to match various risk tolerances and financial goals.
• Estate Planning: Annuities can include death benefit provisions, allowing you to pass on remaining assets to beneficiaries.

Types of Annuities Offered by Fidelity (Briefly):

• Fixed Annuities: Offer a guaranteed interest rate for a set period, providing predictable growth and income.
• Variable Annuities: Allow you to invest in subaccounts (similar to mutual funds), offering potential for higher growth but also carrying investment risk.
• Fixed Indexed Annuities: Offer growth potential linked to a market index, with some protection against market downturns.

How This Calculator Helps Your Planning

Our Fidelity Annuity Accumulation Calculator is designed to give you a clear estimate of how your initial investment and ongoing contributions could grow over time. By inputting your initial lump sum, monthly contribution, an assumed annual growth rate, and the number of years you plan to contribute, you can visualize the potential future value of your annuity. This helps you:

• Set realistic retirement savings goals.
• Understand the power of compounding interest.
• Adjust your contribution strategy to meet your financial objectives.

Disclaimer: This calculator provides estimates for illustrative purposes only. It assumes a consistent annual growth rate and monthly compounding. Actual annuity performance can vary based on market conditions, the specific annuity product chosen, fees, and other factors. It does not account for taxes on withdrawals or specific annuity contract terms. For personalized financial advice, please consult with a qualified financial advisor.