| BUSINESSWEEK ONLINE : JULY 5, 1999 ISSUE | ||||||||
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| BUSINESSWEEK INVESTOR -- THE BARKER PORTFOLIO
The Difference a Point Makes Deciding whether to trade in an annuity can seem like high finance. Not so.
Here's a worksheet to help you.
OUR EXAMPLE
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CURRENT ANNUITY ALTERNATIVE
1 CURRENT ANNUITY VALUE $100,000 $0
2 SURRENDER CHARGE 2%
3 CASH AVAILABLE TO REINVEST $98,000
4 ANNUAL RETURN ON ANNUITY 4% 5%
5 VALUE AFTER 1 YEAR (Annuity balance $104,000 $102,900
times 1 plus annual rate of return)
6 VALUE AFTER 2 YEARS (Value in line $108,160 $108,045
5 times 1 plus annual rate of return)
7 VALUE AFTER 3 YEARS (Value in line 6 112,486 $113,447
times 1 plus annual rate of return)
YOUR CHOICE
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CURRENT ANNUITY ALTERNATIVE
1 CURRENT ANNUITY VALUE $_______ $0
2 SURRENDER CHARGE ___% 0%
3 CASH AVAILABLE TO REINVEST $______
4 ANNUAL RETURN ON ANNUITY __% __%
5 VALUE AFTER 1 YEAR (Annuity balance $_______ $______
times 1 plus annual rate of return)
6 VALUE AFTER 2 YEARS (Value in line
5 times 1 plus annual rate of return)
7 VALUE AFTER 3 YEARS (Value in line 6 $_______ $______
times 1 plus annual rate of return)
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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RELATED ITEMS Is Your Annuity a Dud? Read On TABLE: The Difference a Point Makes INTERACT E-Mail to Business Week Online | |||
