How Are Annuities Calculated?

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    David RacichPRO
    Fountain Hills, Arizona
    Annuities have two basic components: the net credited earnings from the annuity company’s investment portfolio and mortality credits assigned by the age and gender for lifetime annuitization. The gross rate of return from the company’s portfolio less company expenses and the targeted spread they keep generate the basic calculation. 

    Answered on June 12, 2013
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