Use this calculator to "estimate" the cost of an annuity to either settle a case, or fund an MSA.
The "Purchase Date of MSA Annuity" is the day you will buy it from the Annuity Broker.
The "Date of First Payment" is the day the Annunity will issue the first check.
The "Number of Periodic Payments" is based on the "Payment Frequency." For example, if the annuity pays monthly, and you want payments for ten years then the Number of Periodic Payments is 12 per year, for ten years, or 10 x 12, or 120 payments.
The "MSA Periodic Payment Amount" is how much each annuity check will be. So if you must fund an MSA with $10,000 each year, "the Payment Frequency" should be set to Annual, and the Periodic Payment Amount to $10,000.
The "Interest Rate" is set by the Annuity underwriter based upon actuarial estimates. You can only estimate this number. 3.5% is a good starting point for 2019. Feel free to experiment with different numbers.
Confused? You may call one of our sponsors, Steve Blank, at 602.743.4000 for clarification, advice, or some accurate quotes from Annuity Companies.