Personal Finance (Not Investing) • Annuities: Check my math?

Hi all, new to the forum and I appreciate all the helpful responses I've gotten to my first couple of questions. I have another. I'm trying to figure out what the current return is on two annuities my parents are in. Is this the right way of looking at it, or is there something I'm missing?

1. Qualified Fixed Indexed Annuity:
Total Purchase Payments:$220,000
Total Distribution (RMDs):$37,700
Contract value:$183,019

Is my math right that they are currently looking at a return of 0.39%?
220,000 minus 37,700 = 182,300.
183,019 minus 182,300 = 719
719/182,300 = .0039

2. Non-qualified Fixed Registered Indexed Annuity
Total Purchase Payments:$381,910.38
Contract value: $377,355.55

377,355.55 minus 381,910.38 = -4,554.83
-4,554.83/381,355.55 = -0.012
Return of -1.2%

Is it as simple as this, or are there other considerations for doing this calculation? For example, I know the surrender value on each would be lower than the contract value, but it seems like the contract value is the appropriate number to use here assuming they will keep them through their surrender periods, right?

Thanks!

Statistics: Posted by B00 — Wed Jun 19, 2024 6:16 pm — Replies 5 — Views 326

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