Find out how the annuity formula works and how to calculate present and future value. Get a simple breakdown of key concepts.

Should you take a lump sum payout or monthly payments? Here's what the Dave Ramsey Reddit group thinks about pension payouts.

In Figure 1, I compare a lump-sum offer of $500K to the 100% joint survivor pension option, which is $25K a year. Single investors use the single-life pension payout. The formula in this case ...

and a $375,000 lump sum. Your remaining life expectancy (using a Social Security table) is around 21 years. The spreadsheet formula to calculate the implied rate of return is: =RATE(21,28000 ...

You can certainly take a lump-sum payout, roll it into an IRA, and then use a portion of that IRA to buy something called an "immediate annuity" from an insurance company. Don't confuse this type ...

Here's what's different: Instead of your benefit in retirement being based on a formula that takes into ... what sort of monthly income payout (or lump sum) that will generate when you retire ...