# Annuitization Method

L1: Annuitization MethodHello, I was wondering how one would go about calculating an annuity factor for the annuitization method under new rules. And I dont just want the definition copied and pasted of the IRS website. I also dont want a link to an annuitization method calculator. I want how to calculate an annuity factor by hand. I also want how to calculate life expectancy using Appendix B because I know life expectancy factors into how to calculate an annuity factor. If anyone can help me out it would be greatly appreciated. I dont want to have to pay an actuary to do it for me.2008-06-18 16:43, By: John, IP: [71.254.250.156]

L2: Annuitization MethodJohn…

You may want to spend a few hours with an actuary who can walk you through the formulas. It may not be inexpensive, but you should get what you are looking for.When you do get the formulas, you can use our calculators to check your results.

2008-06-18 16:52, By: Gfw, IP: [98.214.67.158]

L2: Annuitization MethodGood morning John:

I believe Gordon (Gfw), designer and sponsor of this site,either is or works closely with autuaries with an insurance company.Your questions are not simple but rather complex. Gordon has provided everyone that uses this site withaccurate and simple calculators to solve the problems you are asking for … and it”s free which is one of your parameters.

My suggestion is to make use of Gordon”s generosity and simply use the calculators he has provided to solve the problems you are asking for.

Jim2008-06-19 06:07, By: Jim, IP: [70.167.81.119]

L2: Annuitization MethodI dont doubt that the calculators aren”t accurate, but surely there must be someone who can give me the formulas and explain how to calculate the annuitization method. I dont wish to calculate the annuitization method payments for myself, but give a step by step explanation on how to calculate them for other people.

I currently own and operate a website about retirement planning (which is still in the works), and I want to give clear and accurate information about everything due to retirement. Its not that I dont trust the calculator or that I dont think its accurate or that its free, its just that I would like to understand the math behind the calculator. So if anyone can give me the information it would be greatly appreciated. I know this isn”t an easy question at all, and if anyone can answer this I”d be very happy. I”ve spent large amounts of time trying to find the formula on the internet and trying to come up with it myself. So again anyone that could explain how to do the life expectancy of appendix B and how to do the annuity factor by hand I would be very very appreciative.

Thanks in advance to anyone that answers this question!2008-06-19 13:22, By: John, IP: [71.254.229.37]

L2: Annuitization MethodJohn… I”ll repeat what I said earlier.

Talk to an actuary and pay the price just like I did and just like others have done. I”m sure that you will have a great website, but I think ours is OK as well.

If you don”t want to pay the actuarial consultingfees, I would be more than happysell you hits on our calculators that you could call byweb servicefrom your site. There would of course, be abasicsetup charge, plus a per transaction charge.

You may also want to look into Google Alalyitics and Google Sitemaps to promote you site. Wetry to post no links to other sites unless it isin our links section.2008-06-19 13:33, By: Gfw, IP: [98.214.67.158]

L2: Annuitization Methodgfw, I don”t question that your site is good, and I wouldnt ever venture to disrespect your expert opinion. That was not the intention of my comment. I just dont understand how you could make the calculator, but not know the formula for it? If anyone else thats reading this comment knows the formula, I”d be very happy for a response or you can email me at …2008-06-19 13:38, By: John, IP: [71.254.229.37]

L2: Annuitization MethodThanks for visiting our site.

BTW… I do know the formulas and I do know how they work – they arenothing more than basic actuarial formulas that can be foundon various actuarial websites. If I didn”t know the formulsand how to implement them, the calculators on this site wouldn”t match the IRS examples.

2008-06-19 13:47, By: Gfw, IP: [98.214.67.158]

L2: Annuitization Methodwell since you do know the formulas, could you post them for me and explain how to do them? I”ve seen various formulas posted, and everytime i calculate my annuity factor i”m just slightly off by .062. Is it a question of where I round my numbers? or is my formula incorrect? So i was wondering if you could post your formulas and I could cross reference them with what I”m doing.

Thanks!2008-06-19 13:53, By: John, IP: [71.254.229.37]

L2: Annuitization MethodHey John I have the same problem, though I”ve never had a website about it, i always wondered how to do it by hand. Any explanations on it would help!2008-06-19 15:20, By: Todd, IP: [71.254.229.37]

L2: Annuitization MethodJust remember that this site is designed to provide information about IRC Sections 72(t) and 72(q). It is supported by other things that I do.

We are also fortunate in that we have a variety of individuals like Bill, Jim, Alan, Ed,Ken, Dlz,etc. (I know that I missedmany and I appologize) that take the time to answer questions and for that I am very thankful.Each ofus also makes a living doing a variety of other things. One of the things that I do is design and sell software that uses the requested formulas and functions.

Just because many people think the Internet is free, doesn”t make it so. If you want to purchase software or consulting time,please send me an email using the link at the top of the page.

If you are merely looking for free actuarlial consultation, you won”t find it here.If you are looking for actuarial formulas please move the conversation to an actuarial website.

2008-06-19 15:39, By: Gfw, IP: [98.214.67.158]

L2: Annuitization MethodJust remember that this site is designed to provide information about IRC Sections 72(t) and 72(q). It is supported by other things that I do.

We are also fortunate in that we have a variety of individuals like Bill, Jim, Alan, Ed,Ken, Dlz,etc. (I know that I missedmany and I appologize) that take the time to answer questions and for that I am very thankful.Each ofus also makes a living doing a variety of other things. One of the things that I do is design and sell software that uses the requested formulas and functions.

Just because many people think the Internet is free, doesn”t make it so. If you want to purchase software or consulting time,please send me an email using the link at the top of the page.

If you are merely looking for free actuarlial consultation, you won”t find it here.If you are looking for actuarial formulas please move the conversation to an actuarial website.

Not that I pretend to be an expert, or claim to have 35 years of experience, but I”m pretty sure the annuitization method is a big part of the IRC Section 72(t). I was hoping when i visited your site that you would be able to explain how to me the equations and explain to me how to figure out a life expectancy using appendix B and an annuity factor. It would have taken up little of your time if you would have responded to my question with the answer I requested. Simply typing in two formulas would have taken a small amount of time in comparison to the time you have already wasted giving me responses without any substance. If the main reason you created this site is to make money, than i suggest you post that on your homepage, instead of fooling people who are searching to learn more about 72t payments into thinking that this is a website that helps everyone for free.

Yes apparently I am under the “dellusion” that the internet is free. Access to the internet is not free, and large amounts of bandwidth is also not free, this I understand. However I also understand that to the common internet user, much of the worldwide web and its information is free. The most profitable websites and their information is free to the common user.

I”m sorry to inform you that I will not be purchasing your “consulting time” or your software.

When I first visited your website, I was happy to find that there was someone like me trying to educate people about retirement for free. I”m sorry that I am sorely mistaken. I hope your business is profitable2008-06-19 19:17, By: John, IP: [71.254.229.37]

L2: Annuitization MethodJohn:

You are not “sorely mistaken”, just sore. Get over it, man. This web site is one of the best of its kind on the Internet. I know. I”ve searched and read dozens and dozens of them. If you find another web site that does satisfy you, please let the rest of us know.

Many people have been helped here. Sorry that your question was not answered to your satisfaction but some things are like that. If I had a question that required real in-depth work on someone else”s part, I would not mind paying for the answers I needed. I”ve worked for cheap before but not for free. I can”t expect others to do so if I won”t.Ed 2008-06-20 08:21, By: Ed_B, IP: [67.170.159.37]