VA Account Value
$0
Total Withdrawn
$0
Insurer Benefits
$0
Total Fees Paid
$0
Naked Portfolio
$0
VA Advantage
$0
GMWB+Ratchet Click the midpoint diamond and drag to reshape the market scenario
A variable annuity is an insurance contract that combines tax-deferred investment with optional guarantee riders. You invest a lump sum (the premium), which goes into sub-accounts similar to mutual funds. Your money grows or shrinks with the market — but the guarantee riders protect you from worst-case outcomes.
Variable annuities have two phases. During the accumulation phase, your money is invested and growing. During the payout phase, you receive income — either as a lump sum, systematic withdrawals, or lifetime annuity payments. The guarantee riders determine what happens if the market drops during either phase.
Unlike fixed annuities (which offer a guaranteed interest rate), variable annuities give you market upside with a safety net below. That safety net comes at a cost — rider charges and management fees — which is why understanding the total fee impact is critical.
Many VA calculators use a fixed annual return. This calculator lets you shape one monthly market path, including a fall and recovery, then follows the account value, fees, withdrawals, and guarantee mechanics along that path. It is scenario analysis, not a Monte Carlo distribution or a fair-value estimate.
Drag the market path to simulate crashes, recoveries, and flat markets. See exactly when your guarantee kicks in.
Compare GMDB, GMAB, GMWB, GMWB+Ratchet, and GMIB side by side. Most calculators only show 1-2.
See rider charges, management fees, and surrender charges broken out month by month. No hidden costs.
Compare your VA outcome against investing the same money in a regular portfolio with no insurance wrapper.
Variable annuities offer different kinds of protection through optional riders. Each rider costs money (the rider charge) but protects you in different ways:
Protects your beneficiaries. If you die while the contract is active, your heirs receive at least your original investment — even if the market has crashed.
Protects your principal at a future date. After a set period (typically 10 years), you're guaranteed to have at least your original investment back, regardless of market performance.
Guarantees you can withdraw a fixed percentage of your investment every year, even if your account value drops to zero.
The most comprehensive withdrawal protection. Your benefit base grows with a guaranteed rollup rate even when markets are down, and ratchets up when markets rise.
Guarantees a minimum lifetime income stream. After a waiting period, you can convert your contract into annuity payments based on the higher of your account value or a guaranteed income base.
Variable annuities have several layers of fees. Understanding what you're paying — and what you're getting in return — is essential for making an informed decision.
| Fee Type | Typical Range | What It Covers |
|---|---|---|
| Rider Charge | 0.50% – 1.50% | The cost of your guarantee rider. This is the price of the insurance protection. |
| Management Fee (M&E) | 1.00% – 1.50% | Mortality & expense risk charge plus fund management fees. |
| Surrender Charge | 0% – 7% | A declining penalty for early withdrawal, typically lasting 5-9 years. |
| Total Annual Cost | 1.50% – 3.00% | Rider charge + management fee combined. On $100,000, a 2.3% total fee costs about $2,300/year. |
The impact of fees over time: A 1.5% annual fee on $100,000 costs roughly $45,000 over 30 years (assuming 6% gross returns). Use the simulator above to see the exact fee impact for your scenario.