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Total Withdrawn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.
Most VA calculators online use fixed-rate projections — they assume your money grows at 6% every year. That's not how markets work. This calculator uses real-time Monte Carlo simulation to show you what actually happens to your money when markets crash, boom, or go sideways.
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.