Annuity vs Bond Ladder vs Portfolio Income Tool
Compare income durability, inflation exposure, liquidity, taxes, and risk across three common retirement income approaches. Educational only (not advice).
Educational Disclosure The information provided by this calculator is for educational purposes only and is not personalized investment, tax, legal, or insurance advice. Assumptions are hypothetical and results are illustrative; actual outcomes will vary and may be materially different. This tool does not account for all factors (including specific product pricing, underwriting, carrier terms, taxes, state rules, fees, spreads, surrender charges, or your full household balance sheet). You should consult with your investment, tax, and legal professionals before acting on any information. No guarantees are made regarding performance, income, or results.
No product sales. No carrier affiliation.
Enables the joint-life annuity option.
Used only for a generic tax note (no state tax calculations).
This tool is educational and does not compute your exact taxes.
Currently: Gross
Controls whether the income target grows with inflation.
Context only (does not change projections in this simplified tool).
Reduces payout modestly.
Illustrative estimates—real quotes vary by carrier, rates, underwriting, and state.
Assumed annuity pricing method: internal approximation tables (not real quotes).
Toggle chart units.
Inflation +2% for the first 5 years.
Reinvestment rates -1.5%.
Portfolio equities -25% in year 1, then normal.
End age +5.
- Distributions are generally taxed as ordinary income.
- Non-qualified annuities may use an exclusion ratio concept (part return of principal, part taxable interest) depending on structure.
- Qualified annuity distributions are typically fully ordinary on distribution.
- Interest is generally ordinary income.
- US Treasuries are generally exempt from state income tax; in AZ, rules vary by state and product.
- Corporate bonds can have credit spread and default considerations.
- Qualified dividends and long-term capital gains can be taxed differently than ordinary income.
- Tax drag (dividends, interest, realized gains) can reduce net returns.
- Asset location and withdrawal sequencing can materially change outcomes.
Reminder: This is not tax advice.
Educational Disclosure The information provided by this calculator is for educational purposes only and is not personalized investment, tax, legal, or insurance advice. Assumptions are hypothetical and results are illustrative; actual outcomes will vary and may be materially different. This tool does not account for all factors (including specific product pricing, underwriting, carrier terms, taxes, state rules, fees, spreads, surrender charges, or your full household balance sheet). You should consult with your investment, tax, and legal professionals before acting on any information. No guarantees are made regarding performance, income, or results.
No product sales. No carrier affiliation.