Aug 16, 2023
In this episode, The Annuity Man discussed:
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Annuities that increase with inflation
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The role of interest rates on pricing
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For products that adjust for inflation
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Reverse-engineering your income floor
Key Takeaways:
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Annuities don’t give things away for free. A product that magically increases with inflation doesn’t exist.
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Lifetime income is primarily priced based on your life expectancy at the time you take the payment. Interest rates play a minor role.
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For products that have a potential or contractual increase for inflation, the annuity company will severely lower the initial income as compared to the exact annuity without the increase.
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Don’t focus on things that you can’t control. Focus on building up an income floor that suits your needs. Compute for the number you’ll need to cover your expenses; we can reverse-engineer a product for that.
"It's math to the annuity companies. It should be math to you. If it sounds too good to be true, it is every single time. " — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
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