Sep 27, 2023
In this episode, The Annuity Man discussed:
What is an income rider?
Buying based on your goal
Addressing inflation with DIAs and Income Riders
An income rider is an attachment to a policy; you can’t buy a standalone income rider. The only number that you have to focus on when you’re pitched an income rider is the contractually guaranteed payout number.
When it comes to annuities, one is never better than another. They all have a benefit depending on what your personal goal is. You should shop for both Income Riders and DIAs if your goal is income in the future.
Both income riders and DIAs do not address inflation properly. You can attach a cost of living adjustment increase to a deferred income annuity, but the annuity company severely lowers the payment to make up for that cost of living adjustment increase.
"Income riders versus DIAs… they both do the same thing. They both get to income later, contractually, they just take two different contractual paths to get there, but they're both great strategies, but not one is better than the other." — Stan The Annuity Man.
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