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Income Riders

Fixed Index Annuities – Do I need that Income Rider?

Anton Hendler

Anton Hendler | May 28, 2014 | ,

As with so many annuity and other retirement decisions the answer is, “that depends”! This is not a ‘cop out’ on our part. It depends on where you are relative to retirement, where your funds are currently invested and what your plans are going forward. There are many rider options within Fixed Index Annuities (FIAs) and most of these carry an additional fee. So before you jump into one of these options you need to answer this question “do I need this?” The Income rider...

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How A Guaranteed Lifetime Income Rider Adds Value to a Fixed Indexed Annuity

Keith L. Collins

Keith L. Collins | March 11, 2014 | , , ,

A Fixed Indexed Annuity (FIA) is a retirement savings tool that complements other pension plans like 401(k)s, social security benefits, and individual retirement accounts (IRAs). Many insurance and indexed annuity companies that offer FIAs have come up with an annuity product feature that offers guaranteed lifetime payments to your account. This feature is called a Guaranteed Lifetime Income Rider (GLIR). Once you procure this annuity, you can receive guaranteed regular monthly income for the rest of your life. What is a Guaranteed Lifetime Income Rider?...

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Top 5 Reasons to Use an Income Rider Instead of Investment Accounts for Retirement Income

Carl Ostenson

Carl Ostenson | February 25, 2014 | , ,

Do you want to put aside a portion of your retirement savings so it will guarantee you income when you retire? Here’s my Top 5 reasons why using an indexed annuity with an income rider could be a good solution: 1) LOCK IN THE LAST 5 YEARS OF GAINS: Since the market bottom in March of 2009 the SP 500 Index is up 165% without any real major correction. (As of 2/24/14) You are also 5 years older now and have less time to recover...

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Thinking about Buying an Annuity… But Afraid to Tie up Your Money?

John P. Grimes

John P. Grimes | January 15, 2014 | , , , , ,

We’ve all heard the expression ‘have your cake and eat it too’. It’s a pretty simple dilemma; if you have your cake and eat it… then it’s gone. If you don’t eat the cake, you still have it but don’t get to enjoy it. Wouldn’t it be nice to have it both ways? It’s like being rewarded without taking any risk or getting something nice without having to pay for it.  So you’ve done some research about fixed indexed annuities and you find there are...

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The Truth About 8% Annuity Returns

Howard Hafetz

Howard Hafetz | December 13, 2013 | , , , ,

There is a lot of marketing done that references various “returns”. Much of it is misleading at best and flat out incorrect at worst. Let’s try to make sense to all the rhetoric. Marketing, typically, is designed to generate interest in people that may be in the market for a product or service. It should capture interest by emphasizing the best attributes of the product or service. But, I am sure most would agree that, in many cases, it goes way beyond that. Have you...

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How To Find The Best Equity Index Annuity For Your Needs

Richard Ericson

Richard Ericson | December 9, 2013 | , , , , , ,

Which equity indexed annuity is the best? Which annuity is the best for you? Often individuals become overwhelmed by the amount of choices available when learning about, and selecting the best annuity for their purpose.  I believe those who are over 50 should have a majority of their retirement assets in safe, protected and guaranteed retirement planning vehicles. The key investment piece is the Equity Index Annuity. Equity Index Annuities may be referred to as fixed index, index, or hybrid. Equity index annuities are NOT...

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Using Annuities As An Alternative To The 60/40/4 Rule

John P. Grimes

John P. Grimes | December 4, 2013 | , ,

Not sure what the 60/40/4 rule is? My guess is you probably do know. If you’ve worked with a financial advisor to help you plan for retirement or read any number of financial publications or googled ‘retirement strategies’ then you’ve seen some form of this rule of thumb for a secure stream of retirement income. Basically, if you have 60% of your retirement funds in stocks, 40% in Bonds and withdraw 4% per year then historically your retirement nest egg should last as long as...

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Fixed Annuity Income Riders: The Goldilocks Syndrome

Howard Hafetz

Howard Hafetz | December 3, 2013 | , , , ,

In regard to “GUARANTEED INCOME RIDERS”*, the explanations of how they work fall into the “Goldilocks Syndrome”. In some cases, not nearly enough information, in others, much too much! Some authors feel the need to explain “actuarial reasoning”, others, do what typically inexperienced advisors do, “tell clients what they want to hear”. Too hot, too cold….. not “just right”! I am going to try to do just that, tell it like “Goldilocks” would! The reason these riders were created was to enable clients to have...

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Truth About Income Riders On Fixed Index And Variable Annuities

Rob Brinkman

Rob Brinkman | November 4, 2013 | , , , ,

One of the most popular new benefits of both variable and fixed indexed annuities is setting guaranteed income amounts with the use of Income Riders. Many of these riders offer contractual guaranteed income benefits of 6%, 7%, 8%, and even 10% in some instances. Sadly, the majority of consumers either have not understood (or were misled) how these income riders actually work. These riders, when sold correctly for the ideal client, are one of the most powerful retirement benefits in the country. However, if you...

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Can I Buy An Income Rider Without Buying An Annuity?

Stan The Annuity Man

Stan The Annuity Man | August 22, 2013 | , , , , ,

Question: Is there a way to buy an income rider without having to buy an annuity?  from Steve in Houston, TX Answer: This is one of the most forward thinking and insightful questions I’ve ever received.  You Steve, are a visionary my friend.  Currently, there are a select few companies working on income riders that are “non-annuity”, with more coming in the near future in my opinion.  People want guarantees and benefits that annuities provide, but in many cases, they don’t want to tie their...

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