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Can Your Annuity Income Increase With Inflation?: Shootin' It Straight With Stan
Manage episode 499972751 series 2798004
In this episode, The Annuity Man discussed:
Annuities that increase with inflation
The role of interest rates in pricing
For products that adjust for inflation
Reverse-engineering your income floor
Key Takeaways:
Annuities don’t give things away for free. A product that magically increases with inflation doesn’t exist.
Lifetime income is primarily priced based on your life expectancy at the time you take the payment. Interest rates play a minor role.
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.
Don’t focus on things that you can’t control. Focus on building up an income floor that suits your needs. Compute 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: [email protected]
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
368 episodes
Manage episode 499972751 series 2798004
In this episode, The Annuity Man discussed:
Annuities that increase with inflation
The role of interest rates in pricing
For products that adjust for inflation
Reverse-engineering your income floor
Key Takeaways:
Annuities don’t give things away for free. A product that magically increases with inflation doesn’t exist.
Lifetime income is primarily priced based on your life expectancy at the time you take the payment. Interest rates play a minor role.
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.
Don’t focus on things that you can’t control. Focus on building up an income floor that suits your needs. Compute 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: [email protected]
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
368 episodes
Kaikki jaksot
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