Annuity Guys®

Annuity Rates, Features & Ratings: America's trusted annuity resource. Compare best options for hybrid, index, fixed, variable & immediate annuity quotes.


Helping You Create Great Results Your Retirement Deserves!



(217)753-1515
  • Home
  • About Us
    • About Us
    • Contact Us
    • Site Terms & Disclosure
    • Privacy Policy
  • FAQs
    • Most Frequently Asked Annuity Questions
  • All Annuity Guys Videos
  • Annuity Types
    • Best Annuity Reviews
    • Market Free™ Annuities
    • Choosing an Annuity
    • Deferred Annuities
    • Hybrid Annuity Choices
      • Hybrid Annuity Pros&Cons
      • Hybrid Income Riders
      • Hybrid Annuity Guarantees & Strategies
    • Fixed Annuity Choices
      • Fixed Annuity Performance
      • Better Fixed Annuities
      • Fixed Deferred Annuities
      • Fixed Rate Annuities
      • Fixed Annuity Alternatives
      • Fixed Annuity Pros & Cons
      • Fixed Annuity Negatives
    • Index Annuity Choices
      • Fixed Index Annuity Features
      • Fixed Index Annuity Performance
      • Better Fixed Index Annuities
      • Fixed Index Annuity Alternatives
      • Fixed Index Annuity Pros & Cons
      • Fixed Index Annuity History
      • Fixed Index Annuity Negatives
    • Immediate Annuities
      • Immediate Variable Annuity
      • Immediate Fixed Annuities
    • Variable Annuities
      • Variable Annuity Features
      • Better Variable Annuities
      • Variable Annuities Disadvantages
      • Variable Annuity Alternatives
      • Variable Annuity Negatives
      • Variable Annuity Performance
    • Pre-Issued Annuities™
      • Hybrid Annuities versus Pre-Issued Annuities ™
    • Annuity Glossary
  • Articles
    • How Do MarketFree™ Annuities Work?
    • Are Annuities Safe?
    • Living Benefits
    • FIA Performance
    • Beware of FIAs?
    • Annuities & Retirement
    • Annuities & Estate Tax
    • Rollovers & Annuities
    • Annuities & Tax
    • Charity & Annuities
    • The Lost Decade
    • Best Annuity Videos
    • Social Security Benefits
  • Calculators
    • Retirement Planning Calculator — Basic
    • Retirement Shortfall Calculator — Basic
    • Immediate Annuity Calculator & Quotes
    • Fixed Index Annuity Calculator & Fixed Annuity Calculator
    • Variable Annuity Calculator & Hybrid Annuity Calculator
  • Blog
    • Annuity Guys® Weekly Annuity Video Blogs
  • Get Annuity Guys Help
    • Request Annuity Guys’ Planning Help Today
You are here: Home / Archives for Income Benefit

Are Hybrid Annuity Income Riders Stacked in Your Favor?

September 6, 2014 By Annuity Guys®

We must own up to our play on words this week. One of the more recent popular income riders strategies is referred to as the “stacking” strategy. Of course we found our title quite witty while most of you are probably thinking – these guys really need to get out more.

However, most of us given the choice of having the odds of success stacked in our favor will undoubtedly at least consider benefiting from those odds. Does that mean this stacker strategy is superior to the traditional roll-up strategies that have been standard on most hybrid style annuities for the last six or seven years? Well, yes and no. What you have available with a stacking income rider is typically better income potential but you give up some of your contractual **guarantees in the trade-off. The income rider with a stacker works by providing a smaller roll-up growth **guarantee – typically three to four percent (instead of six to eight percent) and then stacking on the index growth for that period. Based upon historical illustrations the growth potential typically exceeds that of the traditional **guaranteed riders. However, they are based on probability and potential instead of absolute **guarantees. [continued below video…]

Video: Annuity Guys, Dick & Eric, explain some newer income rider strategies.

Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. During this segment, Dick and Eric are referring to Fixed Annuities unless otherwise specified. 

The ongoing low rate environment has squeezed insurance companies and limited their ability to provide greater income benefits without incurring crippling long-term liabilities in today’s depressed rate environment. To combat this, they created a stacker strategy which partially relieves the insurance company of the need to reserve as much money for an income rider liability by creating an opportunity to give that benefit only when the client has growth from the index – so they can pay as they go, sharing the profits with you.

Should everyone start to elect the stacker strategy on their annuity income riders? Not necessarily! The strength of annuities are their contractual **guarantees and if you like the idea of being able to own a “set-it and forget-it” style of annuity – knowing that it will roll-up to increase your future income on a **guaranteed level each year, then you will probably want to stick with a more traditional style income rider.

Are these just the two primary income rider strategies to choose from? No, again.

Another option is what we have termed “enhanced” income riders which offer minimal or no growth income **guarantees. However, you may be surprised to learn that these enhanced income riders have the potential to provide even greater income than the stacked income rider. While again not the ideal option for those requiring absolute **guarantees, they provide excellent potential for higher income based upon historical performance and some even offer an opportunity for increasing income for an inflation hedge.

As you evaluate your retirement, don’t feel as if you can only choose one of these strategies – often times the best results come from balancing multiple income strategies.

 

Five Retirement & Annuity Calculators

Best Advanced Retirement Income Calculator - Free
  • Advanced Retirement Annuity Income Calculator
  • Advanced Financial Planning
    Retirement Income Calculator
    Save Reports & Planning Docs!
  • This powerful calculator doesn't guarantee accuracy or any future results. You should use a licensed financial planner to confirm all of your calculations.
    Instant Access - Confidential - Easy Opt-Out
  • This field is for validation purposes and should be left unchanged.


 

Filed Under: Annuity Commentary, Annuity Guys Blog, Annuity Guys Video, Annuity Income, Annuity Scams, Annuity Strategies, Hybrid Annuities, Income Riders, Retirement Tagged With: annuities, Annuity, Annuity Guys, Annuity Income, Hybrid Annuity, Income Benefit, Income Potential, Income Rider, retirement

 

Empowering Annuity Reference Book

 
DOWN-LOAD NOW - FREE!
  • Annuity Guys Reference Book - 250 pages of Annuity Facts

  • "The New Retirement"
    Annuity Reference Book 
    Free Instant Download
  • Confidential - Easy Opt Out
  • This field is for validation purposes and should be left unchanged.

 

  • Optimizing Annuity Income for Retirement

    Optimizing Annuity Income for Retirement

    If we only had a nickel for every phone call that came into the office which started out like this…“Hello, This is …Read More »
  • Are You Too Young or Old to Purchase an Annuity?

    Are You Too Young or Old to Purchase an Annuity?

    What is the best age to purchase an annuity?There have been a plethora of articles and reports about unscrupulous agents …Read More »
  • Are Annuities Best in a Difficult Economy?

    Are Annuities Best in a Difficult Economy?

    Dick and Eric reflect on a email they received this week highlighting a Tony Robbins video (see below) on the …Read More »

Revealing Fun Video: Fiduciary Advisors Vs. Annuity Salesmen
MUST KNOW FACTS 90% of
ANNUITY ADVISORS AVOID TELLING!
  • *FIDUCIARY RETIREMENT REVIEWS
    Second Opinions Improve Retirements
     
    "For Your Retirement's Success"
     Choose a *Fiduciary Advisor who gives you Full Disclosure of Cost & Selection.
     
    Material Fact 1:
      About 90% of advisors ARE NOT REQUIRED by law to do what is best for their clients!
     
    Material Fact 2:
     Fiduciary Advisors ARE REQUIRED by law to do what's best for their clients! 
     
      Hence, clients of a fiduciary can know that their advisor chose the highest legal standard required by law to work strictly for their highest good.
     
     We estimate Fiduciaries are less than 10% of total U.S. financial service providers. Fiduciaries are held to the highest client legal standard of financial planning and investment advice.
     
     The other 90% are sales oriented advisors, brokers, bank reps, registered reps. & insurance agents, selling products on a much lower suitability legal standard, not necessarily what's best for their client!
     
       Fiduciaries also must disclose conflicts of interest that could potentially bias their advice, such as; selling products that pay them higher commissions having higher fees or costs, and their lack of investment product access limiting their client's opportunities, to name a few.
     
    Choosing your advisor can have
    "The Largest Single Impact on
    Your Retirement's Success or Failure"


  • Hybrid Annuities as an Inflation Hedge

    Hybrid Annuities as an Inflation Hedge

    Inflation – this one word strikes terror in the hearts of many retirees on a fixed income.Never to fear, we have a cost of …Read More »
  • Are Annuities Safe for Your Retirement?

    Are Annuities Safe for Your Retirement?

    Safety of money is generally relative to comparing levels of risk between government-backed financial instruments, insurance-backed financial instruments, or securities …Read More »
  • 100% Money Back Annuity **Guarantees!

    100% Money Back Annuity **Guarantees!

    Most big ticket purchase come with a warranty or a **guarantee – including annuities. Did you know that all annuities …Read More »
  • Choosing Annuity Potential or Income **Guarantees

    Choosing Annuity Potential or Income **Guarantees

    Have you ever heard the quip “It can be hard to remember that the objective was to drain the swamp …Read More »
  • 1035 Exchange – Replacing an Annuity

    1035 Exchange – Replacing an Annuity

    Keeping the taxman at bay may seem next to impossible these days, however with annuities the IRS/Congress blessed us with …Read More »
  • The Love Hate Annuity Relationship

    The Love Hate Annuity Relationship

    Every financial product has negatives and positives, how these products are presented or utilized by companies and advisors can lead …Read More »
  • Exposing Why Some Advisors Love or Hate Annuities

    Exposing Why Some Advisors Love or Hate Annuities

    “Why can’t we all just get along?” It seems that the spirit of divisive partisan politics has invaded the investment …Read More »
  • Can Annuities Solve the Retirement Challenge?

    Can Annuities Solve the Retirement Challenge?

    Why does it feel like everyone is talking about annuities these days? Could it be due to the approximately 10,000 …Read More »

View Our Newest Videos! Subscribe Now
  • Annuity Guys Videos - Annuity Answers
  • New Annuity Guys Videos
    Our Entertaining & Informative
     Saturday Morning Video Blog
  • Timely Retirement & Annuity Issues - Easy Opt Out
  • This field is for validation purposes and should be left unchanged.


  • Avoiding Annuity Gimmicks, Amateurs, & Charlatans!

    Avoiding Annuity Gimmicks, Amateurs, & Charlatans!

    Everyone loves a good practical joke – until the joker happens to be the salesperson who just sold you an annuity …Read More »
  • Can a Hybrid Annuity Uncapped Index Pay Higher Interest?

    Can a Hybrid Annuity Uncapped Index Pay Higher Interest?

    Should annuity buyers be giddy because they can own an annuity with no limiting upside cap and of market loss? Well, maybe, …Read More »
  • Can Annuities Enhance Stock Market Investing?

    Can Annuities Enhance Stock Market Investing?

    The stock market is well known for its roller coaster effect of up and down account values. For many retirees, this can mean more than …Read More »
  • High Annuity Fees & High Annuity Commissions – Hear the Inside Truth

    High Annuity Fees & High Annuity Commissions – Hear the Inside Truth

    We’ll just give it to you straight – some annuities pay high commissions and some of them have high annuity …Read More »
  • Is the Fiscal Cliff a Threat or an Opportunity for Annuities?

    Is the Fiscal Cliff a Threat or an Opportunity for Annuities?

    The “Fiscal Cliff” could have profound implications on the economy. Dick and Eric examine the potential impact on retirees and …Read More »
  • Smooth Market Volatility with Fixed Index Annuities

    Smooth Market Volatility with Fixed Index Annuities

    We all have heard the saying “what goes up, must come down” However, when it comes to your retirement portfolio …Read More »
  • Do Not Waste Time Considering Annuities, If You…

    Do Not Waste Time Considering Annuities, If You…

    Do not waste your time considering annuities if you cannot find one of the following Annuity Profiles that matches your …Read More »
  • Can Index Annuities be a Good Hedge Against Inflation?

    Can Index Annuities be a Good Hedge Against Inflation?

    Are our Golden Years in danger, with the new high inflation issues that may be here to stay? The years …Read More »
Get Newly Released Annuity Guys® Videos on Saturday Mornings
  • Annuity Guys Videos - Annuity Answers
  • New Annuity Guys Videos
    Our Entertaining & Informative
     Saturday Morning Video Blog
  • Timely Retirement & Annuity Issues - Easy Opt Out
  • This field is for validation purposes and should be left unchanged.


  • Annuity Undo Buttons – Using Your Free Look!

    Annuity Undo Buttons – Using Your Free Look!

    Most big ticket purchase come with a warranty or a **guarantee – including annuities. Did you know that all annuities …Read More »
  • Lifetime Annuity Income: Annuitize or Control Your Money with Income Riders

    Lifetime Annuity Income: Annuitize or Control Your Money with Income Riders

    Do you have to annuitize an annuity to get **guaranteed lifetime income? No, not if the annuity has an income rider.If …Read More »
  • Are You Too Young or Old to Purchase an Annuity?

    Are You Too Young or Old to Purchase an Annuity?

    What is the best age to purchase an annuity?There have been a plethora of articles and reports about unscrupulous agents …Read More »
  • Can Annuities Enhance Stock Market Investing?

    Can Annuities Enhance Stock Market Investing?

    The stock market is well known for its roller coaster effect of up and down account values. For many retirees, this can mean more than …Read More »
  • Avoid Tax Moving IRAs and 401Ks to Annuities

    Avoid Tax Moving IRAs and 401Ks to Annuities

    Death and taxes may be certainties of life… but it doesn’t mean we should not do all we can to …Read More »
  • Annuity Guys® Verified Reviews

    We highly value your reviews. Please help other site visitors learn from your experience. Reviews are verified based on a …Read More »
  • Buy an Annuity Now or Will Rates Rise?

    Buy an Annuity Now or Will Rates Rise?

    All things come to him who waits- provided he knows what he is waiting for… Prior to the Corona-virus it …Read More »
  • Avoiding Annuity Income Rider Abuse!

    Avoiding Annuity Income Rider Abuse!

    If they tell you that your annuity has a "6%" guarantee most annuity purchasers believe that the 6% guarantee is …Read More »
  • New Social Security Cuts are Effective NOW

    New Social Security Cuts are Effective NOW

    Last week, we had no idea that congress and the president would act so quickly on such an important issue!Social Security …Read More »
  • Can Annuities Help You Avoid the 2016 Crash!

    Can Annuities Help You Avoid the 2016 Crash!

    Can Annuities Help You Avoid the 2016 Crash?… Absolutely!If you think like many Americans and some economic experts that a …Read More »

 

Empowering Annuity Reference Book

 
Start Reading Now - Instant Download
  • Annuity Guys Reference Book - 250 pages of Annuity Facts

  • "The New Retirement"
    Annuity Reference Book 
    Free Instant Download
  • Confidential - Easy Opt Out
  • This field is for validation purposes and should be left unchanged.

 
Comprehensive Site Terms and Disclosure | Privacy Policy | Copyright © 2023 Annuity Guys®


  ** Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. Annuities are not FDIC insured and it is possible to lose money.
Annuities are insurance products that require a premium to be paid for purchase.
Annuities do not accept or receive deposits and are not to be confused with bank issued financial instruments.
During all video segments, Dick and Eric are referring to Fixed Annuities unless otherwise specified.


  *Retirement Planning and annuity purchase assistance may be provided by Eric Judy or by referral to a recommended, experienced, Fiduciary Investment Advisor in helping Annuity Guys website visitors. Dick Van Dyke semi-retired from his Investment Advisory Practice in 2012 and now focuses on this educational Annuity Guys Website. He still maintains his insurance license in good standing and assists his current clients.
Annuity Guys' vetted and recommended Fiduciary Financial Planners are required to be properly licensed in assisting clients with their annuity and retirement planning needs. (Due diligence as a client is still always necessary when working with any advisor to check their current standing.)



  # Investors should consider the investment objectives, risks, charges and expenses of a variable annuity and its underlying investment options. The current prospectus and underlying prospectuses, which are contained in the same document, provide this and other important information. Please contact an Investment Professional or the issuing Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.


  ^ Investors should consider investment objectives, risk, charges, and expenses carefully before investing. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.


  ^ Eric Judy offers advisory services through Client One Securities, LLC an Investment Advisor. Annuity Guys Ltd. and Client One Securities, LLC are not affiliated.