Guaranteed Income in Retirement: The Power of Income Riders

Hi there, Stan The Annuity Man, America's annuity agent, licensed in all 50 states. I'm glad you joined me today for this blog. We're talking about retirement withdrawal strategies using Income Riders. So, we're going to talk about how Income Riders work, where they're attached, what products use Income Riders, what you should know — the good and bad about Income Riders, the limitations, the benefits, what I call the asterisks — the things that not everybody knows, but Stan The Annuity Man does. Maybe a handful of others, too — probably people I could count on this big hand that can palm a basketball. Hello? That's what I'm talking about. Six foot six.

A Quick Personal Story

I told someone the other day that I have a lot of free-throw shooting records and other basketball records. People say, "That's fantastic!" Not really. It’s not a good resume builder. That, and a dollar, will buy you a really bad cup of coffee. So, for all the kids out there saying, "I'm going to play in the pros" — no, you're not. Get your degree. Why am I saying this? I’m sure you're already telling your kids and grandkids that, right?

What Is an Income Rider?

What is an Income Rider? Well, the first thing you need to do — so write this down, get your pencil out — is go to The Annuity Man. Guess who’s written a book on Income Riders that you can download for free and under no obligation? No one’s going to call you or show up at your doorstep. Me. Who in the world would sit down and write a book on Income Riders? Let me think. Me. Because I don’t have a life. My life is annuities. I’m Stan The Annuity Man. I don’t even have a last name. It’s just Stan The Annuity Man.

Income Riders Solve for “Income Later”

I guess on my headstone, when I die — when my Learjet hits the mountain (I don’t have a Learjet, but I could rent one, I guess) — it’s going to say "Stan The Annuity Man," no last name. My wife won’t care. She’ll be driving off in the Lamborghini with the boyfriend, right? And my two daughters will helicopter in, and they’ll drive off in the Bentley. It won’t matter. But Income Riders do matter. Why? Because they solve what I call "income later."

What Is Income Later?

What is income later? I got a call the other day — I believe his name was Fred or something. Okay, we’re going to call him Fred. I like Fred. He said, “Hey Stan, I don’t really need income now because I’m going to retire in about five years.” He goes, “I’m retiring in about five or seven years. Not sure. What should I do? Me and the wife want to plan. We want to know what we’re going to get in the future. How do we do that?” That’s called income later.

Products That Solve for Income Later

Now, there are two products that solve for income later. One is a Deferred Income Annuity, and the other is an Income Rider. We’ll talk about Deferred Income Annuities later. Today, we’re talking about Income Riders.

Income Riders Are Not Standalone Products

Income Riders are not a standalone annuity. You can’t call me up — like Chester did the other day — and say, “Hey Stan, I’ve read all the books. I just want to buy the Income Rider. That’s all I want to buy. Martha and I have made the decision.” Hey, Chester, you can’t do that. You have to attach it to a policy. It’s typically attached to a Variable Annuity, which I don’t sell. I have nothing against Variable Annuity people; I love you, people, but I don’t sell anything that has the potential to go down in value. So, when we use Income Riders, we attach them to Fixed Index Annuities.

Why Use Fixed Index Annuities for Income Riders?

Now, you’re going to say, “Stan, wait a minute. Aren’t you kind of harsh on Index Annuities?” I’m harsh on the way they’re sold and promoted. But Index Annuities are great products. They’re not too good to be true, but they’re pretty darn good because they’re CD-type, MYGA-type products. They give a two to four percent return. You don’t lose any money. However, we primarily use Index Annuities for an efficient and cost-effective delivery system for the Income Rider.

How Does It Work?

So, you attach the Income Rider to the policy at the time of application. Let’s say, “Hey Stan, we want to protect the principal. We want to make sure we’re not going to lose any money, but we want to guarantee an income stream nine years down the road.” You attach an Income Rider to an Index Annuity that will guarantee a lifetime income stream nine years down the road.

Shopping for the Best Income Rider

But it gets a little more complicated because annuities — as you all know, and if you don’t, you’re about to find out — are commodity products. That means you have to shop them all. You shop for the highest contractual guarantee for your specific situation.

Don’t Rely on Just One Quote

You should use Stan The Annuity Man, but if your brother-in-law sells Income Riders and you have to buy from him, don’t allow him to show you just one. “This is the best Income Rider I could find.” Wrong. You buy all annuity types, including Income Riders, like you buy a plane ticket. You shop. You shop. You shop. You shop.

Run Your Own Income Rider Quotes

Now, at The Annuity Man, you can run your own Income Rider quotes. Hello — how about that? Or my staff will send them to you once you punch in your information. That’s the great thing about The Annuity Man: you can run your own quotes.

But remember, annuity quotes are like a gallon of milk — they change every seven to ten days. So, if you say, “Well, I like this one. Give us a couple of months, Stan The Annuity Man, and we’ll make a decision” — wrong. That’s not a sales pitch or high-pressure nonsense. It’s just reality.

Never forget to live in reality, not the dream, with annuities and contractual guarantees! You can use our calculators, get all six of my books for free, and most importantly book a call with me so we can discuss what works best for your specific situation.