If circumstances change

It also provides no liquidity, and cannot be changed or altered after it is issued and in force.Both SPIAs and DIAs allow you the option of attaching an annual increase to the lifetime income stream. These contractual step-ups are called COLAs, or cost-of-living adjustment riders, and you can choose the annual percentage increase at the time of application. These COLAs can be great additions to these rigid contracts, but your initial payment is lower if this rider is attached to your policy. I typically show my clients an income quote with and without a COLA just so they can see the payment difference, Soapstone Whisky Stonesand how it mathematically works. There really isn't a good choice for immediate income from a flexible standpoint. Flexible annuity strategies primarily involve an attached benefit to a policy called an "income rider," which is typically used with variable and indexed annuities. Income riders are contractually guaranteed separate calculations that can only be used for income, and usually the payments are turned on at a later date. You can turn on an income stream immediately with an income rider, but in most cases, its usually benefits only the agent. An immediate payout on an income rider attached to a deferred annuity will always be much lower than an immediate annuity (SPIA) payout, so don't be convinced otherwise. Income riders have only been around for a little more than a decade,cheap Stainless Steel Whisky Stones and were developed for reliable and predictable future income planning with full flexibility. These riders have a guaranteed annual percentage growth during the deferral years, so you can plan your future income payments to the contractual penny. Income riders allow you to change your plan after the contract is issued, as well as start and stop the income at your discretion.For example, if your initial plan was to defer for seven years, with an income rider you don't have to start the payments at that time. If circumstances change, you could start the income stream earlier or keep deferring past the seven-year target if the income rider provisions allow that. Most do, and some will allow you to defer for up to 20 years. However, it is important to point out that once you turn on the income stream, then the income-rider growth percentage stops. If you are really not sure when you will need income in the future, then an income rider can provide the needed flexibility you may be looking for.