How a Deferred Income Annuity Can Hedge Inflation with a COLA Rider

Episode 41 of Annuities with Fexingo explores how a deferred income annuity with a cost-of-living adjustment (COLA) rider can protect retirees from inflation. Lucas and Luna walk through a concrete example: a 55-year-old investing $100,000 in a DIA that starts paying at age 70. Without a COLA rider, the monthly payment is fixed at $1,200. With a 3% compound COLA rider, the initial payment drops to $870, but by age 85 the monthly check has grown to over $1,500 — and the cumulative income surpasses the fixed annuity by over $70,000 by age 90. They discuss when the trade-off makes sense, how to model breakeven inflation rates, and why most advisors underutilize this feature. Suitable for finance and business listeners interested in retirement income planning. #DeferredIncomeAnnuity #COLA #InflationHedge #RetirementIncome #Annuities #FixedAnnuity #COLAEider #RetirementPlanning #LongevityRisk #PurchasingPower #Finance #Business #PersonalFinance #InvestmentStrategy #AdvisorTips #FexingoBusiness #BusinessPodcast #AnnuitiesWithFexingo Keep every episode free: buymeacoffee.com/fexingo