Primer: Annuities With GMIB Riders
The popularity of annuities featuring guaranteed minimum income benefit riders, or GMIBs, tends to surge following market downturns like in 2000 and 2008. Conversely, during market advances like we’re seeing today, buyer’s remorse can set in as annuitants eyeball alternative investments with much lower fees.
In a recent ThinkAdvisor post
, Integrity Wealth Management’s Mike Patton looks at how annuities with GMIBs work and crunches the numbers on a few lesser known but very important details surrounding these annuity riders, especially for annuitants who are mulling whether to annuitize their contract and select a payout option, or even cash out.