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Subject:  Re: Hybrid/Other Annuities Date:  4/18/2014  10:50 AM
Author:  MarkR Number:  35265 of 36733

Very unlikely it would have such built into the rider; but then neither does a CD or a preferred stock.

Arguably, the CD *does* have some level of inflation protection because after inflation occurs, when you renew it, it will be at a higher rate.

The preferred stock will generally have a fixed dividend, except when it is omitted, so it isn't adjusted in any way for inflation.

Some immediate annuities will have an inflation rider but of course you pay for that benefit by accepting a lower starting income.

Yes, that is generally the tradeoff, either a lower starting income or a lower ending income (in real terms).
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