Many people are familiar with the concept of riders and how a rider pertains to homeowner’s insurance. For example, if a homeowner possesses valuable art investments, the homeowner may elect to purchase an insurance rider in order to gain extra coverage beyond a standard policy, just to protect their art investment. An annuity rider is similar, in that it can be purchased by the annuity holder and then be attached to an annuity.

Inflation is the rise over time in the price of goods and services. Is a loaf of bread higher than it as the year you were born? Inflation is measured as a annual percentage, the same way interest rates are measured as a annual percentage. Is inflation a bad thing? Not necessarily. It means prices are rising because demand is rising, so it is the result of a growing economy. In a healthy economy, wages rise at the same rate as prices. So in a healthy economy, inflation always rises, meaning the same dollar amount is worth less five years from now. Sounds pretty healthy, doesn’t it? Inflation hurts interest rates because lenders know the longer it takes you to