How to Reverse Engineer Annuities to Fight Inflation

If you’ve been pitched an “annuity built for inflation,” I’ve got news for you: it doesn’t exist. There isn’t a product on the planet that adjusts magically for inflation without trade-offs—and if someone’s telling you otherwise, they’re selling smoke. What these companies actually do is drastically reduce the starting payment in exchange for the hope of an increase later. Sounds great on a sales pitch. Doesn’t work in reality.

The Right Way to Handle Inflation with Annuities

Here’s how to do it the right way: Buy the highest contractual guarantee available—that’s it. You tell us what income amount you need and when you need it, and we reverse-engineer a quote to hit that target. That’s how you combat inflation the smart way: not by guessing, but by solving for the income you’ll actually need.

Want income in six years? Great. We solve for that future amount. Don’t overthink it. Don’t get sold on unicorn products with dreams of upside. And definitely don’t throw darts at a dartboard hoping to hit the “inflation-adjusted” bullseye.

You Already Own the Best Inflation Annuity

Social Security. That’s right—Social Security is the best inflation annuity on the planet. Why? Because the government just raises the payout. There’s no actuarial magic. They do it because people vote. You can’t say you hate all annuities if you love your Social Security check. Sorry.

Inflation Is Personal

Don’t let the media scare you. Inflation doesn’t hit everyone equally. It’s personal. My daughters are out of the house, so we’re not burning through milk, gas, or dance recitals. Inflation hits our household differently than yours. Think about how it’s hitting you.

Can you afford eggs? Gas? Groceries? If so, stop acting like the world is ending. Inflation might be annoying, but it’s not apocalyptic. Especially if you’ve saved and planned well.

How to Actually Use Annuities for Inflation

Let’s say your current monthly income from Social Security, dividends, and rental properties is $7,000. Two years from now, inflation creeps in, and you need $7,500. That’s when you solve for the gap—$500.

You’d go to our site, plug in that monthly target, and we’d quote all carriers to find which company offers you that $500 with the lowest premium. That’s how you win. Use as little money as possible to contractually guarantee the income you need, when you need it.

Want to Be Proactive?

You can be. Let’s say you’ve got $200,000 in a Qualified Longevity Annuity Contract (QLAC). You could split it:

• $50,000 for income starting at 75
• $50,000 at 80
• $50,000 at 82
• $50,000 at 85

Still throwing darts, but it’s structured. That’s fine for all you spreadsheet lovers. But in my opinion? Hold until you need it. Like Mel Gibson said in Braveheart… “HOLD!”

Don’t Buy the Hype

If you’re pitched Cost of Living Adjustment (COLA) riders or Index Annuities that promise upside based on theoretical, back-tested numbers—walk away. These aren’t solutions. They’re marketing gimmicks. Don’t buy dream projections or “if you had owned it 10 years ago” stories.

Here’s a tip: if it sounds too good to be true, it is. Every single time.

The 4% Rule Is Dead

Money managers love saying, “We’ll just peel off 4% every year from your portfolio.” Great… until the market tanks and the plan evaporates. There’s a better way: solve for the income floor you need and plug the gap with annuities. No risk. No guessing. Just guarantees.

Final Thoughts: Solve for the Gap, Then Move

Inflation doesn’t require panic—it requires planning. Reverse engineering means solving for the number when the time comes, not before. Use Immediate Annuities. Use QLACs. But always—always—base your decisions on contractual guarantees, not hope.

And if you’re a multimillionaire still losing sleep over inflation? Take a breath. Inflation’s not your problem. It’s a minor annoyance for people with assets. Live your life. And when it’s time to fill a gap, we’re here to help.