Always Reverse Engineer Annuity Income Quotes: Shootin' It Straight With Stan

Welcome to Shootin' It Straight With Stan. I am your host, Stan The Annuity Man, America's Annuity Agent, licensed in all 50 states. Today's topic is always reverse engineer annuity income quotes. "What do you mean by reverse engineer, Stan? You do not look like an engineering student or someone who could major in engineering." That is absolutely correct. I knew those people and high-fived them as they walked into the math part of the college that I never went into. I'm kidding. There are many types of annuities, so you just can't hate all annuities, as I always say. There are four primary types of annuities that solve for what's called lifetime income. Longevity risk, the fear of outliving your money. Pension-type income.

Remember, annuities were put on the planet back in Roman times for the dutiful Roman soldiers and their families as a pension payment for their service to the Empire. A-N-N-U-A means payment in Latin. That's what I've been told. That's where the whole annuity thing started. What I always say to my clients and what I want to tell you is if it makes sense, contractually, is to use as little amount of money as possible to solve for the goal. I know what you're saying. "Stan, Wait. What? You mean, Stan, if I gave you a bunch of money, you might say, don't use all that money that I want to give you?" Yes. I would say that.

A couple of reasons why. Number one, the annuity industry frowns upon you using more than 50% of your investable assets. Investable assets do not include real estate, houses, cars, guitars, etc. It's IRAs, 401(k)s, 403(b)s, checking accounts, saving accounts, brokerage accounts, those types. So, 50%. Can we push it a little more if you give us a reason? Yeah, maybe 55%, but you should not use too much money in annuities. Anyone telling you that you can use more than that is pushing the limit and putting their license on the line, which leads us back to reverse engineering the quote.

Annuities Are Commodity Products

Now, if you visit The Annuity Man, you can run quotes two different ways. We have the best calculators on the planet, quoting almost every carrier. Annuities are commodity products, and you buy them for the highest contractual guarantee for your specific situation. Using our calculators, you can either say, "Okay. I have $100,000 or $200,000 or $350,000." What would the lifetime income stream be, depending on how you structure it? Single life, joint life, whatever. There's a myriad of ways to structure it.

Or you can say, on a reverse engineering strategy, I need $1,500 a month; how much would that cost? We're going to shop all carriers to find the best carrier. Obviously, the best Claim Paying Ability. That will require the least amount of money to contractually solve for that goal. You might say, I need $1,000 a month, $1,500 a month, or 1250 a month, whatever it is. Then, you put in the parameters that you want. Life, joint life, life with cash refund, life with installment refund, life with period certain, whatever that is, and we will quote all that and show it to you. Then you're going to see how much money it will take and in other words, using the least amount of money.

Inflation

A lot of you out there are going, "Wait, whoa, whoa, whoa, whoa, Stanley. What about inflation, son? What about inflation?" Well, that's the great part about the reverse engineering of the lifetime income quote: when inflation hits your specific situation, not when the cable news person tells you it's hitting. When it hits your specific situation. I'll give you an example. Suppose you solved two years ago for $2,000 a month, and two years later, you need an additional $250 a month because of inflation. Then you go back to The Annuity Man, pull up the Single Premium Immediate Annuity calculator, put in $250 a month, solve for that gap for inflation, and see what carrier. Obviously, A plus or better when you're doing lifetime income. That will require the least amount of money to contractually solve for your specific income situation, and that's how you do it.

Two Questions

Remember, there are only two questions to ask when looking for annuities. What do you want the money to contractually do, and when do you want those contractual guarantees to start? Reverse engineering quotes using my calculators for Single Premium Immediate Annuities, Deferred Income Annuities, Qualified Longevity Annuity Contracts, and Income Riders. We let you do a reverse engineer quote if you want. You can choose. You can do lump-sum or reverse engineer, but the bottom line is, and what I want to stick in the back of your head, go into the annuity purchase with the goal of using the least amount of money possible to contractually solve for your specific income goal. You can also do the same thing. If you go to my MYGA live feed. That's the annuity industry's version of a CD. It's guaranteed principal protection. There are no annual fees with an annual guaranteed interest rate. It sounds like a CD because it is.

MYGAs

You can do the same thing. We don't have that calculator on the MYGA site, where you can reverse engineer that interest rate quote, but that's just basic math. If you can't do that, then we need to go back to the school you went to and ask them why they didn't teach you that. You could do the same thing if you said, "Hey. This MYGAs get X percentage, and I need to peel off the interest from it and not touch the principal." That's easy math, so you can do reverse engineer quotes with that. The reverse engineering strategy primarily revolves around Single Premium Immediate Annuities, Deferred Income Annuities, Qualified Longevity Annuity Contracts, and Income Riders, and all four of those lifetime income strategies at the The Annuity Man. You can run those quotes 24/7, 365. What we do is, when you run the quote, we give you a full snapshot of all the quotes. Life only, life with 20, etc. Life with cash refund, so you can see how the annuity company is pricing that lifetime income guarantee.

Just remember this as well. When you do a reverse engineer quote, it's a lifetime income payment as long as you're breathing. If you're on a ventilator, as long as that ventilator is rolling and you're breathing. If it's joint life, we can set it up so that when you pass away, the income continues uninterrupted and unchanged for your surviving spouse, and it will pay as long as they're breathing. Also, if you want an increase with inflation, I would discourage you from that because the annuity company doesn't give that away like Social Security does, which is the best inflation annuity on the planet. I would do what I'm talking about right here: buy the static payment, which is high, and then if you need to fill in an income gap to that income floor, reverse engineer that quote for that income gap.

Again, annuities are commodity products. Annuities are math. You shop all carriers for the highest contractual guarantee for your specific situation, and you never, ever, ever, ever buy a lifetime income product with some type of potential hypothetical, theoretical-type increase. Buy the static payment because it will be the highest, and reverse engineer the quote, period.

I would also encourage you to look at taking the income now. Many of you out there have been scrimping, saving, and working hard, and you've reached the finish line, but you still have in your brain, "Well, I can go a couple more years without." No. Live life for today.

Chapter two is about you, and with annuities for lifetime income, that's that income floor that's combining with Social Security, which is the best inflation annuity on the planet. If you have a pension, that's another annuity. In my world, Required Minimum Distributions from your IRA is an annuity-type payment. It is because you have to take those RMDs. At the time of this blog, the age is 72. It'll probably go up after this if you're reading this down the road, but the point is, you have to take that money out whether you need it or not. Kind of like an annuity payment. That's part of that income floor.

Just remember this. When you're looking for lifetime income, guaranteed lifetime income, whether you need it to start now or in the future, you can go to The Annuity Man and run reverse engineered income quotes to find the best carriers out there that are going to guarantee that lifetime income that you need, using the least amount of money, and you can keep your powder dry and invest the rest. Makes sense to me. It should make sense to you. That's Shootin' It Straight With Stan. My name is Stan The Annuity Man, and yes, I am America's Annuity Agent. See you next time.

Never forget to live in reality, not the dream, with annuities and contractual guarantees! You can use our calculators, get all six of my books for free, and most importantly book a call with me so we can discuss what works best for your specific situation.