Annuity Calculator Secrets and Tips
Hi there. Stan The Annuity Man, America's annuity agent, licensed in all 50 states and the top independent agent in the country. I'm proud of that because we are helping people. We are helping people make good, informed, factual decisions on all annuity types. Today's topic is a very good one. It's about annuity calculators and secrets and tips. Secrets and tips from Stan The Annuity Man of all people. We're going to go over all the calculators, all the ones that we offer on our site, and I'm going to give you my secrets and my tips.
The Two Questions
If you go to The Annuity Man, the best annuity site on the planet, and we're always trying to improve it. We have the IT people and the marketing people, and the intelligent people that surround Stan The Annuity Man and make me look good. They're always listening to you and listening to the consumer and trying to make it so pro-consumer and so easy for you. Before you start with the annuity calculators, your question is, which one do I use? Good question. Glad you asked. There are two questions that you need to answer to get you there. The two questions are: what do you want the money to contractually do, and when do you want those contractual guarantees to start?
If the answer to the first question, what do you want the money to contractually do, is income and when do you want it to start, immediately, you're going to go to the Single Premium Immediate Annuity, SPIA calculator.
Now, when you go there, you're going to put in confidential, non-shared information. All of this, all of the stuff we have on our site, we do not share it, we do not use it, we don't. We respect your privacy, but we want you to be able to run quotes 24/7 365. With Single Premium Immediate Annuity quotes, you're going to put in; if it's just you, you're going to put in your name, date of birth, and state of residence. Then, you're also going to put in the amount of money you want to solve for, or if you want to reverse engineer a quote, you can do that as well. You can put in a spouse for joint lifetime income.
By the way, you can use Immediate Annuities in an IRA account. You can use it in a non-IRA account. You can use it in a Roth IRA account. When advisors or experts say, "Never use an annuity instead of an IRA." Garbage, okay. Complete and total garbage. You can use annuities inside of an IRA for the contractual guarantees. You can do that with a Single Premium Immediate Annuity, lifetime income.
Now, there are many ways to run and structure a Single Premium Immediate Annuity. The quotes we provide on the site are life only and life with cash refund, but there are many ways to run it. I encourage you to run the quotes, and if you want to see a lot more machinations of that, or if you're going to customize a quote and speak with me, then schedule a call, and then we'll dig in deep from there. That's the first one, Single Premium Immediate Annuity.
Let's do the two questions again. What do you want the money to contractually do? Income. When do you want those contractual guarantees to start? I need it to create a ladder of 4, 5, 6, 7, 8, 9, 10 years down the road. Okay. That's an income later quote involving two primary types: Income Riders attached to Indexed Annuities. By the way, Income Riders can be attached to Variable Annuities, but disclaimer: we don't sell Variable Annuities. We don't sell anything that has the potential to go down, and we found that the Income Riders attached to Fixed-Indexed Annuities are more competitive.
Let's talk about Income Riders. Income Riders are attached to the policy at the time of application, and if you draw a line down the middle of a page visually, here's the index accumulation value side, designed to create CD or MYGA type returns, Fixed-Rate returns. It's not a market product; it's not a security. Then, the Income Rider is a separate calculation that can determine what the income amount will be to the penny at a future date that you choose. It's an attachment. It rides on the policy; it's called an Income Rider but with two separate calculations. When you get your statement, you'll see accumulation value, and then you'll see income value - that's income rider.
Now, a Deferred Income Annuity, going back to the question, I need income, and I need income to start later; a Deferred Income Annuity can do that. It's the sister product of the Single Premium Immediate Annuity. There are no market attachments, no moving parts, and no annual fees. It's a straight transfer of risk in which you can set up a single life, joint life, whatever. You can choose the income start date, which is fantastic, and know to the penny what that income stream will be. Again, you can run a single life or joint life, and you can run a qualified or non-qualified Roth IRA, etc.
Speaking about qualified for a second. With Deferred Income Annuities, you can have income start at the time of this blog. Look at the date. Right now, at the time of this blog, RMDs start at 73. If you're using IRA assets, there's another type of Deferred Income Annuity called a Qualified Longevity Annuity Contract, QLAC, designed in 2014 for use inside a traditional IRA and some qualified plans for future income.
If you want income to start using your IRA after age 73, the time of this blog, and can go out as far as age 85, then you can use a QLAC. We're talking about income later. Stan, I need income and I need it to start later. It's Income Riders, Deferred Income Annuities up to right at 73, and then any income past 73 up to 85 would be QLACs. I know that's a little confusing, but that's why you need Stan The Annuity Man, America's annuity agent. By the way, I've written owner's manuals on all those products. You can download them for free under no obligation if you go to this link.
FIAs and MYGAs
It's also a reason we need to talk because of those two questions: what do you want the money to contractually do, and when do you want those contractual guarantees to start? That's how I filter the product types. The income later, again, is Deferred Income Annuities, Income Riders, and Qualified Longevity Annuity Contracts. Let's do the two questions again. What do you want the money to contractually do? I want principal protection. That's your answer. When do I want those contractual guarantees to start? I want my principal protection to start now, Stan The Annuity Man. That's what I want. Now we're down to two products. The first is Fixed-Indexed Annuities, and the other is Multi-Year Guarantee Annuities.
Now, on our calculators, you can punch in the Fixed Index Annuity stuff, and that's the only one at this point in time that you're not going to get a live result. I'm looking at Indexed Annuities primarily, and this is getting in the weeds a little bit, the renewal rate, the carrier's history, et cetera, but it's a principal protection product, and we can get you those quotes. Suppose you're looking at it for accumulation, which we don't do often. In that case, we primarily use Index Annuities as an efficient and cost-effective delivery system for the Income Rider guarantee. If you want to see the Index Annuity stuff, we'll send it to you.
The one that you really need to know about is the Multi-Year Guarantee Annuity live feed. Live rates are how we show it on our site. If you go to our MYGA Live Rates, what it will bring up is you can put in your state, and then you can put in the duration, and then up will pop up the top yield to maturities for your specific state.
Now, let's talk about Multi-Year Guarantee Annuities and Fixed Annuities as a whole. Fixed Annuities are regulated and issued at the state level, so each state will differ. With Multi-Year Guarantee Annuities, you punch in five-year durations, Mississippi, or seven-year duration, Oregon, whatever. We represent almost every carrier out there, and you'll see the top rates. In that live MYGA feed, you'll also know whether you can peel off the interest or take out 10% penalty-free and all of the stuff with Multi-Year Guarantee Annuities and Fixed Rate Annuities.
With all of our calculators, once again, we don't share any information. All of this is confidential, allowing you to run these quotes 24/7, 365 at your leisure. Then, if you want to engage and schedule a call with me, you can certainly do that. By the way, I appreciate you joining me on this Stan The Annuity Man blog. I'll 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.