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Annuity Examples: Annuity Income Flooring

Stan Haithcock
March 4, 2024
Annuity Examples: Annuity Income Flooring

Hi there, Stan The Annuity Man, America's annuity agent licensed in all 50 states. I'm glad that you joined me today. We're talking about annuity examples and annuity income flooring. If my wife's watching this, she's thinking, "Yeah, I want the hardwood with the teak and the Bolivian wormwood." No, that's not what I'm talking about. Annuity income flooring revolves around the saying that we love here at The Annuity Man: income insurance. Annuities are the only product on the planet that can provide income insurance.

What's income insurance? Good question. It's that lifetime income stream that you can never outlive, and as long as you're breathing, it's coming in. We're going to talk about annuity income flooring under the premise of having income insurance, and we're not going to do that right now.

It Will Hit Your Account

All right, so we're talking about annuity income flooring. I love income flooring because an income floor is that amount of money that will hit your bank account every month, regardless of who's in office, whether it's Democrat, Republican, or Libertarian. It doesn't matter. Regardless of what's happening in the world, that money will hit your account every month. That's your income floor. It's very, very important with over 10,000 baby boomers reaching retirement age, which I guess is retirement age 65; that's what everyone says, reaching age 65 every single day, hello. Let's call it a demographic tidal wave. People need the income floor. People will need to know that the bills are going to be paid. People need to know that they will be able to live the lifestyle they have worked hard and saved and scrimped and done without to get to this time of their life to put together the income floor.

Social Security

Now, you can't be saying, "Well, I'd love to do that. Stan The Annuity Man, but I hate all annuities because I'm a principled man, and I can never buy an annuity under the principle that I hate all annuities because I've been told to hate all annuities." That is stupid. Why? Because you've just become a hypocrite. You already own the best inflation annuity on the planet, and it's called Social Security. The reason it's called the best inflation annuity on the planet is because our friends, our elected friends in DC, raise the income amount at their discretion when they need votes and then print the money. Print the money, print the money, print the money, print the money, print the money, print the money, print the money, print the money, give the money. Whew. Again, you already own a lifetime income stream annuity, Social Security.

"That is not an annuity, Stan. That is not. Social security is social security is not an annuity." Wait a minute, it sounds like a duck, walks like a duck, it's a duck. Social Security. It's a lifetime income stream that the older you are, the higher the payment, and as long as you're breathing, you will get paid. That's an annuity. Hello. How about that?


Now, income flooring is important because annuities as a category for lifetime income, it's the only product on the planet that can provide lifetime income stream that you can never outlive as long as you're breathing. We can structure it so that that income insurance that you're buying, 100% of the money you put in, is going to go to you, your spouse, or your beneficiaries. The evil annuity company's not going to keep a penny. But you have to look at it as income insurance.

How Much Income Do I Need?

How much income insurance do I need? How much income insurance do I need to solidify the income floor? By the way, spoiler alert on the income floor: you will be a better investor with the non-annuity products when you have the income floor in place. Because a lot of advisors will say, "Well, you just pull off 4% of the gains and then just don't disrupt the portfolio." Bullcrap. In a volatile market, that dog don't hunt anymore as they say in the South. The 4% rule dog don't hunt. You need not disrupt your non-annuity investments, and you need to have the income floor in place.


Some examples of putting the income floor in place, you could say, "Okay, me and the spouse, me and the partner have X amount, lump sum, couple hundred thousand here, blah, blah, blah, and we want to know how much income that's going to create." But what I'd rather you do when you work with The Annuity Man, Stan The Annuity Man, America's annuity agent, and you should, because I'm 30 years in the business. I've been there, done that, and forgotten more than most agents will ever know.

When you work with me, I'd rather you come back to me and say, "Okay, Stan The Annuity Man. Here's the income floor. We have X in Social Security. We have X in a pension," If you're so fortunate, most people, 90% of us don't have pensions. That's where annuities come in. "And I got this, some dividends, rental income, and this side hustle. I sell popcorn at the fair. All this stuff is coming in." Better be that caramel popcorn. I love that stuff. I don't like just regular.

But anyway, all this stuff's coming in, "But we need an additional $1,750 a month. That's what we need." Great. Here's what I do. I do a reverse-engineered quote solving for that $1,750 a month for the rest of your life or the rest of you and your spouse's life. I'll make sure if you want the unused money goes to the beneficiaries, and we use as little money as humanly possible to solve for the contractual goal.

I know the annuity gods are saying, "Shut up, Stan. Shut up, Stan." That's how they talk. "Shut up, Stan." Because they want me to use all the money. I'm saying let's use this little money as humanly possible to solve for the goal for that income floor.


The next question that's in your mind, and you're leaning in, and you just took a sip, and you're like, "Wait a minute, what about inflation, Stan the Annuity Man. What about it? Come on, man, you're missing it." No, I'm not. I was getting ready to talk about that. Inflation: no annuity properly addresses inflation. Are there annuity lifetime income streams that can increase contractually if you desire that and put that in the application? "Hey, Stan, I want a COLA on it." COLA doesn't mean Coca-Cola; it means the Cost-of-Living Adjustment. You can choose the percentage it will increase by at the time of application.

You can say, "Hey, I want the income to increase by 3% for the rest of my life as long as I'm breathing; every year, it increases by that." Sounds excellent; slow down. Annuity companies don't give that away. They ratchet down the payment.

I'm going to do a visual for you. I love visuals. I always say that people selling annuities or talking about annuities is like showing paintings to blind people. No offense to blind people, but you know what I'm saying. Here's the visual. Lifetime income annuity without a COLA, this is where it starts. Lifetime income annuity with a COLA. This is income without a COLA. This is income with a COLA. That doesn't mean you don't buy the income insurance with a COLA; you can do that, but we might do it in combination with multiple annuities that we're buying. You might buy two Immediate Annuities without a COLA and one with a COLA. That's the kind of customization that I'll come up with when you go to The Annuity Man and schedule a call with me, that will be, have you caught this? Take a guess. It's going to be brutally factual.

I'm the walking middle finger of annuity truth and proud of it. You need the truth. There's so much charlatan nonsense, sociopathic crap in the annuity industry. It's driving me crazy. Blows my cap off my head. You don't want to see that. You need the facts, and that's what I will give you.

When we talk about annuity examples and income flooring, we can structure it in a myriad of ways. We can have the income floor and solve for it right now; we can solve it later using Income Riders, Deferred Income Annuities, or Qualified Longevity Annuity Contracts. It really comes down to the confidential, non-shared information you and I discuss.

So, we talked about annuity income flooring. In the first part of the blog, I was talking about my wife because she loves hardwood flooring. If you went to our house that she allows me to live in, it's pretty cool. There's just hardwood floors everywhere. What I want you to do, and this is for my wife, Christine, who's been married to me for 36 years. It's a long time. As I told someone the other day, we didn't celebrate Valentine's Day because once you're over 30 years of marriage, I'm not sure it's legal. I don't think you do that. No, I'm kidding. She's great. She obviously puts up with me, The Annuity Man.

But what I want you to do for her is this. Go to my YouTube channel and hit the subscribe button. She's going to be happier if it's larger. Okay? We want that number to go up, up, up, up, hit that. Hit the like, share with your friends and not friends. It will make my wife happy, and if my wife's happy, then I'm happy. If she's not happy, then it ain't good. It ain't pretty as they say. This one's for my wife. But share, like, all that stuff. Share, like, subscribe. Share, like, subscribe. Share, like, and subscribe for Christine, who is my wife. Do it for her. Don't do it for me. Do it for her. 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.

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