Don’t Be a Tater, It’s About Income Later

The title of this one is “Don’t Be a Tater, It’s About Income Later.” That’s a Foghorn Leghorn vibe, or as I like to say, Stan Horn Leghorn.

Why did I use the word Tater? My consultants asked the same question. Because it rhymes with “later,” and in the South, being a tater means don’t be an idiot.

Comedian Ron White has a famous joke about this. He said people used to call him Tater Tot. Look that up later, you’ll laugh. But don’t be a tater. It’s about income later.

Income Later, Not Just Income Now

When it comes to annuities, even the market mavens eventually hit that second chapter of life where lifestyle becomes the focus. And when lifestyle becomes the focus, income becomes the foundation.

That income could be from a pension, Social Security (which is the best inflation annuity on the planet), dividend income, or rental income. It could also be income that’s planned to address inflation in the future because we all know things will keep getting more expensive.

Annuities solve for four primary things. The acronym is PILL, which stands for Principal Protection, Income for Life, Legacy, and Long-Term Care.

Income for Life can start now, or it can start later.

The cool part about that is you can plan exactly when it starts.

How It Works

You can say, “Hey Stan, I want income to start in six years, seven years, ten years, twelve years, whatever that time period is.”

You can go to our site, run quotes, and know exactly to the penny, contractually, what that lifetime income stream will be when it starts down the road. You’ll see an actual number, not some arbitrary, hypothetical, or theoretical one that’s chasing unicorns.

Let me give you an example.

Let’s say you’re 65 years old and you want to plan for inflation down the road. You could buy four different income later annuities and have them start at ages 67, 70, 72, and 75. That way, you’d know exactly to the penny what those lifetime income streams will be.

Or, if you want to set it up jointly with your spouse—the person who has put up with you all these years—it can be structured to pay for as long as one of you is breathing.

If you die first, if your Learjet or bass boat hits the wall, the income continues uninterrupted and unchanged for your spouse. We can even structure the income later annuity so that 100 percent of any unused money goes to your listed beneficiaries, not to the annuity company.

What If You Live Forever?

People ask me all the time, “Stan, what happens if I live forever?”

If that happens, the annuity company is on the hook to keep paying you. You could reach the point where the account value hits zero, and they still have to pay you for as long as you’re breathing.

That’s the transfer of risk benefit proposition. You’ve transferred the risk of outliving your money to the annuity company.

People always say, “What’s the return on investment on that income later annuity?”

My answer is always the same: tell me when you’re going to die, Chester, and I’ll give it to you right on the penny.

And by the way, death is not a good strategy. You can only use it once, but it’s effective in some cases.

Planning Ahead Matters

The point is, don’t be a tater. It’s about income later. Plan for the future. If you don’t need income now, plan for it later.

All lifetime income is based on life expectancy or joint life expectancy if you’re setting it up with a spouse. The older you are when the income starts, the higher the payment will be. It’s the same concept as Social Security.

If you start Social Security early, the payments are lower. If you start later, they’re higher. The same logic applies to annuities.

The Products That Solve for Income Later

Income later planning really comes down to three annuity products: Income Riders, Deferred Income Annuities, and Qualified Longevity Annuity Contracts (QLACs), which can be used inside an IRA.

We quote all carriers for all three of those products at The Annuity Man. I’ve written free Owner’s Manuals on all three that you can request on the site. I’ve also done numerous videos on each product if you want to go down the rabbit hole.

When you’re ready, you can get quotes and talk to someone on The Annuity Man team to get your questions answered. You’ll make your decision on your terms and on your timeframe.

We’re not a hammer looking for a nail. We’re educators and straight talkers, and we’re the best at what we do.