Ignore the Dow, Its About Income Now

Every time the stock market is on a tear, I get the same calls. “Stan, the Dow’s up big. I’m throwing darts at stocks and everything’s winning. Why would I even think about annuities right now?”

I get it. I’ve been on the Wall Street side of the ledger. I previously worked for Dean Witter, Paine Webber, Morgan Stanley, and UBS. I’ve seen the booms, the busts, and everything in between. Here’s the truth: growth lives in the markets. But timing those ups and downs? Impossible. No bell rings at the top or the bottom.

That’s why I tell people this: it’s not about the Dow, it’s about income now.

Why You Can’t Just Chase Growth

Markets rise and fall. You don’t know when the next downturn is coming, and neither do I. A geopolitical shock, an interest rate shift, or even just plain volatility can flip the trend overnight.

That doesn’t mean you abandon the market. Growth is important. But if you’ve “won the game” and built up enough assets, there comes a point where it makes sense to peel off some profits and lock in guarantees.

The P.I.L.L. Framework

Annuities only solve for four things. That’s it.

• Principal protection
• Income for life
• Legacy
• Long-term care or confinement care

I call it the P.I.L.L. test. If what you’re trying to solve doesn’t fit one of those four, you don’t need an annuity.

When we’re talking about income now, that falls into the “I”, income for life.

What “Income Now” Really Means

Income now is just what it sounds like. You want guaranteed income to start within 30 days to a year. That’s where Single Premium Immediate Annuities (SPIAs) come in.

SPIAs are the purest lifetime income products. You give the insurance company money, and they pay you every month for as long as you’re breathing. Structure it joint life, and it pays as long as either spouse is alive. And you can set it up so 100% of unused money goes to beneficiaries, not the “evil annuity company.”

Sound familiar? It should. Social Security is the best inflation-adjusted annuity in the world. You already own one. Turning on income with a SPIA is like flipping the switch on Social Security, it’s about guaranteed cash flow you can’t outlive.

Income vs. Lifestyle

I had a client who trades corn futures. Every year, when he has a good run, he peels off some of those gains and buys a SPIA for himself and his wife. She couldn’t care less about corn futures, but she loves the guaranteed income showing up every month.

That’s what income now is about. It’s not about chasing indexes or watching CNBC tickers. It’s about funding your lifestyle with certainty. Housing, food, healthcare, utilities, the basics are covered, no matter what the market does.

I call it your income floor.

The Truth About Annuities

Don’t ever buy an annuity for market growth. If someone tells you they have a product that gives you stock-like returns with no downside, they’re lying.

You buy annuities for what they will do, not for what they might do. The “will do” is the contractual guarantee. If you want income now, SPIAs deliver. Period.

The Bottom Line

The Dow will go up. The Dow will go down. It always has and always will. That’s fine for the part of your portfolio aimed at growth.

But retirement isn’t about chasing the Dow, it’s about creating guaranteed income you can count on for the rest of your life.

If you’ve won the game, it’s time to stop playing. Peel off some gains, lock in guarantees, and build the income floor that lets you actually enjoy retirement.

Because lifestyle in retirement isn’t about the markets, it’s about income now.