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Income Annuity Estimator for Immediate or Deferred Income Annuity

Stan Haithcock
October 22, 2023
Income Annuity Estimator for Immediate or Deferred Income Annuity

You're looking for an income annuity estimator for Immediate and Deferred Annuities. I'll do you one better. How about calculators that will give you down to the penny, the contractual guarantee of the policy, and finding the best contractual guarantee for your specific situation. Oh my goodness, that's exactly what you were looking for. And at The Annuity Man, we will provide that to you because we have the best annuity calculators on the planet.

‌Annuities Are Contracts

‌Annuities are contracts. If you don't believe that, buy one, and then you'll get a policy in the mail from me, overnighted. And guess what that policy is? A contract. So, when you're looking for contractual guarantees, you have to shop all carriers for the best contractual guarantee available for your specific situation. This isn't estimation, this isn't hypothetical, theoretical, projected, hopeful agent return scenarios, unicorns chasing the butterflies, as the evangelist would say, or the guy at the bad chicken dinner seminar. What we're talking about is not estimations. We're talking about contractually guaranteed calculations you can lock in with us, Stan The Annuity Man, America's Annuity Agent. So now that we've established those facts and you're excited to get to the meat of the matter, let's get right into it.

‌Single Premium Immediate Annuities

‌Single Premium Immediate Annuities were put on the planet in Roman times as a gift for the dutiful Roman soldiers and their families for laying it on the line for the empire. It's a lifetime income stream, and that is still what it is. You can start the income as soon as 30 days after the policy is issued, up to a year. Once you go past that year, magically, it turns into a Deferred Income Annuity. Single Premium Immediate Annuities and Deferred Income Annuities are issued at the state level, not the national. Every state has specific annuities that they approve for sale in their state.

‌Running Quotes

‌You can run quotes on my site 24/7, 365, with no limitations, period. This is a site for the consumer to be able to shop all carriers for the best contractual guarantee for your specific situation. So, on my site, you will see the Calculators tab. You can choose between SPIA, DIA, QLAC, MYGA, or Income Rider. Let's talk about SPIA and DIA quotes.

‌First, you need to understand that these quotes are like a gallon of milk. They change every seven to 10 days, so you can't sit on the quote if you want to lock in that number. If you want to lock in that number, you have to go through the application process with my team. They are fantastic. We take care of everything from start to finish, whether it's IRA, non-IRA, Roth IRA, whatever. We can work with you, and we can transfer those assets. And if it's an IRA, it's a non-taxable event. The bottom line is we know how to do this. We're the top people out here for a reason. That's why they call me America's Annuity Agent, and I have a great team behind me.

‌So, to run a reverse-engineered quote, click on the Calculators tab. Choose the source of funds, then click on Choose Your Calculation. Click on the second option, I know how much Monthly Income I want to get. This means, "Hey, I want to solve for $1,000 monthly. How much money will it take? Quote all carriers to show me the least amount of money it will take to guarantee that $1,000 a month for both lives." You then choose when you want the income to start and go to the next step. Now, enter your name, email address, date of birth, state of residence, and if you want it to be single or joint, then click on Get Quote. I always tell people with annuities to try to use as little money as humanly possible to solve for that specific contractual goal. That is a reverse engineer quote.

‌I know you're going, "Wait a minute, why would I put in my email address?" It's because we're going to email you the quote. Yes, it will pop on the screen, and you'll be able to see it in real time. Still, you'll also get an email from us immediately so that you can look at it later, show it to your wife or spouse, analyze it, run the numbers, put it in the spreadsheet, whatever.

‌You can also say, "You know what, Stan The Annuity Man, America's Annuity Agent, me and the wife are thinking about $250,000. We want to earmark that and see how much lifetime income that will create for us," you can run that quote as well. Follow the same steps except click on I know the Dollar Amount I want to put in when choosing your calculation.

‌Life Only or Joint Life Only

‌Now, the two quotes that will pop on the screen are life only or joint life only, and life with a cash refund or joint life with cash refund. Let's go over both and let me tell you the details.

‌Life only means that if you run it on your life and you die, money goes poof. And too many people think that that's the only way an Immediate Annuity and Deferred Income Annuity can be structured. No, there are many different ways to structure it, but we're going to show you the two most popular.

‌Joint life only would mean if you died, the income continues uninterrupted and unchanged for the spouse, but when they die, money goes poof. The life only, joint life only, will be the highest payout. Why? Because you're assuming some of that risk.

‌Cash Refund

‌The other quote that's going to be in the quote that comes to you, you're going to have a life only or joint life only quote, or the life with cash refund or joint life with cash refund quote. The cash refund means that the evil annuity company will not keep a penny of your money, period, under any circumstance. They're just not. Because a lot of people call in, and they say, "You know what? I don't want to buy a lifetime income stream annuity because when I die, the evil annuity company will keep the money." Not with life with cash refund or joint life with cash refund.

‌Life with cash refund means this: it will pay as long as you're breathing. When you die, whatever money is left in the account will go to the list of beneficiaries of the policy. The evil annuity company's not going to keep a penny.

‌Joint life with cash refund means that when you die, income will continue uninterrupted and unchanged, and at the same amount for your spouse when they die, whatever money is left in the account will go lump sum to the beneficiaries. The evil annuity company's not going to keep a penny. Those are the two quotes you're going to get, period. And so, you'll see carriers, in essence, bidding on your business.

‌Non-IRA Asset Quote

‌Understand with Deferred Income Annuities and Single Premium Immediate Annuities, the income stream is a combination of return of principal plus interest. If you're using IRA assets, we can do that, but let's look at a non-qualified IRA, a non-IRA asset quote. You'll get your money back with interest, meaning the taxable portion is just the interest. And on the quote, it will show that. Just put that in the back of your head. You're getting your money back with interest. If the account goes to zero, the annuity company's still on the hook to pay, regardless of how long you live.

‌We have many clients who have outlived their life expectancy, the account's at zero, and they're still getting paid. That's the reason I always say there's no ROI until you die because, up until that, it's a pure transfer of risk.


‌Now, let's talk about inflation because I know that is your next question. With these annuities, you need to schedule a call with me if you want to see an inflation quote. Why? Because I need to explain it to you. Annuity companies have the big buildings for a reason. They do not give anything away. If you want to attach what's called a COLA, Cost of Living Adjustment increase to the policy, you can do that. But understand, annuity companies have the big buildings for a reason and the big logos on planes for a reason; they do not give anything away. And they're going to lower that amount, that initial payout amount, anywhere from 25%, 20 to 25%, upwards to 40%, as compared to the exact same annuity that does not have a Cost of Living Adjustment increase.

‌You already own the best inflation annuity on the planet, Social Security. And if you think about Social Security, Immediate Annuities, and Deferred Income Annuities work pretty much the same. The older you are, the higher the payment. The payment level at 65 is lower than it would be at age 70. The only difference with the Social Security payment is that it is the best inflation annuity on the planet because it increases when our politicians deem it appropriate. In the calculation that they run behind it, they actually go, "Okay, it is inflation," and they add something to the income stream. That's a good thing. I'm not saying don't look at an inflation rider with annuities. You just have to understand that it's not what you think it is, and that's the reason that we need to talk. And it might come down to having one or two annuities as part of a laddering-type approach that doesn't have a COLA, and then one with a COLA.

‌The bottom line, these are contracts. The bottom line, you're shopping every single carrier for the highest contractual guarantee. The bottom line, it's like buying a plane ticket. Again, these quotes are like a gallon of milk, every seven to 10 days, they expire.

‌Client Example

‌I got a call from a guy who'd been running quotes on my site. He'd been running SPIA quotes and DIA quotes. And he liked the numbers on both, and the question was a good one but it's a tough answer, but we got to the answer, and I'll tell you how we did that. He's like, "Well, which one's better? Which one should I get? Immediate Annuity or the Deferred Income Annuity?" Well, that leads me to the two questions I always ask, "What do you want the money to contractually do?" Obviously, that answer for him was lifetime income. But here's where we separated the two products. Then the question was, "When do you want that lifetime income to start?" And from his answer, he said, "I need it to start in two years." That meant he was buying a Deferred Income Annuity. If he'd have said, "I need income to start in six months," or three months or 30 days, that's an Immediate Annuity, but he said two years. It turns into a Deferred Income Annuity. It's really that simple.

‌I encourage you to go to my site and get the books. I've written owner's manuals on Single Premium Immediate Annuities and Deferred Income Annuities. You can download them for free and under no obligation. I also encourage you to dig into my YouTube channel. We have playlists, and you can see many of the videos I've done on Immediate and Deferred Income Annuities. And finally, I encourage you to book a call with me. Yes, me, Stan The Annuity Man. I will be wearing a hat. I will be wearing logoed gear. I'll be ready for you. I will be asking questions and listening and hopefully putting together a customized plan for you to consider so you can make a binding decision on your terms and on your timeframe. Thank you for joining me today, and I'll see you on the next Stan The Annuity Man blog.

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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