The Scars of Scarcity: Shootin' It Straight With Stan

Welcome to Shootin' It Straight With Stan. I'm your host, Stan The Annuity Man, America's Annuity Agent, licensed in all 50 states. Today's topic is an important one—one that will make you think. The title is The Scars of Scarcity: Fear of Running Out. Not fear of missing out, but fear of running out. I have to give full credit for the phrase “The Scars of Scarcity” to my lovely wife, Christine, who came up with it. We’re talking about clients who worry about running out of money and wonder if they have enough. This is one of the issues that my team solves every single day. We make sure the contractual guarantees are in place so that there’s enough income coming in, or enough money set aside, so that regardless of how long you live, you will be okay. And that’s what annuities do.

The Benefit of Annuities

Annuities provide a benefit proposition that no other product or strategy can offer—lifetime income. As long as you’re breathing, you’ll get paid by the annuity company. I don’t care if there’s any money left in the account; they’re on the hook to pay you. That’s the benefit proposition. It’s the only product on the planet that offers this, the only strategy, the only industry. You’d think that with this kind of monopoly, the annuity industry would focus on promoting the transfer of risk lifetime income that annuities provide. But no, the focus is often on the growth aspect instead. In the world of financial products, this is a monopoly.

Addressing the 4% Rule

People ask, “Stan, what’s the return on investment for a lifetime income annuity?” First, let me say that there are four different types of annuities: Immediate Annuities, Deferred Income Annuities, Qualified Longevity Annuity Contracts (QLACs), and Income Riders attached to Deferred Annuities. I always tell people, ask yourself two questions:

1. What do I want the money to contractually do?
2. When do I want those contractual guarantees to start?

Once we have those answers, we can run quotes to find the right strategy and the highest contractual guarantee. We live in a world of FOMO—fear of missing out. My daughters talk about FOMO all the time. It’s the feeling you get when you wish you bought XYZ stock at $5 instead of $50. But when you reach age 65, it’s no longer FOMO. At that point, it’s FORO—fear of running out—the fear of having enough money, the fear of paying bills—the scars of scarcity.

Understanding the Scars of Scarcity

My wife was brilliant when she said that, and I immediately wrote it down for a video. She asked, “Give me credit for it,” I said, "You'll get full credit and royalties." The scars of scarcity come from growing up without much. Most of us didn’t grow up rich, and while our parents did the best they could, we didn’t have a lot. I’m sure many of you can relate. Now, you may have a million dollars, $500,000, or $200,000—whatever it is, it might still feel like it’s not enough. You may still feel poor, and that’s understandable. But you need to realize that over 60% of adults in the U.S. don’t have $400 in their checking account. So, if you’re watching this video, congratulations—you’re trying to figure out how not to run out of money.

The Real Issue: Fear of Running Out (FORO)

The scars of scarcity are a bigger issue to deal with than you might think. I deal with it every day. We’ve been fortunate, and I always tell people that I’m a “10- or 15-year overnight sensation.” Think about it: we worked hard, seven days a week, to build this up, and we’ve been very fortunate. And just like you, we now have more money than we ever thought we would. But I still carry the scars of scarcity. I still penny pinch when I probably shouldn’t. I still don’t order what I want when I probably should. Does that sound familiar?

Why I Understand You

I think one of the reasons I love what I do and make these videos is because I’m you. I grew up like you. I had parents like you. And now, after three decades of listening to clients and hearing about their struggles, I can relate to those scars of scarcity. Many of my clients have a lot of money but still carry those same worries. Money is relative. For some, $75,000 is enough. For others, $750,000 is enough. For some, $7.5 million is enough. The amount doesn’t matter; it’s about what makes you feel comfortable.

The Emotional Side of Money

I’ve been working through this myself. After many counseling sessions with my wife, a clinical psychologist by trade, I’m starting to understand that the fear of running out doesn’t have to control me. I’m coming to terms with the fact that I no longer need to bring the scars of scarcity to the table. I can buy dessert even though I don’t need it. It’s going to be okay.

It’s taken me 58 years to feel this way, but I’m finally realizing that the scars of scarcity don’t have to dictate my life anymore. And I want you to start thinking that way, too. No matter how much money you have, you'll never run out if you’ve structured it properly. It’s time to start thinking about financial security in terms of lifetime income and contractual guarantees.

How Annuities Can Solve FORO

We solve the fear of running out (FORO) with annuities. Whether through lifetime income, Immediate Annuities, Deferred Income Annuities, or Qualified Longevity Annuity Contracts, we can create a guaranteed income stream that will last for as long as you do. And no, you don’t have to put all your money in annuities. There are other options like CDs, treasuries, and money markets that can provide guarantees. The key is solving FORO, the fear of running out, which is more important than FOMO (fear of missing out), especially as you approach retirement.

Final Thoughts

I talk with clients all the time about basic math. Annuities are contracts—they’re not hypothetical or pie-in-the-sky theories. They're based on real math, real contracts, and lifetime income. When I show clients the math, they often realize they’re already on track to meet their goals. It’s hard to accept that sometimes, because of those scars of scarcity, mentally.

I’m in the trenches with you, and I’ve been doing this for so long that I’ve heard it all. Let me help you move past your financial struggles and set you on the path to retirement security. If you’re still worried about running out of money, I encourage you to contact us at The Annuity Man. I’d love to hear your story and see if we can help you achieve the peace of mind you deserve.

Thank you for joining me today. I’ll see you next time!,