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Your Guaranteed Income Annuity Calculator

Stan Haithcock
October 9, 2022
Your Guaranteed Income Annuity Calculator

If you're one of the 10,000 baby boomers that's hitting age 65 every single day; if you're in chapter two of your life or heading toward that where it's all about you and about lifestyle and income, then you need calculators that can run specific quotes for your specific situation to provide the highest contractual guarantees on the planet.

Here's the good news. Annuities as a category it's the only product category that can provide a lifetime income stream as long as you are breathing, and that's a good thing. They were put on the planet in Roman times as a lifetime income pension for the dutiful Roman soldiers and their families. There are three product types, and then there's an attachment to a product that provides lifetime income. Single Premium Immediate Annuities, Deferred Income Annuities, Qualified Longevity Annuity Contracts, and income riders attached to specifically deferred annuities can provide an income stream you can never outlive. As I say, there's no ROI until you die. Until then, I say the transfer of risk pension plan that you’ll never outlive.

Lifetime Income Stream

What we're talking about is a lifetime income stream, what we're talking about is a pension, what we're talking about is an addition to your Social Security guaranteed lifetime income annuity payment. Yes, it's an annuity. Social Security is the best inflation annuity on the planet. So if you say you hate all annuities, you're an annuity hypocrite. And if you say, "Well, no, I do hate them," then call Social Security and cancel the payments. Besides that, everybody with a Social Security number owns an annuity.

For most of us, we need more lifetime income.

Income Calculators

So having income calculators at your fingertips to run the best contractual guaranteed quotes is a good thing. Now, on my site, at the very top, use our calculators, click that, and you‘ll see the SPIA calculator, DIA calculator, QLAC calculator, and Income Rider Calculator. You're going to be able to put your information in. By the way, don’t play games when you put information in. We're not sharing information. We're not selling information. This is just to provide quotes. We don't even keep the information. Your information in, you get the quote. It's just that simple.

I encourage you to do that because lifetime income guarantees are primarily based on your life expectancy or, if it's joint, life expectancies at the time you take the payment. Interest rates play a secondary role. Interest rates play a secondary role. Interest rates play a secondary role. The reason I repeat that over and over is that everyone thinks that interest rates drive the pricing train. No, no, no. It's life expectancy. You're saying to the annuity company, "I think I'm going to live longer than you think I'm going to live, and I'm going to transfer that risk to you because if I live forever, you, the annuity company, you're on the hook to pay."

Running Quotes

Now the information that we're going to ask for you to run the quotes, name, put your name in, email address, put the right email address in because when you run the quote, we're not only going to show you the quote in real-time as you run it, we're also going to send you an email with a link so you can look at it at a later date or put in a file or whatever. You will have to put in your specific date of birth, male or female, whether IRA, non-IRA, or Roth IRA, and when you want the income to start. And with the Single Premium Immediate Annuity and Deferred Income Annuity quotes, you can run reverse engineer quotes. In other words, solving for a specific monthly income dollar amount. We really have the best income rider quote machine out there, period. You can put your information in for that.

Income Rider

What's an income rider? It's an attached benefit for lifetime income. You can attach it to a variable or index annuity. Disclaimer, we don't sell variable annuities. I don't sell anything that has the potential to go down. The guaranteed income rider on index annuities, which is how we use them, is typically higher than the ones attached to variable annuities. It doesn’t make them better; it just is what it is. I'm in the Will Do Not Might Do® Studio, which means that you own an annuity for what it will do®, not what it might do, and those are the contractual guarantees. That's will do. So we're only looking at the contractual guarantees of the policy. Okay? That's what you're going to make your decision on. If you need the income now®, I always ask people two questions, "What do you want the money to do contractually? And when do you want those contractual guarantees to start?"

If the answer to the first question is income, "I need lifetime income," then you're at the right place. You're at the income rider, SPIA, DIA, QLAC, income rider calculators. But if you need the income to start right now, that's a SPIA calculator. If you need income to start in the future, that could be a DIA, QLAC, or income rider calculator, depending on what type of account you are using.

When it comes to lifetime income, you’re trying to create an income floor. What's your income floor? It's dividends; it’s rental income. It's Social Security, which is the best inflation annuity on the planet. And then it's an annuity type depending on when you need that income to start. That's your income floor that's going to hit every single month. And with all of you baby boomers hitting retirement age 65, I think there are 10,000 every day, you're looking for those guarantees. Remember, we live in a pensionless world. Unless you work for the government or a really good labor union, you do not have a pension in place. You have to create your own pension. You must take your 401K or other assets and buy income. You're buying lifetime income. You're transferring the risk to the annuity company to pay you for the rest of your life.

Client Example

I got a call the other day, and the gentleman asked, "I've got this money. I need a lifetime income stream." We asked the two questions, "What do you want the money to do contractually? When do you want those contractual guarantees to start?" He said, "Income." And then he said, "I need it immediately, and I need some to start now, I need some to start later." But his bigger question was, "which account do I use? Do I use my Roth IRA?" He had converted a lot of money into a Roth IRA. He had traditional IRA money, he had non-IRA money. Where should he go? Which products should he use? Good question. The only rule you need to be aware of is QLACs, Qualified Longevity Annuity Contracts, which were put on the planet in 2014, and introduced by our friends at the IRS and the Treasury Department. Yes, friends. They are friends unless they become enemies, but let's keep them friends, right? They introduced QLACs as a pension payment to use with traditional IRA-type assets.

A QLAC can't be used in a Roth IRA. A QLAC cannot be used in a non-IRA. A QLAC can only be used in a traditional IRA; keyword qualified, a qualified account. The others, Single Premium Immediate Annuity, Deferred Income Annuity, and income riders, can be used.

Traditional IRA, Roth IRA, or non-IRA. Now, when you do the dropdowns with our calculators, you’ll see all that, but I wanted you to put that in the back of your mind. In my opinion, the cool part about QLACs is that you can take your traditional IRA and use part of it as a pension payment in the future. You can attach your spouse for a joint lifetime income. I think it's a great product. I do.

And the fact that the government introduced it is kind of a shot across the bow to remind you that Social Security was not put on the planet as the primary retirement income source. It was not. Even though too many people have to use it that way, it wasn't supposed to be that way. And for most of us out there, we need more lifetime income. You’ll have to buy it with outside products like immediate annuities, deferred income annuities, QLACs, and income riders.

Remember, quotes are primarily based on your life expectancy, life expectancies if joint. Interest rates play a secondary role. You can use my calculators at your leisure so that you understand how to create a lifetime income pension guarantee for you, your spouse, or your family, however you want to set it up.

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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