003: What is a Deferred Income Annuity (DIA)?

October 20, 2020
•
24 min
003: What is a Deferred Income Annuity (DIA)?
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IN THIS EPISODE, THE ANNUITY MAN DISCUSS:
- What is a DIA and how does it work
- The benefits and limitations of a DIA
- How a DIA fits into your Income Floor
- How DIAs are part of Income Later planning

KEY TAKEAWAYS:
- Life expectancy is the primary pricing mechanism of DIAs
- The secondary pricing role of interest rates
- DIAs can combat inflation by having income start at future dates
- DIA quotes are customizable for your specific situation

"Deferred Income Annuities are a simple, efficient, and easy to understand the transfer of risk strategy for future lifetime income needs." — The Annuity Man

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Get The Annuity Man's Books - https://www.stantheannuityman.com/how-do-annuities-work
Schedule a time to talk to Stan - https://www.stantheannuityman.com/book-a-call/

0:02
welcome to

0:03
fun with annuities with your host me

0:05
stan

0:06
the annuity man america's annuity agent

0:09
can annuities be fun

0:10
can contractual guarantees be fun

0:13
absolutely they can

0:14
find out the brutal facts about

0:16
annuities with no sales pitches or high

0:19
pressure nonsense

0:21
just the brutal and factual annuity

0:23
truth which is all you need to hear

0:26
let's have some fun with annuities and

0:28
let's have that fun start right

0:30
now

0:35
hey this is stan the annuity man and

0:37
welcome to fun

0:38
with annuities today we're going to talk

0:40
about another product type called a

0:42
deferred income annuity

0:44
also called a dia and a lot of people in

0:47
the industry

0:48
or the pundits or the financial

0:50
journalists call it a longevity annuity

0:52
because it solves for your longevity

0:53
it's a lifetime income stream that you

0:54
cannot outlive so deferred

0:57
income annuity and like with all product

0:59
types

1:00
i like to start with the limitations and

1:01
then tell you about the benefits because

1:03
you need to know both right it's not all

1:05
sizzle let's talk about the steak so

1:07
with that being said

1:09
the limitations of a deferred income

1:11
annuity are very similar to

1:13
an immediate annuity if you listen to my

1:14
podcast on single premium immediate

1:17
annuities speas spias

1:19
the dia deferred income annuity is the

1:21
is the cousin

1:23
of an immediate annuity because it's the

1:24
exact same structure

1:26
the difference is just how long you

1:28
defer the product for income

1:30
meaning when you want the income stream

1:32
to turn on with immediate annuity it's

1:34
between 30 days and 13 months from a

1:36
deferred income annuity

1:39
once you go to 13 months and it can go

1:41
as far out as 45 years

1:43
or more you can defer the income start

1:47
date but

1:47
with that being said the limitations is

1:49
there's there's a very limited liquidity

1:52
once again there's some deals that offer

1:55
that liquidity but when

1:56
companies annuity companies give things

1:58
away they don't do it for free they take

2:01
something away

2:02
so they have the big buildings for a

2:04
reason they have the big logos on the

2:05
plane for a reason

2:07
so typically the majority of the time if

2:10
they have a

2:10
a liquidity offering within the dia

2:13
they're

2:14
probably lowering the payment in most

2:16
cases the other

2:18
limitation for a deferred income annuity

2:20
is there's no accumulation value meaning

2:23
that okay

2:24
stan i want to do a deferred income

2:25
annuity i want to defer for five years

2:27
during that five year time period

2:29
there's no trackable interest rate

2:30
there's no market attachment

2:32
if you have a you get your money back

2:34
structure if you die you know i want a

2:37
lifetime income stream but if i die

2:38
before the income

2:39
stream turns on i want all my money back

2:40
you can structure it like that you're

2:42
going to get your premium back there's

2:43
no

2:44
there's no accrued interest however

2:46
annuity companies do reward you for

2:48
allowing them to hold on to the money

2:50
so the longer you allow them to hold on

2:52
to the money the more they're going to

2:53
enhance the payout

2:54
but for your investors out there that

2:56
can't get out of the investor mindset

2:58
and understand that annuities are

3:00
contracts not investments

3:02
this one might drive you crazy this

3:03
might be a limitation you can't overcome

3:06
because you always want to see growth

3:07
even though you know you haven't seen it

3:09
on a lot of investments

3:11
just the way it is it's the product so

3:13
there's no

3:14
trackable accumulation value there's no

3:16
market growth attachment

3:18
or anything like that if you want that

3:20
then don't buy an annuity of any type if

3:21
you're looking for market type returns

3:23
regardless of what you hear or been

3:25
shown on a hypothetical or theoretical

3:27
or back-tested whatever

3:29
do not buy an annuity annuities or

3:31
contracts they were not set up

3:33
for market growth yes there's arguments

3:35
for you know no load variable annuities

3:37
but

3:37
we'll get to that but in essence i think

3:40
still

3:41
if you want true market growth i think

3:43
you should go outside the annuity

3:44
culture outside the annuity product

3:46
offering the payments

3:47
and this could be a limitation or

3:49
benefit whatever you want the payments

3:50
are primarily based

3:52
on your life expectancy at the time of

3:54
the payment

3:56
and the secondary pricing mechanism are

3:58
interest rates they're not

3:59
primary interest rates are not the

4:01
primary pricing mechanism

4:03
of diverting income annuities or meeting

4:06
annuities

4:07
understand that lean in listen because

4:10
everyone's trying to time interest rates

4:12
with these products it's life expectancy

4:14
that drives the train and then there's

4:17
from a confinement care standpoint of

4:19
those type of little

4:20
whistles and bells these don't have them

4:22
okay so limitations are you know

4:24
limited liquidity no accumulation value

4:27
no market growth the payments are based

4:28
on life expectancy

4:30
common sense things so you know it goes

4:32
back to if it sounds too good to be true

4:34
during the sales pitch it is every

4:35
single time with an annuity that's the

4:37
limitations

4:38
of the deferred income annuity now the

4:39
benefits is there's no annual fees it's

4:41
very simple

4:42
inefficient future income it's a pension

4:45
future pension if you want to call it

4:46
that

4:47
it can be used in an ira a non-ira a

4:49
roth

4:50
anything it can be used in any of those

4:52
accounts obviously those accounts are

4:54
tax structures so depends on what you

4:56
put it in and how the income is going to

4:58
be taxed

4:59
in a non-ira account that the tax

5:02
preferential treatment is that it's a

5:04
return of principal plus interest

5:06
all annuity payments are so you're not

5:08
going to pay taxes on the principal just

5:09
the interest

5:11
in a roth it's it's tax-free obviously

5:13
in an ira it's all taxable could you've

5:14
been deferring

5:16
and we'll talk about iras as well

5:18
there's some limitations on

5:19
you know how far out you can defer these

5:22
things are customizable

5:23
you know you can customize the structure

5:25
lifetime income payout you can do it for

5:27
period certain you could do a

5:28
combination of that

5:30
you can add a spouse you can add a

5:32
family member etc

5:34
you can also add a cost of living

5:35
adjustment writer or a

5:37
cpa iu consumer price index increase to

5:39
the income stream it sounds fantastic

5:41
on surface except the annuity companies

5:43
never give anything away if you do that

5:45
they're gonna lower the payment so if

5:47
you said hey run a quote for me

5:50
with a cola and without a cola without a

5:52
coal is going to be higher

5:54
lifetime income guarantee the one with a

5:56
cola cost of living adjustment increase

5:58
is going to be lower and it's going to

6:00
take some years for it to make up

6:02
for the for the one that is static

6:05
payments going to be the same that

6:06
doesn't mean it's better or worse

6:08
that's just reality you already own the

6:10
best inflation annuity on the planet

6:12
it's called social security

6:14
right annuity companies don't give

6:16
anything away like politicians

6:18
politicians write checks with their

6:19
mouth that their rear ends can't cash

6:21
annuity companies don't do that and with

6:24
all

6:24
annuities the commissions are built into

6:27
the product

6:29
so you're never going to see it i don't

6:31
like that i wish that was

6:33
different but it is what it is they're

6:35
low

6:36
for deferred income annuities as

6:38
compared to

6:39
some of the other complex products out

6:41
there just because it's efficient it's

6:43
easy to understand it's transparent

6:44
no offense to nine-year-olds but you can

6:46
explain it to a nine-year-old

6:48
and always say if you can't explain the

6:50
annuity purchase to a nine-year-old

6:52
then don't buy it i think warren buffett

6:53
would probably nod his head to that one

6:55
right

6:56
so let's talk about and by the way

6:59
i'm going through this outline holding

7:01
the deferred income annuity owner's

7:03
manual

7:04
in my hand you know i've written a

7:06
series of annuity owners manuals on

7:08
every product

7:10
and it's the best outline in the world

7:11
for a podcast because i've already done

7:13
it i've already written it and i would

7:14
encourage you to go to my site

7:16
at the annuityman.com and get your copy

7:19
i'll send it to you for free i won't

7:20
call you i won't bug you i'll have

7:22
associate bug you we won't we won't show

7:24
up at your door

7:25
we'll send it to you leave you alone and

7:26
if you want a quote let us know

7:28
so the annuityman.com go get it i

7:31
encourage you it's 55 pages long you

7:33
have that time to read it

7:35
so you'll hear pages flip probably

7:37
because i'm sitting here kind of

7:38
flipping through making sure i'm

7:39
covering

7:39
points i want to cover but in essence

7:43
deferred income annuities suffer what i

7:44
call income later

7:46
meaning you need income at a later date

7:48
there's two products that do that it's a

7:49
deferred income annuity and

7:51
income writers we'll talk about income

7:53
riders in another podcast and we'll

7:55
certainly dive into

7:57
income later strategies on future

7:58
podcasts as well but those are the two

8:00
types so if you say

8:01
hey stan please quote me i need income

8:03
to start in seven years or ten years

8:05
we're going to show you deferred income

8:06
annuity quotes and we're also going to

8:08
show you

8:09
income writer quotes and then we'll

8:11
explain the benefits and limitations of

8:12
both and you can make a decision what

8:14
what makes

8:15
sense for you in essence a deferred

8:18
income annuity is what i call a

8:19
non-correlated asset has nothing to do

8:22
with the market and it's really a

8:24
transfer of risk pension for the future

8:26
that you can depend on

8:28
and that's what i mean i like that i

8:30
like knowing to the penny

8:31
i'm a planner and a lot of you out there

8:33
are nodding your head yeah i'm a planner

8:34
too

8:35
i want to know to the penny what i'm

8:37
going to be able to get

8:40
period so it's a transfer risk based on

8:42
your life expectancy so

8:44
i don't know the roi i don't know the

8:45
return on investment until you die so

8:47
there's no roi to you die

8:50
you know when you die as i say in

8:51
previous podcast i'll go to your funeral

8:53
i'll sing a very good song

8:55
with no backing i'll just get up there

8:56
and sing it and work in your roi

8:59
in the song but up until then it's a

9:02
transfer of risk

9:03
that either you will not be able to live

9:06
or your spouse

9:07
if you did it joint here's a good part

9:09
about deferring communities i love and

9:10
annuities in general that you can

9:11
structure

9:12
with a spouse is when you when you pass

9:15
away

9:17
the income stream continues

9:19
uninterrupted and unchanged for that

9:20
spouse's life as well and then you can

9:22
also add

9:23
a guarantee that when your spouse dies

9:25
whatever's left in the account does not

9:27
go to the evil annuity company

9:29
it goes to your list of beneficiaries a

9:31
lot of people say well i would never buy

9:32
an annuity stand

9:34
because when i die that company keeps

9:36
the money that's one of about

9:37
30 ways to structure it now that's

9:39
called life only you can structure it

9:40
life only

9:41
and by the way that would be the highest

9:42
payout because you're shouldering some

9:44
of that risk

9:45
but if you say hey i've worked really

9:46
hard for my money i don't want anybody

9:48
to keep up with my family but yet i

9:49
still want a lifetime income stream

9:50
guarantee

9:51
we can do that understand that you know

9:54
they will

9:55
accept that risk pay you for the rest of

9:56
your life regardless of how long you

9:58
live but if you die early

9:59
100 of the money can be structured to go

10:01
back to your beneficiaries

10:03
either in a lump sum or in a in a

10:06
payment form i always tell people

10:08
structures so they're getting a payment

10:09
they're going to show up to your funeral

10:10
in a ferrari anyway

10:11
you just want to make them payments on

10:13
instead of you know using the lump sum

10:15
to buy it

10:15
that's a joke you can laugh now but that

10:18
is true sometimes you want to handcuff

10:19
those beneficiaries i know with my

10:21
daughters

10:22
they're lovely and wonderful and smart

10:24
but they would buy the ferrari so we'll

10:26
have them making payments when my

10:27
learjet

10:28
hits the mountain so in the income later

10:31
scenario you know which is better

10:32
a deferred income annuity or an income

10:34
rider well the first thing remember

10:36
the two questions you always ask so buy

10:38
an annuity what do you want the money to

10:40
contractually do

10:41
not hypothetical theoretical or

10:43
projected or back tested

10:44
what do you want the money to

10:45
contractually do and when you want those

10:47
contractual guarantees to happen

10:48
and start you know it really comes down

10:51
to the highest number so if the income

10:53
rider has the highest guarantee

10:54
on an income later quote then we're

10:57
going to look hard at that right

10:58
if a if a deferred income annuity has it

11:01
then we're gonna

11:02
go through the benefits and limitations

11:03
that we're also gonna go through the tax

11:05
taxation of the income stream depending

11:07
on what account

11:09
type you're using ira traditional ira

11:11
roth ira

11:12
non-ira but you can quote it a couple

11:16
ways you can say hey

11:17
stan i've got x amount of dollars got

11:19
200 000 i want you

11:20
how much money how much income can me

11:23
and my spouse get

11:24
starting in five years or you can say

11:28
in five years i know that we're gonna

11:30
need an extra four thousand dollars a

11:31
month

11:33
so how much money would it take for me

11:35
to

11:36
put in right now to guarantee four

11:38
thousand dollars a month five years from

11:40
now we can do that as a reverse engineer

11:42
quote so

11:43
you know the longer you wait the higher

11:44
the payment because the the older you're

11:46
going to be

11:47
and the longer you're allowing the

11:48
annuity company to keep the money and

11:50
hold on to the money

11:52
so we do it a couple of ways so

11:55
again the quotes are customizable with

11:58
all of this

11:59
and so i like deferred income annuities

12:00
and immediate annuities and those type

12:02
of products because they're very very

12:03
simple they're transparent

12:05
they're easy to understand the number

12:07
you see i mean it's just it's very very

12:10
simple and simple is good in my opinion

12:12
when you're looking at annuities

12:14
understand there's no fees with the

12:15
deferred income annuity commissions are

12:17
built in you never see it and paid to

12:19
the

12:19
to the agent by the carrier but compared

12:22
to

12:23
the complex products out there they're

12:24
they're much much lower

12:26
and understand also you know people say

12:28
well how how do i

12:29
address inflation you know what do i do

12:32
you really there's really not

12:33
any good answers as i say all the time

12:36
there's no good answers to annuities

12:38
in a lot of cases but there really are a

12:40
lot of bad sales pitches out there right

12:42
everyone's going to say oh well well

12:44
my annuity can address inflation crap

12:46
that's a bunch of crap

12:48
yes you can attach a cost of living

12:50
adjustment increase or

12:51
a uh you know a cpiu increase

12:55
but the annuity comes going to lower the

12:56
payment i always tell people there's

12:58
really no perfect

12:59
inflation product out there that

13:02
addresses it because it's a moving

13:03
target

13:04
and annuity companies don't price moving

13:06
targets they price

13:08
life and death and they know when you're

13:09
going to die based on how old you are

13:11
etc

13:12
so the other thing too you got to

13:14
remember this

13:15
is you can also

13:18
ladder these things and a lot of times

13:20
people come to me and say i want to put

13:22
five hundred thousand deferred income

13:24
annuity after we talk a while

13:26
it it might make more sense to do a

13:28
hundred thousand dollars a year

13:30
for five consecutive years and then

13:32
laddering that start date

13:34
because really the best way to attack

13:36
inflation is to have

13:37
income starting in intervals you know

13:40
have it start at age 70 and 72 and then

13:42
75 and 77. so

13:44
we like laddering things when it's

13:46
appropriate sometimes it's appropriate

13:47
to do the lump sum

13:48
sometimes it's appropriate to do the

13:50
latter it all comes down to allocation

13:52
of proportion and there's no

13:54
perfect scenario for people to hey stan

13:57
what's the percentage i need to put in

13:58
annuities

13:59
there's no perfect answer just bad sales

14:00
[ __ ] hey hey stan

14:02
you know is it better to ladder a lump

14:03
sum it depends on the conversation that

14:05
we have

14:06
in your specific situation what you're

14:08
trying to achieve

14:09
understand that a deferred income

14:10
annuity also has a sister product called

14:13
a culac which is a qualified

14:15
longevity annuity contract qlac

14:18
it's a deferred income annuity that can

14:20
only be used

14:22
inside of your ira we'll talk about that

14:25
and delve into it deeply

14:27
in another podcast but i want you know

14:29
that you'll hear deferred income annuity

14:31
dia you'll hear

14:32
qlack out there same product same

14:35
structure

14:35
just different rules on how you use it

14:37
deferred income annuity can be used in a

14:39
roth a non-roth a non-ira

14:41
in a traditional ira up to age 70 and a

14:44
half

14:45
once you pass age 70 half when the

14:47
income stream is going to turn on

14:48
another not buying it

14:50
but when you say i need the income

14:51
stream to turn on

14:53
past 870 and a half then we're going to

14:55
be looking at a q

14:56
lakh and that's just the rules that are

14:58
out there but i didn't want i don't want

14:59
to get

15:00
caught too much in the weeds but a q

15:02
lakh is a deferred income annuity

15:05
period so one of the things that

15:08
drives me a little bit crazy out there

15:10
under my will do not might do mantras

15:12
will do not might do as we'll do is is

15:14
contractual guarantees you buy an

15:15
annuity for the will do the contractual

15:17
guarantees not the might do

15:19
which is the hypothetical and

15:20
theoretical and projected back-tested

15:22
agent hopeful scenarios you see at the

15:23
bad chicken dinner seminars and

15:25
and some proliferating on the internet

15:28
where people are

15:29
it looks too good to be true um

15:32
unfortunately

15:32
most of those people are not even

15:34
showing people

15:36
a quote from a deferred income annuity

15:38
so in other words in an income later

15:39
quote they're only showing

15:41
a variable annuity with an income rider

15:43
or indexed annuity with an income rider

15:45
i'm saying show them all show them all

15:47
um

15:48
and and quote them all i don't do

15:50
variable annuities just because i

15:52
i don't think you need it in my opinion

15:56
this is

15:56
stan the annuity man licensed in all 50

15:58
states arguably the number one annuity

16:00
agent in the country but if you need

16:03
market growth you don't need an annuity

16:05
and typically the

16:06
the attached writers we talk about are

16:08
not competitive with the same writers on

16:10
a fixed annuity so

16:12
we just stay in the fixed world because

16:14
it's simple and easy to understand etc

16:16
so remember on the customization of the

16:19
quotes when you

16:20
when you call us to get a quota you go

16:21
into our system and

16:23
at the annuityman.com and sign up for a

16:25
quote we can quote anything you want we

16:28
can do it life only we can do it life

16:29
with a period certain we can do it joint

16:31
life

16:32
joint life with installment refund cash

16:34
refund there's there's a myriad

16:36
of ways to structure it you just have to

16:39
answer the questions on you know how you

16:41
want your money to work

16:42
so that's important and you have to

16:45
remember buying a deferred income

16:47
annuity is is similar to buying an

16:48
immediate annuity it's like going

16:50
it's like buying a plane ticket you

16:51
punch in the numbers

16:53
and then you look at the the carriers

16:55
and by the way that the quotes

16:56
are good for seven to ten days i i say

16:59
annuity quotes are like a gallon of milk

17:01
they spoil

17:01
you have to re-quote them in seven to

17:03
ten days which is fine

17:04
and you have to lock them in and start

17:06
the paperwork to get that

17:08
that quote you just can't lock them in

17:09
and say well i'm thinking about it now

17:10
you gotta lock them in

17:11
and get going because they need that

17:14
paperwork in order to lock in that quote

17:16
and you have to understand you can't

17:17
time any of this i mean there's no way

17:20
to time

17:21
interest rates your time in interest

17:23
rates you're missing the point because

17:24
the primary pricing mechanism

17:26
of a deferred income annuity is what

17:28
it's your life expectancy

17:30
okay it's not interest rates interest

17:32
rates play a secondary role

17:35
in the pricing so you have to understand

17:36
that so people always say well i'm just

17:38
going to wait on interest rates well

17:39
you're missing the point there chester

17:42
okay

17:43
it's life expectancy the older you are

17:45
the higher the payments because the less

17:47
life expectancy you have which means

17:49
the less projected payments you have

17:52
it's really that simple you either want

17:54
to transfer risk or you don't you either

17:55
want a lifetime income stream or you

17:56
don't you can't time it

17:58
either the contractual guaranteed amount

18:00
fits or it does not

18:02
but you can't time it so what what we'll

18:04
do at the

18:06
to close all this is kind of go through

18:07
a few frequently asked questions and i

18:09
would encourage you to also go to

18:12
the annuityman.blog you can get there

18:14
through the annuityman.com

18:15
and the annuityman.blog has me blogging

18:18
and writing on everything because i do

18:20
write i'm a writer

18:21
i publish books but i write all the time

18:24
but i have

18:24
a lot of frequently asked questions on

18:26
there where i answer them you can

18:28
actually hit

18:28
see the question hit play and you can

18:30
hear my lovely voice

18:31
answer the question you can also you

18:33
know replay the podcast etc

18:35
but some of the questions that i get all

18:38
the time and

18:39
these might be repetitive because i'm at

18:41
the back of the book the book that you

18:42
should get the dia owner's manual

18:44
is a is it is a longevity annuity and a

18:46
deferred income annuity the same thing

18:48
yes they are the same thing longevity

18:49
annuity is a

18:51
is a is a phrase that journalists like

18:53
to use because it sounds cool i guess

18:56
but you know deferred income annuity

18:58
solves for longevity which is outliving

19:00
your money right it's a transfer of risk

19:03
the annuity companies on the hook to pay

19:04
you regardless of how

19:06
long you live a lot of people ask me how

19:09
many carriers

19:10
offer deferred income annuities i'm

19:12
going to just ballpark it between 15 to

19:14
25

19:15
but you got to quote them all you got to

19:17
see who's got that because

19:19
sometimes a carrier will be number one

19:21
for a couple months and then they will

19:23
have

19:23
met some of their capital raising goals

19:25
and they'll they won't be high again so

19:27
you can't say

19:27
hey stan i want x y and z company that's

19:30
a myopic way to go into it you would

19:32
never go

19:33
buy a plane ticket like that unless

19:34
you're trying to build points which is

19:36
not not smart you buy it for the best

19:39
price and the best value

19:40
a lot of people use these deferred

19:42
income annuities to handcuff their

19:44
wandering ambiguities of children that

19:46
are out there that don't seem that they

19:48
can pull it off

19:49
so you know you can use it for that as

19:51
well understand that there's no

19:53
accumulation value which might drive you

19:55
crazy

19:56
but they do enhance the payout the

19:57
longer that you the annuity company will

20:00
enhance the payout the longer you let

20:01
them hold on to the money

20:02
if you die before the payment start does

20:04
the money go poof only if you structure

20:06
it life only if you structure it life

20:08
with a period certain

20:09
or life with installment refund and cash

20:11
refund you can make sure that

20:13
money goes to your beneficiaries and the

20:14
evil annuity company does not

20:16
keep a penny with the deferring

20:18
community it can be structured so that

20:20
when you

20:20
and we do this with 99 unless people

20:23
tell us not to

20:24
if you die before the income starts 100

20:27
of that money goes back to your

20:28
beneficiaries the annuity company does

20:30
not keep it that's a

20:32
fallacy a lot of people you know say

20:34
well you know

20:35
nudity comes gonna keep the money when i

20:36
die that's just that's just dumb

20:39
and it's not the person's fault for

20:40
being dumb it's just the fact that

20:41
there's some really bad information out

20:43
there

20:43
and a lot of misinformation ironically

20:45
from the financial journalists etc that

20:47
really don't

20:48
understand annuities one of the reasons

20:50
this podcast is is happening

20:52
is there's a need for it there's a need

20:54
for the truth about these without some

20:56
veiled sales pitch

20:57
right you know you might not need an

20:59
annuity after you do all the research

21:01
get a quote read my books et cetera and

21:03
that's

21:03
good remember you can buy this type of

21:06
annuity inside of an ira inside of a

21:08
roth inside of a non-ira and

21:09
non-qualified account

21:11
there's no annual fees the commissions

21:14
are paid

21:15
by the annuity company to the agent you

21:17
never see it i don't know if that's good

21:18
or bad but it is what it is and they're

21:19
low compared to those complex products

21:21
that everyone's trying to jam down your

21:22
throat

21:23
people always continue to ask about that

21:25
you know inflation and colas increases

21:27
everybody wants the perfect product

21:29
right and and

21:30
if you ask enough agents they'll tell

21:31
you they have it they don't there's no

21:32
perfect product they'll have limitations

21:34
remember

21:35
if you attach a cost of living

21:36
adjustment increase

21:38
the annuity is going to lower the

21:39
payment it's just real simple

21:41
if you want to look at that then let's

21:43
quote both with and without a cost of

21:45
living adjustment increase

21:47
okay and you can see how they price it

21:49
it's math remember

21:50
annuities are math there's i mean this

21:52
is this is real simple stuff

21:55
don't make it complex that's about it

21:58
i mean in essence you know they are

22:01
immediate annuities

22:03
that you can defer one last thing is you

22:05
can add money

22:06
to a deferred income annuity in other

22:08
words let's say hey stan let's buy this

22:09
five-year deferral let's defer it for

22:12
five years a deferred income annuity

22:14
and then let's say year three you say

22:16
hey stan i think i'm gonna add money to

22:18
that

22:18
okay let's add some money you can do

22:20
that but what i would do

22:21
because i'm always doing it for will do

22:23
not might do highest contractual

22:24
guarantees

22:25
i would go out into the marketplace i

22:27
would quote everything again for that

22:28
additional money

22:29
to see if it made sense to buy a new dia

22:32
or if it made more sense to add money to

22:36
the

22:36
dia that you have so we're not just

22:38
going to carp on say yeah okay go ahead

22:40
and add it we're always going to be

22:41
shopping for the highest contractual

22:42
guarantee because

22:44
that's all i care about i don't do

22:45
hypotheticals theoreticals back tested

22:47
projected

22:48
pie in the sky unicorn chasing the

22:50
butterflies stuff

22:52
i do contractual only so whatever the

22:55
contractual guarantees are that's what

22:57
i'm shopping for and that's why i'm

22:58
shopping for the highest so with that

22:59
being said

23:00
a couple things make sure you get my

23:02
owner's manual deferred income annuity

23:04
owner's manual go to my site the

23:05
annuityman.com and get it i'll send it

23:07
to you for free

23:08
no obligation no one's going to call or

23:10
show up your doorstep i would encourage

23:11
you to go get a quote at the

23:13
annuityman.com we'll send you the quote

23:15
on income later

23:16
you can look at it once again no

23:17
obligation we won't bother you we will

23:19
treat you like a professional

23:20
and remember that you know annuity

23:22
there's never an urgency to buy an

23:24
annuity you have to understand

23:26
these products 100 and make your

23:29
decision on your time frame

23:31
so with that being said i appreciate you

23:32
joining me and i hope you join me again

23:34
as we keep digging into

23:36
the annuity topics and the annuity

23:39
products and

23:40
hopefully you'll learn something and

23:42
you'll understand these products better

23:43
so you can make an informed decision i

23:45
am stan

23:45
the annuity man and thanks for listening

23:47
to fun with annuity see you next time

23:51
thanks for listening to fun with

23:53
annuities please hit the subscribe

23:55
button and make sure to go to my site

23:57
at the annuityman.com where you can run

24:00
your own spea dia

24:02
and q let quotes and see a live feed of

24:04
the best micah fix rates

24:06
in the country and even get indexed and

24:08
income writer quotes as well

24:10
you can also sign up for my six annuity

24:13
owner's manual books and i'll ship them

24:15
for free and under no

24:17
obligation i also encourage you to

24:19
schedule a one-on-one call with me

24:22
stan the annuity man so we can have a

24:24
full discussion

24:25
of your specific situation it will be

24:27
the best

24:28
brutally factual and truthful advice you

24:31
will ever get and that's one guarantee

24:34
you should definitely take advantage of

24:35
so join me next time for the number one

24:38
annuity podcast

24:39
on the planet fun with annuities

24:47
[Music]

24:52
you

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