3 Guaranteed Ways to Fund Your Retirement

0:00
Hi, I'm Stan the Annuity Man, America's

0:01
annuity agent, licensed in all 50

0:04
states, including yours. This is part of

0:06
my retirement tips video series under

0:09
the Stan the Annuity Man YouTube

0:11
channel. And this one, we're going to

0:12
talk about three ways to have money hit

0:15
your bank account, which we all would

0:16
like. That's really good. When money's

0:18
hitting the bank account, I call that

0:20
the income floor. Uh, which is the

0:23
guaranteed income floor. Social

0:24
Security, pension, annuities, you know,

0:26
rental income, whatever. That money

0:28
that's going to always hit. That's what

0:30
we're going to talk about today. But

0:32
before that, I'd encourage you to go to

0:33
my site, theanuityman.com. Get all of my

0:36
books for free under no obligation. I

0:38
will ship them to you so that you'll

0:40
understand all things annuity, the

0:42
contractual guarantees, the good, the

0:44
bad, the limitations, and the benefits.

0:46
I would also encourage you to go there

0:48
and schedule a call with me oneon-one.

0:49
Yes, you will talk with Stan the Annuity

0:52
Man if you want to talk about annuities.

0:55
I am licensed in all 50 states. I have a

0:57
great staff that's supporting me. If

0:58
you're asking yourself, how does he do

1:00
that? I've got some really good people

1:02
surrounding me. So, let's get down to

1:04
business, but not before we hear this

1:06
[Music]

1:15
music. I forgot to tell you, shameless

1:17
prop. This is a calculator, a big darn

1:20
calculator, a BDC. Um, but you can go to

1:23
my site, theanuityman.com. We have the

1:25
best proprietary calculators on the

1:27
planet and you can use them at your

1:29
leisure or have us run the numbers for

1:30
you. It's really your call, but I wanted

1:32
to mention that to you before we get

1:33
started. All right, let's talk about the

1:35
three ways that money can hit your bank

1:37
account. The first way is using a fixed

1:39
rate annuity. In the industry, they're

1:41
called multi-year guarantee annuities.

1:43
It's the industry version of a CD, a

1:45
certificate of deposit. I'm assuming

1:47
most of you know what that is. This is a

1:50
way to have money hidden in your bank

1:51
account, but you're never touching the

1:52
principal. A lot of people love that. My

1:54
mom loves that in St. Augustine,

1:56
Florida. She never wants to touch the

1:57
principal. Um, she just wants to peel

1:59
off the interest. You can do that with

2:00
multi-year guarantee annuities. Not all

2:02
of them, but most of them will allow you

2:05
to do that. So, for example, if you

2:07
bought a, at the time of this taping,

2:09
there's a three-year multi-year

2:11
guarantee annuity at 3% that's um

2:14
available in most states. These products

2:16
are issued um by life insurance

2:18
companies and approved at the state

2:19
levels. But most of the uh states have

2:23
this product. Uh but for an example, you

2:25
you buy you put $100,000 into this

2:28
three-year product at 3%. You can peel

2:32
off

2:33
$3,000 a year that will hit your bank

2:35
account. I guess you can do it if you

2:37
decide to do it monthly, you can do it

2:39
that way or you can just have all hit

2:41
one time annually. But you never touch

2:43
the principal. That is one way to peel

2:46
off the interest and have money hit your

2:48
bank account. A lot of people like that.

2:49
You can also do that with fixed index

2:52
annuities. Um, whatever that credited

2:54
amount is. And by the way, I would watch

2:56
this a video. I did a series on index

2:59
annuities that explains index annuities

3:00
in depth. But you can also peel off

3:03
whatever credited interest is on the

3:05
index annuity and it hits your bank

3:07
account as well. Again, not all annuity

3:09
companies are uniform and there's like

3:11
herd and cat. So, you'd have to come to

3:13
me and say, "Hey, Stan, this is what I

3:14
want. I don't want to lose a penny. I

3:16
don't want to touch my principal, and I

3:18
want to peel off any interest into my

3:20
bank account. I'll go shop the best

3:22
carriers for you and find those policies

3:24
so that we can discuss them." Okay. The

3:26
other way to have money hitting your

3:29
bank account, I love that sound. Just

3:31
boom, it's hitting you. You don't have

3:32
to think about it. It's what's called an

3:34
income writer. An income writer is an

3:37
attached benefit to a policy. It's

3:38
typically an index annuity or variable

3:40
annuity. How an income writer works is

3:42
that it's a separate calculation. So the

3:45
real money accumulation value is here.

3:47
The income writer benefit calculation is

3:49
here. And it it's primarily based the

3:52
pricing is based on your life expectancy

3:54
at the time you take the payment. The

3:55
older you are, the higher the payment.

3:56
But the good news about income writers,

3:58
it's a transfer of risk to the annuity

3:59
company to pay you or if you set it up

4:01
joint with a spouse or partner, joint

4:03
life to pay you or or someone that you

4:06
love an income stream for the rest of

4:08
your lives regardless of how long you

4:10
live. Hey, that's a good thing. There's

4:12
no ROI until you die, right? Until then,

4:15
it's a transfer of risk. But income

4:16
writers, you can structure them so you

4:18
have that monthly income stream hitting

4:20
your bank account just like your

4:22
pension, just like your social security.

4:24
In essence, an income writer is a

4:26
personal pension, but you can defer it,

4:28
you know, as far out as 15, 20 years

4:30
with some of them. Most people are

4:32
deferring anywhere from 5 to 7 to 10

4:34
years. It depends on your specific

4:36
situation and when you want that income

4:37
to start. The great part about income

4:39
writers is that you can determine when

4:42
that income stream is going to start and

4:44
you can change it. Typically, with most

4:46
companies, you can change that start

4:47
date. So, if you wait and defer it

4:49
longer, you're going to be older, which

4:50
means the payments will be higher. And

4:51
the reverse is true. So, if you start

4:53
the income stream when you're younger,

4:55
the income's going to be a little bit

4:57
lower because you have a longer life

4:59
expectancy. Oh, by the way, I have

5:00
written a book on income writers. We

5:02
just talked about that. So, go to my

5:04
site at theanuityman.com. I will send

5:06
you this book for free. Oh, yeah. I've

5:08
written a book on on multi-year

5:09
guarantee annuities and index annuities

5:11
as well. And my producers like yelling

5:13
at me going, "Tell show them the other

5:14
ones." You know, we're getting ready to

5:16
talk about the annuitized products,

5:18
which are QAX, deferred income

5:20
annuities, and single premium immediate

5:22
annuities. So, I'll throw those books to

5:24
the side. Hear that, producer? There you

5:26
go. The third way for for income or

5:29
money to hit your bank account every

5:31
single month are the annuitized products

5:34
with annuities. And those are single

5:36
premium immediate annuities, deferred

5:38
income annuities, and qualified

5:40
longevity annuity contracts. From a

5:42
structuring standpoint, they're pretty

5:43
much the same thing. There's no moving

5:45
parts. There's no market attachments.

5:47
There's no annual fees. I mean, they're

5:49
transfer of risk pension products.

5:51
Immediate annuities are the granddaddy

5:53
of all of them. In other words, the

5:54
deferred income annuities and the

5:56
qualified longevity annuity contracts

5:57
pretty much came from the immediate

5:59
annuity side because single premium

6:01
immediate annuities were developed and

6:03
designed and introduced in the Roman

6:05
times as a pension gift to the beautiful

6:07
Roman soldiers and their families. been

6:09
sold in this country for hundreds and

6:11
hundreds of years and still is the best

6:14
highest contractual guarantee proc

6:16
customer product out there. If you want

6:18
income to start right now, 30 days up to

6:20
a year, that's a single premium

6:22
immediate annuity. The pricing of that

6:24
income stream is primarily based on your

6:26
life expectancy at the time you take the

6:28
payment with interest rates paying a

6:30
secondary role. The old older you are,

6:32
the higher the payment. Makes sense. A

6:34
deferred income annuity is really the

6:36
cousin of the immediate annuity. The

6:38
difference between an immediate annuity

6:40
and a deferred income annuity, SPIA and

6:42
DIA as they say, uh, in the industry, a

6:44
deferred income annuity, the income can

6:46
start as soon as 13 months, as far out

6:48
as 30 to 40 years. You can defer that

6:51
far out with a deferred income annuity.

6:53
Once again, no annual fees, no moving

6:55
parts, no market attachments. It's a

6:57
straight transfer of risk pension

6:59
product that, you know, the older you

7:00
are, the higher the payment. Social

7:02
Security, which is an annuity that you

7:04
already own, is pretty much a deferred

7:07
income annuity. The older you are, the

7:08
higher the payment. It works pretty much

7:10
the same way. Which leads us to the

7:12
third type of what I call the annuiz

7:15
creating payments annuity products

7:17
that's going to have money hit your bank

7:19
account every single month. That's a

7:21
qualified longevity annuity contract

7:23
called a QAC. Yes, I've written a book

7:25
on it. I just showed you that and we'll

7:26
send it to you as well. But a QAC was

7:28
developed in

7:29
2014 to put in your IRA, traditional

7:32
IRA, and some employer plans. Not all.

7:34
They should be all, but not all. But

7:36
your traditional IAS, most people are

7:38
using qualified longevity annuity

7:40
contracts in their traditional IAS. The

7:42
good news about QAX, as we call them, is

7:46
that you can defer as far out as age 85

7:48
in your IRA. You don't have to go that

7:50
far. Not a Roth IRA, traditional IRA.

7:52
You can also set it up to where your

7:53
spouse or partner receives that lifetime

7:55
income benefit as well for as long as

7:58
they live. So, you can use your

7:59
traditional IRA to set up a joint

8:01
lifetime income stream. And you can

8:03
defer it as far out as you're age 85.

8:05
But it doesn't have to be that. It can

8:07
be anytime you want it. 72, 74, 75,

8:10
whatever. A lot of people think that

8:11
QLEXs have to be deferred to age 85.

8:13
They do not. But a QAC is a deferred

8:16
income annuity. A deferred income

8:17
annuity is an immediate annuity. The

8:19
same structure, just different places

8:21
you can use them. Obviously, you cannot

8:23
use a QAC and a Roth IRA, but those are

8:26
also ways to have money hitting your

8:29
account every single month. All right,

8:31
so let's go over those three ways that

8:32
money can hit your account. Multi-year

8:34
guarantee annuities, which is the

8:35
annuity industry version of a CD. Just

8:37
peel off the interest. You can do the

8:38
same thing with index annuities. Number

8:39
two, income writers, which are attached

8:42
benefits to variable annuities and index

8:45
annuities. And for future pension income

8:47
needs, personal pension income needs, by

8:48
the way, you can design it and customize

8:50
it. You know, when we talk, that's what

8:52
we'll do. And then the third way are the

8:54
annuitized products. Single premium

8:55
immediate annuities, deferred income

8:57
annuities, qualified longevity annuity

8:59
contracts. With that being said, that

9:01
doesn't mean you need to buy an annuity.

9:02
What that means is you need to get my

9:04
books. You need to talk with me one

9:06
on-one so we can have a good

9:07
conversation to make sure that an

9:09
annuity fits your specific situation.

9:11
Just remember this with any annuity

9:13
purchase, you ask and answer two

9:15
questions. What do you want the money to

9:17
contractually do? And when do you want

9:19
those contractual guarantees to start?

9:21
From those two answers, our

9:22
conversations start. I start quoting all

9:24
carriers to find the best contractual

9:26
guarantees for your specific situation.

9:29
and you get to make the decision to buy

9:31
or not to buy on your terms and on your

9:33
time frame. Hey, I've done a series of

9:34
these retirement tips videos. I'd

9:37
encourage you to check out the whole

9:38
series of the one I'm pointing to right

9:40
now. Go there, learn, educate yourself,

9:43
understand that annuities are contracts.

9:45
They're not investments in my opinion.

9:46
They're contracts. So, you need to

9:47
understand that contractual guarantee

9:49
before you pull any triggers and place

9:52
any money. See you on the next Stand the

9:54
Annuity Man video.

9:56
[Music]