Annuities and Timing: The Cost of Waiting: Shootin' It Straight With Stan

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welcome to shooting it straight with

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Stan I'm your host Stan the annuity man

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America's annuity agent licens in all 50

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states today's topic is the cost of

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waiting to purchase an annuity now I

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know what you're saying wait a minute

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that sounds like a sales pitch that

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sounds like a some type of a of an angle

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for me to buy now Stan are you pushing

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me to buy now is this one of those p and

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sales pitches I hear at the bad chicken

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dinner seminar we got to buy now you

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going to get The Upfront bonus BL BL no

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it's not there is a cost to waiting

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and what what forces me to say this many

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many times to clients is the Bell

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doesn't ring at the top or the bottom

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period you can't time it there's no

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Gordon gecko there's no Sweet Spot

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there's no there's no Arbitrage moment

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where it's the perfect time to buy an

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annuity type now let's talk about that

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for a second there's many types of

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annuities there's annuities for Lifetime

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income there's annuities for principal

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protection there's annuities for legacy

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there's annuities for long-term care

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confinement care I've come up with an

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easy acronym called pill that kind of

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covers all of those things that

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annuities contractually solve for P

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stands for principal protection I stands

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for income for Life L stands for Legacy

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and the other L stands for long-term

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care confinement care and the way to

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determine if you need an annuity at all

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is to ask two questions and answer them

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obviously the first question is what do

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you want the money to contractually do

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and when do you want those contractual

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guarant to start never buy an annuity

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for what it might do always own an

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annuity for what it will do and the

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might dos are all this stuff you see out

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there with the hypotheticals and the

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theoreticals if you owned it 10 years

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ago back tested numbers those can be

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manipulated and I'm now starting to see

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the industry following me with articles

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and studies on how these back tested

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non-guaranteed numbers can be very very

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very misleading but let's get back to

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the topic which is um you can't time it

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and there is a cost of waiting let me

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give you a real life example that you

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can grab hold of that applies to every

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single one of you that's watching this

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every single one of us owns the best

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inflation annuity on the planet it is

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called Social Security Now the conundrum

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of decisions that we have out there is

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should I take that lifetime income

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stream at let's just pick a date an age

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65 or should I wait all the pundits and

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experts and and people with you know

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ascots on and patches on their smoking

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jackets or whatever you know what I'm

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saying all the well you should always

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wait till 70 because the numberers

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higher of course they're higher player

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you're older and the older you are the

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higher the payment because you have less

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projected life expectancy which means

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the payments that are projected are

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fewer which means the payments are

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higher duh I mean it is what it is so

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you you can wait or you till 70 it's

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going to be the highest if you don't

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need the income that's fine if it's part

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of your overall plan but let's just look

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at it let's just look at the 65 to 70

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type thought St should I take uh Social

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Security payments should I turn them on

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at age 65 or 70 there's no good

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answerers just bad sales pitches and

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uninformed narcissistic pound the table

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moments of the

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advisor if you take it at 65 yes it's

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going to be a lower payment if you take

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it at 70 yes it's going to be a higher

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payment but if you wait it until age 70

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then you have to factor in the five

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years of payment so 60 months that

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you've missed and then how long even if

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you're getting the higher payment at 70

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how long is it going to take for you to

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make up for that how long is it going to

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take and typically it's you know six

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seven eight years whatever you can run

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that math yourself but as they say in

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the hand burden the hand's worth say in

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the hand say in the South the burd hands

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were to in the bush whatever that means

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but in a Southern speak that means you

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might want to spend the money now I was

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having a good conversation with my older

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sister who is a great person and she is

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older than me so you know I was talking

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to her about Finance stuff and seeing

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how they were doing no she's not a

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client I do not have family members as

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clients please don't do business with

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family just you can go to this go to the

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uh family reunion and and have a nice

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time and not have this cloud of Doubt

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over your head if you're trying to sell

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if you bought something from a family

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member but she's getting ready at the

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time of this taping to turn 62 years old

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and she asked me a question she said um

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Stan should I turn on the Social

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Security at 62 because I think I'm going

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to because I want to just spend it and

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travel and do my thing and I don't know

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how long I'm going to live she goes

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every single adviser that we work with

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says no don't do that wait till 70 or

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wait till 66 or wait till and they were

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pound and they pound the table

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mathematically

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and so I asked my sister who is a really

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smart person when when she was born she

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got all the brains and I got all the uh

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I could shoot a basketball so she got

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all the brains and I could shoot a

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basketball I don't know if that's even

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or not anyway so she's like I ran the

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numbers and it would take a long time

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for us her and her husband to make up

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for the you know if they waited to make

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up for the payments if she took them now

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and I said' well take them now she goes

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you're the only person that's told me to

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do that and that's because hey spend the

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money you know there's three phases of

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retirement go go slow go and noo and I'm

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going to add one more when you between

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95 and 100 that's hell noo okay I was on

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a podcast did a podcast my fun with the

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nties podcast with Marsha Mel and we

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came up with that fourth one because she

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had in-laws that were in their hundreds

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I said that's a hell noo okay because

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nothing's happening then but I told my

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sister hey go ahead and take it if

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you're going to earmark it for fun and

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enjoy your life and you're hitting on

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all cylinders and you're healthy do it

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now all financial planners out there are

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yelling at the screen and the speaker

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going that's the dumbest thing I ever

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think is leave money on the table

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because 8% increase in Social Security I

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get it I totally get it but what I want

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you to come away from the shooting

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strength withstand Masterpiece that's in

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progress right now but it is a

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masterpiece is that there is a cost of

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waiting you I mean you

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cannot the only reason that you would

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wait in my my opinion is if you really

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didn't need the income and you just

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wanted to maximize it because you're

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going to be older which means the

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payments are going to be higher because

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the projected life expectancy is going

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to be less I mean it's really that basic

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so what I want you to do is stop when

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you're looking at the

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annuity category and there's many types

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of annuities out there remember the

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principal protection income for Life

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Legacy and long-term care that pill

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acronym is what annuities contractually

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solve for please do not buy annuities

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for market growth please okay go go buy

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other non- annuity things for market

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growth and that's coming from someone

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who worked on the street Dean wter Payne

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Weber Morgan Stanley ubbs I know of what

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I speak been there done that but when

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you're buying contractual guarantees you

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can't time it you can't I don't care who

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you are I don't care how smart you are I

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don't care what ivy league or whatever

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thing you went I don't care these are

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contracts these are commodity products

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you shop all carries for the highest

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contractual guarantee and always tell

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people people that if the contractual

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guarantee looks fair to you for your

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situation then lock it in Lock and Load

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you know as they say in the South Lock

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and Load and go live your life go live

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your life but there is a cost of waiting

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does that cost pay off if you wait it

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can for Lifetime income because you're

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older but you have to factor in the

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payments that you miss while you're

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waiting to get the higher payment

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annuity companies have the big buildings

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for a reason the logos on the plane for

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a reason they have sponsoring sports

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stadiums for a reason they don't give

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anything away and they price everything

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in and they know when we're going to die

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life insurance companies know when we're

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going to die that's the reason they have

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the big buildings and the Property and

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Casualty companies don't because the PNC

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companies don't know when the hurricane

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the tornado and the fire is going to hit

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but life insurance companies know when

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you're going to die and they're fine

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with you waiting they're fine with you

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trying to be Gordon annuity get-go

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they're fine with you trying to be

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Master of the Anu Universe which doesn't

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exist because if that person exists it

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would be me because I'm standing new man

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America's anity agent and I know after

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decades in this business you cannot time

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it there is no Sweet Spot there is no

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Arbitrage moment and there is a cost of

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waiting when you're trying to be that

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person so do not be that person go to my

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site at theanu man.com you can run

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quotes using our proprietary calculators

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the best out there not even there's no

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argument if they're the best out there

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you can run those quotes 247 365

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nobody's going to call or bug you how

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about that it's actually a service for

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the consumer and you can run them

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247365 it's not for agents it's not for

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advisers it's for consumers only because

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we are the top direct consumer annuity

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sales

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people in the in the world I mean it is

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what it is the annuity man.com that is

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shooting it straight with Stan my name

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is Stan the anud Man yes yes to answer

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your question I am America's annuity

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agent and yes I hear you I am licensed

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in all 50 states see you next time