Annuities vs Other Retirement Options For Someone Retiring

0:00
Hi there, Stan the Annuity Man,

0:02
America's annuity agent, licensed in all

0:04
50 states. Today's topic is kind of an

0:07
interesting one. It's annuities versus

0:08
other retirement options for people that

0:11
are getting ready to retire, thinking

0:12
about retirement. Um,

0:15
if you're at that stage, you know, think

0:18
about running four laps a mile around

0:21
the high school track and you're at

0:24
three and a quarter. You're running,

0:25
you're turning the corner, you're coming

0:26
down the straight, you got to be

0:28
thinking about guarantees. You got to be

0:30
thinking about chapter two. You got to

0:32
be thinking about how do you want that

0:34
that second part of your life to look

0:36
like? Um, not only lifestyle-wise, but

0:39
financially. Let's talk about that and

0:42
how annuities might fit after this.

0:48
[music]

0:51
So, annuities versus other retirement

0:53
options.

0:55
Um, chapter two, which I call

0:58
retirement. Chapter two, you you know,

0:59
chapter one is you're you've been a

1:01
30-year overnight sensation. You've

1:03
scrimped and saved and done without and

1:05
and um and planned and now you're here.

1:08
You say, "Okay, now what do I want to

1:10
do?" You know, let's do I need do I want

1:12
to look at annuities? Everyone says

1:14
annuities are bad and everyone says they

1:15
hate annuities and my advisor says not

1:18
to look at annuities, but yet I love

1:20
social security. That's an annuity. So

1:23
why does everyone hate them? Good

1:24
question. I mean, I think a lot of it's

1:26
just the way they're sold and

1:28
highressured. There's a lot of [snorts]

1:29
really nonqualified people selling

1:31
annuities. They don't understand finance

1:34
at all or they don't understand

1:35
retirement products.

1:37
[clears throat] But it really comes down

1:38
to two things when you're looking at

1:41
annuities and other retirement options.

1:43
Annuities are

1:45
contracts. They're issued by life

1:47
insurance companies. And they solve for

1:49
four primary things. The acronym is

1:51
pill. P stands for principal protection.

1:53
I stands for income for life. L stands

1:55
for legacy. And the other L stands for

1:57
long-term care. Those are annuity

1:59
contracts. Those are contracts,

2:02
non-correlated, meaning that they have

2:05
nothing to do with the markets at all.

2:08
Now, there's a few types of annuities

2:10
that every agent is going to try to sell

2:12
you because they're high commission

2:13
products, and they're going to tell you

2:14
you can get market returns. You cannot,

2:17
unless you're just the unicorn that it

2:19
happened to you.

2:22
So really it comes down to contractual

2:24
guarantees with annuities and then other

2:26
retirement products which are and it

2:29
typically market-based. But let's look

2:31
at the safety ones like the non

2:33
non-market-based ones that are that are

2:35
for safety. That would be CDs, money

2:38
markets, treasuries, municipal bonds,

2:42
REITs, preferred stock, non-anuity but

2:46
safe gives you a yield etc. Now over

2:50
here again, principal protection, income

2:51
for life, legacy, and long-term care.

2:53
The monopoly that that annuities have

2:56
lifetime income. It's the only product

2:58
category that can produce lifetime

2:59
income. Don't come over here and say

3:01
30-year municipal bond. That's

3:03
irrelevant. What if you live 35 years

3:07
over here? It's going to pay for as long

3:08
as you're breathing or if it's joint

3:11
life as long as long as one of you is

3:12
breathing. Income continues

3:14
uninterrupted and unchanged. So when you

3:16
look at annu annuities should be

3:18
contractual non-correlated

3:20
having nothing to do with the markets

3:22
and then other retirement products that

3:23
are more market-based.

3:25
You have to make the decision on what's

3:28
the percentage in contractual guarantees

3:30
and what's the percentage

3:32
in potential growth. Never buy an

3:35
annuity for potential growth. Never buy

3:37
an annuity for growth. Never buy an

3:39
annuity for non-G guaranteed return

3:41
scenarios. Please, if you do that,

3:42
you'll be happy because you're going to

3:44
own contractual guarantees.

3:47
First thing you need to do is look at

3:49
your income floor when you're retiring.

3:51
What's my income floor, Stan? It's the

3:53
amount of money that's coming in every

3:54
single month, regardless of politics,

3:56
wars, anything. It's coming into my

3:59
account. Pensions, social security, both

4:01
annuities, right? Dividend stocks, side

4:05
hustle, rental properties. It's coming

4:08
into your It's coming into your checking

4:09
account every single month. What is your

4:11
income floor? Do you need more income

4:13
floor? That's the first thing. Second

4:15
thing is, how much risk do I want to

4:17
take? How much risk do I want to take on

4:19
this side? Do I want to do more

4:21
contractual guarantees like a multi-year

4:23
guarantee annuity, the annuity industry

4:25
version of a CD that guarantees an

4:26
interest rate and protects the

4:28
principal? Do I want to just do that and

4:30
what I call hit bunt singles? Bunt

4:32
singles are good in retirement. You

4:35
don't need to be swinging for the fences

4:36
anymore. So, how much risk do you want

4:38
to take? How much how much contractual

4:40
guarantees do you want in place? What's

4:42
that percentage? What do you feel

4:44
comfortable with? I always tell people,

4:46
if you've won the game, why are you

4:47
still playing? People always I had a guy

4:49
the other day and he and we're talking

4:51
about it and he goes, "Well, you know, I

4:52
always need growth." And I went, "Why? I

4:55
mean, don't you have enough money?"

4:57
"Well, yeah, but don't you you got to

4:58
have something in growth." I went,

4:59
"Why?" Well, they they they say, "Who's

5:02
they?

5:05
Do you really need to do that? Or could

5:07
you do contractual guarantees over here

5:09
with principal protection, lifetime

5:10
income, and then come over here and do

5:12
CDs, money markets, treasuries, munis,

5:15
and just be out of the game? Yeah, it's

5:17
okay to do that. I know your adviser

5:20
will No, you can't do that. Everybody

5:22
needs market growth. You got to have

5:23
some exposure to the market.

5:27
Does that still hold true when the

5:28
market tanks and you're down 30% that

5:30
year? It'd be okay if you had the

5:32
guarantees in place, right? That's the

5:35
reason the income floor is so important

5:37
because if the income floor is in place

5:39
and you have to worry about the

5:40
day-to-day expenses and you pat it a

5:43
little bit so you can travel and do your

5:44
thing, then the market stuff can be the

5:46
market stuff. I always say we we stand

5:50
the annuity man lifetime income

5:51
contractual guarantees. We're Wall

5:53
Street's best friend because if you have

5:55
that in place, you're not going to

5:56
disrupt your investments when things get

5:58
choppy and they're going to get choppy.

6:00
We're 41 trillion in debt. We happen to

6:03
be involved in some skirmishes at the

6:06
time of this taping. Politically is

6:08
always going to be upheaval. I don't

6:10
care what side you're on. But if you won

6:12
the game, why are you still playing? And

6:14
that's when you come back and say, "How

6:16
much risk do I want to take on this

6:18
side, the market side? How much

6:20
non-correlated assets do I want on this

6:23
side or do I want a combination of

6:25
non-correlated on both sides?" And just

6:27
it's a wrap. Most of you have enough

6:30
money to live well. Most of you have a

6:32
spending problem.

6:36
I know I do. I know my wife does. Well,

6:38
my wife's getting better at it. But

6:40
the point is, it's all about lifestyle

6:43
in chapter two. If you're round in the

6:45
corner and you're looking at annuities

6:46
and and other options for retirement,

6:48
it's about lifestyle. It's not about the

6:50
It's not about that. It's about you.

6:52
It's about what you want to do. It's

6:54
about how you want to live. It's about

6:55
what you've earned the right to do.

6:58
Remember remember this. There's no

6:59
U-Hauls behind herses and better than

7:01
that. Fly first class or your kids will

7:07
right.

7:11
I had a guy the other day said, "Stan, I

7:12
keep hearing you say fly a first class,

7:14
your kids will, but it's just hard for

7:16
me to pay that." I know, but your kids

7:17
will pay that. So, why don't you pay

7:19
that? Have them bring you a drink.

7:22
You've earned it. So, when you do these

7:24
comparisons, I think it's it's really

7:26
put the income floor in place. Make sure

7:28
that income floor is in place. You

7:30
already have an annuity, social

7:31
security. Make sure that income floor is

7:33
in place. And then dovetail from that.

7:36
How much risk do you want to take? 50%,

7:39
40%, 30%, 0%.

7:42
Whatever whatever you feel comfortable

7:44
with. And also think of your spouse.

7:47
What happens when you die and you love

7:50
the markets and my wife hates the

7:51
markets? What happens then? Start

7:55
thinking. Start planning. You can use

7:58
contractual guarantees to take care of

7:59
your family when you're not here. I know

8:02
it's hard to believe you a personality

8:03
people out there that you're not going

8:04
to be here, but you're not going to be

8:05
here. And when my I'm I drive a Z right

8:10
now. There's a good story about that

8:11
that I'll close with this. My dream car

8:14
in high school was a Dodson 240Z.

8:16
That's what all the cool kids had. Of

8:18
course, I didn't get that. My dad said,

8:19
"You are crazy." 45 years later, I

8:22
walked into a Nissan dealership, saw the

8:24
Z on the floor, and I went, "That's my

8:25
car." and I bought it and I drive it

8:28
like an old man. But you know,

8:31
I'd earned it. You've earned it. All

8:34
right.

8:36
Do me a favor. Need you to go to my

8:38
site. First of all, you can schedule a

8:40
call with me. You can email me. You can

8:41
run anonymous quotes. You don't even

8:43
have to put in your name, email, or

8:44
phone. Just you get real quotes, not

8:46
estimates. Real quotes. Just put in your

8:49
gender, date of birth, and state of

8:50
residence. You can download my books.

8:52
You can do all of that.

8:54
We want you as a client. We want you to

8:57
give us a shot. One of the reasons I did

8:59
a video on it that I want you to take a

9:01
look at us is we are we are the leaders

9:04
in annuity innovation. We're not it's

9:06
not even close, not even arguable what

9:07
we're doing and we're just getting

9:09
started. But um the guy that runs my

9:11
company is from Google and uh we just

9:13
brought him over and he's been

9:15
phenomenal. He's young. I got cowboy

9:17
boots older than him. He can't spell

9:18
annuity, but boy, he knows what he's

9:20
doing. And what we've done is we've

9:22
created a 247 365 site that can do

9:25
business. Meaning you can schedule a

9:27
call with me or you can go to Virtual

9:29
Stanley. And Virtual Stanley is an

9:31
avatar on my site that you can ask

9:33
questions to and it gets it's been fed

9:35
all of my videos, all of that stuff,

9:37
books and articles. So it's going to

9:39
answer like me, but 247 365. So you can

9:42
get me, you can get him. You can do

9:44
online apps yourself, okay? Or you can

9:46
do them with us. I got the best staff in

9:48
the business. working 12 hours a day, 68

9:50
hours a week, eight hours on Sunday. I

9:53
mean Saturday. I would be open on

9:54
Sunday, but my wife would leave me. I

9:55
don't want that. So 68 hours a week, you

9:58
can run anonymous quotes or we can run

10:00
them for you. Bottom line is you can

10:01
choose technology or you can choose us

10:03
or you can blend the two. That's what

10:05
separates us. We're leaders in all of

10:07
that. We have the biggest staff if you

10:09
want to use us humans. We have the best

10:11
technology if you want to use that. And

10:13
at the end, we're going to be

10:15
intermingling with you. Even if you use

10:17
technology, if you fill out the online

10:18
app, we got to give you a call to see if

10:19
you're a uh it'll be a quick call, but

10:22
just see if you're a real person, but

10:23
we'll take it across the finish line. We

10:24
do everything from start to finish,

10:26
turnkey. So, watch that video, go to my

10:29
site, give us a shot, schedule call with

10:31
me, or talk to my buddy Virtual Stanley.

10:33
Either way, you're going to get the

10:35
truth because if you tell the truth, you

10:37
don't have to remember anything,

10:40
right? That's our business model.

10:41
Listen, see you next time.