Annuity Light Switch Income Guarantees

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Welcome to Shooting It Straight with

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Stan. I'm your host Stan the Annuity

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Man, America's annuity agent licensed in

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all 50 states. Today's topic is annuity

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light switch lifetime income guarantees.

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So, annuity light switch. I want you to

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envision a light switch. You just shut

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it on and off, right? When you need

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light, you shut it on. When you need it

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to be dark, you shut it off.

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There are annuity types out there that

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allow you to shut things on and off,

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that allow you to shut income on and

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off. And you say, "Wait a

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minute. What are you talking about? Why

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would I ever do that?" Well, maybe tax

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laws change in the future and you need

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to shut down that income stream from the

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annuity at that time in order not to get

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taxed and to wait for another

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administration to get it. or maybe the

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income that you planned on you don't

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need anymore. So instead of taking the

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lifetime income, which is a combination

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of return of principal plus interest,

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it's going to draw down on the asset.

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Instead of continuing the income, you

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just shut it off and you let it

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accumulate for a death benefit. There's

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a myriad of reasons of why you would

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want to stop taking income. Not all the

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time. Most of the time once you decide

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on income, you turn it on and it's and

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it's over. It's it's irrevocable. There

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are three types of lifetime income

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products that are pretty much

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irrevocable. One's a single premium

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immediate annuity. That's for income

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starting from 30 days up to a year. Then

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there's a deferred income annuity, which

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is single premium immediate annuity that

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you defer past a year. And then there's

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a qualified longevity annuity contract,

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which is a deferred income annuity that

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you use inside of an IRA or qualified

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account. All three of those are what's

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called annuitized products. All three of

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those are like ripping the knob off a

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water faucet. Meaning income's coming

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whether you want it or not. It's an

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irrevocable income pension contract of

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which we can structure so that 100% of

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any unused money goes to the

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beneficiary. But as long as you're

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breathing and or on a ventilator, it's

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going to pay. So those are the the three

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anuized type

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products. But there are a couple more

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out here that you need to be aware of

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that I call light switch products. And

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those light switch products, the first

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one is a multi-year guarantee annuity. A

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multi-year guarantee annuity is a CD

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product. It's the annuity industry

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version of a CD. Don't make it any more

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difficult than that. Please, please,

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please. There's no triggering of

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anything. There's no market attachments,

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no annual fees. It's a yield like a CD

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that you lock in for a specific period

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of time like a CD. There's no annual

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fees like a CD. There's no moving parts

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like a CD. There's no market status like

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a CD. And you can choose your duration

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like a CD. It's called a multi-year

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guarantee annuity. Now, a lot of

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multi-year guarantee annuities allow you

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to take out

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interest. All right? So, let's just say

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you're getting x% interest on a 5-year

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multi-year guarantee annuity. You can

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take the interest out and never touch

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the principal. So, at the end of the

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five years, you've taken all the

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interest out on a monthly sim or monthly

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or quarterly semianual annual basis.

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Your choice by the way. And then at the

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end, you have all your money intact and

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you can do what you want to with it. You

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can take it back. You can roll it to

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another one, etc.

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But let's just say you chose one of

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those that you can take out interest

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penalty-free and you do that. You can

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shut it on and off like a light switch.

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So in other words, you might take

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interest out for six months and then

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something changes or you just don't need

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the income. You can shut it off and let

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it accumulate and compound. By the way,

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interest on my desk compounds with 99%

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of them. There's like a couple unicorns

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out there, 1% that are simple interest,

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but 99% of compound interest. So, you

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can shut it on and off like a light

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switch. So, think about that. You have a

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CD type product and CDs are issued by

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banks and brokerage firms, credit

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unions, those type of people. Okay? But

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multi-year guarantee annuities, the

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annuity industry version of a CD are

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issued by life insurance companies that

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issue

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annuities. So the claims pay and ability

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of the life insurance company is very

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very important. But we're talking about

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light switch income with annuities.

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That's the that's the first way. The

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second way are what's called income

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writers. And if you go to my site, I

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have the only I have the only site

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currently that has income writer

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calculators you can run 247 365. The

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consumer can you. That would be you.

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Okay. Um this isn't for agents. We we

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don't work with agents. We are the

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agent. Okay. Stan the annuity man. I'm

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the agent. But income writers are

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typically attached to either variable or

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index annuities. We don't sell variable

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annuities because we don't sell anything

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that has the potential to go down in

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value. We sell index annuities. But in

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with an income writer, we don't look at

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the index at all. We don't look at the

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cavs and the spreads and the

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participation rates and upfront bonuses.

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Upfront bonuses. No, we don't look at

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any of that. We look at the income

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writer. If you draw a line down a blank

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sheet of paper, left hand side's the

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index option side that every jack wagon

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agent out there is going to try to focus

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on. Go look at the if you'd done it 10

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years ago, you'd have got this 7 to 10%

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return wrong. Okay. What we look at is

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the other side of the ledger, which is

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the income writer, the contractual

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guarantee of the policy. Once you strip

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strip this down, in other words, if you

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look at index annuities with income

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writers and you're only focused on the

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income writers, which you should because

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you only should own an annuity for what

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it will do, not what what it might do,

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not some hypothetical or theoretical

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back tested unicorn chasing a butterfly

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nonsense. You're looking at the

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contractual guarantee of the income

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writer. Once you do that, then you've

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commoditized that product and then we

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can go shop all carriers for the highest

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contractual guaranteed income writer

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payment.

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But here's the thing. Income writers are

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not attached to index annuities are not

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annuitized. They're called draw down

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products. Wait a minute, Stan. What does

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draw down mean in southern? It means

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subtraction. That's what it means.

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You're taking income out. Return of

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principal plus interest, and it's

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subtracting from the total. But with

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income writers, it's a light switch. You

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can shut it on and off. Now, here's the

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catch. When you shut it back on, it's

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going to shut. It's going to turn back

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on at the exact payment level that you

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shut it off. In other words, don't don't

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be Gordon Ke Gecko out there. Go, I know

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I'd play this game stand. I found the

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arbitrage moment. I'm going to shut it

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off and then when I shut it back on,

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it's going to be more. No, it's not.

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It's going to turn back on at the same

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income level that you when you shut it

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off. But again, it might make sense for

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you to be able to shut it off. You might

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just say, "We don't need the income

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anymore." or I don't need the income

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anymore. I want it to grow as a death

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benefit. Or, you know, Johnny President

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gets in and Johnny President goes, "All

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you evil annuity people out there that

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scrimped and saved and planned, you're

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evil is what you are. You're evil and

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we're going to tax your annuity income

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at

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94%." Because you're evil and you're

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rich and you don't care about the common

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man. Hey, don't laugh. It could happen.

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So if Johnny President does that or

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Joanne president, then you shut that

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income writer off. You flip the switch.

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You call somebody say, "Flip the switch,

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Stan. Flip it. Flip it. Flip it and

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forget it." And then when who and then

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when whoever gets in next and goes that

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Johnny and Joanne president, that was

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crazy talk. And we're going to lower it

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again. And then you flip it back

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on. So light switch lifetime income is

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with income writers. Light switch income

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which is peeling off the interest with

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MAUS. But both allow you to shut it on

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and off like a light switch. So if that

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detail and benefit is important to you,

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then you need to let us know that. But I

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wanted to let you know that it's

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available. That's the big the big thing

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about annuities is that and I've done

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thousands of videos and hopefully we'll

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do thousands more. And most of the

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topics come from conversations that I

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have with people and they ask good

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questions. I write the questions down

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and we do videos so I can educate people

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so that this is evergreen content that

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you can refer back to because I talk a

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little fast and you can go back and

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listen to it again and say did he say

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what I think he just said Martha did he

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what what that boy say what that boy say

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so fast this way you can understand it

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there are annuities that aren't light

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switch annuities spas diaz but there are

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annuities that are light switch for

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income

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Migas, it's not lifetime income. It's

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just peeling off interest off a CD type

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product. And then income writers, which

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are lifetime income products. Now, not

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to get into the weeds, but there are

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some variable annuities out there that

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have annuitized writers, but they're not

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on income index annuities. We don't sell

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variable annuities. Again, nothing

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against them. We just don't sell them.

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We won't sell anything has a potential

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to go down in value. But index

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annuities, when we look at the income

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writers, we don't look at the indexes at

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all. We don't look at the index annuity

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story. We only look at the income

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writers. Why? Good question. It's the

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contractual guarantee of the policy and

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we don't look at anything other than the

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contractual guarantee of the policy. And

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once again, just to because I'm driving

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this point home every time I get a

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chance, when you buy annuities for

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contractual guarantees only, you then

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commoditize the strategy so that you can

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shop all carriers for the highest

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contractual guarantee. So there are such

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animals and products and strategies out

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here for light switch annuity income.

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There are two of them currently that I

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believe in and that's all that matters.

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What do you believe in, Stan? I believe

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that all people should should buy

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annuities for the contractual

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guarantees. I believe that they should

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base their decisions on what it will do,

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not what it might do. Why am I talking

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like a bad politician? That's not good.

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Why don't politicians just have just

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talk? Why do they have to talk like this

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and have to inonate

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every what is that taught? Is there a

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school? Is there a camp? How about a guy

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or a gallette getting up there and

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saying just talking? How about just

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talking? How about

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that? Maybe I run. No, I'm not gonna

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do standing there. The media would have

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a field day. But guess who else would

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have a field day with the with the

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media? That would be me. That would be

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something that they would want no part

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of. Trust me. And that's shooting it

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straight with Stan light switch

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annuities. Didn't know they existed, did

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you? No, because I just named them that

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and now they're going to be a category.

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Why? Because I'm Stan the annuity man.