Annuity Providers That Structure Payouts To Reduce Taxable Retirement Income

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Hi there, Stan the Annuity Man,

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America's annuity agent, licensed in all

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50 states of Puerto Rico. Today's topic

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is so long that I got to pick up the

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clipboard and read it. That's how long

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it is. Typically, I can just glance at

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it and say, "Okay, so hang in there with

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me because this is going to be a good

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topic." Annuity providers

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that structure payouts to reduce taxable

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retirement income.

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Okay,

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that's weird. I mean, that's what

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happens when you surround yourself with

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consultants and bodyguards and things

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like that. Titles like that come into my

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world and then I have to address them

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and I'm going to do that after this.

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So, you're saying, Stan, I understand

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the consultant side, but the bodyguard.

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Yes,

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I'm a contrarian out here and I will

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tell you that I do have to have some

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security when I go to IND industry

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events because I'm talking about

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contractual guarantees only and the

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majority of the industry is talking

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about growth and non-g guaranteed

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return. So, I'm the contrarian that

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messes up a lot of hopes and dreams and

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sales of Johnny Apple Seed agent

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locally. So, um [laughter]

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uh that's okay. pioneers take all the

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arrows. But let's talk about um let's

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just talk about payments coming from

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accounts Roth IRA, nonIRRA, IRA because

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you can buy annuitities

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in all of those account types. And I

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know there's a lot of journalists that

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go never buy an annuity inside of an IRA

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could be the dumbest thing ever because

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the IRS and the Treasury Department

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introduced QAX, qualified longevity

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annuity contracts for use inside of

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traditional IAS. So poof on that one.

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And the vast majority of annuities, and

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there's many types, are are purchased

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with IRA assets because that's where

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most of the assets are. That's the

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reason the politicians are trying to

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figure out how to tax the IAS and

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confiscate money from the IAS is because

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that's what IRA, 401ks, 403bs, 457s, all

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of those are under the same category

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that they've been deferring. Okay? But

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structuring pay payouts for for

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taxation. Let's just go through each

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account type. IRA, any type of of money

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coming out of an IRA, whether it's

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annuity payment or anything else is

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taxed at ordinary income levels at the

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time of this taping. Period. You've been

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deferring, deferring, deferring, and

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then when you take money out, this tax

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ordinary income levels. There's no games

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to be played there. Okay. Um, in a in a

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Roth IRA account, you can, yes, you can

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have annuities and Roth IAS. Um,

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currently at the time of this taping,

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unless they change the rules, and they

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might because they hate the evil rich

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and they think all the people that have

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Roths are evil rich. If you don't

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believe me, it's going to happen. Um,

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right now that any type of of money

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coming out of a Roth IRA with annuities

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taxfree,

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and that's a good thing.

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In fact, um I need to do a video on

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people that have Roth IRA money. To beat

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the to beat the politicians at their own

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game, you might want to consider

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annuitizing and creating lifetime income

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streams using your Roth IRA for lifetime

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income because they can't go get it.

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It's already been turned on. It's

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already irrevocable lifetime income

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stream. Just think about it. Say, Stan,

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would they do that? Wouldn't they

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grandfather me in, Stan? Hopefully. I

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hope they would grandfather you in. But

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the current trend at the time of this

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taping is that there's a bunch of evil

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rich people like me and you out there

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and they're coming for our money because

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it's not fair. It's not fair that that

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we've scrimped and saved and done

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without. It's not fair that we've

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planned. It's not fair that we're 20 and

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30 and 40year overnight sensations. It's

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not fair, Stan. I'm not political. I'm

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contractual. Okay? So, from the

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standpoint, I'm not kidding. We need to

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look at contractual guarantees to

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circumvent the confiscation that's

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eventually going to come. You can't

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confiscate an annuization lifetime

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income stream. You can't.

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There's nothing to grab for. There's

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nothing to claw back. Think about it.

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The other account type we're going to

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talk about is nonirra checking account

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type money. money that's already been

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taxed.

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That's where you can get some tax relief

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with lifetime income. So, let's for

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instance, you buy an immediate annuity,

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single premium immediate annuity,

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deferred income annuity. Okay? All of

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that income stream is a combination of

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return of principal plus interest.

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So, it's already been taxed. So, you're

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not going to pay any taxes on the on the

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principal, just the interest part. So,

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if you run a quote at my sites

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theanuityman.com or have my team run it

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for you, you're going to see what's

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called the exclusion ratio. Let me put

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it in stanglish for you. What exclusion

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ratio means is there's a part of the

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income stream that's excluded from taxes

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and that's and that's the principal

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part. Remember, you're getting your

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money back with interest. You're paying

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taxes on the interest and a large

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portion of your income is not taxable.

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It's excluded

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from taxes. Now, if you live forever and

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draw the account down to zero, the

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annuity company's still on the hook to

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pay. But once it's at zero, then all of

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it's taxable. You follow me? So,

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initially, so let's look at it just kind

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of in a visual. From here to here,

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there's money in the account. from here

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to here. Okay. So, you're getting your

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money back with interest. So, the print

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we're talking about nonirra checking

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account type money. So, the principal is

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not being taxed that you're getting the

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interest on that income is is taxed. But

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when you get below that, you're at zero.

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Then all of it's taxable.

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Now, there's a lot of shenanigans out

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there, especially in the index annuity

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world, about using index annuities and

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upfront bonuses to convert to Roth. All

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of that's garbage. It's just a way for

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annuity salespeople to to flip what you

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have into another annuity and churn and

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do all that stuff. Upfront bonuses is

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not free money. There's 100 pennies in

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the dollar. Just be very careful if you

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want to do a Roth conversion. You do not

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need an annuity to do it. Some people,

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some guy called me the other day. He

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goes, "Well, you know, I'm doing a I'm

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going to do a Roth conversion. I guess I

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got to get an annuity, an index

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annuity." I'm like, "Who told you that?"

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He said, "Well, this old boy down the

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road told me that." I say this old boy

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down the road is looking for commission.

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You can you can I mean I tell people all

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the time on Roth IAS run the number run

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the math number. Does the math work all

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of the upfront upfront um money that you

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paid in taxes? How long is it going to

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take to get that back? Also too, you

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know, this this title was interesting

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when I read it and I and I read it from

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my clipboard that what I don't want to

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happen is is the IRS living in your head

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for free, rent free. And a lot of you

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are obsessed with Irma, what I call aunt

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Irma, and and and just I need you to go

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live. I need you to go live your life

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because as I always say, fly first class

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or your kids will. I got a if if you're

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a client, even if you're not, I'll send

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you one of these hats if you send me an

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email, stantheanuityman.com.

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And I got a I got a text the other day

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from a a client that was literally

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flying first class in one of those

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layown seats overseas going to Europe

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and and just had one of my hats on

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saying, "Flying first class?" Yes.

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Most of us have a spending problem. So

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instead of being obsessed with, you

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know, how do I get tax preferential

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treatment on my income stream? If you

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have nonIRRA account, yeah, we can do

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that. If you have a Roth IRA account, I

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would encourage you to probably

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annuititize some now before the

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government comes and gets it because I

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can only imagine that speech. I'm

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running for the president of United

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States for and and I get up there and I

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have no let's just say I just I'm going

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to say what it takes to get the vote.

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I'm going to say this. Um these Roth IAS

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are problem. There's a person named

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Peter Theal out there that has a $5

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billion Roth IRA and that's not fair.

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What's fair is we should be able to tax

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some of these rich people with Roth IAS.

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Um, and that should happen. It's just

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it's it's just not fair to the rest of

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us. Now, what they're going to leave out

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is that you paid all this upfront money

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in taxes. Remember that part? And you

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factor all that in, etc. They're going

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to leave all that out. We're 40 trillion

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in debt. Trillion dollar in interest

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payments every year. I'm going to tell

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you to live your life. I'm going to tell

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you there's no U-Hauls behind herses.

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I'm going to tell you to put in that

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income floor to go live your life. You

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need to invest. Invest, but put in the

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income floor so that you do not have to

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disrupt your investments for money. Just

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remember, lifetime income can be

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purchased in traditional IRA, IRA,

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nonirra, checking account type money can

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be used in all three. The only

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difference is how it's taxed.

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All right,

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one last thing. Um, go to my site

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theanuityman.com. I've done a video, you

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see a spinning clock on how to properly

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use calculators and run quotes, etc. My

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site is the first site, period, to have

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you run anonymous quotes. No name is

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needed, no email is needed, no phone

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numbers needed, just your just your

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gender, state of residence, and date of

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birth. That's it for MAS. You don't even

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need that. Just put in your state of

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residence. Anonymous. No games played.

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No, you have to sign up for an account.

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None of this stuff. I don't care about

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that. But I'm not a data company. I'm

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the largest annuity distributor of fixed

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annuities. Period. Contractual

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guarantees. Licensed in all 50 states,

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based in Las Vegas. Open 12 hours a day,

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Monday through Friday, and eight hours

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on Saturday. That's 68 if you're

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counting. Everybody in my office is

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licensed. Nobody's on commission.

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They're all bonused out on your

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satisfaction. Turnkey applications

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sometime. Right now, we're running same

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day applications. Can't guarantee that,

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but boy, we're hiring into that. We hope

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to be able to do that. And also too,

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there's a virtual Stanley on the site.

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There's me virtually. You can type in

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the questions without even having to

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talk to me. You can schedule a call, but

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virtual Stanley will answer it as well.

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And we are now in beta testing. And by

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the time you see this taping, probably

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finished up with online applications

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without people.

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Eventually, the annuity industry is

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going to go to a non-person situation.

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Right now, you have to have a licensed

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person at the end of the call to

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validate everything. That's just the

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rules. But that's going to change. We're

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ready for it. But right now, we're going

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to take you as far as you want to go

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without talking to a human. Sound good?

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You darn right it sounds good. That's

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the way I'd want to do business. So,

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guess what? That's the way we're doing

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business. Hey, my name is Stan the

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Annuity Man. See you next time.