Are Income Annuities Worth It For Retirees?

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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 in Puerto Rico. The question

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of the day is, are income annuities

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worth it for retirees? People that are

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looking to retire chapter two of their

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lives. Income annuities h are they worth

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it? We're going to break that down as

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only Stan the Annuity Man can after

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this.

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So, first of all, let's talk about

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income annuities as a as just the

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definition. You already own one. It's

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called Social Security. It's the best

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lifetime income annuity on the planet

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because it also solves for inflation.

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So, it's the best inflation annuity on

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the planet. But an income annuity

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is what it sounds like. It provides a

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lifetime income stream. You also can buy

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to buy to to solve for what's called a

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period certainly can pay for a specific

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period of time. But 95% of all income

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annuities sold are for lifetime income

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whether it's your life or joint life

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with the spouse so that it's going to

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pay for as long as one of you is

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breathing. And we can structure it so

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that the evil annuity company will not

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keep a penny if you die. So that's one

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of the biggest misconceptions of income

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annuities. I hear it all the time. Well,

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I'd never buy one of those cuz when you

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die, nudity come to keep some money. No,

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I mean, if you hate your bene if you

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hate your family and your beneficiaries,

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you can structure it that way. But 99%

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of the people that we um you know, set

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up income annuities for, there's a backs

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stop. So, if something happens to them,

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100% of the money goes to the

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beneficiaries, even though the annuity

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company's on the hook to pay for as long

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as you're breathing.

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Now, income annuities are primarily

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priced on your life expectancy or if

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it's joint life expecties, interest

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rates play a secondary role. Interest

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rates play a secondary role. The Fed

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plays a secondary role. Okay, for all

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you Fed hawks out there, well, I'm going

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to wait, son. I'm going to time this

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thing. You can't time crap. The old you

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are, the higher the payment. Duh.

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And typically, these companies price

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your life expectancy to the day.

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It's not going to time it. There's no

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arbitrage moment. There's no sweet spot.

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Income annuities, lifetime income

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annuities are based on your life

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expectancy

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or life expecties. Interest rates play a

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secondary role. Now, this isn't a sales

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pitch. This is a fact. What I'm getting

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ready to say, life expectancy tables at

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the time of this taping or a bargain

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because artificial intelligence, super

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intelligence, whatever you want to call

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it, hasn't gotten here yet. Keyword yet.

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But when it does, it's, you know,

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they're artificial intelligence is doing

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a lot of good and a lot of bad, right?

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But the good is in the medical

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breakthroughs. And what's going to

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happen is we're going to live longer.

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And because we're going to live longer,

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then these lifetime income payments will

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be projected to be paid out longer,

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which means the payments will be lower.

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So if you're looking at lifetime income,

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it's probably a good time to do that.

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Now, income annuities should be part of

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what's what I call your income floor.

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You already own an annuity, social

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security, right? Okay. So, you can't hit

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them that much. If you have a pension,

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if you're so fortunate, great. You own

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two. The question is, how much lifetime

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income do you need? How much income

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floor do you need? Income floor is the

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amount of m money hitting your bank

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account every single month. That has

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nothing to do with the markets. It has

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nothing to do with politics. Has nothing

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to do with the war. Has nothing to do

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with anything. It has to do with your

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bank account. And in chapter two of your

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life, it's all about lifestyle. It's all

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about your income floor. So for

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retirees, pre-retirees, yes, income

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annuities make sense unless you don't

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need income.

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Talked to a guy the other day. It was a

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good conversation. In fact, it was

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yesterday. Um his comment was, "Stan,

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I'm looking for income." I'm like,

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"Okay, what kind of income?" So we went

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through all of that and then he goes,

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"But I don't want the income. I don't

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want that income amount to be drawn

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down. In other words, I want the money

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to stay the same. Which leads me to what

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you really need to understand about all

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lifetime income products. SPIA, DSQ,

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likes, income writers, those are the

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four. It's a return of principal plus

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your ent plus interest. You're going to

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draw down on the asset. And if you

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outlive your life expectancy, there's a

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good chance that the account will be at

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zero, but the annuity company's on the

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hook to pay

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because that's a lifetime income

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annuity. There's no RO ROI until you

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die. But what we came to the conclusion

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with this guy is he really didn't need

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any more income. He had sufficient

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amount of income. So what we did instead

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was we did MAS multi-year guarantee

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annuity annuity industry version of the

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CD and he has the you know he can at any

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time just take the interest off the top

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and never touch the principal. He was

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happy as a clam at a clam bake. He was

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happy never touch the principal.

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Principal never decreases. There's no

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fees and he could take the interest if

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he wanted to, but he doesn't have to.

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That's not lifetime income, but that's

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income and you could lock it in for as

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long as 10 years. So, he bought a

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10-year MA with the ability to peel off

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interest if he wanted to. All right,

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that's an income stream. That's an

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income annuity for 10 years if he wants

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it, but the principal's intact. There's

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a couple ways to skin the annuity cat,

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as they say. That's kind of a weird I

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don't know where that came from, but I

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don't think I'll trademark that one.

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[laughter]

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But but there's there's a lot of ways to

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do this. So, part of our process is

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hopefully um you can get on the phone

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with me or interact with our team and we

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can drill down on exactly what you want.

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Income annuities could mean lifetime

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income. Income annuities could mean a my

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gun just peeling off interest and

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protecting the principal. For all of you

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a personalities out there, there's your

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spouse, whether you're male male,

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whether you're male with a female spouse

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or whatever. I don't care about any of

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that. One of you doesn't care at all

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about the markets. My wife, the queen,

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38 years, could care less. All she wants

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to know, do we have enough money when

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you die, Stan the annuity man, do I have

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enough money to go see the kids and the

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grandkids? The answer is yes. I've made

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sure of that. But are income annuities

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suitable for retirees? most because over

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90% of us work for companies that didn't

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provide pensions unless you work for the

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government, a good labor union, the

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state, military, whatever. The rest of

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us don't have that. We don't have

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pensions. So, I think they're suitable.

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You can run them two ways. You can say,

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"Stan, how much does this lump sum

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amount pay out?" Or, "Stan, we're

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looking to for $3,000 a month to start

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in six months from now. How much would

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it take?" You can run those quotes on my

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site yourself 247365 anonymously. Just

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put in your date of birth, dates of

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birth, genders or gender

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and state of residence. Run the quote.

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Those aren't those aren't estimates.

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Those are quotes. So yes, the income

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floor is important for retirees. Chapter

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two of your life. It's all about

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lifestyle. I want you spending the

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money. I want you living. There's three

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there's three phases of retirement. Go,

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slowgo, and no go. No goes when you're

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drooling on yourself and crapping into a

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diaper for adults. If we all live long

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enough, that's going to happen. Unless

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AI solves it. Come on, AI. Come on.

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I mean, it's it's kind of burned into my

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brain. My before my dad passed, he's

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wearing a diaper. I'm thinking that that

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great Santini, if you've seen the movie,

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that tough dude is wearing a diaper. Oh

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my gosh. Wow. So yeah, income annuities,

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look them, you know, go to my site, run

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the quotes anonymously. One last thing,

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u I did a video on all the technology

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that we have put in place and we're

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still going. We're just getting started,

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by the way. But we, when it comes to AI,

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that means artificial intelligence. When

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it comes to AI with my staff, we have

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the biggest staff in the business.

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That's actual individuals. When it comes

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to AI, that also means annuity

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innovation. And we lead in that. You can

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talk to me, you can schedule a call with

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me, you can email me, or you can talk to

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what's called Virtual Stanley. And

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Virtual Stanley is the little avatar

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person on my site that you can ask

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questions that's been fed all my videos

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and books and articles and talks and

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sounds just like me and has a little bit

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of a chip on his shoulder. We found out

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when people were trying to ask stupid

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questions, he kind of blasted them.

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That's kind of cool. So, you can talk to

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me, you can talk to Virtual Stanley, you

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can talk to both. You can do online

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applications. You find a guarantee that

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you like, you do an online application.

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We'll have to call you at the very very

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end just to make sure it's you, but you

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can take it 95% of the way if you want

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to do that. Or you can have my team do

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it start to finish. 25 minute phone call

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and then we take it across the finish

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line. You also can have us run the

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quotes or you can run them anonymously

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on the site. Notice a trend. Mhm. You

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can use people or you can use technology

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or you could use both. Now I'm old

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school. The guy that runs my company is

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is a Google guy. Came from the Gemini

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division, the AI. So he gets it. But I

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told him, I said, 'I want to build a 247

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365 site that's open for business that's

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proconsumer and gives you the choice on

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what you want to do. Do you want to use

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technology or you want to use humans?

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Can't be one or the other. It's got to

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be got to got you got to have the

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off-ramp to choose what you want to

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choose. So, watch that video. I think

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you'll get a kick. Keep an eye on us

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because we're just getting started. the

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stuff that we're working on going

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forward is really going to be good and

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it's you're gonna like it and it's going

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to be proconsumer. It really is because

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at the end of the day, these are

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commodity products and you need to

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choose the right people to work with.

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Hopefully, it's us. Hopefully, you give

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us a shot. So, my name is Stan the

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Annuity Man. We'll see you next time.