Can A Company Buy An Annuity For An Employee?

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Can a company buy an employee an annuity? Hi there, I'm Stan the Annuity Man,

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America's annuity agent, licensed in all 50 states, and all kinds of other titles that

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I'm not going to tell you, but they're good. They're good. They're like tallest agent,

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pioneer of CGO, contractual guarantees only, etc. But we're going to delve into, are

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there any philanthropists left in companies? Are they buying employees annuities? And if so,

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how do they do it? We're going to talk about that after this.

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Alright, so, I'm back, and the Big C behind the camera is like,

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you have stopped drinking, right? Cuz you were kind of fumbling those.

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Let me tell you something. I stopped drinking — I have not had a drink. No, I've

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been sober 19 years. I wear that on my sleeve. I'm good. I'm good. I do nothing in moderation.

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Let's talk about companies buying annuities for employees. It's a meteor shot. It's like,

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what was that? That was a company buying an employee an annuity. Now, how that typically

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happens is what we call a group annuity. So, they're buying a payment, a pension-type payment

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in a group annuity format. And companies can do that, but they don't do that a lot.

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What they're doing right now is a lot of the companies that have 401(k)s, which are also

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known as defined contribution plans, they are offering annuities, whether it be an immediate

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annuity or deferred income annuity. They're offering some types inside of those 401(k)s,

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not all. So check with your administrator — administer — administer? — minister? — the person

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running the 401(k) to see if that's being offered. Instead of the group annuity,

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which was pretty popular I'd say about 20-plus years ago when I was young and vibrant.

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Now they're saying, okay, we're going to put these lifetime income products inside of 401(k)s,

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which is its own problem. And I wasn't always a fan of the group annuity either. Even though that

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was a charitable way for an owner of a company to try to do something good in a world where there's

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9% of us that have pensions, for a company to do that is honorable. At least they're trying.

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And I think they're kind of trying, but I doubt all of the intentions with

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putting annuity choices inside of 401(k)s. Because what they're doing is only putting a couple

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and a couple of carriers, which I think is a disservice to you, the consumer because annuities

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are commodity products, you should shop all carriers for the highest contractual guarantees.

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That's how I set up my site at theannuityman.com so that you can

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see the best guarantees available. You know, when you have only a couple choices

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in your 401(k) for annuities, that's not seeing all of it because we represent those carriers,

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too. All of the carriers that are participating in the 401(k)s, we represent them on our side,

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on the consumer side, direct-to-consumer side. You can run those quotes as well.

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So, the group annuity — it's still there. It's a very small market,

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but I think at the end of the day, you're going to have to create your own pension.

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You already have Social Security. That's the best annuity on the planet, best inflation

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annuity on the planet. It's political, not actuarial, which means that our politicians

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raise that payment just to get your vote and make you happy and because you've earned it.

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And then you have, you know, RMDs off your IRAs, which is also an annuity-type payment.

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If you're so fortunate to have a pension, then good for you. Or a group annuity,

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then good for you. Because when you get to chapter 2 of your life,

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which some people call retirement, I don't like that. I don't know when that was started.

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I'm trying to rephrase it, chapter 2. Cuz chapter 2 is about you.

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You got to add up all of that income that you're getting. I call it the income floor.

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What's that amount that's coming in? Social Security, pension if you're so fortunate,

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dividend incomes, RMDs from your IRA, if you own some rental houses, rental income, if you're

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selling cotton candy at the fair, what you're making there. I don't know why I came

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up with cotton candy. Don't see a lot of cotton candy vendors anymore, Big C behind the camera.

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I think it's because it's pure sugar. For diabetics like me,

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that's a death sentence, brother. You don't want that at all.

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But what I would do if I were you and you are a valued employee of your company is I would

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check with the 401(k) to see if there's any choices internally. I would check with the owner, unless

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you hate them and they hate you, and ask them, you know, is there a group annuity?

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In most cases, it's going to be no because most of these companies went from a defined

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benefit plan a long time ago, which is called a pension — defined benefit

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plan — to a defined contribution plan, which is 401(k), 403(b), 457,

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that tax-deferred animal over there that you put investments in and hope it grows.

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And then, you know, when they don't give you the gold watch and you retire,

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then you have to figure out what to do with it. And typically, you know,

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and hopefully, you're looking for guarantees because chapter 2 of your life really comes

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down to two things with most people. Lifetime income, as much as you can get, and protecting

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the principal. Hitting bump singles, as they say in baseball, not swinging for the fences.

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Cuz someone asked me the other day because they saw the car I drove because

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I bought the car that I wanted to get when I was 16 in high school and my dad said,

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"No." I finally got it. And someone said, "What is that? Midlife crisis?" I went,

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that means I'm going to live to 122. That ain't happening, player. Okay?

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And you don't want to see if it does,

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it's going to be a drooling diaper mess. You know what I'm saying?

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So, I mean, the bottom line is annuities as a category are contracts. You should

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shop them for the highest contractual guarantees on the planet. We have a

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site at theannuityman.com that you can do that.

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Everyone in my building they're licensed in all 50 states, but they're not on commission. So,

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they're not hammers looking for nails. They're not looking for the sale, sale, sale, sale, sale. No.

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ABC. And it doesn't mean always be closing. Really, for us, it's always be creative. I want

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creativity. I want creativity on the client experience. I want creativity on how our

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processes work. I want creativity on all of that. That's what I want. It's not about the closing.

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If I didn't sell another annuity in my life, I'm good. I just do this because I make the industry

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mad and I make agents mad. And I'm trying to put out of business all of those jackwagon people that

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try to sell one product and shove it down people's throats and lie and do whatever to get it done.

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I'm getting rid of that. I'm going to get rid of that.

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Someone said, "What do you compare yourself to?" Amazon. Amazon got rid of a lot of small

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businesses. Some people say that's good. Some people say that's bad. My hope is to get rid of

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all of that garbage one-product one-size-fits-all seminar stuff. That's what I want to get rid of.

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But getting back to the employer buying the annuity, in essence, they're doing that. If

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they are providing like a matching to your 401(k), then build that up, and then when you get out,

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come see us at theannuityman.com and shop for the highest lifetime income guarantees on the planet.

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So in essence, the employers that are offering these plans are kind of doing that. Some of them

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are inserting one or two carriers inside that you can choose if you want that. But the group annuity

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part, which is how most employers used to buy annuities for employees.

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I mean, I don't want to say it's dead, but it's dying and it's not as big as it used to be.

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I know I'm going to get an email — send it to [email protected]

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— from the people that sell group annuities going, "It's a thriving business, son." I'm like,

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"Okay, great. It's thriving." But I don't think that's the case.

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Do me a favor. You can leave a comment. Be nice. If you're going to be mean,

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email me direct, [email protected]. I can take it. I can take the bullets,

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and I won't get mad.

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Also hit the subscribe button. But do me one last favor. Above my head,

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there's a box, there's a countdown clock there. Click that link. It's a video I did

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describing kind of the process of how everything works at the Annuity

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Man, if you want to become a client, how the application process works. Take a look at that.

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Go to my site, download the books, watch the videos,

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engage with us if you want to, schedule a call, and we'll see you next time.

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My name is Stan the Annuity Man.