Do Income Riders Protect Against Inflation?

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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. I'm getting ready to use

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props. I love props. Props on a video.

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It's gold. It's gold is what it is. Will

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do. Not might do. Let's do it again.

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Will do. Not might do. Will do, not

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might do. Studios, right? Let me throw

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this over my shoulder cavalerely.

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That's where we're at. You own an

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annuity for what it will do, not what it

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might do. And the will do are the

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contractual guarantees. Today we're

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going to talk about cost of living

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adjustment writers both on with income

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writers and on products like immediate

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annuities, deferred income annuities,

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etc. U because inflation is this. What

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about inflation, Stan? What about

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inflation, Stan? Hey, Stan. What about

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inflation? Stan, inflation. Inflation,

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Stan. Inflation. It's like

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it's coming. I I mean, but listen, with

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annuities, these are contracts. It's an

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easy, simple solution. What I encourage

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you to do is just don't listen to the

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sales pitches. Listen to the facts,

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which we're getting ready to do after I

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hear music.

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All right. So, let's talk about

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inflation with these income writers

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attached to typically indexed annuities

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because if you're going to the bad

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chicken dinner seminars and now we're

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kind of getting out of COVID. One good

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thing about CO if there's there was only

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one good thing. Okay? And the one good

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thing about CO was that the bad chicken

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dinner seminar and the steak dinner

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seminar for you to go and listen to the

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sales pitch while eating the meal. Those

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those went away during CO. That was

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fantastic. But now that CO is somewhat

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lifting a little bit, guess what? These

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things are back. And what people are

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calling me about is they're saying,

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"Well, I went to this bad chicken dinner

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seminar." Actually, it was a steak

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dinner seminar, which should give you

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kind of the uh um Oh, by the way, what

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is the commission being paid? If they're

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if you're eating at a $50 ahead

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steakhouse, guess what? I mean, this

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person's going to make a lot of money if

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they sell you this annuity. It doesn't

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get bad. It just is what it is. But the

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sales pitch goes something like this.

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If you sign the contract, Mr. Jones,

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you're going to get an upfront bonus and

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the income from this index annuity is

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going to increase with inflation.

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Sounds good. Hey, I've got one for you.

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I've got a pill and if you take it,

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you're going to have six-pack abs and be

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cut up. You're going to look like an

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Olympian. Uh, no. Same thing. Let's go

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backwards a little bit. You're going to

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get an upfront bonus for signing the If

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someone ever says that upfront bonuses

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with annuities is candy for the stupid.

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You can't be that dumb. There's not a

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philanthropist that gets up at an

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annuity company goes, "You know what?

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I think I'm going to give money away

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today to just random people across the

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country." No, no one's like that. It's

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100 pennies in the dollar. Upfront bonus

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is just part of overall contractual

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guarantee. But let's get to the to the

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really sizzle part of the sale. I always

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tell people buy the steak, not the

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sizzle, right? The sizzle is um the

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income from this index annuity is going

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to increase with inflation.

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Huh? Uh no. Sounds good to be true

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because it is. What they're pitching is

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an index annuity if the index option,

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which by the way was put on the planet

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to create normal CD type returns, not

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market returns. All right? They said,

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"Well, whatever you get on this side is

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going to increase the income on the

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income writer side." Okay, but guess

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what? Spoiler alert. The annuity company

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severely drastically lowers the initial

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payment to make up for that um potential

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hypothetical theoretical unicorns

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chasing the butterflies increase. So

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don't fall for that. All right, that

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that's the income writer pitch. And

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remember, an income writer is an

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attached benefit to a policy, typically

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an index annuity that you're going to be

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pitched. That is a separate calculation

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for future income. It's monopoly money

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and a phantom account that you can only

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use to calculate your first lifetime

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income payment that will be in place for

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the rest of your life. And what they're

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saying in this sales pitch is that yes,

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it's going to turn on this level, but

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that index option, Mr. Jones, is going

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to increase it and you're going to be

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rich and it's going to be the best

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decision you've ever made. Uh, no, it's

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not. Um, annuity companies don't give

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anything away. I'm not saying it's bad,

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but you have to understand that it's

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going to be a say 20 30% depending on

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your age decrease

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in the initial payment as compared to

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the income writer that doesn't have this

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hypothetical unicorn chasing the

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butterfly increase. All right. So, with

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income writers, my opinion, Stan the

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Annuity Man, America's annuity agent,

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licenses all 50 states the top agent out

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here, written seven books, done 400

4:49
videos, and do podcast every week.

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You buy the income writer for the

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highest contractual guarantee, shopping

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all carriers for the highest contractual

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guarantee for your specific situation.

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We will do that. You can go to my site

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at theanuityman.com and do that yourself

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on the incomeriter calculator page.

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Okay? They're commodity products.

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There's not one that's better than the

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other. Uh sorry about that all the

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carriers that I love. Um they're not

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it's you buy income writers like you buy

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a plane ticket. you punch in on

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theanuityman.com

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your specifics what when you want the

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income to start dates of birth all that

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stuff that's confidential and then we

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shop all carriers for the highest

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contractual guarantee. So that's

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covering cost of living adjustment

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writers with income writers. But cost of

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living adjustment increases, COLA

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increases with immediate annuities,

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deferred income annuities, qualified

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longevity annuity contracts. Let's

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categorize those in annuitization

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products. Those are lifetime income

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products. You can attach a cost of

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living adjustment writer. And you can at

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the time of application say, you know

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what, Stan the Annuity Man, America's

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annuity agent, I want it to increase by

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3%. I want my immediate annuity to

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increase by 3%. Fantastic. We can run it

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that way. But remember this Madonna

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Vogue. Remember that. Remember that for

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all you baby boomers.

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Without the cola. With the cola. Without

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the cola. With the cola. With the cola.

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Without the cola. Got me? They're going

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to lower the payment to make up for that

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increase. Now, back in the day, few

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years back, and the annuity man's been

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here for a long, long time. I got cowboy

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boots older than most of your kids. I

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mean, most and there's some kids out

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there watching. We're finding out the

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demographic is kind of weird. Hey you

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youngsters out there. Um, cost of living

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adjustment writers are the only increase

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for inflation that you can attach at

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this point in time. Back in the day,

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they had consumer price index for urban

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consumers, CPIU. You could buy those for

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immediate annuities and they had some

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calculation and all this stuff and

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people thought they were being fancy for

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the increase. They don't offer those

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anymore at the time of this tape and

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check the date out. CPIU increases are

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not attached to you can't get those with

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immediate annuities anymore. You can

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only get this colas, cost of living

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adjustment, and you have to to um choose

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the percentage increase at the time of

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application. Here's a simple one for

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you. It the 1% increase will have a

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higher contractual guarantee than the 3%

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increase. The 3% increase will have a

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higher contractual guarantee than the 5%

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increase. See that? See how annuity

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companies have the big buildings?

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They're not giving anything away. What I

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would tell you to do is if that's very

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important to you, and by the way, you

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already own the best inflation annuity

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on the planet. What's it called, Stan

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the annuity? Man, I didn't know I own

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one. It's called Social Security. Okay?

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You already own it. So, don't be an

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annuity hypocrite and say you hate all

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annuities because you already own one.

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And if you really hate and you're going

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to pound the table and say, "I hate all

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annuities." Then call Social Security

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and say, "Do not send me those payments

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anymore because I do I want I do not

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want to be an annuity hypocrite." But

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you're not going to do that because you

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like lifetime income stream because

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lifetime income stream is good. Okay?

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But cost of living adjustment writers, I

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would encourage you to say buy one with

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and buy one without if you're going to

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buy two if that's very important to you,

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but you already have the best the best

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inflation doing in the planet. What I

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would do is maximize the payment and

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just have it static. Now I know all you

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geniuses out there, well then you know

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the cost of living and the the buying

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capabilities of that income stream is

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going to lessen with the inflation

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that I understand it. Been there, done

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that. Took the class with you, okay? But

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there's no perfect solution. It's just

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bad sales pitches. And the best way to

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truly address inflation in my opinion is

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at the time you need that income gap

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filled. For example, you're getting

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$3,000 a month. All of a sudden, you and

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Martha need additional $500 a month. We

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buy an immediate annuity at that time,

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reverse engineer the quote to solve for

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that $500. You can go to my site at

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theanuityman.com and run a reverse

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engineer quote on an immediate annuity

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to see how that works. That's the best

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way to do it in my opinion. The other

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way is to have income starting at

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different time periods. Say you're 65,

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you have income starting at 70, 72, 75,

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77, 80. You could have it staggered so

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that income is coming and starting at a

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different age level because the older

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you are, the higher the payment just

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like social security. So there's no

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perfect answers for inflation. I know

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that you want one. I know that you were

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dying and hoping that this would be the

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place that you could finally find out

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that there was an annuity out there that

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could address inflation properly. And

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the one you heard at the Bad Chicken

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dinner seminar, that sales pitch was

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true.

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Sorry, brutally factual telling the

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truth out here. It is what it is, but

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you can use annuities and some specific

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annuity types to address inflation.

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Hey, I really appreciate you joining me

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and I will see you on the next Stan the

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Annuity Man YouTube video.

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[Applause]