Guaranteed Lifetime Income

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Hi there, Stan The Annuity Man, America's annuity agent, licensed in all 50 states and Puerto Rico.

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Today's topic is a good one in three words, very powerful ones: guaranteed lifetime income.

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You're saying, "Well, yeah, that covers a broad array of things, right, Stan?"

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No, no, no, no, no, no, no, no, no. There's only one product, the hated product. Yes, annuities,

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that can provide guaranteed lifetime income regardless of how long you live,

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regardless of how long you're breathing, even if you're on a respirator and in a coma.

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If you're breathing, it's going to pay.

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We're going to go over all the types of lifetime income after this.

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So, guaranteed lifetime income. With 15,000 people turning age 65 every single day, check

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the date, it's probably more by the time you're watching this, they're looking for guarantees.

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And we live in a world where companies do not provide pensions. They don't even

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provide the gold watch. The only pension that you have in place, if you have a valid Social

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Security number, is Social Security. It's the best inflation annuity on the planet, period.

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So, you can't just say, "I hate all annuities." You already own one. If

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you have a pension from one of the nine, not ninety, nine, companies that actually offer one,

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or if you work for the government or in the military or are a teacher or something like

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that, you have a pension as well. That's an annuity. That's guaranteed lifetime income.

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A 30-year bond is not guaranteed lifetime income. A 30-year Treasury is not guaranteed

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lifetime income. Guaranteed lifetime income is when you transfer the risk to the life

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insurance company that issues the lifetime income annuity to pay for as long as you're breathing.

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"So, what's the ROI, Stan?"

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I don't know that until you die. If you set up joint life with your spouse,

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I don't know the ROI until the second one of you dies.

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How important is it to you to have that type of guaranteed lifetime income?

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For most of you, it's very important. Okay?

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And annuities, there are many types, are the only product category

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that can provide that lifetime income guarantee.

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There are four types of annuities that provide lifetime income streams:

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Single premium immediate annuities. The acronym is SPIA.

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Deferred income annuities. The acronym is DIA.

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Qualified longevity annuity contracts. The acronym is QLAC.

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Income riders that are attached to either indexed, variable, or RILAs.

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Indexed annuities historically have provided the highest

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contractual guaranteed income riders for lifetime income.

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All four of those products are going to pay as long as you're breathing.

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So, you better choose a good company.

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We have one rule: A+ or better. You don't need an income sweater. A+ or better.

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So, we'll quote all carriers that are A+ or better for the highest contractual guarantee.

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So, how do we get to that?

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There's two questions:

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What do you want the money to contractually do?

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When do you want those contractual guarantees to start?

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What do you want the money to contractually do? Lifetime income.

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When do you want those contractual guarantees to start?

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That will determine which of the four products we quote.

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Also, you need to tell us: IRA, Non-IRA, Roth IRA.

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The guarantees are the same. The taxation is different.

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And QLACs, qualified longevity annuity contracts,

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can only be used with qualified money. Okay? 401(k), IRA-type money.

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So, anyone out there saying, "Never put an annuity inside of an IRA"

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Stupid. Dumb. IQ points. Where are they? Okay.

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The Treasury Department and the IRS developed QLACs in 2014 for use

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in traditional-type IRAs so that you could create lifetime income streams.

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But you've got to be very, very careful right now. You've got to choose really good companies.

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A+ or better. A+ or better and the highest number. A+ or better and the highest number.

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The other thing about guaranteed lifetime income that you need to be very aware of right now, and

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I am the only one talking about it. I saw some copycat start to talk about it the other day.

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There are a couple of copycats out there that want to be me. But, you know, that's like me

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going to the YMCA and playing basketball. It's just not fair. I'm going to score 50 points.

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Okay. But what I'm talking about is artificial intelligence.

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Artificial intelligence. Love it, hate it, don't care,

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because I'm talking about annuities and artificial intelligence.

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What that's going to do is AI is going to shorten medical breakthroughs,

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which means that your projected life expectancy will probably be longer very,

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very soon, which means the annuity companies are going to lengthen out the payments,

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which means there'll be more payments, which means those payments will be lower.

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In Southern Stanglish English, right now, today's actuarial

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tables are in your favor. It's a bargain to buy right now.

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I don't know when that change is going to happen, but I see a lot of the articles being dripped by

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the life insurance companies into the media about people living longer. GLP-1s, the weight-loss

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drugs, are making people live longer. Medical breakthroughs are making people live longer.

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Once they can prove all of that, they're going to lengthen out life expectancy.

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So, guaranteed lifetime income is important,

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but you need to know the semi-urgency to take a look at it.

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Now, when we talk about guaranteed lifetime income,

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my biggest thing is building the income floor. Okay?

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What's the income floor?

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That's the amount of money that's going to hit your bank account every single month,

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regardless of what happens in the stock market, the world, bombs going off,

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crypto, it doesn't matter. It's coming into your bank account.

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Chapter 2 of your life, that's what I call retirement, you need income. You

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need income to prop up your lifestyle so you can travel, see the kids, etc.

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That's your income floor. That's where guaranteed lifetime income products using annuities help.

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So, you have Social Security there. You have dividend stocks, all kinds of stuff that's

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coming in. That's not lifetime income, but that's part of your income floor.

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But you need more guaranteed lifetime income, meaning that if you live to 105, and don't say,

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"I won't." You might. If you're married, one of you might. And

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it's probably going to be the female. That's historically the way it works.

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You have to plan for that. You have to plan for that income.

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Now, the biggest thing about guaranteed lifetime income that people always come at me with is,

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"Okay, great, Stan. We're going to do that,

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but tell us about inflation. Tell us about hyperinflation."

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Well, once again, you already own the best inflation annuity on the planet.

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That's Social Security because that's a political raise, not an actuarial raise.

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And by the way, I'm contractual if you want to know my affiliation politically. I'm in

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the Contractual Guarantees Only policy that I started, I don't know, about a day ago.

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But the point is, inflation. There is not an annuity type that just perfectly solves for it.

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Now, every Johnny Appleseed agent joker out there

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is going to tell you they have it. They don't. They just don't.

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The way to solve for inflation using annuities is you put in your income

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floor and let's say five or seven years from now,

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you need an additional amount of money to fill in a gap for that income floor.

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Then, at that point in time, you tell us what that gap is.

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"Okay, Stan, we need an additional $750 a month."

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Okay, great.

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What we're going to do is reverse-engineer the quote

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using immediate annuities to solve for that gap using the least amount of money.

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People say, "Well, why didn't I just put a cost-of-living adjustment increase on it, player?

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Why wouldn't I do that?"

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Because annuity companies don't give that away. Life insurance companies

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are for-profit. They're capitalistic pigs. Okay? They're not giving it away.

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So, if you want it to increase contractually, we can do that.

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But visually, here's what it looks like:

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Here's the annuity without the increase.

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Here's the same annuity with the increase.

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Typically, it's a seven- to nine-year break-even point, depending on your age.

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But is it worth it? No.

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Do people buy it from me? Yeah.

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But I explain it to them. I explain what the annuity

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companies do. If you're okay with that, that's fine.

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Some people say, "Well, I want to buy three

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immediate annuities, but I want one of them to increase."

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Okay, great.

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Just don't go into any type of annuity purchase going,

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"You know what? That sounds really good. That sounds almost too good to be true."

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If it sounds too good to be true, it is every single time,

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and someone's not explaining it to you correctly, which is where we come in.

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We want you to consider us as your annuity resource because we're not

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hammers looking for nails, okay? We're just not.

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We're going to listen to you. We're going to advise you on which annuity

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would fit and solve the contractual guarantee you're trying to solve for.

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Remember, two questions:

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What do you want the money to contractually do?

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And when do you want those contractual guarantees to start?

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With guaranteed lifetime income, you can go to our

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site and run quotes 24/7, 365, to your heart's content.

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In addition to that, all four of those product types I talked about, SPIAs, DIAs, QLACs,

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and Income Riders, I've written owner's manuals on those. You can get those for free at my site.

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You can schedule a call with us one-on-one, no obligation. It's free.

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You can email me at [email protected].

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We are accessible to you. I still run the company. Alright?

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Now, one last thing.

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Above my head, you're going to love the title. It's "Why People Still Hate Annuities."

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I actually addressed that and shot it down like a wounded duck. But

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I shot it down factually, and you'll get a kick out of that.

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And you need to watch it if you're one of those curmudgeons out there going, "I hate

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all annuities. I'm just watching this because this dude's kind of weird and funny and goofy."

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That's fine. I am weird, funny, and goofy, but I'm also factual.

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That explains why people still hate annuities, how it could be solved,

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but also gets you in line with the contractual realities of what annuities actually do. Alright?

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My name is Stan The Annuity Man. See you next time.