How Annuities Solve for Sequence of Lifestyle Risk: Fun With Annuities

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Welcome to Fun with Annuities. I'm your

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host, Stan the Annuity Man, America's

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annuity agent, licensed in all 50 states

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and Puerto Rico. Today's topic is an

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interesting one. You probably have never

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heard this phrase before because I made

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it up, but it makes sense. How annuities

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solve for sequence of lifestyle risk.

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Now, you've heard of sequence of returns

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risk, which is flattening out the risk

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of your portfolio using annuity

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guarantees to do that. And the way that

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I always tell people is if you put in an

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income floor using annuities and

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annuities are the only product on the

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planet that solves for lifetime income

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and pays you as long as you're

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breathing. There's no ROI until you die.

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You're a better investor. So in other

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words, you have the income floor in

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place. You've got the the growth stuff

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over here. By the way, growth doesn't

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equate into annuities. When I say

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growth, I mean non annuities, not an

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annuity under any circumstance. Don't

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buy an annuity for growth. But when you

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have the guaranteed income floor in

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place, social security, annuities, etc.,

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pensions, you don't disrupt your your

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investments and you're a better

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investment investor for it. So it so it

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flattens out that you know sequence of

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returns risk instead of it going and

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when it's going up and down and up and

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down and up and down, you're not

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panicking and selling. You've got the in

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floor in place so you can ride it out

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and make more money in the markets. So

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we all understand what sequence of

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returns risk means, but annuities soft

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for sequence of lifestyle risk. Hey

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Stan, you made that up out of thin air.

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What's sequence of lifestyle risk? Same

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thing. In essence, you don't want your

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life's going to be there's going to be

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ups and there's going to be downs.

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There's going to be good and there's

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going to be bad. There's going to be,

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you know, great things happen and

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disappointments.

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But when you have the income floor in

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place,

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you get through that better. And I know

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you're saying, "Stan, come on, man.

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That's a little bit of a reach." Is it?

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Is it really a reach?

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For those of you that have put in an

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income floor for yourself or that do not

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need income, you know, income is coming

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and it's not correlated to the market.

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It's not some Johnny Apples Seed Advisor

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going, "Well, let me just peel off the

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gains, Mr. Jones and then you don't have

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to buy an annuity from that Stan the

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annuity man character.

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What happens when the markets go down?

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Johnny Apple Seed market advisor.

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You know what happens? It doesn't work.

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And the 4% rule doesn't work. Sequence

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again sequence sequence of returns risk

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is is

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leveling out that risk while the markets

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are volatile because you have the

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guarantees in place. Annuities do that

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sequence of lifestyle risk. I think it's

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more important than that because in

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chapter two of your life, it's about

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lifestyle. It's about you. It's about

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living better than you had planned

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because you've worked so hard. You're a

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30-year overnight sensation. Can I get

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an annuity amen on that one? [snorts]

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Chapter two of your life, you don't want

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your lifestyle to be interrupted. You

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want your lifestyle to increase. You

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want your lifestyle to be unaffected by

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global events, politics, stupid

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politicians, both parties, and market

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girrations,

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wars, whatever you want. Sequence of

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lifestyle risk so your lifestyle is

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smooth. It's not choppy. You don't have

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to stop what you're what you're doing.

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If you're if you're playing guitar or if

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you're volunteering at the local YMC or

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whatever it is, it's not going to be

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interrupted because your income floor is

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in place.

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So, mark the date of this taping. I

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might have come up with something that

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the financial journalist might just love

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because, you know, they love when they

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say, "Well, annuities do saw for

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longevity risk." What's longevity risk?

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It's the fear of outliving your money.

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Well, annuities do sometimes suffer and

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and help with sequence of returns risk.

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What's that? The risk of the markets and

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you you're overreacting as they're

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gyating, but if you have an income

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floor, you don't because you have an

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income floor. You don't have to worry

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about it. So Stan the Annuity Man,

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America's annuity agent, licensed all 50

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states of Puerto Rico,

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top agent in the country, comes out and

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says, "Wait a minute.

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[cough and clears throat]

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It's sequence of life lifestyle risk.

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There is risk to your lifestyle. If

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you're in the markets 100% all in

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rolling the dice with the overhands uh

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with with a running start throwing them

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overhand and the markets go down. That's

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sequence of lifestyle risk.

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If Johnny Apple Seed Advisor is saying,

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"Hey, let's just let's not buy the

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annuity, but let's just peel off in

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let's peel off the gains from the

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portfolio." Number one, he's probably

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never seen a down market. Number two, I

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probably have cowboy boots older than

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him. Number three, he's a dreamer.

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Number four, run for your life

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because you're going to have sequence of

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lifestyle risk eventually.

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Now, I know at the time of this taping,

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everybody thinks that artificial

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intelligence and the data centers and

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Elon Musk car that can catapult over a

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truck. Those are great things, but

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markets go up and down. Just as a

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reminder, the country that we all love

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and live in and f would fight for is 41

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up to 42 trillion in debt at the time of

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this taping with no plan to get out of

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it.

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Eventually, that piper will be paid.

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But what you want are non-correlated,

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non-market attached assets that that

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create that income floor that you're

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never going to outlive. You already own

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the best inflation annuity on the

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planet. That's social security.

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If you have a pension now, you own two.

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But you can't hate annuities and love

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your social security. You can't hate

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annuities and love your pension. You

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can't hate annuities and love CDs

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because there's a product that that

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mimics CDs. It's called AMA multi-year

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guarantee annuity.

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What if you have your income floor in

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place?

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There's no lifestyle risk.

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I met with a couple today.

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They actually flew in to see me. That's

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crazy. But I love that I and I couldn't

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turn the appointment down. Typically

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everything we do is is virtual. But they

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actually flew in and I sat with them and

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and I said, "What's the goal?" And they

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said, "Well, the goal is that we just

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don't have to worry about anything

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anymore." And and the bills are paid. I

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said, "Well, what's that number?" They

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told me the number. I said, "What's that

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number com combined with social security

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that you're going to take?" So, we

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backed into the number, use the least

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amount of money as possible, and they

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walked out of the office. I said, "You

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don't have to worry about money anymore.

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you I mean your your lifestyle risk is

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no more

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markets can gyate. You can have money in

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the markets. You don't really have to

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worry about it. Be a good investor. Be a

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prudent investor. But you don't have to

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overreact and sell sell sell when you

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need to or when you think your your

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instinct tells you to if you're afraid.

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So just remember everyone talks about on

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CNBC and Fox Business and whatever

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channel Bloomberg that you watch

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sequence of returns risk and that can be

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solved by annuities and smoothing out

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that up and down because you have the

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lifetime income floor but more

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importantly is solving for sequence of

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lifestyle risk and sequence of lifestyle

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risk means that the income floor is in

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place the guarantees are in place. the

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principal protections in place so it

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doesn't disrupt the lifestyle that

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you've worked so hard for and earned and

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should enjoy in chapter two of your

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life. I'll close with this. Remember

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there's three phases of retirement. Slow

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go well go, slow go and no go. So go go

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go. You know what that is? You feel

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good. You can travel. You're thinking it

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means it's good. Slow go is you can you

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hurt. You can't move as well. And no go,

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you know what that means? drooling on

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yourself and wearing a diaper. We're all

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going to get there if we live long

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enough. What I'm saying is sequence of

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lifestyle risk.

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Enjoy the enjoy the go- go and then you

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can enjoy the slowgo and then you have

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money to take care of you on the no-go.

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Makes sense. My name is Stan the annuity

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man. That's fun with annuities. That was

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fun and enjoyable and edutaining.

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I'll see you next