How Does An Annuity Work When You Retire?

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

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and Puerto Rico. I say that for Dr. V in the house. He's from Venezuela,

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so he speaks fluent Puerto Rican, which is good.

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How does an annuity work when you retire? It's a tearjerker. How does an annuity work?

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You're retired. You got chapter 2 of your life. What are you gonna do? What are you gonna do

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every single day? You have to get up and not do anything. Can you do that?

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Well, you need money to do nothing. Can we all agree upon that?

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I'm going to talk about this topic in only a way that I can.

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And that's why you tuned in for the edutainment after this.

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So, Stan The Annuity Man, America's annuity agent. How does an annuity

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work when you retire? Well, it depends on what your goals are.

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Don't be one of those people that go, "Well, I'd never buy an annuity. I don't need a

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lifetime income, and when you die, the annuity company keeps the money." Please stop. Please,

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just please stop. La, la, la, la, la, la, I'm not listening because it's stupid.

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Annuities do four things. And those four things are represented by a very

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easy-to-understand acronym that I, moi, for French, put on the planet, and it's PILL.

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P, stands for principal protection.

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I, stands for income for life.

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L, stands for legacy.

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The other L, stands for long-term care.

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So, in retirement, how do annuities work? Those are the four ways they work.

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"Stan, I just want to protect the principal and get interest." Check.

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"Stan, I want lifetime income for me and the missus as long as we're breathing." Check.

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"Stan, I don't need the money. I want to leave money to charity and my beneficiaries,

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which is one and the same." Check. "Stan, I'm not feeling too good.

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You know, I might need long-term care in the future." Check. Annuities.

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But if you say, "I need annuities for market growth." Wrong. "I need annuities for upside." Wrong.

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"I need annuities for potential." Wrong. I need annuities for a reasonable rate of return." Wrong.

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All of that sales-pitch garbage that's out there on the internet.

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This isn't sales-pitch garbage. This is contractual truth, baby.

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Somebody the other day, I was speaking, and when I speak, I don't speak for free, player. They

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fly me in first class, bodyguards, and pay me a check. Check has to clear before I hit the stage.

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But I hit the stage, and somebody introduces me as,

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"I want to welcome Stan The Annuity Man, the walking middle finger of annuity truth."

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And I went, "Yeah, that sounds like me. That is me. That's the way it should be."

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You don't need fluff. You don't need hype because, in retirement, you need contractual guarantees.

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I only look at contractual guarantees.

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My company, gorilla in the room, everybody in my Las Vegas office is licensed in all 50 states,

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but not on commission, and we represent all carriers. And we

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look at annuities for what they will do, not what they might do.

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The will do is the contractual guarantees of the policy.

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The might do is the, "If you'd owned it 10 years ago, look at the potential, look at

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the hypothetical, look at the unicorns chasing the butterflies, look at all that non-guaranteed

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flashy stuff, look at that upfront bonus, Martha. That's over 50%. That company's giving away 50%."

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Please don't go to Vegas. Please, please.

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And bigger than Vegas, if you believe that 50% or 30% or 20%

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or 40% bonus is real money, please don't vote. Please, God, don't vote.

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You should be, you know, back in the day, they had to, well, and I'm glad they got rid of this.

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I mean, I'm a man of the people, as they say. You had to own property to vote. Okay, that's gone.

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But I do think a new law: if you believe that an upfront bonus is real money,

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you can't vote. You can't vote locally, nationally. You can't go

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and vote at your church for new pews. You can't, 'cause you're stupid.

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How does an annuity work in retirement?

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It works contractually to solve for what you want to solve for.

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Two questions we always ask. And even if you schedule a call with me, guess what two

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questions I'm getting ready, I'm going to ask these two questions because I'm a simple man

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from a simple state in North Carolina, and I look at things simply because Hunter Garrison,

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my grandfather, said, "If you tell the truth, you don't have to remember anything."

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Hello.

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Here are the 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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Once again:

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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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I mean, I just read that. I didn't want to put emphasis on anything.

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If you read into that or saw some emphasis, then that's fine. Contractual.

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How do annuities work in retirement?

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They work contractually, not hypothetically.

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How do annuities work in retirement?

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They work contractually, not theoretically.

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How do annuities work in retirement?

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They work contractually, not back-tested numbers, not hopeful numbers, not non-guaranteed numbers.

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How do annuities work in retirement?

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They work contractually.

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If you want non-guaranteed growth, go get it, player, Gordon Gekko. That's okay.

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I told a guy the other day because he was, unfortunately, arguing with me about annuities,

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which is, that's not good. Doesn't go well. Just think of a flounder being filleted. Okay?

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And I said to him, "Player, if you had the income floor in place,

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if you had the guarantees in place, you would be a better investor with all the other money."

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He goes, "Well, I want to hear more about that, son,

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because I'm one of the best investors out here." Okay, great. Here's how it works.

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Your master-of-the-universe dart thrower says, "Don't listen to Stan.

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You don't need contractual guarantees. I'm going to manage the money,

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and I'm going to pull off the gains, typically 4% and 5% at a minimum, because I'm a dart thrower,

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and I'm going to give you that. You don't have to buy an annuity."

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My question is, hey, Johnny Appleseed Advisor, what happens in a down market?

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You still have to pull out the four.

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So, if it goes down 20%, you pull out four, you're down 24%. That's a big year.

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That's a big nut, as they say down South. You know what I'm saying? That's a lot.

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If you put the guarantees in place, whether they're principal protection guarantees,

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legacy guarantees, income guarantees for life,

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you're a better investor because you don't have to disrupt the investments.

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Think about it.

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In a down market, if you didn't have to sell, sell, sell, sell, if you didn't have to do that,

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and you have the income floor in place, guess what? You don't have to disrupt the strategy.

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Now, you got to say to yourself, "Self, why didn't my fee-only man, fee-only advisor,

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dart thrower, master of the universe, tell me what you just said right there?"

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And you know that I've worked at Morgan Stanley, Dean Witter, PaineWebber, UBS, etc.

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Why didn't they tell me that income floor story not to disrupt the investments to make me a better investor?

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You want to know why?

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Because that part there, that income floor, you can't charge a fee for. You can't charge a wrap fee for.

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You say, "Well, they would do that just because they couldn't charge a fee on that?"

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You damn right they would.

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Now, there's a lot of good advisors out there. I think I know three of them.

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The point is, annuities, how they work in retirement, is contractual.

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And if you still want to keep money in the markets and still want to start swinging,

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still swing for the fences, for those doubles and triples and that

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occasional Nvidia home run, then you need the guarantees in place.

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That's how they work in retirement.

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Don't believe me? Don't believe the strategy?

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Go to your significant other, if they're still with you.

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Just kidding. Because my wife, 37 years, been with me 41. I mean, what a martyr.

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But the point is, one person in your household,

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if you're still together, could care less about the investments,

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could care less about the stocks, could care less about AI, could care less about tech.

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They want lifestyle.

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They want guarantees.

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They want money coming in.

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They want to go see the kids, the grandkids, France, Italy, New Orleans.

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They want to go.

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They want to eat out.

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And better yet, they want to redo the kitchen.

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Had a guy call the other day, "Stan, you know, we got the money, but you know,

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Ethel said she wanted a kitchen. We got perfectly good marble."

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I said, "Shut up and redo the damn kitchen."

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There's magic in redone kitchens. There is.

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That's the magic.

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You've won the game. Stop playing.

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And if you want to keep playing, put the income guarantees or principal guarantees in place.

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Do me a favor. Go to my site, theannuityman.com. You can run

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quotes to your heart's content. You can download free owner's manuals.

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And one last thing. Above my head, spinning like a spinning clock,

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you're going to see a video appear, and it's on the commoditization of

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annuities, why all annuities are commodity products. Nothing unique.

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Someone called me the other day, "What do you know about the Excalibur X4Z-V annuity?"

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I went, "I don't know. Great name, though. Hope they trademarked it."

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Could care less. Okay?

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It's about the rating. It's about the guarantee. And it's about talking to me.

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So, email me, [email protected].

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I'll try to be a little bit more animated next video because I didn't get a lot of

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sleep last night. So, you know, running on a little caffeine, as they say.

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But I'm here to help, we want to help, and we hope that you

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look at us seriously as part of your overall retirement team.

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My name is Stan The Annuity Man.

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Come on, lean in.

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See you next time.