How Much Does Immediate Annuities Lose In Inflation?

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So, how much do immediate annuities lose in inflation?

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Hi there, I'm Stan the Annuity Man, America's annuity agent,

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licensed in all 50 states, the founder of Contractual Guarantees Only,

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CGO. This is a good topic that I'm going to hit from a myriad of educational angles after this.

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So, first of all, let's talk about inflation. That gorilla in the room that lives

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in your head rent-free that everyone's trying to figure out. First thing first, inflation is

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personal. Now, if you drive a lot and gas is high, that affects you. If you have kids in the house

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and they're eating cereal, you're buying milk and cereal, that's going to affect you. But for

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people that don't drive a lot and don't have the kids in the house, inflation is different. So,

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what I want you to do with inflation is always look at your income floor. You know, Social

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Security, best inflation annuity on the planet. RMDs, an annuity-type payment from your IRA that

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you have to take at a certain age. Pensions, if you're so fortunate to have one. And then lifetime

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income annuities, SPIAs, QLACs, Income Riders, if you have that part of your income floor. Okay? So,

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add all that up, and if you have a gap that needs to be filled, we can do that with a reverse

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engineer quote at my site, theannuityman.com, or you can email me, [email protected],

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and I'll take care of you. We also have a team out there. You can do free consultation calls,

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etc. But with inflation, what I want you to walk away from this video is that there is no annuity

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on the planet, and I know because I represent all carriers and have been doing this for decades,

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there's no annuity on the planet that adjusts for inflation. And if anyone says they have it,

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they are flat-out lying or stupid or a combination or a sociopath. They don't have it.

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Let me do a visual. Okay? You say, "Well, this guy told me that when the index increases,

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the income increases." Well, the annuity company lowers the payment to make up for that. Typically,

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it's a seven- to nine-year break-even point. Okay? Visually, it's like this. Here's the

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annuity without the inflation increase. Here's the one with the inflation increase. Annuity

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companies don't give that away. Okay? With immediate annuities, deferred income annuities,

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those type of things, you can attach what's called a COLA, cost-of-living adjustment increase, and

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you can choose the percentage. So, in other words, you can say, "Okay, I want an immediate annuity,

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and I want it to decrease for the rest of my life by 3%." And you're saying, "Man,

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that sounds good," until I run the quote with the same amount of money without the increase,

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and you're going to see the disparity. You already own the best inflation annuity

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on the planet. Okay? On the planet. It's called Social Security. Anything in the commercial side

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that moi, French for me, can offer, okay, quoting all carriers, any type of inflation increase.

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I'm not for it right now. I don't see it priced in your favor. So, we're not going to recommend

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it. Can you buy it? Yeah, from us, yes, if you convince us why. And don't say, "Well, I just like

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to see it increase." Mathematically, it doesn't make sense. The break-even points don't make

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sense, and there's no more, at the time of this taping, CPI-U type increases, and they play games

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with those anyway. So, there's no perfect way. One of the biggest fallacies and fraudulent sales

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pitches going on right now is that, well, if you buy this indexed annuity and it has

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an income rider and the index increases, the income increases too. Well, what do you think

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the annuity company does if that's offered? They just lower the payment severely to make up for

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any potential increase. That sounds too good to be true, it is every single time. Anybody who shows

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you a proposal that's not guaranteed, that's not contractually guaranteed, rip it up in front of

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them. Throw it away. Wipe your rear end with it. I don't care. It's not worth anything. If it's

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not contractual, it's not worth anything. So, how do immediate annuities fare during

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inflation? Like everything else, if it's a static payment and inflation goes up,

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you know the dollar's worth less. But what I'm trying to tell you is there's no solution to that.

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If you came to this video hoping that I was going to tell you about a product that magically floats

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and addresses inflation, then you're the sucker at the table. You're the rube at the table that

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most agents are looking for because they're going to sell you that dream, and then two years later,

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you're going to find out you bought the contractual reality. There's no philanthropists

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at annuity companies. Annuities are issued by life insurance companies. Those people are

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pure capitalists. They're not giving anything away. If you want an increase, they're going

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to severely lower the payment to give you that increase. You just have to run the math numbers.

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So, if you say, "I still don't believe you, Stan. I still don't believe you. I think I'm right."

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Okay, great. Then we'll run you a quote with and a quote without, and we'll see. And then you can run

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the math numbers. If the math numbers make sense to you, the break-even numbers make sense to you,

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then great, perfect, whatever. Or if you say, "Okay, I'm going to have an annuity purchase

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for my kids when I die, and I want an increase on that immediate annuity at that time." Great. Okay,

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you're not going to be here. It doesn't matter. The math doesn't matter. You just want increasing

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income because maybe Social Security isn't in place. And, by the way, Social Security increases,

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that's not actuarial. That's political. And, by the way, I'm contractual. So, actuarial

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means that the life insurance companies issuing annuities are looking at your life expectancy,

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and they're not giving away any increase. Political means that your Social Security is going

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to increase because they want your vote. But me, top agent in the country, Stan the Annuity Man,

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I'm contractual. We're only looking at the contractual guarantees of the policy.

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And for lifetime income, it's A+ or better. A+ or better, you don't need a sweater. No exceptions.

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I don't care if Johnny Appleseed agent down the road is saying this B++ company for lifetime

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income is a good deal. Okay, great. All I'm going to say to him, can they back up the

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claim? If AI makes you live longer, medical breakthroughs make you live longer to 125,

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that carrier better be strong to pay it. Right now, lifetime income is a bargain.

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Okay? So inflation, I know it's in your head. It lives in your head for free. You're trying

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to solve it. You're trying to find the product. And if you ask enough agents and advisors, they're

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going to tell you they have it. And they do not have it. Because if it was out there, I'd have

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it. Top agent in the country. And it's not there. And then if they say, "Well, he just doesn't know

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about it." Oh, no, no, no, no, no, no, no. I know about it. I know about everything. This is what

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I do, player. Been doing it for decades. Alright? Do me a favor. Above my head,

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clicking clock, ticking clock, clicking clock, a video is going to appear about lifetime income,

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how it's priced primarily on life expectancy. But it's good for you to see. And I'm glad this

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video dovetails into that one because now you know the truth about inflation and annuities. And now

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you know the truth about some of those crap sales pitches that you're hearing at the expensive steak

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dinner seminar. Go eat the food. Don't swallow the pitch. Swallow the food, not the pitch.

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Okay? So watch that video. Feel free to contact us. Go to my site at theannuityman.com, run

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quotes, download free owner's manuals, watch my videos, and contact me if needed,

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[email protected]. See you next time.