How Much Monthly Income Will I Need In Retirement?

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

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licensed in all 50 states. The question for today is, how much monthly income will I

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need in retirement? That's a loaded question. Everyone's a little different, but we're going

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to kind of break it down so you can understand how possibly annuities work. Maybe they don't,

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maybe they do. But we're going to go through everything after this.

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So, how much monthly income do you need in retirement? I call that your income floor.

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Your income floor is what you need to build, what you need to understand,

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and what you need to calculate. Now, before we get into this, you know, VS behind the scenes is like,

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"What's the annuity Stanifesto, Stan the Annuity Man?" That's a book I wrote a long,

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long time ago, still available on Amazon about all things annuities. I'm not sure,

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it might be dated at this point from the standpoint of when I wrote it. But

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that's young Stan right there, right? That's young Stan without any gray hair right there.

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That's the Stan that my wife's still looking for, and now all she gets is the gray Stan.

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So, monthly income in retirement. I mean, look at your income floor. You know, look at the Social

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Security. That's an annuity you already own. Best inflation annuity on the planet. You know,

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look at the RMDs if you're taking that from your IRA. That's an annuity-type payment as well. If

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you get a pension, that's an annuity-type payment as well. Everything that's hitting

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your bank account on a monthly basis, side hustle, dividends, whatever that is, that's your monthly

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income. Now, the question is, is that sufficient? Is that enough? And only you can answer that.

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Now, if it's enough and you're living comfortably and everything's good, then you don't need an

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annuity. It's really that simple. And yes, I'm the top independent agent in the country. I'm

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America's annuity agent. I'm licensed in every single state. But if you don't need an annuity,

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you don't need an annuity. We have no problem telling you that, my team and I. But look at that

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number and then say to yourself, is that enough to live the way you want to live, to travel, to

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buy the shoes and all that stuff, or do you need more? Do you need more additional lifetime income?

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Now, if you're fortunate enough to have non-qualified,

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non-IRA-type money within those accounts, or you have IRA-type money, 401(k), 403(b), 457,

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whatever that is that's been tax-deferred, that might be where you look to create that

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additional income. The question is, when do you need that lifetime income to start? And also,

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is it going to be just your life, or is it going to be you and a spouse?

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Now understand that life insurance companies that issue annuities, the payments will

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be higher if it's just you. Okay? But if it's joint life, that means when you die,

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your surviving spouse is going to get the payments uninterrupted and unchanged. It's

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very important here. Listen to me. If you're the owner and the spouse is the beneficiary, they're

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not getting a lifetime income stream. They're getting what's left over when you pass away.

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I had a gentleman call the other day and say, "That's not true. You know,

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if she's the beneficiary, she gets a continued lifetime income stream." I'm like, "No,

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that doesn't work that way. If you want lifetime income to cover both lives as

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long as you're breathing, and if you're a male out there, I'm betting on your wife.

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It's an evil conspiracy, but it is what it is." Then it has to be joint life,

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not your life and her as the beneficiary or her life and you as the beneficiary. All that

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means is the beneficiary is going to get what's left over when you die. And if you live forever,

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there'll be nothing because you're going to deplete the payments even though the annuity

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company's on the hook to pay as long as you're breathing. So, let's get that straight quickly.

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Second thing I want to clarify, if you set it up life or joint life and you die,

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we can structure it so that 100% of the money goes to your list of beneficiaries and the

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evil annuity company never keeps a penny. Please do not continue to believe, "Well,

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if I die, the annuity company keeps the money." That's one of 45 or more ways to structure it. And

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99% of the people don't want to do that. If you hate your beneficiaries, then do life only. That's

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what life only means. But most people do life with cash refund, life with installment refund,

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life with period certain to make sure that money is going to go to somebody in the family

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and not the annuity company, even though the annuity company's on the hook to pay.

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The third thing you need to realize as you're building this income floor is that

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the pricing of the lifetime income stream is primarily based on your life expectancy or,

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if it's joint, life expectancies, plural, at the time you take the payment. Older you are,

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the higher the payment. Rates play a secondary role. Interest rates play a secondary role.

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The Fed plays a secondary role. Annuity companies glance at the Fed. Banks stare

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at the Fed. Interest rates play a secondary role, sometimes as low as 20% of the pricing.

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Life insurance companies that issue annuities, they have the big buildings for a reason. They

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know when we're going to die. Property and casualty companies have the small buildings

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and go out of business because they don't know when the hurricane or the fire is going to hit.

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But life insurance companies are trying to fill age tranches. So, let's just say you're 65 and

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your wife's 63. There's companies out there that need to fill that tranche. So remember,

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when you put your portfolio together, you had small cap, mid-cap, large cap, international,

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value. Remember all that? Life insurance companies have age ranges, and they're trying to fill them.

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Once they fill it, that company will lower their guarantee not to attract you. If there's a lot

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of you needed in that tranche, they're going to raise the contractual guarantee

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to attract you. It's really that simple. That's the reason annuities, number four biggest thing,

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is annuities are commodity products. You shop all carriers for the highest contractual

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guarantee. For lifetime income, it's A+ or better. No exceptions. A+ or better.

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But you shop all carriers because sometimes tranches need to be filled, sometimes they're

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filled. We shop all carriers because at all times somebody wants your business. Someone's

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going to aggressively bid contractually to get your business. And that's how it works.

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If you go to my site at theannuityman.com, you can run those quotes to your heart's content.

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Hundreds and hundreds of thousands of quotes run every single month. One of these days,

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I guess we'll go over a million a month. That'd be wild. Okay. Yes,

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I do pay for all those, but it's okay. I want you to understand how this works.

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Understand the older you are, the higher the payment. The younger you are, the lower the

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payment. Understand that interest rates play a secondary role. Understand that these products

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are commodity products. We shop all carriers for the highest contractual guarantee. And

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think of the quotes like a gallon of milk. Every 7 to 10 days, they expire unless

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you lock them in going toward the process of implementing that into your portfolio.

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We can do that. We take you from start to finish with my team if you decide to move forward,

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but we're way beyond, we're way ahead of ourselves. Okay? Yes, we want you as a client,

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but only if that annuity solution fits for your specific situation.

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So, in conclusion, annuities are commodity products. Lifetime income is based primarily

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on life expectancy. Shop all carriers. You can use our site, theannuityman, for that,

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theannuityman.com. If you want to talk with us, you can schedule a call. We'll call right on the

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dot when you tell us to call. We'll never just call you randomly. We don't do that. We're not

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some outbound telemarketing agency. We don't do that. We don't need to do that. We don't want

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to do that. I don't like when people do that. So, guess what? My company doesn't do that.

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One last thing. Above my head is a link to a video that explains me, explains how we got started,

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explains the company, explains what we do. In a nutshell, it's like my grandfather said,

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when you tell the truth, you don't have to remember anything. We're not perfect,

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but what we do is we run toward the bullets to correct any mistakes that might happen,

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and we learn from them and get better like any company does.

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So, looking forward to you going to my site. You can download books. You can do all kinds

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of things. This YouTube channel that you're on, we have playlists. You can deep dive into a specific

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product. And if you want to reach out to me, you can do that, too. stantheannuityman.com.

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See you next time.