How To Build A Retirement Income Portfolio

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How to build a retirement income portfolio by Stan the Annuity Man,

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America’s annuity agent licensed in all 50 states. Top agent in the country,

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independent agent, and the tallest, six foot six, if you’re keeping score as they did when

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I played college basketball, shooting the three and shooting the free throws.

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I was one of those guys. So we’re gonna go over how to build that retirement income

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portfolio. You’ve gone your whole life building a portfolio: value,

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small cap, international, mid cap. We’re gonna do something different. Chapter two is all about

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you. We’re gonna build that income floor, that income portfolio that you need in chapter two.

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Why? Because chapter two is about you.

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So, how do we build a retirement income portfolio, Stan the Annuity Man?

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That’s a good question. It’s the same approach that you took with your investments,

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your non-annuity investments. And no, by the way, annuities — and there’s many types — should never,

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ever, ever, ever, ever, ever be purchased for market growth or potential stock upside.

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Don’t, don’t buy the dream. Okay? Don’t, don’t do it. If it sounds too good to be true,

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it is every single time. Annuities — many types — are contracts between life insurance companies that

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issue annuities and you contract, so you’re buying the contractual guarantees. You own it for

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what it will do, not what it might do, could do, hopefully do, unicorns chasing the butterflies

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do, all that’s do, do. I just came up with that. It’s pretty

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good. So we’re building the income portfolio.

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First of all, you have to look at the first annuity that you own,

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and you’re going, “Hey man, I don’t own an annuity. I’m smarter than that,

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player. I don’t own an annuity.” You do. Guess what it is? Social Security.

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It’s the best annuity on the planet. You own it. And the politicians raise

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the COLA increase because they want your votes,

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not because it’s actuarially sound. Can we get an annuity amen on that? But you already own that.

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The second annuity that you own is, if you have a pension, that’s an annuity.

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“No, that is not. It’s a pension.”

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What’s a pension? Pays you for life as long as you’re breathing. What’s an annuity

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for Lifetime income? Pays you for life as long as you’re breathing. It’s an annuity.

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The third annuity that you own, that you’re going,

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“There’s no way. There’s three that I own. There’s no way.” It is.

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It’s called — you have an IRA, most of you, or a 401(k) that’s gonna turn into an IRA.

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Required minimum distributions is your — and people, I’m gonna stop here. Just email me,

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[email protected], if you wanna argue with

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the fact that RMDs are not annuities. Hello? I’ll take on that challenge, player. Bring it.

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What’s an RMD, Stan? What’s required minimum distribution? It’s when the IRS

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taps you on the shoulder and says, “I know you don’t need the money,

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but we need you to take it out in this percentage based upon your age and life expectancy so we can

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tax it.” So every year you have to take out money as long as you’re breathing.

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Sounds really similar, doesn’t it? Big C behind the camera. Why? Because it’s an annuity.

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So you’re building your income portfolio. So forget small cap, forget large cap,

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forget value, forget international, forget all those percentages. It comes

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down to what is your income floor, what is the need every month for that money

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to hit your bank account so that you — and more importantly, your spouse to be happy.

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Can I get an annuity Amen on that one? Putting up with your rear end all this time. Okay. I’m

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talking to you females, too, that have the male. I’m talking to both of you. Okay.

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I’ve been married for 37 years. I can do that.

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But income portfolio is, how much income do you need in the portfolio,

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and where is it coming from? Social Security, RMDs, pension, income portfolio could also be

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dividends from that Exxon stock that GrandPappy bought a long time ago in Midland,

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Texas. I mean, it could be anything that’s coming into your bank account.

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That’s what an income portfolio. Let’s talk about annuities for lifetime income.

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SPIAs, DIAs, QLACs, Income Riders, are the four types that provide lifetime income for as long

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as you’re breathing. There’s no ROI until you die because we don’t know what the return is

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until you die. And by the way, death is not a good strategy ’cause you can only use it once,

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right? But you can use it. It's a good strategy, it's just — you can only use it once, last I checked.

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But life insurance companies that issue annuities — the primary pricing mechanism of the

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lifetime income stream is your life expectancy or joint life expectancy at the time you take

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the payment. Interest rates play about a 20% pricing role. Let me say it again.

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Banks stare straight at the Fed. They look straight at the Fed. There’s the Fed. You

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know what annuity companies do? They glance at the Fed. “Yeah, whatever.” Why? Because life

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expectancy drives the pricing train. Interest rates play about 20 to 25 percent pricing role.

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If that — you’re saying, “Wait a minute. There ain’t no way, man.” That’s my uncle

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at the family reunion. You’ll know half the words he’s saying.

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Talk him back. And you’re like, “Yeah, good, Uncle Joe. Have some casserole.”

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But anyway, okay. Life insurance companies, they have the big buildings because they

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know when we’re gonna die. Property and casualty companies don’t have the

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big buildings ’cause they don’t know when the hurricane’s gonna hit. Hello?

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So because they know when we’re gonna die, everything’s based on life expectancy. So

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what does the life insurance company do when they issue annuities for lifetime income?

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Very good question. You need to know this. They look at your age — or ages if a joint — and they’re

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filling tranches. So an annuity company might have tranches of age ranges that they fill. And

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when they need to fill a tranche, they raise the contractual guarantee in order to attract

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you. Once they fill that tranche, they lower the contractual guarantee to not attract you.

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That’s the reason it’s important to use us at theannuityman.com,

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because we represent all carriers. And at any point in time, there’s gonna be

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carriers that need to fill your age tranche. It’s that simple. Walter,

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I’m not gonna wait until the Fed raises a rate. Holy crap. No. That’s not it.

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Okay. Quotes on our site — quotes in the annuity world — quotes for lifetime income

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are like a gallon of milk. Every seven to ten days they expire unless you lock

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them in and go through the process to get the paperwork done, etcetera. But they change.

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Why do they change? Because of the tranches. Because they’re trying to attract people.

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We had a situation the other day where the Fed lowered rates, and then someone called up and

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said, “I need to speak to Stan right away.” You can do that. “Let me get Mike. I’ll get to you.”

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But the point is, so I called the guy back. I said, “What’s up, Ernie?” And Ernie goes,

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“Wait a minute. You know the Fed is they just lowered the rates,

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and this income quote’s higher than it was two weeks ago before they lowered the rates.”

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It’s because, Ernie, they need your age,

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and they’re aggressively quoting to get you. That’s the reason.

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Listen, annuities are commodity products. There’s not one that’s

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better than the other. I know carriers are out there going,

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“Stan, ours is better than mine.”

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No. Or the agent at the bad chicken dinner seminar is going,

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“Mine is the best. I’ve researched all of them, and this one is the best.”

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Translation: it’s the best for him or her. And they go on a trip to

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Bora Bora if they sell enough of it with their girlfriend, husband, or whatever applies.

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These are commodity products. We shop all carriers for the highest

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contractual guarantee. The only rule that we have — because I am Stan the Annuity Man,

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top agent in the country, and yes, America’s annuity agent for lifetime

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income — that rating has to be A+ or better. Period. End of story.

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So when you’re building your income portfolio, your retirement income portfolio, you

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need to — we’re looking at the income floor. ’Cause chapter two’s about you, right? Nod your head.

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You’re gonna add all that up. And if you need to fill a gap,

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that’s where the annuities come in. And you have to tell us when you want that income to start,

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and then we will quote the products that will give you the highest contractual guarantee.

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Do me one favor before we leave. See that up there? That’s hovering above my head.

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Click that link. It tells you about the Annuity Man. It tells you about my life. It tells you

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about why I started. It tells you about how I started. It tells you why we’re in Vegas. It tells

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you why all of my people aren’t on commission. It tells you why you need to at least consider us.

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We are not a hammer looking for a nail. We would love to have you as a client if we feel that an

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annuity would enhance your specific situation. If we don’t think it will, we will tell you so.

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That’s who we are. I’m Stan the Annuity Man. See you next time.