How To Create An Income Stream In Retirement

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How to create an income stream in retirement. Translated, how do you create an income stream

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in retirement? Hi there, I'm Stan the Annuity Man, America's annuity agent, licensed in all

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50 states. We're going to talk about how to create income with annuities, without annuities,

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because some of you will find out you probably don't need an annuity and some of you will.

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But I'm going to give you that objective take after 30 plus years in the business after this.

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So, how do you create an income stream in retirement? If you ask 10 advisors,

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they're going to give you 10 different answers. And a lot of their answers are going to be like

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focused on what they want to sell you. Let's take a little broader approach than that. Having worked

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with Morgan Stanley, Dean Witter, Paine Webber, UBS, the way that they wanted you to approach

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income and retirement is what's called the 4% rule. Meaning that keep your money in the market,

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still be a player, roll the dice over him with a running start, and then take 4% out of the

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profits. Okay. This theory has been disproved by everybody, including the infamous Wade Pfau.

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He's gone through and just said this doesn't work because what happens in down years, player, you're

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down 20, you still take 4% out. In a perfect bull market, it works. But as I told Big C,

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who's behind the camera before we started going, I said, "Don't confuse a bull market with genius,

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Big C." Okay? You know, anybody can throw a dart when it's a bull market. when it gets choppy and

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funky, as they say, that's when the rubber meets the road. And that 4% rule, it's not

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viable anymore. It just isn't. I mean, it's one of those things where that, as they say in the South,

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that dog don't hunt. You know, it just doesn't hunt anymore. So, how do you create income in

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retirement? We've kind of poo pooed, as they say. That's a very technical term for, what is a

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technical term for big C? I don't know. Poo poo is a technical term. You can use as you want. 4% rule

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doesn't work. But let's just say you have millions and millions and millions of dollars and you say,

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"I'm just going to buy CDs and money high yielding money markets and just peel off the interest and

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live off that." Go for it, player. If you can do that, then do that. Don't tie your money

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up on anything. If you can just peel off the interest, then do that. I always think about

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these professional athletes, and they get paid hundreds and hundreds of millions of dollars or

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whatever. Hey, don't buy a restaurant, okay? Don't be a real estate investor. just put your money

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in like fixed instruments and get the interest. This will help the agents out there. If you have

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a $100 million and you're getting 4% off the $100 million, the $100 million is intact and you

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get $4 million every year, right? No restaurant, no cars, no nothing. Okay? Just do that. And I'm

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sure there's some agents out there and athletes that do that, but not many because most of them

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run out of money. How's that even possible? Good friend of mine played in the NBA. I played college

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basketball a long time ago. He played in the NBA, made $93 million broke chapter 11. And I told him

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the other day, he said, "You ever thought about just maybe buying treasuries or here maybe a CD or

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so?" Well, you know, this buddy of mine had this real estate thing. And I'm like, "Yeah, that didn't

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work out." You know, cool. So, if you have enough money, live off the interest. Nothing wrong with

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that. Well, Stan, I'm just I got some FOMO, fear of missing out, the markets are going up. Who

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cares? If you can live off the interest, then live off the interest. Okay. So, 4% rule, poo poo. Live

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off the interest, uh-huh. What's the next step? If you don't have this part here, then what do you do

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to create that retirement income? That's where you can do annuities. There's four types of annuities

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for lifetime income. Single premium immediate annuities, acronym SPIA, deferred income annuity,

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acronym DIA, qualified longevity annuity contract, acronym QLAC, and income riders, no acronym. Those

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are the four ways to do it. None's better than the other. It all comes down to two questions.

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What are those, Stan? I'll tell you. Number one, what do you want the money to contractually do?

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Number two, when do you want those contractual guarantees to start? Keywords in both questions

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are contractual. So we're talking about income, alright? So when do you want the income to

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start? Do you want it to start immediately? Do you want it to start down the road? 3 years,

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4 years, 5 years, 7 years, 10 years down the road. Regardless, we can run quotes or you can

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run them yourself at theanuityman.com and see what a lump sum would create. Or if you say,

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you know what, we need $7,500 a month. How much would it take to create $7,500 a month? We have

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those quote parameters in there as well. So you can choose the lump sum or payment, however

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you want to solve it. And you can run as many quotes as you want. I know what you're saying,

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Stan. You're such a giver. Give, give, give, never take. Now granted, I do have to pay for every

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quote. And at this point in time, there's hundreds of thousands of quotes run every single month on

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my site, but it matters to me that you can shop without getting. We don't do that. You will buy

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an annuity on your terms and your time frame only when you understand the benefits and the

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limitations of the strategy we are discussing. So ways to get retirement money, retirement income,

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4% rule, live off the interest, uh-huh. Yeah. If you've got the money, do it. And it doesn't

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have to be millions. If you have a low need for monthly income, income floor, it could be, hey,

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you're getting Social Security, which oh, by the way, is an annuity. All of you own an annuity. I

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know that hurts, but you do. That Social Security, If you have a pension, great. Add to that. And

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then live off interest, whatever. Doesn't have to be in millions of dollars. And then the third way

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is to actually look at lifetime income with annuities. Now, let me dispel some common

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misconceptions out there about annuities. Number one, when you die, money goes poof. When I die,

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damn, money goes poof. Annuity come keep money. That's one of 45 ways to structure it, player. If you

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tell me or tell my team, hey, I want to make sure that 100% of the money goes to my family,

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not the evil annuity company. We can structure it that way, even though the annuity company's on

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the hook to pay for as long as you're breathing. Second thing, inflation. There's not an annuity

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that's perfect for inflation. You can attach a cost of living adjustment increase at the time of

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contract with some policies, but annuity companies don't give that away. Visual, here's the visual.

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Income with an annuity that does not have an increase for inflation. For the people listening,

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it's my hands above my head. Here's where it is. If you have a cola cost of living adjustment

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increase to the annuity for the people listening, that's underneath my chin. It's typically 7 to 10

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years break even point. My point is don't do that. There's not an annuity on the planet that just for

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inflation. And that includes the indexed annuity pitch that you're going to hear at the expensive

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steak dinner seminar with Johnny Appleseed agent stands up there and goes, "I got an annuity that

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just for inflation. You get market upside with no downside. You get a 20% bonus. Holy crap. Three

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lies in a row. Okay. If you believe that, then you get what you deserve, player. Come on. You're

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better than that. Or you can call me and say, "Stan, I want to buy that pill that you mentioned

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that when you take it, you get six-pack abs. Just chiseled abs. You just take the pill. Don't have

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to do any crunches. It's the same thing. If it sounds too good to be true, it is every single

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time." Getting back to the annuities. I digress a little bit, but I made a good point and valid

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point and a very violent point. Not violent. But I get mad about annuities being mis-sold. These are

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contracts. You buy them for what they will do, not what they might do. Not what Johnny Appleseed

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agent says they could do. Ain't no could player. It's will do. You buy the contractual

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guarantees of the policy. Now, creating that retirement income stream. If you're married,

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I'm just going to suggest that you set a joint life with your spouse because they put up with

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your rear end for all these years and they deserve it. And the income will continue uninterrupted and

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unchanged when your Learjet hits the mountain and she's not on there with you. So, let's go

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backwards again. 4% rule. Live off the interest in some form or fashion, Uh-huh. Lifetime income

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with annuities. Explore it. Look underneath the rock. Don't believe what you've heard from your

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advisor or the dude at the cocktail party that doesn't know Jack. Talk to the expert. Been doing

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this a long time. I've been doing this longer than most agents have been alive. Now you're going to

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buy the annuity if you buy one on your terms and your time frame. We're not hammers looking for

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nails. But you need to know there's a source out there that you literally can shop. You literally

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can get advice and not feel like you're going to throw up and have to take a shower afterwards.

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You know what I'm talking about, like the guy that follows you around the car lot. Stop following me.

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We don't do that. We respect you. We respect your money. We respect where you're at. Period. End of

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story. One more thing, theanuityman.com. And also click that link above. That's a video that has me

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in a more relaxed tone talking about my company, my vision, how it started, why it started,

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and why you need to consider us. And because of that, I've got to move on. See you next time.