How To Figure Out Retirement Income: Annuity Income Planning

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

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licensed in all 50 states. Talking today about how to figure out retirement income,

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chapter 2. Chapter 2 is about you. So, how do we figure that out? I'm going to tell you after this.

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So, figuring out your retirement income needs, it's pretty easy. You just add. Everyone here

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can add, I hope. So, you're just adding up the lifetime income that's already coming into your

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account or the income that's coming into your account. That could be Social Security, the

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annuity you already own. It could be a pension. That's another annuity if you're so fortunate to

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get that from your employer. Most people do not have that. It could be required minimum

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distribution, which is another annuity type of a payment coming from your IRA when you reach a

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certain age that the IRS taps you on the shoulder and says, "Hey, you need to start taking money

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out so we can tax it." And that's got to happen as long as you're breathing. That's in essence called

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an annuity. And then you have to look at all the other things that are coming in. That could be

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dividend stocks, that could be, you know, bonds, that could be CDs, that could be money market,

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that could be a myriad of things. It could be a side hustle, some other job you do or hobby on the

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side where you sell crafts or whatever. So, what is all of that income that's coming in? And then

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once you figure all of that out, sit down with your spouse, if you have that spouse, and say,

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"Okay, this is our income floor. Is this sufficient enough to pay the bills or and

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or live the life we want to live in chapter 2?" Because chapter 2 is about you. Chapter 2 is

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not about continuing the path of save, save, save, save, save, squirrel it away, squirrel it away,

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squirrel it away. It's about you living your life. You've earned it. You've worked hard for it. So,

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you know, how do you do that? How do you look at that income stream and then determine, A,

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if that's enough? If it is, if you say, you know what, it's enough, Stan the Annuity Man,

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then you don't need an annuity. Where annuities fit in is to fill in that gap for lifetime income.

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Annuities. And there's many types. You can't just say, "I hate all annuities." Because you already

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own Social Security. You already have RMDs. Two annuities, right? If you have an IRA, if you have

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a pension, you have three. But you might say, "You know what? We need to fill in the gap. We have

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$3,000 a month that's coming in from all these other sources, and we need an extra $1,000 a

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month." So, annuities for lifetime income are the best place to go there. I mean, there's four

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types: SPIA, single premium immediate annuities; DIA, deferred income annuities; QLAC, qualified

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longevity annuity contracts; and Income Riders. Those four all provide lifetime income that you

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cannot outlive. As long as you're breathing or on a respirator, they're going to pay. They meaning

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the insurance company that issued the annuity, the life insurance company that issued the annuity

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contract. That's who issues annuity contracts. And you should always own annuities for what they

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will do, not what they might do. I'm wearing that. You can see that. Maybe my producer will tell me

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that's in line with the camera. He'll move me back or something. I'll move back. What they will do,

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not might do. You own an annuity for what it will do, not what it might do. It's a contractual

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guarantee. So, when you're looking for lifetime income and you're trying to put that retirement

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income in place, annuities are the only category that will pay you as long as you're breathing.

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Understand that these are commodity products. There's not one company that's better than the

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other. At my site, theannuityman.com. You can go there, run quotes 24/7, 365,

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and see the highest contractual guarantees for your specific situations. We pretty much handle

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every carrier out there. The only thing we're going to tell you is for lifetime income, we're

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going to go A+ or better, okay? Just because they, the annuity company, have to back up the claim.

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For other types of annuities like MYGAs, which are CD-type annuities, we're only going to be there

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a certain period of time. We can go a little bit less than A+ or better. A+ if needed, but

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for lifetime income, it's A+ or better. Period. End of story. We're not going to even talk about

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it. If you want to buy the other and take the risk, go for it. But you don't want to do that.

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Okay. Also remember that lifetime income, the pricing is based primarily on your life expectancy

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at the time you take the payment. The older you are, the higher the payment. If it's on you, okay,

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and you're 70 years old, that payment is going to be higher compared to if you're 65 years old. If

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you run it joint life with your spouse, they're kind of going to look at the younger of the two

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of you and base the payment on them, but they're going to guarantee both payments. What you cannot

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do is, "It's going to be on my lifestyle." That's not lifetime income for the spouse. All that means

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is the spouse gets what's left over. Please understand that. Also understand that interest

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rates play a secondary pricing role. Let me say it again. Interest rates, the Fed, plays

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a secondary pricing role with lifetime income products. Life expectancy drives the train. Okay?

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And annuity companies, life insurance companies that issue annuities, they have the big buildings

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for a reason. They know when we're going to die. Okay? Property and casualty companies don't know

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when the hurricane or the fire or the tornado is going to hit. They go out of business. You know,

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one of the places I live is in Florida. Property and casualty companies come and go like the wind.

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Okay? But life insurance companies have the big buildings. Understand that they're looking to

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fill tranches with your age range, and if they need to fill that tranche with your age range,

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they're going to aggressively quote it and provide that contractual guarantee quote to attract you.

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If they don't need any more of your age, they're going to lower the contractual guarantee not to

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attract you. That's the reason we represent all carriers because at some point somebody wants your

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business that's highly rated. So, we don't just sell one thing or one company. We quote everybody.

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So, the biggest thing about the income floor is to understand that everything needs to be added up

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initially and then look and see if there's a gap that's needed. And if there's a gap that's needed,

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we can fill that contractually. You can go to my site at theannuityman.com and schedule a call

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with one of my non-commissioned team leaders and they'll talk to you. They've all been trained by

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me. They talk like me but a little bit slower, and they'll explain everything. They're not

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incentivized by commissions. Okay? Even though all annuity commissions are built into the product,

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hidden from the consumer, unfortunately. But just to understand this, the more simple the product,

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the better for the consumer. If you can't explain it to a 9-year-old,

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no offense to 9-year-olds, don't buy it. Okay? Annuities are simple transfer-of-risk

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products that primarily solve for four things: principal protection, income for life, legacy,

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and long-term care. That acronym is PILL. And we only ask two questions every single time. What do

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you want the money to contractually do? When do you want those contractual guarantees to start?

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From those two answers, we can determine, A, if you need an annuity or need to consider one,

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doesn't mean you have to buy it. And B, you might not need an annuity. Okay?

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And if you come back from adding up all of that income and say, you know,

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we're doing okay. We really don't need to do anything else contractual, then you don't need an

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annuity. Okay? It's just that simple. But if you need to fill that gap, that's where we step in.

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One last thing, inflation. You already own the best inflation annuity on the planet. That is

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called Social Security. Understand that. It's a political football. And they raise that amount

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so they can get your vote. I mean, there's no actuarial, it's political, not actuarial. Okay?

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But there's not an annuity type out there, even though every agent's going to tell you they have

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it. They don't, that adjusts for inflation. It sounds great. I mean, if that product existed,

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that's all we would have been talking about this whole video, but it doesn't exist. All the annuity

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company does is severely lower the payment if there's a contractual increase or if there's a

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potential increase. So, if Johnny Appleseed agent's saying, "Well, this index annuity

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increases with inflation." That's not true. And if it's inside of that, they've severely lowered

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the payment to make up for that. There's no free lunch. Well, I guess there is if the

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annuity industry buys you the steak dinner. But there's no free lunch contractually. So,

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if it sounds too good to be true, it is every single time without exceptions with annuities.

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Once again, own them for what they will do, not what they might do. The contractual guarantees.

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Bottom line is like my grandfather said, if you tell the truth, you don't have to

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remember anything. Are we perfect? Absolutely not. But that statement from him drives the

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train. And this is a man uneducated, worked in the North Carolina mills his whole life,

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but one of the smartest men I've ever known. And that statement is our business model. We

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tell the truth. We're not perfect, but we tell the truth. If you need an annuity, we're going

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to recommend the type that we think fits best. If you don't need an annuity, we're going to tell

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you that as well. Ain't that refreshing? And that's the way it should be, right?

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One last thing, above my head, floating magically, is a link,

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and that link will take you to a little bit longer-form video that explains who we are,

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why you really should consider us if you're looking for contractual guarantees,

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an annuity-type contractual guarantee transfer of risk, why we do what we do,

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our passion, our mission statement. My name is Stan the Annuity Man. See you next time.