How To Live On Retirement Income

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How do you live on retirement income? Hi there, my name is Stan the Annuity Man,

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America's annuity agent, licensed in all 50 states. It's a big question. There's, I think,

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14,000ish people turning 65 every single day. So this is a question that comes up a lot. You know,

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how do I live off of it? How do I live off retirement income? What is retirement income?

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We're going to look at all of that. How do you live off of it? Where do you find it? You know,

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how do you calculate it? So you can live a good life in chapter

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two. Because chapter two is about you. We'll talk about all of that after this.

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So, how do we live on retirement income? Big C behind the camera said, "Chapter two,

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is that bankruptcy?" No, that's chapter seven, Big C. Okay. Chapter two is what I call retirement

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because chapter two is about you. So, how do we live on retirement income? I think the sad part

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of this conversation is that the vast majority of retirees, and I guess that's people 65 or older,

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baby boomers, they're living off Social Security. I mean, that's it. That's what they have. Now,

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the sad part about that, Social Security was never intended to be the primary income source

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for people. It was supposed to be a help, an ancillary, a secondary income source,

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not the primary. And it's turned into the primary income source for too many people for a myriad of

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reasons. Some political, some not political, just some things happen, right?

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And I'm glad that safety net is there. And what do they call it? The third

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rail. I mean, no politician was ever going to step over there and mess with it because,

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you know, what do you call someone who gets a Social Security payment?

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You call them a voter. They vote because that's their livelihood. But I'm assuming

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that most of you that are watching this are thinking a little bit broader than that and

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are more just fortunate enough to have some extra assets to look at retirement income.

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So, Social Security is obviously the bedrock. It's the foundation. It's the best inflation

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annuity on the planet. Period. End of story. It is an annuity. It's going to pay for as

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long as you're breathing. And a lifetime income annuity does the same thing. The difference is we

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can structure the lifetime income annuity so that when you die, when your Learjet hits the mountain,

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100% of the money goes to the beneficiaries, and the evil annuity company doesn't keep a penny.

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So you have Social Security, pensions, if you're so fortunate. Only 9% of the country, last time

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I looked at the stats, have pensions, and most of those are government workers, state workers.

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There are some private companies, but they're few and far between. That doesn't happen much anymore.

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The third retirement income source, if you're fortunate enough

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to have an IRA. So let's just say you have a 401(k) that can be converted,

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transferred to an IRA after you quit working for that company, or 403(b), 457 plans,

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whatever you've been deferring the growth on can be transferred to an IRA. When you hit RMD ages,

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you can check that. They change all the time. But let's just say, for math, let's just say

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73 at the time of this taping. It could change. Check the date. The IRS taps you on the shoulder,

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and they say, "Okay." The IRS says, "Okay, you have to start taking money out of your IRA,

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whether you need it or not, and you have to pay taxes on that."

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That required minimum distribution, which means that's the minimum amount you've got to take

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out per the IRS out of your IRA, whether you need it or not, so you can pay taxes on it. That's an

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annuity payment because as long as you have money in your IRA, the IRS is going to tap you on

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the shoulder at that RMD age and say, "You need to take it out." So that's an income source as well.

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Now you need to look, if you're fortunate enough to have a portfolio of investments,

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whether it's mutual funds or stocks or bonds or whatever. Some of those have dividends,

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pay dividends, that would be going into the income, what I call the income floor,

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that income amount that you're depending on to live. And there's a lot of other products,

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annuity and non-annuity, that you can look at that you can peel the interest off of,

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etc. You have to look at that. You have to figure out what sources make sense for you.

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If you're just the person out there that Social Security is it, Stan. That's all we got.

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Then that's all you got. The good news about that is that's the best inflation annuity on

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the planet. Politicians will raise that typically on an annual basis because they know you're going

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to vote. But if you have more money than that, then you need to look at your overall income

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floor needs, what you need to pay the bills and live a good life and go out to eat and

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travel when you need to, buy the new car when you need to. What's that income floor amount?

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Maybe you don't even need an annuity. Maybe that's covered by just interest on a large

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sum. Or maybe that's covered, you know, with the stocks, etc., that you take. I would warn you,

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though, if your advisor is saying, let's instead of the annuity guarantee,

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let's do a 4% withdrawal called the 4% rule. What that means is what they're saying is let them

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manage the stock and mutual funds and just peel off 4%. Hopefully that's gains. My comment is,

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what if it's not gains? What if you lose 20%? You still got to take 4% out.

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What if you lose 10% the next year? You still got to take 4% out. That has been debunked.

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For the people out there that are advisers that are yelling at the screen, my apologies,

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but you know I'm right. And maybe you're the anomaly and the unicorn adviser that gets it

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right every time. Godspeed to you. But the vast majority of advisors can't do the 4% rule. They

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don't know what they're doing. I call advisors, because I've been there. I was with Morgan and

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Dean Witter and Paine Webber and UBS. Nothing more than professional dart throwers. Period. End

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of story. I mean, they're doing the best they can, but they're guessing just like you are.

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What isn't a guess are annuities. Annuities are contractual guarantees. You're never guessing on

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what you're going to get because we only look at the contractual guarantees of the policies,

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not the hypotheticals, theoreticals, projections, unicorns chasing the butterfly, beautiful

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scenarios that if you'd owned it 10 years ago, Mr. Jones, you'd have made this. How about market

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upside with no downside? Listen, if it sounds too good to be true, it is every single time.

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We're talking about retirement income. We're not talking about unicorns chasing the butterflies.

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We're talking about guaranteed income hitting your bank account. Can we get an annuity amen on

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that? That's where annuities come in. You might hate annuities. You might have a reason to hate

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annuities because someone tried to sell you a bad one. But annuities, remember, you already own one:

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Social Security. If you have an IRA, you own two: RMDs. If you have a pension, you own three.

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They're primarily used for lifetime income and/or principal protection, but

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most of the time, lifetime income. And in this case, retirement income. And the good news is that

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it's the only product on the planet, annuities, there's many types, but for lifetime income,

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that will pay as long as you're breathing. That will pay regardless of how long you live. And we

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can structure it so that 100% of any unused money goes to the listed beneficiaries of the policy.

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Do me a favor and click this above my head. There's a link, and that takes you to a video

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that I break it down. I talk about my company, my journey, you know, how I became Stan the Annuity

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Man, how this all happened. And the reason behind this video is I want you to know if you engage

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with us, if you choose to work with us or at least go to our site and look at our free information,

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etc., you're going to know the background of it. You're going to know why I'm doing this.

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I'm not perfect at all, but we only sell contractual guarantees. We only look at

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the contractual guarantees of the policy. So on the Stan the Annuity Man YouTube channel.