How to Reverse Engineer Annuities to Fight Inflation

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Welcome to Shooting it Straight with

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Stan. I am your host, Stan the Annuity

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Man, the undisputed America's annuity

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agent in the flesh, wearing a warm-up

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suit with a red baseball cap with Stan

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the Annuity Man on it. That cuz that's

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what I do. Today's topic is reverse

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engineer annuities for inflation.

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This is a big one because there's a lot

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of bad sales pitches out there,

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especially in the index market, index

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annuity market, where they have the

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index annuity that adjusts for

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inflation, which is garbage. There's not

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an annuity company in the world that has

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that product. Uh, and if they that's

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being pitched, all the annuity company

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is doing, and there's nothing wrong with

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this, is just good business and math, is

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they're just severely and drastically

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lowering the initial payment uh to make

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up for any potential increase. And

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mathematically, in most cases, it

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doesn't make sense. And if you just got

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to think logically, I mean, if it sounds

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too good to be true, it is every single

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time. But everyone is so fixated with

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inflation. Oh my god, damn. What are we

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going to do with inflation?

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Here's the way to do it. Okay, first of

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all, when you're buying lifetime income,

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you don't, in my opinion, as America's

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annuity agent, when you attach colas or

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you buy the dream of things increasing

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with the product that you buy, then all

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you're doing is building another wing at

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the life insurance company that that

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issues annuities. Buy the highest

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contractual guarantee

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available. So, in other words, if you

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said, "Stan, we need um lifetime income

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to start in six years, me and the wife,

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me and the husband." Okay, great. Let's

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let's solve for that. Tell me at least

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tell me the the lumpsum amount you're

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thinking about placing or the actual

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income amount and we'll reverse engineer

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the quote to solve for that. Okay? And

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that's how to go about doing it. You

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already own the best inflation annuity

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on the planet. You didn't know it? Yeah,

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you do. Social Security. Easy for me to

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say. Social Security. It's the best

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inflation annuity on the planet because

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our friends in DC just raise the

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payments. There's no actuarial thing to

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it. They Well, we're just going to raise

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payments. Why? Because you vote. And

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people who get Social Security vote and

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that's why they do it. But it's a great

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inflation annuity. So, you can't say you

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hate all annuities.

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But when I say reverse engineer for

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inflation,

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first of all, let's talk about inflation

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rationally and pragmatically. I love how

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the media talks about inflation. They

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talk about inflation like saying I think

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all restaurants are bad. I think

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inflation is going to affect everybody.

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No, inflation

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inflation is customizable and personal.

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Let me give you an example. My two

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lovely daughters are out of the house

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and grown and doing their thing. um and

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and trying to grow up, which means that

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we're not buying a lot of milk and

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cereal and I'm not taking them to dance

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classes, etc. So, we're not spending a

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lot more in groceries and we're not

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spending a lot more in gas. So,

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inflation is hitting my wife and I, the

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lovely Christine of 35 years,

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differently than other people. Same

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thing with you. You can't watch CNBC and

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Fox Business go, man, that inflation's

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going to be tough. You know, because

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most of you can afford to buy the eggs.

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You can afford to get the full tank of

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gas. You can afford to go to the store

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and get groceries even though it's

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higher. But yes, you can. So, stop

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acting poor. You're not poor. Most of

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you, if you're watching this video, you

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probably aren't. You probably are in the

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top 5% of all earners or retirees out

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there because you're looking to maximize

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your retirement because you're watching

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Stan the Annuity Man.

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But here's how to use annuities for

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inflation. Let's just say you're get you

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you have $7,000 that's coming in every

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month, social security, dividend stocks,

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rental income, etc. And two years from

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now, you know, inflation's hit your

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specific situation and you need 7500.

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Okay? Then what we do is we go solve for

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500, okay, at that time. So we run a

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reverse engineer quote on my site,

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theanuityman.com. You put in, hey, I

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want $500 a month. And we quote all

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carriers to find the carrier highly

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rated that's going to use the least

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amount of money to create that

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contractual guarantee.

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That's how you do it.

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And that's to me that's that's the

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perfect way to do it is to wait as as

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Mel Gibson said in Braveheart as the the

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British are running at them and they're

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in a line and he's like hold hold

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and then all of a sudden he you know he

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says let's go and then they stab

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everybody right even the horses which

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was kind of scary. The point is just

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hold until you need to fill that gap of

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income for inflation. Don't be

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proactive. Don't throw darts at it.

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Okay? But if you do want to throw darts,

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if you say, "Stan, I don't care what you

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say." And and you got that red baseball

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cap on. I don't know. I just wanna I

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just want to solve for it in the future.

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Okay, then let's buy income that starts

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at a future date. Give you an example.

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If you have an IRA, you could buy a QAC,

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a qualified longevity annuity contract,

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and you could take the $200,000 limit at

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the time of this taping. You can say,

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"Okay, I I'm going to buy 50,000 for

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income to start at age 75, and 50,000 is

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for income to start at age 80." and then

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50,000 income to start at age 82 and

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then the other 50,000 for income to

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start at age 85. Now, you're still

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throwing darts at inflation. You're

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still throwing darts at what you might

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need, but that's a way to do it for all

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you pro proactive box checking OCDers

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out there that need to get it done and

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have the spreadsheet look good to you.

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Okay, I get that. I'm I'm kind of one of

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those people. My wife is definitely one

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of those people. But I would rather you

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keep your powder dry until you need to

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fill the gap

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and then go buy the immediate annuity at

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that time. That's the way to do it. It's

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not cost of living adjustment writers

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attached to to to spas and das and

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kulaxs. It's not index annuities with

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the promise hope dream and the unicorn

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chasing the butterfly of when the index

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increases it's going to increase your

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income sir and look at these

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projections. I mean 30 years from now

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you'll be Gordon Gecko. Now, all of

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that's nonsense. Never buy never ever

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ever

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buy potential hypothetical theoretical

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if you'd have owned it 10 years ago

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nonsense back tested numbers. Please

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don't. All you're doing is buying the

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agent a car. Please do not do that. Have

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them show the contractual guarantees. Or

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better yet, use us. You know, we're the

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top seller of annuities on the planet,

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you know, in in America, and we we sell

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contractual guarantees. We don't look at

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those hypotheticals and theoreticals and

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typically there's such a long break even

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point to reach the number that you could

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have gotten without the inc you know the

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potential increase. Give you an example.

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When you go to take social security,

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you know, there's arguments. I love the

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internet's so just full of

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all answers, right? I don't know which

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one's right or wrong. But if you wait

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till 70, it's going to be this. If you

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take it at 65, it's going to be lower

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because you're going to be younger,

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right? And it's life expectancy based.

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But if you if you wait till 70 instead

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of taking it at age 65,

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if you're pragmatic and mathematical,

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you're going to factor in those 60

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payments that you missed and how long

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it's going to take for you to make that

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up because you waited. And typically,

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it's a long time. So the argument is

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time, value of money, bird in the hand,

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we're two in the bush, however you want

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to put it. But there's no perfect answer

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at all. And there's no perfect solution

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for inflation. No, you can throw tips at

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me and and you know, eyebonds at me. You

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can throw all that, but still it's

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there's nothing perfect out there.

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You're better off looking at your

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situation as as a unique situation,

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adding up the income floor of income

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that's coming in, social security,

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pension, rental income, dividend income,

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etc., and then filling the gap. What I

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do not want you to do and what needs to

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just go away is the 4 percent rule of

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the money manager saying, "Hey, forget

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forget annuities. I'll just manage the

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money and we'll just peel off the

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growth." Hey, great Gordon Gecko until

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the next downturn and then all that

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planning goes out the window. So, when

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it comes to inflation, you need to think

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about reverse engineering for inflation.

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And yes, I am an annuity engineer. I

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should put that on my card. No, I hate

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people that do that. Like annuity

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engineer or or senior retirement

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specialist. What what is that? I think

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it's illegal to do that. Um but reverse

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engineer, you know, use as little amount

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of money as humanly possible to solve

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for the contractual goal. Like I said,

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you can go to our site and you can run

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those quotes. You can either say, okay,

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what is this lump sum pay that we have

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in our mind to use or we have this

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specific dollar amount we're trying to

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solve for? How much money would it take?

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And I'm listen I I always tell people

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let's use as little amount of money as

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humanly possible in the annuity strategy

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to solve for the goal. I know the

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annuity sales gods are looking down upon

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me going stineer

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and especially when it comes to

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inflation. Last thing and let me close

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with this.

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Please stop obsessing about inflation.

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Please stop trying to find the product

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that solves for it because someone's

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going to sell it to you and it doesn't

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exist. Please stop going down the rabbit

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hole when if you really look at your

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monetary situation, it's not going to

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really affect you. Please stop. We all

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know who it's really going to affect.

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It's going to affect the bottom end of

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society. The people that haven't

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accumulated a lot of money, they're

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going to get hurt. Okay? People watching

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this video aren't going to get hurt.

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It's going to be annoyance.

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Inflation for people that have money.

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And yes, I'm talking to you

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is an annoyance. That's all it is. It's

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a fly around our head. We're spending

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more on gas. We're spending more on

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eggs. Great. Okay. Well, is it going to

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affect your lifestyle? No, it's not. And

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for you multi-millionaires out there

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that call me about and worried about

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inflation, losing sleep about inflation,

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you need to chill out because it

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you're wasting time. Go live your life.

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You have enough money. Inflation's going

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to come. It's going to go. And it's not

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going to affect you. It's going to

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affect you on the margins. Okay? You

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know that. Nod your head. Okay? But if

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you do want to solve for it, let's

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reverse engineer and solve for it at

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that time or buy lifetime income

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starting at future dates. That's the way

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to do it. We hope we can help you with

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that. My name is Stan the Annuity Man.

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See you next time.