Inflation & Annuities: Act Now—or Hold Off?

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Hello America, Stan the Annuity Man,

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America's annuity agent licensed in all

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50 states, including yours. Before we

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start talking about inflation annuities,

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should you address it now or later? Good

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question. We're going to talk about that

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in detail. Let's talk about my books.

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I'd love to send you these books for

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free. Go to theanuityman.com.

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I'll ship them in this gold foil mailer

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and it will be fantastic. You'll be the

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talk of the neighborhood as the postal

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delivery person drops it off in your

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mailbox. So, with that being said, let's

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talk about inflation a little bit. Did

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you hear that, producer, when I dropped

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the books? Did you? Good. Okay. If any

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annuity agent tells you that they have

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the annuity that addresses inflation,

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get up, leave the office either, or if

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you're on the phone, hang up the phone,

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or if you're online, just go to another

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website. There's not an annuity on the

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planet that perfectly addresses

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inflation. You already own the best

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inflation annuity on the planet. I know

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you like, I don't own an annuity. Yes,

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you do. If you're a United States

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citizen, you own a social security

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payment called an annuity. Social

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Security, or as they say in the South,

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Social Security is an annuity. It's the

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best inflation annuity on the planet.

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Why? Because it pays you for life. And

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the inflation part of that are the

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congressmen, beloved, wonderful, highly

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rated congressmen and women that decide

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to increase your payment. That's the

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best inflation annuity on the planet.

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So, for the rest of your money, when

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we're talking about inflation, I've got

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some ideas that we're going to cover on

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how to address that either right now or

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down the road, but not until we hear

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some music now.

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[Music]

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Okay, so we're talking about inflation

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annuities. Should you address it now or

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should you wait and address it later? As

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I always tell people, there's no perfect

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answer in the annuity world. Just bad

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sales pitches. I mean, there's no

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perfect way to address annuities in

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general and especially with inflation

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because inflation is like this arbitrary

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grill in the room. No one really knows

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what it is and when it's going to happen

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and everyone's trying to plan for it.

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It's like nailing jello to a wall. It's

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just impossible. So, let's talk about

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why annuity companies have the big

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buildings for a reason. They have them

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for a reason. They don't give anything

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away. So if you want to address

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inflation contractually and let's say

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you're buying immediate annuity and you

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want to put a cost of living adjustment

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writer C O L A cost of living adjustment

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writer. Okay, you can dictate at the

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time of application what you want the

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income stream to increase by. Say by 3%

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or 2% or 4% or 5%. Now stop for a

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second. I know you're saying to

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yourself, "Oh, that sounds fantastic.

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The income stream's going to increase by

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this much every single time." Annuity

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companies don't give that away. Okay.

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So, if you do that, you know, let's do a

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visual. Here's the annuity without the

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COLA. Same exact annuity. Here's the one

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with a COLA.

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I'm not doing the Madonna Vogue

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producer. Okay? That is the disparity

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between the income streams. And

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typically, there's a 6 to9 year break

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even point give or take. Don't email me

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with, well, mine was 7.4.

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It just the point is when you add a cost

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of living adjustment increase to an

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annuity like an immediate annuity, a

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deferred income annuity, those type of

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of pension type annuities, very

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simplistic, the annuity companies

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ratchet down the payment. That doesn't

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mean you shouldn't buy one, but you need

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to know how they work. And maybe it

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would work for you. Let's just say you

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had $200,000 and you said, "I'm going to

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buy one with a cost of living adjustment

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increase and one without." That would

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make sense. Is it perfect? No. But that

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makes sense. You just have to know that

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they're not giving that away. Now, what

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drives me crazy in the industry are

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agents that say, "I have the annuity

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that will increase your income stream

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with an index." Now, that's an indexed

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annuity. An index, nothing wrong with

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them. We use them as a delivery system

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for income writer guarantees, but how

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they're improperly sold in the industry.

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There are some indexed annuities that

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the index call option I'm not going to

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get in the weeds, but whatever that

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grows at and locks in at for that year,

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then either all or a portion of that is

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applied to your income stream as the

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increase. Now, once again, I got to stop

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you from salivating. You go, "Well, that

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sounds fantastic. That's fantastic.

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Every time the index goes up, I get an

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increase."

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Slow down there, Chester, because

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they're not giving that away. Just

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remember this always when someone's

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pitching you the index option.

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increase or a cola increase, just do

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this to him. Just look at the agent and

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go just go and he's going, "What is

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that?" That's the disparity of the

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income stream because they're not going

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to give it away. Index annuity companies

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that have that provision attached to the

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income writer that increases by the

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index growth.

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Got it? I just like doing that,

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producer. But I'm driving the point

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home. If it sounds too good to be true,

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it is every single time with annuities.

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That doesn't make annuities bad. But

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what it does make them are contracts.

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Annuities are contracts. If you want to

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understand how an annuity works and what

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you're buying, read the contract. And if

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you want to see it before you even buy,

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we'll send you a specimen policy. You

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know, I encourage you if you get in the

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weeds of all this, if you're if you're

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really thinking about, okay, I want to

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use annuities to address inflation in

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addition to my social security as I'm

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building that income floor, I probably

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need to talk to Stan to see if there's a

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customized way to do it because we

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could, you know, there's a there's a lot

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of ways to do it. In fact, when I come

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back, we'll talk about that. All right.

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So, my producers are loving the

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Okay, that's the last time I do it. So,

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we talk about some strategies to address

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inflation. Now, with annuities, once

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again, they don't perfectly do that, but

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for inflation in the future, it's best

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to have income streams starting at

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different intervals. So, what I

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typically do if someone is is saying,

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"Okay, I have $300,000 and I'm really

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concerned about inflation in the future.

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I don't need the income right now. What

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we'll do is we'll buy three annuities at

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the same time and have the income

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streams starting at different times.

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Like for instance, if someone's 65,

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we'll have income starting we'll do

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$100,000 in each annuity and then have

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income starting at 70,75 and 80. That's

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really the best way to address inflation

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is to have income streams starting at a

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different time period. Now, is it going

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to be more or less than what you need? I

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don't know that. The other way to do and

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I think the best way personally um to

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address inflation and this drives

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annuity companies crazy because they

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want to sell you an annuity right now.

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But let's I mean I'm brutally factual.

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I'm the walking middle finger of annuity

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truth. I'm proud of that. Okay, I am

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brutally factual. The best way to do it

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is when inflation hits and let's say you

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have a guaranteed income floor and it's

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producing, you know, $3,500 between an

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annuity. have social security and a

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pension and inflation hits and you need

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an extra $275

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a month to fill in that gap for that

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income floor, that money hitting your

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account every single month that you and

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your spouse or partner do not have to

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worry about. It's that lifestyle money

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that's coming in every single month. So

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that gap at that time we solve for by

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reverse engineering a quote with our

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annuity calculators for an immediate

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annuity. So in essence, we're buying an

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immediate annuity at the time that

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inflation hits and you need that

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additional money for that specific

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amount. And when we reverse engineer,

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the good news is we're going to use as

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little amount of money as humanly

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possible, contractually possible because

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we're going to quote all carriers. So

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we're going to quote all carriers to

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say, "Okay, we need this extra 275 per

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month." and the carriers are going to

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quote it and we're going to choose the

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top rated carrier, you know, the one

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with good claims paying ability that

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will require the least amount of money

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to solve for that contractually.

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That's kind of a defer to SPIA strategy,

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which I love. And that is really the

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purest form and the most efficient form

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to address inflation. So the question

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from Chester, my the Chester voice

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always uses, well, what if inflation

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hits again? Then we do it again. Then we

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figure out exactly what the gap's going

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to be and we reverse engineer the quote

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using our annuity calculators at the

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annuitymen.com.

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And then we go by the immediate annuity

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with the best carrier that we can find

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by quoting all carriers. It's really

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that simple. You know what I encourage

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you to do is not make annuities complex

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because they can be and agents will make

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them complex. It's a simple contractual

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guarantee. And that's the reason I

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encourage you if we're talking about if

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you're thinking inflation, I encourage

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you to go to the site and set a time for

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us to talk one on-one, the annuity man

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and you. You and the annuity man, nobody

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bothering us, just us talking for about

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30 minutes about your specific

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situation. Then I can put together I'll

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listen to you. I'll kind of get the

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details confidential obviously and then

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I'll put together a customized plan that

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hopefully can address inflation or

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future inflation to your satisfaction.

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Hey, I did another video on how to set

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up your own pension, which is a good

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video to watch in conjunction with this

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one because we talk about, you know, how

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to do it for your specific situation,

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how to reverse engineer the quotes, all

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that stuff. With that being said, I

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encourage you go to theanuityman.com,

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not just to use our free calculators,

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but to get my books, give us your

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physical mailing address. We'll ship

9:24
them to you in this gold full mailer.

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Free of charge, no cost, no obligation.

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No one's going to show up at your door,

9:29
call you. You know, when you work with

9:31
me, and I hope you will, it's going to

9:33
be a professional relationship. We're

9:34
going to treat you like a pro. We're not

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going to bother you, pester you, high

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pressure you. We're going to provide you

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the best quotes using our proprietary

9:41
calculators and give you the most

9:43
information on the planet. I mean, I do

9:45
these videos every single day, Monday

9:47
through Friday. I do a podcast every

9:49
single week. I write every day. There's

9:51
blogs on the on the site. There's so

9:53
much information, newsletters that you

9:55
can inform yourself so you can make a

9:56
really good decision, not some sales

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pitch. Forget the sales pitch. You're

10:00
buying contracts. You're not buying

10:02
hopes and dreams. You're not buying

10:03
unicorns tasting the butterflies. You're

10:06
buying guarantees for you and your

10:07
family. Never forget that. Take your

10:09
time when you do that. There's never an

10:11
urgency to buy an annuity, just an

10:14
urgency to fully understand what you're

10:16
buying. So, hit the subscribe button.

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I'll see you on the next Stan the

10:20
Annuity Man video.

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[Music]