Keep Your Powder Dry Annuity Income Planning: Shootin' It Straight With Stan

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Welcome to shooting it straight with

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Stan. I'm your host Stan the Annuity

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Man, America's annuity agent licensed in

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all 50 states. Today's topic is a very

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good one as usual. It's called keep your

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powder dry annuity income planning. One

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of the biggest fallacies out there in

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the annuity land with people getting

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different information on the internet or

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from their adviserss who know nothing

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about annuities or financial journalists

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who definitely in most cases know

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nothing about annuities. They'll say,

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"Well, you know, you don't buy an

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annuity because that's irrevocable. You

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know, it's once you made that decision,

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it's over." They're talking about

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primarily single premium immediate

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annuities, which is the it's it's a

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pension. It was put on the planet in the

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Roman times as as a um reward for the

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beautiful Roman soldiers and their

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families. It's a pension payment. That's

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where the word annuity comes from.

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Annual Latin means payment. All right?

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But but not you don't have to do that.

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You don't have to rip the the knob off a

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water faucet uh for lifetime income. So

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I always say there's ways to keep your

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powder dry. With a lot of people that

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say, "You know what, S? I don't really

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care. I just want to lock and load and

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and let's get that lifetime income

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stream coming just like Social Security

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and just like a pension, etc. I'm good

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with that. That's fine. Um, lifetime

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income with annuitities, depending on

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the type that you choose, is a

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guaranteed income stream for as long as

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you're breathing. If it's if it's joint

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life with a spouse or significant other,

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as long as one of you is are breathing.

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Okay? So, even if you're on a

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ventilator, but a lot of people do not

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want to tie up the money uh until it's

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just, you know, they have to think of

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the Mel Gibson movie. If you've ne have

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never seen Braveheart, go watch

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Braveheart if you have. Then you know

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what I'm getting ready to say. There's a

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scene in the movie where all these rag

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tag people that Mel Gibson is leading

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that have just a spear. They're against

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the British and the British are coming

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toward them and Mel Gibson's, you know,

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yelling,

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"Hold hold."

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And then right when they get there, you

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know, they stab everybody, kill

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everybody, and it's it's fantastic and

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glorious and gory and wincing and great

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cinema. But what I want you to think

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about is your lifetime income guarantees

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as well. Do you want to hold until that

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very last second to buy lifetime income?

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You can do that. Let me give you a

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couple examples. Let's just say that

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you're doing well in the markets. You

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have a good money manager or you're

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managing it and it's doing well. There's

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really no reason to lock up lifetime

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income stream guarantees right now

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regardless of the sales pitch here

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because the primary pricing mechanism is

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your life expectancy or life expectancy.

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So the older you are the higher the

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payment. So you can hold hold and then

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when you want to transfer that risk for

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lifetime income you can do that at that

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specific time. A lot of players out

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there that are good in the markets and

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you really don't want to top your money

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and make it irrevocable. They'll ladder

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in that lifetime income, say by 100,000

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every year for five or six or seven

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years. But you do not have to do that.

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Another way to keep your powder dry for

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lifetime income is a lot of you out

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there that run the money and run the

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investments. You have spouses that don't

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care. I'm one of those. The lovely

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Christine of 35 getting ready to be 36

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years could care less. She only wants to

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see the kids and the grandkids and

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granddogs. That's all she care.

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Grandkitties as well. Um, we're very

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happy about that. Um, that's all she

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cares about. So, if that's you, you

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don't have to set something up for your

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spouse. Now, what you can do is go to

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your estate planning lawyer, your and

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please use the lawyer, please. Um, and

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set up something in the trust that says

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when you die, then an immediate annuity

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is purchased for your spouse to fill in

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that lifetime income gap for them.

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That's keeping your powder dry. That's

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not locking anything up now. Means that

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the triggering effect of the purchase of

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the lifetime income stream annuity is

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when you die. Think about that. It

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actually makes sense, especially for all

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you A personalities out there that are

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hitting on all cylinders and managing

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the money. Knowing that annuities are a

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good idea, but not maybe not right now

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for you. You can do that via a trust so

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that something is purchased for your

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spouse. Now, you got to make sure that

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they shop all carries for the highest

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contractual guarantee. Obviously, we

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would love for you to use our site,

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theanuityman.com. I might not be here.

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Might I might be dead, but there'll be

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somebody running. I can guarantee it.

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The point is you have to shop all

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carriers for the highest contractual

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guarantee because annuity lifetime

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income products are commodity type

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products. So, don't fall for this is the

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best one, sir. It's crap. Okay? You got

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to you got to shop all carriers. It's

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like shopping for a plane ticket. The

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other way to keep your powder dry income

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planning is if you say, "You know what,

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Stan? I don't want to do lifetime

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income, but I do need some income." I

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would say consider a MA multi-year

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guarantee annuity, which the annuity

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industry version of a CD. And and you

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don't have to touch the principal, and

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you can just peel off the interest with

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some, not all MA off of that, but a lot

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do. Peel off the interest, never touch

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the principal, and then at the end of

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the duration that you've chosen, you

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still have all your principal intact.

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You've just taken the interest off the

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top. That's keeping your powder dry.

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Okay. Another way to do keeping your

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powder dry is with what's called income

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writers. These are unfortunately

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misssold in the industry. But if you go

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to my site at theanuityman.com, we have

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the only income writer calculator

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currently that's worth a crap and that

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quotes pretty much all carriers. And

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you're quoting for the highest

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contractual guarantee in the future.

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Income writers, when I ask the two

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questions, what do you want the money to

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contractually do? When do you want those

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contractual guarantees to start? If you

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say, "I need lifetime income, but I want

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it to start in the future. I'm a planner

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stand. I'm a box checker. I need it to

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start 5 years, 7 years, four years, 8

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years, 10 years, whatever down the

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road." Income writers are keep your

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powder dry income planning because the

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number, the contractual guaranteed

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number that you'll see on the quote for

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seven years or 10 years or whatever that

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deferral time period is, that's

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contractual. That's going to happen.

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Okay? But it's attached to typically an

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indexed annuity, fixed index annuity.

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And the reason we choose that is because

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historically they outperform variable

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annuities with income writers. So fixed

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index annuities with income writers, we

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don't look at the index side, the caps

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and spreads and the participation rate.

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Nonsense. We look at the we look at the

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income writer contractual guarantee. The

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reason is to keep your powder dry

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strategy is let's just say as an example

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you bought an income writer attached to

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an index annuity with the goal being

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that you're going to turn the income

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stream on in 10 years. Okay. So let's

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just say that happens. You buy it and

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then 10 years from now we're in touch

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with you and say hey player you still

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want to turn on the income from that

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from that income writer. You remember

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the guarantee it's contractual. It's a

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separate calculation from the

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accumulation value of that index side.

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You can say at that time, no, I do not

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want to do that. Send me my money

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back. I I kept my powder dry. I don't

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need that income anymore. Send me that

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accumulation value. Now, spoiler alert,

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that income value, that monopoly money,

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phantom account money for that

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calculates that first lifetime income

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payment, that's not something that's c

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you can cash in. You can cash in the

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accumulation value, but that's okay.

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It's a keep your powder dry strategy,

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meaning that you can go into this with a

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plan in place for future income needs

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in, you know, in the future, you know

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exactly to the penny what that's going

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to be. But if something changes in

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between now and then, you can get all

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your money back because it the

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underlying value walkway money is with

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that indexed annuity, which is a fixed

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annuity. So that's a good way.

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So, I guess

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that to to sum it all up and only stand

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the annuity man speak. I was trying to

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be trying to think of a fun way to put

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it, but let's not be fun. Let's be let's

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be brutally factual. When you look at

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income, okay, lifetime income. Yes, you

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can do a rip the knob off the water

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faucet, irrevocable single premium

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immediate annuity, deferred income

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annuity, qualified longevity annuity

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contract. Those are called

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annuitized annuitized strategies. But if

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you say, you know what, I'm not sure I

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want to do that. I'm not sure I really

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want to commit to that. I'd like to have

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kind of have my cake, a little bit of

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bite of that cake and eat it, too. I

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want the guarantees. I want to know to

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the penny what those are, but I want to

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be able to pivot out and keep my powder

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dry. Then there are ways to do that.

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Okay? So, go to my site at

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theanuityman.com. Schedule a call with

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us. You're going to get somebody really,

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really smart that talks and speaks and

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acts like me, but a lot more, I guess,

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less fun. I mean, I am fun, but they

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might be fun. I think they're fun. Um,

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and tell them your situation and and

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think about, do you want to lock and

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load and just rip the knob off the water

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faucet and have the income coming and

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never worry about it again, and there's

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nothing wrong with that, or do you want

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to keep your powder dry or do you want

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to do a combination of the two? Okay, my

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name is Stan the annuity man. That

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shooting is stray with Stan.