Keeping Your Powder Dry Annuity Strategies: Shootin’ It Straight With Stan

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Welcome to Shooting Straight with Stan.

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I'm your host, Stan the Annuity Man,

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America's annuity agent licensed in all

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50 states in Puerto Rico. Today's topic

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is keeping your powder dry annuity

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strategies. If you've ever seen the

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movie Braveheart with Mel Gibson, you

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know, I was um I was up for that that

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role Zeke with Mel and Mel beat me out.

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I don't know how that worked, but uh

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they weren't looking for someone as tall

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and dynamic as me. They were looking for

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someone that was what I call, you can't

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say short, you can say vertically

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challenged. Vertically challenged. And

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Mel's like, I don't know, 5'8 or

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something. I'm 6'6. They weren't looking

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for that. That was too much for the big

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screen. Zeke.

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Well, the reason I bring up Braveheart

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is there's a there's a part in the

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movie, if you haven't watched it, please

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do. I had a guy emailed me the other day

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gave this um example um in a speech

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somewhere and he he goes, "I've never

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seen that movie. Who hadn't seen

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Braveheart?" For goodness sakes,

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English, the British are coming. They're

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doing going to war. They're an islander

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and all of a sudden and and Mel and his

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horde of merry men, they're waiting on

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the British to come and they have these

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swords or whatever spears and he's like

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hold

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and at the end, you know, then they

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spear everybody and kill them and they

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win. But that's a good analogy into

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keeping your powder dry because people

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are always, you know, I talked to him on

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the phone and you can schedule a call

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with me if you want.

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Stantheanityman.com. I'll send you my

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schedule. That's my email, by the way.

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Uh, stantheanuityman.com.

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Um, and people, you know, I'm always

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asking two questions. What do you want

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the money to contractually do? When do

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you want those contractual guarantees to

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start? And a lot of times people go, I'm

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really hesitant to annuitize. There's

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three types of annuity products that

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creates lifetime income that you

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annuitize. Meaning, you know, you're

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creating payments. You're ripping the

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knob off the water faucet, right? Uh,

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SPSD is and QAX. So, some people like,

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I'm not sure I want to do that right

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now. You know, I'd rather just, you

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know, just hold on to the money. Well,

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there are what I call keep your powder

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dry annuity strategies. I'll give you an

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example. God calls the other day goes,

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"I want income in five years, but I'm

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not sure it's going to be five years

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because something else might happen, but

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in five years, there's a good

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possibility I'm going to need lifetime

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income." Well, what you can do two

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things. You can buy it right now and

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know exactly what that income stream is

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going to be in the future. Okay? Or you

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can do a powder dry strategy, which is

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buy a 5-year multi-year guarantee

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annuity, which is the annuity industry's

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version of a CD. And at the end of that

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duration, if you still need lifetime

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income, then we do a non-t taxable event

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transfer into an immediate annuity.

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That's keeping your powder dry. If you

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said, Stan, I need income to start in 10

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years. Again, you could buy something

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now and we know exactly what it's going

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to be in 10 years. A keep your powder

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dry strategy would be a 10-year MGA and

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then an immediate annuity. Or you could

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do what's called an income writer

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attached to an index annuity, which is a

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CD product. But you could get to the end

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of the 10 years and say, "Yeah, let's

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turn on that income stream, you know,

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like we planned or you know what, Stan,

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send me all the money back and and the

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interest that's been earning on it."

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That's keeping your powder dry. That's,

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you know, getting to the fork of the

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fork in the road moment and picking the

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darn fork up, right? You don't have to

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go all in or you can incrementally build

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that guarantee. So, another keep your

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powder dry strategy. Let's go to the

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five-year example. Hey, Stan, I need

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income to start in five years. I kind of

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know what I want to put into that or I

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know what the monthly income I need that

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to be contractually. That doesn't mean

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we have to go all in right now. We could

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buy 20% now, 20% the next year, 20% the

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next year, 20% the next year, and then

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the f the final year by by the last 20%

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and then turn on the lifetime incomes.

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What have you done? You've kept your

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powder dry.

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The other keep your powder dry moment or

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strategy would be, hey Stan, I need the

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income in seven years. You know, things

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are pretty good. good. I go to a good

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money manager. We're doing pretty good.

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I got an AI money manager or something

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at Fidelity and it seems to be working

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out pretty well. They're they're hedging

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the risk a little bit. So, I'd like to

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get as much growth as I cumul. Great.

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Stay there. Keep your powder dry. And at

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the end of the seven years, that's when

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me and you go shop for an immediate

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annuity for a lifetime income stream.

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That's keeping your powder dry.

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Now, let me tell you what's not keeping

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your powder dry strategy because this is

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going to be pitched by the raas, the

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masters of the universe, brokers, what I

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call professional dartthrowers because

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they don't know what they're doing. I

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always tell people if you you might have

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a great money manager, I'm happy for

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you. But people that really know how to

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do it, you'll never meet them. Okay? I

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mean, I worked on Wall Street. I met a

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few of them. They didn't have clients.

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if the clients they had were

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institutions and those people weren't

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allowed to talk to them. But the one the

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the keep your powder dry strategy that's

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been debunked by the pe by people like

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Wade Fa and and Michael Fina and all

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these really really smart guys in the

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room um is hey don't buy that annuity

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from stand the annuity man he's you know

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he wears the hats and the logos I mean I

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don't buy it from him let me manage your

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money sir and then what we'll do is

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we'll just take out 4% of the profits

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and that's your lifetime income the 4%

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rule.

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That's garbage. That's such crap. And it

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has been debunked so many times. And

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it's easy for someone that's a

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professional dartthrower in the biggest

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raging bull market of all time where you

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don't even you can be a monkey and throw

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a dart at it and make money in these

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markets at the time of this taping.

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It's cavalier to offer that in the

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biggest raging bull market of all time.

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The keep your powder dry strategy that

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doesn't work is the 4% rule. Because

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what if the market's to go down 20% one

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year and you have to still take out the

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4% cuz that's the plan right now. You're

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down 24.

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You're done. It's a wrap. It's never

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going to work.

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It's just never going to work. It only

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works in raging bull markets. And if

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you're sane and rational and pragmatic

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and old like me, you've seen markets go

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up and down. So, you know that it's

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going to correct eventually. you do. I

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mean, if you if not to get in the weeds,

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but if you read the book Securities

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Analysis by Benjamin Graham, like all of

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us old people did when we first was

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first with Dean Woodter long time ago,

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um the price to earnings ratios make no

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sense here, right? And there's a lot of

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young advisors that might be watching

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this going, you don't know what you're

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talking about. I do, actually. Um what

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what I'm saying is the 4% rule doesn't

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work for keeping your powder dry. That's

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that's keeping your powder dry and a

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wish and a dream and a hope and a prayer

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and it typically doesn't work out.

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Historically, it doesn't work out.

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Factually, it doesn't work out. If not,

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if you don't believe me, just just type

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into Google Wade Foul PF F AU and the 4%

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rule and read away. He's been on my

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podcast. Just read away at it. Okay?

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So, keep your powder dry strategies.

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They work. If you can keep your powder

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dry forever, you can. A keep your powder

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dry strategy forever is hey Stan I've

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got X amount of millions of dollars and

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really really don't need income. All

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right, let's just keep your powder dry

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and just peel off the interest from a

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MIGA

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which is a CD type annuity.

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That's keeping your powder dry.

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Turning on lifetime income stream is a

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decision that me and you will make when

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we talk to make sure it makes sense and

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to make sure you're not overfunding it

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and to make sure it's in proportion and

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allocated properly and achieving your

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goal. I always tell people when you're

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using annuities for lifetime income, we

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use the least amount of money to achieve

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the goal.

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Say it again. We use the least amount of

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money to achieve the contractual goal.

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Just got off the phone with the guy

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said, "I need $3,000. I need to start in

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four years. I need a joint life with my

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wife.

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Okay, we're going to quote all carriers

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to see who's going to require the least

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amount of money to reach that

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contractual goal. In essence, that's

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kind of another keep your powder dry

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annuity strategy.

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When you're out there looking for

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annuities, just be careful who you're

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talking to. Most people don't know how

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they work truly. No, and and most people

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don't know how to truly place them.

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I always get people I said I've

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forgotten more than most people will

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ever know about annuities. I've lived it

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for decades. It's what I do.

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It's interesting to me. The transfer of

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risk is interesting to me.

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You know, lifetime income's interesting.

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That's getting ready to change because

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AI is going to change against you.

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That'll be an interesting time in the

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annuity industry. We're prepared for it.

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Okay. But I look forward to speaking

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with you. My name is Stan the Annuity

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Man. Um, you can reach me at

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stantheanuityman.com.

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I encourage you to go to my site. It's

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theanuityman.com. You can run quotes at

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your heart's content, as many as you

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want. You can see the live ma feed. You

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can download my owner's manuals for

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free. And I've done a few thousand

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videos. And I'm going to do an original

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new video. I made this I made this um

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declaration the other day. I'm going to

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do a video a day. New one. A video a

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day. Seven days a week until I can't do

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them anymore. And Zeke's like, "Oh god.

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Oh god." That's okay, though. I bought

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Zeke a ukulele the other day. He's from

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Hawaii, you know, initi. And then he

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instead of playing like soothing music,

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he picked up the ukulele and started

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playing heavy metal. I'm like, I don't

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get it, man. But then again, you know,

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that's Zeke, man. He's behind the behind

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the camera. I know a lot of you want

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Zeke to get in front of the camera.

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That's never going to happen, okay? He's

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got a face for radio, if you know what I

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mean. But keep your powder dry

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strategies. It makes sense and it does

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happen. And you don't have to

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annuititize. You don't have to rip the

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knob off the water faucet. You don't

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have to do something irrevocable. We can

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structure something that you can keep

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your powder dry.

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All right. My name is Stan the annuity

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man. That's shooting it straight with

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Stan.

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I'll see you next