RMDs Are in Essence a Forced Annuity: Fun With Annuities

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Welcome to Fun with Annuities. I'm your

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host, Stan the Annuity Man, America's

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annuity agent, licensed in all 50

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states. Today's topic is a good one and

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a controversial one. I'm waiting for the

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masters of the universe out there to

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say, "No, you're wrong, Stan." But I'm

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not. Topic is RMDs, required minimum

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distributions,

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are in essence a forced annuity.

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Stan, I'd never own an annuity in my

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lifetime, son. Let me tell you

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something, son. I'd never own a darnity.

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You already own one, Chester. And it's

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called Social Security. And it's the

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best inflation annuity on the planet.

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And if you have an IRA, you own two

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because at some point in time at some

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age, at the time of this taping, ages

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have been changing. The IRS has gone

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crazy. They're going to IRS is going to

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tap you on the shoulder to go, "Um,

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excuse me. Um, sir, ma'am, excuse me. um

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that IRA that you've been deferring,

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deferring, deferring, deferring and not

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paying taxes on. Um you have to pay

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taxes now whether you need the money or

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not. And you have to take that money out

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annually for as long as you are

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[gasps and sighs]

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breathing.

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Boy, that sounds eerily similar to a

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lifetime income stream annuity, doesn't

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it? Of course it does, because RMDs

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required

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minimum distribution

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from your IRA. That's a That's an a

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forced annuity. Now, you can argue with

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me all you want to and I'll listen to

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it. You can email me. It gets the nose a

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little bit there. Stantheanuityman.com.

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That is stantheanuityman.com.

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And just go off on me and then I will

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respond in a very highle manner and very

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professional and say you're wrong. Um,

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so when you're building your income

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floor,

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chapter two of your life, I don't like

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to say the word retirement. I don't like

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the word. It's chapter two. Chapter two

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is all about you. Chapter one, you're

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grinding, grinding, grinding, working,

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working, working, scrimping, saving,

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suffering, all that stuff. You're now at

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chapter two. It's all about you. It's

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not about the kids. Not about any of

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that. It's about you. So chapter two is

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about you. So you got to start what I

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call stacking income, building net

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income floor. So social security, that

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other annuity that you own, that's the

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foundation. If you're one of the nine%

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of the public that has a pension, the

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other 91 of you don't, 91% don't. Then

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you have to create your own pension. And

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that you can do with with an annuity.

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There's four types of annuities at Saul

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for lifetime income. And you can go to

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my site at theanuityman.com and and run

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quotes to your heart's content. We

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represent pretty much every carrier out

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there licensed in all 50 states.

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Everybody in the building is licensed in

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all 50 states except for Zeke who's

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behind the camera who's the marketing

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genius behind all of this. He doesn't

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need licenses to do that. He's just a

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marketing genius. You know what I'm

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saying? So RMDs, RMDs are part of that

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income floor. So you have social

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security, you have a pension if you're

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so fortunate. Let's say you have

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dividend stocks that kick off dividends.

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You have rental income that kicks off

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income. RMDs. RMDs have to be included.

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Why? Because you know what's going to be

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coming in that percentage. Now, it's

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going to vary year to year. It's going

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to vary what your IRA is worth, right?

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Um and what your IRA is invested in and

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how old you are because um like

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everything in the annuity world, the

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older you are, the higher the payment.

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The older you are with your RMDs, the

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higher the percentage you have to take

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out because the IRS wants their money.

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They want it now. Okay? But RMDs are

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that second layer of annuity o above

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social security and then pension and

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then annuities through Stan the annuity

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man theanuityman.com and at my site you

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can run those quotes 24/7 365 and no

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one's going to call you. Yes, you can

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schedule a call. It's a free

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consultation. We're going to listen two

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to one using our ears and our mouth in

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proportion. We're going to listen to you

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and then we're going to tell you if you

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don't need an annuity. We're going to

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tell you um if an annuity fits and then

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what strategy of the types that are out

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there would be the best fit for you. But

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you need to add up that that monthly

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income stream. What's coming in? You

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know, do you have bonds that kick off a

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coupon, CDs, money market that's

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creating interest, treasuries, migas,

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multi-year guarantee annuities, the

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annuity industry version of a CD. Do you

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have that? Add all of that up

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including your RMDs to see if that

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income floor is sufficient for chapter

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two of your life. If it is, great. If it

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isn't, call us or go to my site and look

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around, download the books for free, run

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the quotes for free, and then if you

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want to engage with us, you know,

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schedule call. You'll see a yellow

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button up there that says schedule call

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free consultation. All that does is is

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say, "Okay, here's the date you want to

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be called. Here's the time you want to

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be called." And guess what? We call you

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right at that time. Um, and if my team

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my team doesn't miss that, Zeke, my team

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doesn't miss that. I mean, they're on

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it. So, you know, to conclude something

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that's very obvious that you probably

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haven't thought about. RMDs are forced

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annuity.

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I welcome the debate because once again,

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you're going to have to take money out

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of your at a certain age. Not even going

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to go into the ages because it ch is

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changing rapidly at the time of this

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taping. Pull it up. You know what it is.

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But at a certain age, the IRS taps you

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on the shoulder says, "Hey, you got to

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give us money from here on in every

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year." So, every year there's going to

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be money coming in from your IRA that

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you have to pay taxes on because you've

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been deferring taxes, but that is an

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annuity payment. It's just a forced

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annuity because the IRS is forcing you

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to take those payments. They're not

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forcing you to annuitize. They're

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forcing you to take money out of your

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IRA, which is in essence an annual

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payment, which is in essence an annual

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annuity income stream.

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You know what's interesting about the

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whole thing? I live annuities. I I

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breathe annuities. I speak fluent

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annuity.

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So when you do that, you look at

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everything and go that kind of looks

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like an annuity. And and for a while

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there, you know, we talked about, you

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know, I was looking at RMDs. I worked

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for Morgan Stanley and UBS and Dean

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Whitterpane Weber. Shows you how old I

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am because they're not even around

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anymore. But uh RMDs were never talked

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about as annuity payments, but they are.

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Period. End of story.

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So, when you're putting together your

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income floor, put that in as that

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guaranteed lifetime income stream. I'll

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leave you with one story. I was on a on

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a call the other day. One of my team

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leaders, I oversee all all cases. One of

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my team leaders said, you know, I need

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we need to get you on this call um to

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see if this is appropriate. And so, I'm

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talking to the person and they had a

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they had a pretty big IRA and they were

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looking at an immediate annuity for

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lifetime income. So, we kind of dug in

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and I said, "Okay, tell me what your

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required minimum dist distributions

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are." And they go, "Well, we're about a

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year away from that." I'm like, "Okay,

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well, that's fine. What What are they

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going to be projected?" And they told

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me, and it was a big number. Okay. So, I

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said to them, I said, "Did you factor

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that into your income floor at all? Or

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were you just going to buy the SPIA and

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the and the immediate annuity is going

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to be part of that income floor?" And

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they went, "Well, we didn't really think

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of it like that." Well, you need to. So,

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what what did I tell them to do? Don't

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buy the immediate annuity because you

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have enough money coming in from your

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IRA, which is a forced annuity. Yeah,

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we're not a hammer looking for a nail

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just to sell, sell, sell, sell, sell.

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Okay, the truth. The truth. Period. My

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grandfather said to me a long time ago,

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if you tell the truth, you don't have to

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remember anything. Think about that.

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It's true. It's It's our business model.

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Are [snorts] we perfect? No. But that's

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our business model. But I told this

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person, your RMDs coming out of your IRA

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starting next year and then continuing

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are going to be sufficient for you and

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the misses to live that life that you

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work so hard for. Okay, so RMDs, forced

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annuity, put that into your income floor

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calculation.

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Hope that we can connect sometime in the

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future. If not, that's okay. Go to

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theanuityman.com and shop around,

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download the books, watch the videos,

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and have fun. See you next time.