Spousal Protection With Annuity Income

0:00
Welcome to Shooting It Straight with

0:01
Stan. I'm your host, Stan the Annuity

0:04
Man, America's annuity agent, licensed

0:06
in all 50 states, including the one that

0:08
you're sitting in, which is a beautiful

0:10
state, may I may I add, as I look over

0:12
your shoulder into the the backyard.

0:15
It's beautiful. It's just totally

0:17
beautiful. Today's topic is planning

0:20
lifetime income for your

0:23
spouse. This is a big one. So, planning

0:25
lifetime income using annuities and

0:28
doing that for your spouse. Now, the

0:30
lovely Christine, you've heard of her

0:32
before. She's been married to the

0:34
annuity man for over 35 years. She met

0:38
me in college, was enamored with me, if

0:40
you can only imagine that, and she has

0:42
put up with me and my

0:45
shenanigans and just just who I am,

0:48
which is a handful, for all these years.

0:51
And I've been in the financial business

0:53
the whole time we've been married. Dean

0:55
Witter, Payne Weber, UBS, Morg, and

0:58
Stanley. And then the infamous annuity

1:01
man, as I left UBS, I'm going, I'm gonna

1:03
I'm gonna go be Stan the annuity man.

1:04
She's like, she did a scuba

1:06
dude. Yeah, yeah, it's going to work.

1:09
She's like, huh? Anyway, she she has no

1:12
interest in finances. She has absolutely

1:15
no interest in stocks and bonds and

1:18
annuities and math around finance, etc.

1:20
very smart. Master's degree, the whole

1:22
thing. Okay. By the way, just keeping

1:25
score, she has a master's degree in

1:27
clinical psychology. I really believe

1:29
that I am a long-term project of hers,

1:32
which she is writing a book that she's

1:33
not telling me about. It'll be a

1:35
bestseller and she'll cut me out of the

1:37
royalties. But I digress. But because

1:39
she's put up with me, I'm planning

1:43
lifetime income for her when I die. And

1:47
there's a lot of you out there that are

1:48
in the same conundrum. And I get these

1:51
calls a lot, Stan. You know, I need to

1:52
set some of setting up for something up

1:54
for the spouse. And there's a lot of,

1:56
you know, females out there, not to be

1:59
sexist because I'm not. A lot of females

2:02
run the finances and they're trying to

2:04
set something up for their husband who

2:05
doesn't care and know all he does is

2:07
play guitar and work on the Corvette.

2:09
So, regardless of the situation that

2:11
you're in, if you have a spouse that's

2:13
not interested in finances, there's a

2:17
couple of ways to go about setting up

2:20
lifetime income for them. Here's the

2:22
best way, and you're not going to

2:24
believe

2:24
this, but it doesn't involve selling

2:28
annuities right

2:29
now. The sales guys are like, "What?

2:32
What are you doing, Stan?" That's what

2:34
their voices sound like. It's not like

2:35
godlike like, "What are you doing,

2:37
Stan?" No, it's what are you doing,

2:39
Stan? It's like that. It's like Joe Py,

2:42
you know, and that that that type of

2:44
voice. That's what the nuity gods sound

2:45
like. But here's how you do it. Here's

2:47
how I've done it for the lovely

2:49
Christine. When I die, when my l hits

2:52
the mountain, okay, there is a trust set

2:55
up. And within that trust, something in

2:57
there reads something like this. When

2:59
Stan dies and after everyone cries and

3:02
they sing the song and Nine Nails plays

3:05
the funeral, it's a band. Look it up.

3:07
and they they play the funeral. Okay,

3:11
there's going to be an immediate annuity

3:13
purchased for the lovely Christine for

3:15
life and a cash refund. So, my

3:18
daughters, okay, will get the cash

3:20
refund, but it'll be set up for her to

3:22
get a lifetime income stream. Now, what

3:25
I've done in the trust is I've laid out

3:27
here's a lump sum to use or here's the

3:30
projected income that she's going to

3:32
need on a monthly basis. run the quotes,

3:34
quote all carriers, and line it up, buy

3:38
it for her. So, I'm not throwing darts

3:41
at the lifetime income. In other words,

3:43
a lot of people go, "What can I buy

3:45
right now for Margaret so that she gets

3:48
lifetime income when I die?" And I'm

3:50
like, "Hey, Fred, when are you going to

3:52
die?" Well, I don't know that, Stan, but

3:54
I want to buy it now so when I die, she

3:56
has it. I'm like, "Well, you haven't

3:58
told me when you're going to die." And

4:00
by the way, for the record, death is not

4:02
a good strategy. You can only use it

4:04
once. I need you to think about that. As

4:06
Bill Black says, my the life insurance

4:08
guru I have on my Fun with Annuities

4:10
podcast. Hey Stan, one of that one out

4:12
of one of us is going to die. I'm like,

4:14
thanks Zig Ziggler, Mr.

4:16
Motivation. But it's true. So that's

4:19
what I've done for my wife. I've also

4:21
done similar things for my kids when I

4:23
lovingly handcuff them. It's called

4:25
lovingly handcuffing your beneficiaries.

4:27
Doing the same thing. When I die, an

4:30
immediate annuity is to be purchased for

4:32
them.

4:33
to pay for their life so they don't get

4:36
the lump sum and buy the Lamborghini

4:37
with cash. But with the with the spouse,

4:40
that's what you do. Yes, you can buy a

4:43
deferred income annuity and defer it

4:45
out. Yes, you can buy a QAC and defer it

4:48
out. Yes, you can buy and set it up

4:50
joint life, obviously. Yes, you can buy

4:52
an income writer and defer it out and

4:54
set it up joint life. That's called

4:56
throwing darts at death. And that's

4:58
okay. You might say, "I know for a fact,

5:01
Stan, that I'm not gonna live to age 85.

5:04
I'm gonna push the QAC to age 85, and

5:06
she can change the start date if she

5:08
wants to, but I'm going to put her on

5:10
here for lifetime income." Great. You

5:11
can do that. You can do that. Ands are a

5:15
great way to use your IRA and attach

5:18
your spouse for joint lifetime income.

5:20
They deserve it. Yes, it's going to be a

5:22
lower payment because it's on two

5:23
people, not one. But they put up with

5:26
you for all these years. Take your IRA

5:28
money, put $200,000 of in a QAC for

5:31
lifetime income for both lives and put

5:34
your spouse on there. QAX, that's an

5:36
easy way to do it and lessen your

5:40
RMDs. But I really like the trust part

5:43
of it. Yes, you'll have to go see a

5:45
lawyer, a trust lawyer. I like trust

5:47
lawyers. They're not like I mean they're

5:49
they're trying to help, right? They

5:52
really are trying to help. and the trust

5:54
would should be revisited every single

5:57
year. But my wife knows that when I die,

6:01
there's a huge life insurance policy. So

6:03
if I die unexpectedly, kind of look into

6:05
it, if you know what I mean. So there's

6:07
a huge life insurance lump sum coming

6:10
and and that can be she could, you know,

6:13
the trust the trustee, the executive of

6:15
the trust can choose to use that lump

6:17
sum or whatever lump sum to buy that

6:19
immediate annuity for my wife at the

6:21
time of my death. Now, why why is that

6:24
important and why is that something I

6:26
want you to think about? I asked guy

6:28
called the other day and we're having

6:29
this conversation and we got to this

6:31
point. I said, "Why don't you just set

6:33
up a trust and do what I just said and

6:34
what I just explained?" And then I said,

6:37
"As long as you're alive and hitting on

6:39
all cylinders, Fred, is everything okay

6:42
like from an income standpoint?" He's

6:44
like, "Oh, absolutely. I'm on it. I got

6:45
it. No problem." She knows that. Great.

6:48
Then let's let's plan for your death.

6:50
Let's plan for what happens on your

6:51
death. The only caveat to that is a lot

6:54
of people like to plan something for

6:56
their spouse in case you have cognitive

6:58
decline. Problem with cognitive decline

7:01
and when you get it, you might not know

7:02
you have it because you have cognitive

7:03
decline,

7:05
right? So, um those are discussions that

7:10
we have, but you should plan for your

7:13
spouse and plan for them to have

7:15
lifetime income and plan for whatever

7:18
income that's coming in now while you're

7:20
alive. If there's something like a

7:21
pension or something that's going to be

7:23
reduced upon your death, we should start

7:25
planning upon your death to replace that

7:28
gap for your

7:30
spouse. And you can do that. That can be

7:33
done at the time of your death. It can

7:35
be triggered by your death. Or we could

7:38
throw some calculated darts, contractual

7:42
darts. Guess I should do a video called

7:44
called throw contractual darts at

7:46
lifetime income. But that's what we're

7:48
doing. You're saying, "Hey, I needed to

7:50
start this income stream to start at age

7:52
75, joint life, and this one at 80,

7:55
joint life, and this one at joint life."

7:57
Or you might buy a deferred income

8:00
annuity or an income writer just in your

8:02
spouse's name, knowing that they're

8:05
going to outlive you just so that they

8:07
have a lifetime income stream. There's a

8:10
myriad of ways to do it. But for all of

8:13
you A personalities out there, this is a

8:15
tough one because you've been managing

8:16
money. You've been buying stocks and

8:18
bonds and mutual funds and ETFs and

8:19
crypto and Tesla and Apple and all these

8:22
great things. You made lots of money,

8:24
more money they could ever dream of

8:26
making in the market. And you're here

8:29
and you look around and you

8:31
go, I don't think my spouse cares. They

8:34
don't. They want to go see the kids and

8:35
the grandkids. That's my wife. She wants

8:37
to go see the daughters and the

8:38
grandkids. That's all she cares about.

8:40
And the granddog. I mean, that's what

8:42
she wants to do. and I'm going to set

8:44
her up so that she can do that. She's

8:47
earned that. Your spouse has earned

8:49
that. And it's time for you to start

8:51
thinking like that. How do we set up

8:53
that lifetime income stream for them?

8:56
So, when I pass, my wife knows exactly

8:59
what's in place, whether it's her life

9:01
only or joint life only, that she can

9:03
trigger income on some dart throwing pro

9:05
uh products that we purchase. But she

9:08
also knows that the trust will kick in

9:11
and there'll be an immediate annuity

9:13
purchase for them at that time.

9:14
Certainly, we would love, you know, to

9:16
be that source for you. But my the only

9:19
thing I will say is shop all carriers

9:21
for the highest contractual guarantee.

9:23
Don't have some p person go this is the

9:25
best one. No. Listen, when you buy

9:28
annuities like you're supposed to, just

9:30
for the contractual guarantees, like I

9:31
say, you own an annuity for what it will

9:33
do, not what it might do. When you do

9:34
that, you strip it out down to the

9:37
commoditized contractual guarantees.

9:39
Then you can go shop all carriers for

9:41
the highest contractual guarantee and

9:43
you're not beholden to somebody's sales

9:45
pitch or one company. So, planning

9:48
lifetime income for a spouse, there's a

9:49
myriad of ways to do it. I just gave you

9:51
a few, but it's a discussion that we

9:53
need to have. So, go to my site at

9:55
theanuityman.com, schedule a call so

9:58
that we can discuss the details of your

10:01
specific situation. Let's take care of

10:02
them. Let's take care of them. They have

10:06
they have put up with us. Nod your head.

10:09
They have and and if they're anything

10:11
like my wife, um they could care less

10:14
about markets. They could care less

10:16
about, you know, volatility indexes or

10:19
annuities or they don't care. They don't

10:22
care. They just want to live a good

10:24
life, which they deserve. And they want

10:26
to go see family and they want to make

10:28
sure that money's hitting that bank

10:30
account so they don't have to worry. And

10:31
it's and it's up to us to put those

10:34
contractual guarantees in place so that

10:36
they won't

10:37
worry. And that's a legacy that both you

10:40
and me are going to do. And I just hope

10:44
I can help you with that. My name is

10:46
Stan the Annuity Man. That's Shooting It

10:47
Straight with Stan. We'll see you next

10:49
time.