The 2 Hidden Details of Income Riders: 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 in Puerto Rico. Founder of

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CGO contractual guarantees only, which

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is you own an annuity for what it will

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do, not what it might do. Never buy an

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annuity for growth. Never buy an annuity

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that has non-g guaranteed return

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scenarios. I encourage you to go to my

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site, run anonymous quotes, talk to

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Virtual Stanley. You can buy an annuity

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24/7 365. Fill out the application

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online or you can choose to use us

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humans. So AI could mean actual

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individuals. AI means annuity innovation

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to us. Um today's topic is an

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interesting one. It's the two hidden

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details of income writers. Income

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writers are one of the four ways to

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create lifetime income streams using

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annuities. Annuities solve for four

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things. principal protection, income for

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life, legacy, and long-term care. That

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acronym is PIL. Obviously, income

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writers fall under the I part of income

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for life, but income writers are um

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missold because they're attached

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typically to index annuities. Here's

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your visual. This side is the index

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annuity. This side's the income writer.

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This side's the contractual guarantee.

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This side has no guarantee. This side's

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the contractual guarantee we care about.

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this side we could give a rip about it

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just delivers the guarantee because the

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income writer rides on top of the

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policy. So if you say Stan I would like

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income to start in seven years from now,

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three years from now, four years,

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whatever the amount of time that you

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want to defer, we're going to show you

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deferred income annuities and income

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writers just because we should and we

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have to from the standpoint of just

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doing the right thing and showing you

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all of the product types that solve for

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income later. Okay. But income writers,

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since we're not caring about the we

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don't care about the logo of the

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company. We don't care about the product

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name of the company. I love when people

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go, "Stand, have you heard of the whippy

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doodle, flippy doodle, xyz?" No, I

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haven't. But you know what? I have heard

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of the highest contractual guarantee to

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income writers because we quote all

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carriers. Now, for lifetime income,

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we're doing an A+ or better. No

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exceptions.

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No exceptions.

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Can anyone out there argue with me that

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things are a little chaotic in the

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world? Check the date of this taping or

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the release date.

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It's a little it's a little funky as

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they say.

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Whether you look at it from a political

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standpoint, global standpoint, war

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standpoint, debt standpoint, economy

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standpoint, bloated over stock market

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standpoint. Hopefully I'm wrong about

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that. Hopefully it keeps going.

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But I'm a kaggen. I don't think so. You

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know, it goes up and down. You I was

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there in ' 87. I was there in 2008. I'm

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going to be there this next time. This

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will be the trifecta and it's going to

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be a doozy.

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But there's two key differences and

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things that when you look at annuities,

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because I commoditize everything.

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Annuities are commodities. You shop all

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carriers for the highest contractual

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guarantee. Annuity quotes are like a

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gallon of milk. They spoil every 7 to 10

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days. So, you have to re-quote them or

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lock them in and move forward, whatever

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you want to do. But when we shop all

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annuity income writer carriers A+ or

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better, we're going to show at least

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three carriers.

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Now, the carrier that finishes first

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will be the carrier that gives you the

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highest contractual guarantee for when

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you have decided to turn on the income

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stream.

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All right,

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that's one of the nuances is the age

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that you're getting that you're starting

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the income or if it's joint, you know,

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whatever your age is, age is.

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The other key difference and how these

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kind of the nuances of of of income

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writers is the payout rate. No one ever

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talks about the payout rates. It's in

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essence a numerical reflection of your

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life expectancy or what the annuity

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company thinks it will be.

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and you're saying, "I'll take that bed.

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I think I'm going to live longer. I

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think me and the wife, the spouse are

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going to live longer."

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And they're on the hook to pay

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regardless of which one of you is left

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breathing. And you can forever as if

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you're on a respirator or an iron lung,

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they're going to pay. If you're in a

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coma, but still breathing, they're going

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to pay.

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Annuitities are the only product that

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does that.

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But when income writers are typically

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sold by the local agent and most

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unfortunately

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most income writers are sold at the

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local level by Johnny Apple Seed agent

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30 miles from where they live. I'm

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changing that but that's unfortunately

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how it happens. And they say well Mr.

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Jones you can get a 42% upfront bonus

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35% upfront bonus whatever the bonus is.

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You get market upside with no downside.

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You get free long-term care. They've

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been lying. They They've been lying

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since the start. By the way,

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upfront bonuses mean nothing.

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Zero.

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It's all part of the contractual

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guarantee.

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But it's candy for the stupid. If you

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think there's somebody, an annuity

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company giving you money or if you look

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on your statement and you see your

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income balance, look at all that money,

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Martha, that they put in our account.

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It's monopoly money, Fred. unless you

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turn it on for lifetime income. But what

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we found is that when you shop all

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carriers for lifetime income, the vast

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majority of the time, the companies with

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the income, right? The the bonuses don't

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finish first. Why? Because they play

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with the payout rate. Remember I talked

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about that the two things that have age

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and payout rate. They play with the

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payout rate. I always tell people

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there's a hundred pennies in the dollar,

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not 132 because they gave me a 32%

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upfront bonus. Please tell me you're not

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that stupid

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or gullible.

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It's not about the Fed either. Notice I

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didn't put Fed or interest rates. I put

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age and payout rate. That's what

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separates these. So, when we we send our

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um illustrations, you're going to see

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three companies listed. And then within

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those pages, they're showing, well, if

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you turn it on at this age, it's this

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and this age is this. And then some of

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the like number two that finished second

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might be a higher payout if you waited

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longer.

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Payout rate might be different, age

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might be different from them, what

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they're trying to attract. Remember

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annuity companies that sell lifetime

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income products. They're trying to

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attract tanches of your ages or age.

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Think of a football stadium full of you

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and your age, your gender. If it's full,

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they're going to lower the guarantee not

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to attract you. If the upper ball's

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empty, they're going to raise the

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guarantee to attract you. The quote.

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It's that simple. How you stay? I bought

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the Fed. I don't give a crap. By the

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way, lifetime income products don't give

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a crap.

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Lifetime income is primarily priced and

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based on your life expectancy at the

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time you take the payment. And what

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we're going to do is shop all carriers

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so that all A+ companies are bidding on

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your business. And at some point in

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time, there's some A+ carrier out there

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that really wants your business. And

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that guarantee is going to be chunky and

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it's going to be attractive.

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That's the reason when someone says,

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"You know what? [clears throat]

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[sighs and snorts]

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I looked at all of these, Mr. Jones, and

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this one right here is the best one.

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Trust me on that one. Trust you on that

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one. What trip are you going on, Johnny

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Apple Seed Agent?

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By the way, we don't do we don't do

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that. We don't go on these trips these

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guys try to get on." Here's the point,

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though.

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It's not about the bonus. It's not about

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the Fed. It's not about the index option

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strategies. It's not about that.

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It's about your age when you turn it on

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and the payout rate. That's the nuance

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of the income writers.

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Some companies really want your age

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ranges. Some do not because they have

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enough of you.

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That's the reason it's commoditized.

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But what what I want to warn you about

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are the shiny things. What I call candy

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for the stupid upfront bonuses. Candy

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for the stupid. I had a I had a a

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highlevel consultant from an annuity

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company come in here and he was so

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proud. Stan, I want to tell you about

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our bonus product. I said, you have got

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to be kidding me.

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Who cares about your bonus product?

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Well, you got to have bonuses to be

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competitive. That's what's wrong then.

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That's what's wrong with the industry. I

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hope somebody cleans this crap up. I'm

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trying, but it's like screaming into a

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hurricane. Just remember with income

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writers, okay, just remember it's a

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separate calculation. Draw a line down

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the blank sheet of paper. Index annuity

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over here, who cares? Index annuity over

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here. Who cares?

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Income writer over here. Contractual

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guarantee. We care. Don't care. Cap,

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spray, participation rights, upfront

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bonuses. It's about the guarantee. It's

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about your age when you turn it on. It's

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about the payout rate.

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Hey Stan, why hasn't everyone ever

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talked about payout rate before? I don't

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know.

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I don't know. I do because it doesn't

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sound as good as a 42% upfront bonus.

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Income writers are commodity products.

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If I could sell just the income writer,

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I'd do it. If I could sell income

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writers attached to multi-year guarantee

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annuities instead of index annuities,

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I'd do it.

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But unfortunately, we have to hold our

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nose and grab the vomit bag and attach

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it to an index annuity.

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Stan, they just can't be that bad,

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right? I don't know.

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I think they are because the annuity

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company can change the rules on how the

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gains are calculated at their

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discretion. It's in the contract. I had

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someone the other day were arguing about

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index annuities and and and their their

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response was, "Well, it's in the

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contract that it can be changed." Oh,

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does that make it right?

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You know what can't be changed? The

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income writer can never be changed.

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This can be changed at their discretion

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without talking to me or you. This

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cannot. The lifetime income stream

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cannot. So, guess where we're going to

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focus?

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Right over here on the guarantees. But

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remember, there's some nuance here with

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income writers. It's age and payout

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rate. And we'll show you that when we

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run the illustrations. You can run them

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yourself on my site if you want to

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anonymously, but be careful out there.

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Okay? This is a simple simple product

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products and it's a simple way to find

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out which one you should buy

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contractually the highest. But boy,

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there's a lot of noise in between

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unfortunately with a lot of people. Not

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with us because we've stripped it down

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to the simple products that they are,

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which are contractual guarantees.

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Remember this, and I'll close with this.

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Life insurance companies issue annu

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issue annuities. Annuities are policies.

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Policies are contracts. So if they're

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contracts issued by life insurance

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companies,

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why in the heck wouldn't we just focus

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just on the contractual guarantees? You

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will when you're with with us, if you're

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a client of ours, it'll be all about the

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contractual guarantee. All right. My

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name is Stan the annuity man. That is

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shooting it straight with Stan.

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See you next time.