The Best Income Riders Are Not Annuitized: 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

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in all 50 states of Puerto Rico and the

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founder of CGO contractual guarantees

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only. You only uh you own an annuity for

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what it will do, not what it might do.

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Today's topic is a good one. It's the

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best annuity income writers are not

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annuitized.

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Let's explain what annuitization means

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because a lot of you don't even know

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what that means. Annuization means

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creating payments. So there's three

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annuitized type products. Single premium

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immediate annuities, deferred income

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annuities, and qualified longevity

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annuity contracts. Think about ripping

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the knob off a water faucet and water's

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just flowing. There's nothing you can

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do. With annuitization products, when

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you turn on the income stream, the

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income's coming. It's flowing. It's

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flowing. As long as you're breathing,

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it's going to come. If you have a period

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certain, it's going to pay for that

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period certain. But if you have a

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lifetime income stream annu annuity and

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it's annuitized,

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it's a wrap. Income's coming as long as

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you are breathing. Now, we can build in

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back stops, what I call back stops. If

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you think of little league, that makes

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sense for if you die early in the

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contract, 100% of the money can go to

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your family either in a lump sum or

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payment form. Because a lot of people

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out there say, well, I'd never buy an

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annuity because annuity company keeps

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the money when I die. That's just dumb.

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Stop talking. Okay? Get educated. So we

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can structure it so that 100% of any

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unused money goes to the beneficiaries

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even though they're on the hook to pay

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if you're 190. Well, if I live to 195,

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they'll pay.

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And right now with artificial

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intelligence kind of shortening the

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medical breakthroughs, it's lengthening

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out life expectancy tables eventually. I

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think right now is a really good time to

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consider buying a lifetime income

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product. So those are the three

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annuitized product. Ripping the knob off

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the water faucet. It's irrevocable. It's

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going to happen. As long as you're

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breathing or on a respirator, that

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income's coming. Again, single premium

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immediate annuities, SPAS, deferred

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income annuities, DAS, qualified

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longevity annuity contracts, QLAX, which

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brings us to the fourth way to do

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lifetime income. And it's also

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contractual, contractually guaranteed.

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They're called income writers. You can't

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just go buy an income writer. There's no

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such thing. Income writers ride

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on top of a policy either variable

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annuity, a RIA or an index annuity. What

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we found, the highest contractual

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guaranteed income writers happen to be

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attached to index annuities. We don't

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care about index annuities. We don't I

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don't believe in that garbage sales

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pitch market upside with no downside.

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That's a bunch of junk. Okay? That's a

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bunch of junk. We use the indexed

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annuity as a delivery system for the

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income writer. But the best income

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writers are not annuitization products.

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They're called in the industry drawd

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down products. Hey Stan, what does draw

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down mean in real English? Subtraction.

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That's what it means. It's a lifetime

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income stream and that amount of

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lifetime income stream is subtracted

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from the policy every time you receive

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it.

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Now, here's the good part about income

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writers.

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You can shut them on and off like a

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light switch.

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You might never do that, but you might

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do that. You say, "Wait a minute, Stan.

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Why would I ever even consider doing

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that?" All right, let's look into the

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future. There's a politician, pure

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socialist, maybe a communist, pure

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socialist, that stands up and says,

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"It's not fair that people with annuity

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payments are getting these payments.

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Everyone should be getting annuity

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payments. They forgot. They left out the

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part where you worked hard for decades

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and did without and threaded the needle

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and did it the right way. Okay, they

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left that part out. But that's okay.

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They're trying to get votes. And because

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these people have these guaranteed

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annuity payments, we're going to start

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taxing these evil rich people. Yeah. Uh

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they're talking about you and me. I know

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you don't consider yourself evil rich,

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but they're talking about you and me.

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And we're going to start taxing these

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evil rich people at 95% on those income

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payments.

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Well, Stan, that would never happen.

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That would never happen, Stan. They

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wouldn't confiscate wealth from someone

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like me, would they? I don't know. But

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let's just say they do. What do we do

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with the income writer? We shut it off.

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We shut it off and then vote against

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them.

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Or let's just say the IRS gets weird one

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year. I know they're normal right now,

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but but weird one year and has some

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weird tax law that's going to affect you

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in a really horrific way. And you got to

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figure out how to shut off some income

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in the short term. Shut off the annuity

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income writer. It's not annuitized.

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You're not ripping the ro the knob off a

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water faucet. I always tell people

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annuitization for lifetime income is a

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contractual path for lifetime income.

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Income writers are a contractual path

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for lifetime income. Two different

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paths.

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Okay.

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Now, we only ask two questions every

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single time to be what do you want the

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money to contractually do? When do you

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want those contractual guarantees to

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start? Let's just say you said I want

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lifetime income for me and the spouse

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and I want the income to start five

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years from now. Great. We're going to

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quote deferred income annuities and

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income writers, possibly QLAX if it's

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IRA money, but income writers for the

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highest contractual guarantee, quoting

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all carriers A+ or better.

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That's what we're going to do. Don't

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care about the name. Don't care about

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the brochure. Don't care about the fancy

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marketing name, the flippitydoo XYZ from

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XYZ company. I don't care. A+ or better

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and the number. A+ or better and the

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number for income writers and Dasp

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everything. These are commodity

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products. So, we're quoting all income

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writers for the highest number,

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but that number is not an annuization

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number.

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Here's another thing with income

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writers. You go into a policy, that

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example, and you're going to start the

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income in five years. We're going to

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call you 60 days prior to that

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contractual turnon date where you're

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going to turn on the income stream. And

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we're going to say, "Hey, still want to

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turn on the income stream? Let's

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validate and verify the bank account

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where the money's going to." And you

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might say, "Yo, yo, whoa, whoa, whoa.

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Things have changed, player. We don't

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need the income right now. Let's move it

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two years out." We can do that. Or the

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reverse. You call us two years earlier

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and say, "I know I was scheduled to turn

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on the income stream two years from now.

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Things got kind of weird here. We need

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the income now. Can we turn it on?" Yes.

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Remember, lifetime income is primarily

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based on your life expectancy or life

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expecties at the time you take the

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payment. The older you are, the higher

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the payment. Please don't analyze it

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more than that. Interest rates play a

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minor role. Okay, minor.

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But the the lifetime income stream from

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an income writer is contractual. It's

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going to pay for as long as you're

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breathing and or on a respirator.

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Period. How you stay? What if I lived

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125? It's going to pay. You understand?

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What if I lived 150? It's going to pay.

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You're transferring the risk to the

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annuity company, the life insurance

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company that issued the annuity and the

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income writer to pay for as long as you

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are breathing A+ or better. You don't

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need a sweater. So, we're looking at A+

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or better carriers. No exceptions. I

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know that I mean I listen, I represent

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every carrier out there. We show all

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quotes and there's some right now

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there's some lowrated carriers with high

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income writer quotes. Don't touch them

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with a 10-ft pole.

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Income writers are not backed by the

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state guarantee fund. Hello. Did you

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know that? Did Johnny Apples Seed agent

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tell you that?

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No. So, you got to get quality companies

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that are issuing income writers and then

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quote them all, A+ or better, and choose

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the highest number. But understand, you

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can turn on that income on and off like

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a light switch. I hope that never

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happens. I hope that you don't have to

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do that. I hope the income continues

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uninterrupted and unchanged by some

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stupid political decision. But what what

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I'm telling or IRS decision, what I'm

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telling is you have that option. You

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have you have that option to change the

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income start date. It's a flexible

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solution for lifetime income guarantees

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income writers. All right. So the best

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income writers out there are not

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annuitized. Now, some of you out there

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with variable annuities. We don't sell

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variable annuities because the keyword

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variable. We don't do any of that.

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Everything's contractual. They there's a

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lot of different income writers. I would

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encourage you to go to my site at

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theanuityman.com.

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Theanuityman.com and you can download an

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owner manual on income writers that I

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have written and you can get for free.

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And I go through all types of income

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writers. There there is slash are a

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couple of income writers on the variable

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annuity side from those older policies

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that are that are annuitized. We're

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talking about dinosaurs right now. I

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mean, who cares? The ones right now are

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not annuitized. I had to cover that for

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all you people going to email me. You

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can email me anyway. Income writers

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right now, the best ones out there are

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not annuitized. And you retain full

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control over the asset even though

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you're getting a lifetime income stream.

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It's pretty good. All right. So, you

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learned something today, right? Hope so.

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My name is Stan the Annuity Man. That is

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Shooting It Straight with Stan. And I

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will see you next