Understanding QLACs: Live Q&A with Stan The Annuity Man

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Heat. Heat.

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Welcome to the Annuity Man live. Yes.

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Yes, sir. Yes, ma'am. Stan the Annuity

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Man in the flesh

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shooting from our studios in Las Vegas,

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Nevada. We're talking about QAX today.

1:01
So, get your questions ready. I've got

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all kinds of screens all around me that

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you can't see. I've got really smart

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people behind the camera that you can't

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see that are going to help if as things

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get busier and busier. But, let's talk

1:14
about QLEX. Let's jump right in.

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Qualified longevity annuity contracts

1:21
were put on the plan in 2014 by our

1:23
friends at the IRS and the Treasury.

1:26
Yes, that's where it came from. And

1:28
there were a lot of convoluted rules

1:30
back then. Um, but the rules now are

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very simple. The and I wish they had

1:34
started there. Uh, but the rules for QAX

1:37
is you can put one inside of your IRA.

1:40
You can buy a QAC with IRA money. So the

1:42
people out there that are saying never

1:44
buy an annuity inside of an IRA.

1:47
Qualified longevity annuity contracts

1:49
were put on the planet to be put inside

1:51
of qualified IRA type accounts so that

1:54
you can create a lifetime income stream.

1:57
Now, the reason that they were put on

1:58
the planet is because social security,

2:01
which is the best inflation annuity on

2:02
the planet, um that was never put on

2:05
that was never put in place to be the

2:07
primary income source for retirees, even

2:10
though it is for most. But for you, and

2:13
the reason you're on this, I hope, is to

2:15
look at possibly adding a QAC to your

2:19
portfolio as a non-correlated asset.

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When I say noncorrelated asset, that

2:24
means it has nothing to do with the

2:25
market. It's not attached to the market.

2:27
There's no market attachments at all.

2:28
And with QAX, there's no annual fee. So,

2:31
we're going to go through a lot of the

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details. Hopefully, your questions will

2:35
come in. I'm going to answer them one at

2:37
a time. Um, but let's talk about a

2:39
little bit more about the QAX. Uh right

2:42
now at the age of 73 for people for most

2:44
of the people on here, not the

2:46
youngsters, but most people on here at

2:48
age 73, the IRS is going to tap you on

2:50
the shoulder and say, "Hey, you got to

2:52
take required minimum distributions,

2:53
RMDs, whether you want it or not,

2:55
whether you need the money or not." The

2:57
good part about Ulax, one of the good

2:59
things, is that that 210,000 that you

3:03
can use for a QAC is not used to

3:05
determine your required minimum

3:07
distributions. Give you an example. You

3:09
have a $500,000 IRA. You bought a QAC

3:12
for 210. When you go to do your RMDs,

3:15
you're calculating it on 290. Now, the

3:18
good part is you can do one inside of

3:21
your IRA. If your spouse has a IRA, they

3:24
can do one. And then the good news is

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you can put each other as joint

3:29
annuitants. Annuitance means payout

3:31
means both of you are going to get paid

3:34
out for as long as you are breathing. So

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if if Stan and Christine have a CQAC and

3:41
I pass away and it's joint life, that

3:44
means the income's going to continue

3:45
uninterrupted and unchanged for

3:47
Christine's life. And then when she

3:50
passes, we're going to probably

3:51
structure it. Most of them are

3:53
structured with cash refund. And what

3:55
that means is whatever money is left in

3:57
the account goes lump sum to the

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beneficiaries

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um at the time of that person's passing.

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if it's single life, if it's joint life,

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the second person's passing, but we can

4:07
structure it just to let you know that

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the evil annuity company's not going to

4:11
keep a penny even though they are on the

4:13
hook to pay regardless of how long you

4:15
live. Because a lot of people go, "Well,

4:17
I'd never buy an annuity stand or a CQAC

4:19
because when I die, money goes poof."

4:21
Now, you can structure it life only.

4:25
That's the money goes poof. Do you need

4:27
to do that? It depends if you hate your

4:29
beneficiaries, I guess. No, that will be

4:31
the highest payout because there's no in

4:33
essence back stop there. Cash refund

4:36
means that 100% of any unused money is

4:38
going to go to your family. The vast

4:41
majority of of QAX that we sell at the

4:44
annuity man are cash refund. So, it's

4:47
either life with cash refund or joint

4:49
life with cash refund. Now, let's talk

4:51
about that structure. If you're only

4:53
going to do life your life with cash

4:56
refund, then the payments will be higher

4:59
because they're not covering two lives.

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So, a joint life payment will be lower

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because they're covering two lives. Let

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me give you another example before we

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get to the questions. There's a lot. So,

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we'll get there in just a second. Um,

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if your spouse is younger than you,

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let's just say you're Robert and you

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marry Jennifer and Robert's 70 and

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Jennifer is 60, okay? The life insurance

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company's going to focus straight on

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Jennifer. Okay? Even though it's joint

5:26
life, it's going to be primarily based

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on Jennifer's life expectancy at the

5:30
time the payments start. And even if

5:33
Robert dies, that initial lock in amount

5:36
is going to never change. It's going to

5:39
be, you know, static. And let's talk

5:42
about that for a second. People say,

5:44
"Well, I want the income to increase."

5:46
Now with QAX uh most carriers do not

5:49
offer cost of living adjustments. Cost

5:52
of living adjustments is when you can

5:54
say you know at the time the income

5:55
starts I want the in income to increase

5:58
by 2% or 3% or 1%. And that sounds great

6:02
in concept, but mathematically it's

6:04
probably not the best thing for you

6:06
because just a visual, you know, with a

6:08
an annuity with an increase, it might

6:11
start here visually, but if you bought

6:14
one without the increase, it's going to

6:16
start here. So, they're not giving it

6:19
away. So, if you want increases, we

6:21
don't we don't recommend that because

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you already own the best inflation

6:24
annuity on the planet, and that is

6:26
Social Security. Okay. So, we're going

6:29
to kind of jump into the questions. I'm

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going to go back and forth because I

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can. And then, you know, hopefully it's

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just a a very good open forum of

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questions. Now, before I do that, couple

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things. If we break the internet and

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break our website, that's okay. We're

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going to go through how to run a quote.

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And if you've got double screens, um you

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can do that with me real time. Um you

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know, in the future, we have our next um

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live event in December and you're going

6:55
to get the invite for that. It's on

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immediate annuities. We're going to be

6:57
able to show you the quote screen on

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screen, but for this one, we're not

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going to do that. We're kind of testing

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things at this point. Okay. So, let's go

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to our kind of our first question. I'm

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going to go back and forth to some notes

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I've written down. Okay.

7:13
I got a salutations from someone in

7:15
Texas. Um, so here's one from it says,

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"So, when you receive funds from QAC, is

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it considered a withdrawal from your

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IRA?" Um, yes, it is considered. It's

7:26
it's lifetime income. So, it's a it's a

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withdrawal. And that income amount is

7:30
going to fully cover and satisfy the

7:33
required minimum distributions for your

7:35
QAC amount. Okay. Now, the new rules

7:38
allow any overage from that to be

7:41
applied to your other RMDs for nonQAC

7:45
um assets within your IRA. That that was

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not the case when they first came out.

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So, what you have to think in your head,

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okay, I've got a $210,000 QAC. the

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lifetime income stream that's coming out

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is going to fully satisfy the

7:58
requirement of distributions for that

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$210,000 amount in the IRA. And if not

8:04
always, but and if there's a little bit

8:06
of overage, that can be applied to the

8:08
nonanuity assets as well. Um, next one,

8:12
QAX use used to shrink a 401k balance.

8:18
Let's see what that what that says.

8:19
Ordinary income is income is paid each

8:21
month. Not sure what the question is

8:24
there, but I'm going to try to translate

8:26
that. 401ks are now some of them are

8:31
offering annuities inside of of them,

8:34
but with qualified longevity annuity

8:36
contracts, the vast majority are in the

8:37
traditional IAS. These are not for Roth

8:40
IAS. These are traditional IAS. Um, and

8:43
the amount that you can use obviously is

8:44
the $210,000 amount. Not sure what that

8:47
person u was really wanting to ask.

8:50
Email me at stantheanuityman.com.

8:52
So, so many rules on how you can handle

8:54
your money. Laugh out loud. It's really

8:56
simple. Um, in my opinion, you don't

8:59
have to put the $210,000 in one lump

9:01
sum. You could actually ladder the

9:04
purchase. So, let's just take an

9:06
example. You say, "Yes, I can put the

9:08
210, but let's do 70 a year. Let's push

9:11
put purchase 70,000 this year, 70,000

9:14
next year, and 70,000 the following year

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under the understanding that rules

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haven't changed. And then you could have

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income starting say at age, you know,

9:24
let's say you purchased it at age 72,

9:26
you could have income starting at age

9:28
75, at age 80, and at age 85 to possibly

9:33
combat inflation with income starting at

9:35
different uh time frames. So, you don't

9:38
have to put it all lump sum in that in

9:40
210. You can ladder the purchase and

9:43
then ladder the start date. Um, try to

9:46
get a little bit fancy there, but that's

9:47
that's one thing you can do. One rule

9:50
specifically is that you have to they're

9:53
going to tap you on the shoulder. You

9:54
have to turn on QAC income by age 85.

9:58
Okay? Now, do you have to wait to age

10:00
85? No, you don't. Remember,

10:04
annuities for lifetime income are

10:06
primarily priced and based on your life

10:08
expectancy or life expecties if it's

10:10
joint at the time you take the payment.

10:12
The older you are, the higher the

10:13
payment. Similar to the best inflation

10:16
annuity on the planet, Social Security,

10:17
the older you are, the higher the

10:19
payment because you have less life

10:21
expectancy, which means there's less

10:23
projected payments, which means those

10:24
payments will be higher. Okay. Um, what

10:29
happens to QAC funds after death? Now,

10:31
that depends on how you structure it.

10:33
You can structure it life only, which

10:36
means when your Learjet hits the

10:37
mountain, money goes poof, or you can

10:39
structure it life with cash refund,

10:41
which we would recommend because you

10:42
worked hard for this money. Um, and that

10:45
what that means, it's going to pay you.

10:47
It's going to pay you for as long as you

10:48
are breathing.

10:50
And when you pass away, whatever money

10:52
is left in the account goes to the

10:55
listed beneficiaries or the policy. The

10:56
evil annuity company doesn't keep a

10:58
penny. So the question should be after

11:00
that is hey Stan what happens to QAC

11:03
payments if the money is drawn down to

11:06
zero because all income payments from

11:08
annuities is combination of return of

11:10
principal plus interest. What happens

11:12
when when you when you deplete that

11:14
amount the annuity company's on the hook

11:16
to pay. That's the reason then when

11:17
people say well the ROI on a culac is

11:20
terrible. Well I don't know that until

11:21
you die. Until you die it's a transfer

11:23
of risk product for lifetime income

11:26
solving for longevity risk. If it's

11:28
joint life, then we're going to have to

11:30
wait for the second person to die to run

11:32
those ROI numbers. It's ironic that no

11:34
one ever talks about ROI numbers with

11:36
social security. They just love the

11:38
payments. Ulac should be the same thing.

11:40
It's part of your overall income floor.

11:43
If you have a pension, great, you're

11:45
fortunate. Then you have social

11:46
security. And then you might want to add

11:48
a QAC to it. That's your income floor.

11:51
The money that's coming in as long as

11:53
you are breathing. Okay, let's check

11:56
another question.

11:57
Uh, can I transfer my MIGA funds next

12:01
year to a QAC for immediate income?

12:04
First of all, let's talk about the

12:05
immediate income part of that. Most

12:08
QACs, most require you to hold it and

12:13
defer it for two years. I believe

12:15
Florida is the only exception at this

12:17
point. I believe that's 13 months. But

12:20
let me throw a caveat in there. It's

12:22
really carrier specific. So, when we run

12:25
the quotes, and I'm I'm going to run

12:27
quotes, and you can run them at your

12:28
leisure at our site at theanuityman.com,

12:31
whoever finishes first, and it and we're

12:34
only going to recommend A+ or better um

12:37
for lifetime income because of the

12:39
claims payability. But the good news is

12:40
the people, the carriers that are

12:42
involved in QLEX are the big boys, you

12:44
know, the ones that you're familiar

12:45
with. And that's you should really

12:47
choose the highest amount. I mean, you

12:49
don't need to split them up with these

12:50
companies. They are so strong that you

12:53
don't have to split them up. Let's see

12:54
what can you transfer your MA funds. You

12:57
could if you have IRA funds. Okay, you

13:01
can transfer the funds to a QAC.

13:05
All right, because when you transfer an

13:06
annuity it um it surrenders. So

13:09
obviously we we would not want you to

13:11
have a surrender charge there, but it

13:14
can it can go into a CQAC, but you can't

13:16
do it for immediate income. If you need

13:18
immediate income, that's a single

13:20
premium immediate annuity. We can

13:22
certainly set you up with that. That's

13:23
my next live event in December. But for

13:26
this is QAS are not for immediate

13:29
income. I had a I had a person, we had a

13:31
bunch of people email me questions and

13:33
one of them was from Debbie and Debbie

13:35
asked um should I buy one in my mid60s

13:40
or should I wait until you know the 7273

13:43
time period 73 when they tap you on the

13:46
shoulder? There's really no good answers

13:47
to that, just really bad sales pitches.

13:49
What I would tell you is the longer that

13:52
you allow an annuity company to hold on

13:54
to your money, the more they enhance,

13:57
i.e. increase the payment. So, they're

14:00
going to reward you for for buying it.

14:02
So, I think she was 68. So, let's just

14:04
say she purchased a CQAC at 68 and she's

14:08
going to turn on the income at age 75.

14:11
Okay, that deferral time period, they're

14:14
going to reward her for for letting them

14:16
hold on to the money and that lifetime

14:18
income stream is going to be enhanced

14:20
because of it. Now, the downside of

14:22
that, QACs don't have any inherent

14:26
interest rate growth amount. So in other

14:27
words, if she died

14:30
in that situation, let's just say she

14:32
did life with cash refund and she died

14:34
three years or four years in before the

14:36
income streams turned on and she put 210

14:39
in 210,000. That 210 goes lump sum to

14:41
her beneficiaries. This is not 210 plus

14:43
interest, etc. Remember, you know, don't

14:46
get mad at me. Remember who designed

14:47
them, the IRS and the Department of the

14:50
Treasury. So they're not giving anything

14:51
away here. They want you to earmark this

14:54
money for lifetime income for both you

14:57
you only or you and your spouse. Okay.

15:01
Um R&D ages increases 75 for people born

15:05
in the six. Yeah. The rules are actually

15:06
and I I kind of wrote them down is if

15:08
you're born from I think 1951 to 59 it's

15:11
it's uh age 73 is RMDs and if you're

15:15
born 1960 and later it's 75.

15:19
If you are really really young, we're

15:21
going to question why you're buying a

15:23
QAC um just because it's probably best

15:26
to wait. I would say the sweet spot to

15:28
consider QAX at this point would be 65

15:31
or older, my opinion. Okay. And and then

15:35
you can convince me otherwise if you,

15:38
you know, call our office and schedule a

15:39
call with our team and they they're very

15:42
good and very well verssed in Qite

15:45
rules, etc. But we're not hammers

15:46
looking for nails. We're we're trying to

15:49
educate you. Now, of course, I've done a

15:51
bunch of QAC videos and if you go to my

15:53
site, you can download a QAC owners

15:55
manual that I wrote and we just recently

15:57
updated. Um, you know, you can you can

15:59
do your research on your terms and your

16:01
time frame and then you can go to the

16:02
site and run quotes at your leisure. So,

16:06
let's go to the next one. I know young

16:07
people buying annuities such as SP is

16:09
unusual and discouraged, but what if

16:12
someone is 24? No.

16:15
Just, you know, no. Um uh and and and

16:19
no. Okay. 24 years old. No, you can't.

16:23
In essence, it doesn't make any sense.

16:25
Remember, lifetime income is based on

16:27
life expectancy. If you're 24, those are

16:29
going to be low payments. I would tell

16:30
you to not buy annuities in general. I

16:33
would because a lot of annuities aren't

16:34
even issued until age 40. But let's get

16:37
that out that rule out of the way. If

16:38
you're in your 20s and 30s and 40s, my

16:41
question to you is why are you doing

16:42
this? Why are you buying contractual

16:44
guarantees? Do you really need it? you

16:46
really can't afford for markets to go up

16:48
and down and you really do need growth.

16:51
I've been doing this a long time. I, you

16:53
know, obviously number one agent in the

16:54
country. I really believe

16:57
60 and above are are really the people

17:00
that need to start looking at annuities

17:02
when you're going toward chapter two of

17:03
your life. People in their 50s do buy

17:06
them, but they have to give us a really

17:07
good case of why. We have had some

17:10
asterric moments with some young ones,

17:12
young people. They have to tell us why.

17:16
Structured settlements or annuities as

17:18
that's typically for people that's been

17:20
in accidents. That's a whole another

17:22
subset. But what we're talking about is

17:24
should you buy this question was should

17:25
you buy annuities in that age. You're

17:27
not going to buy them from us because

17:28
we're not going to sell them to you

17:29
because we don't think it's prudent. Um

17:32
and we're going to tell you no. We have

17:33
no problem telling you no if it doesn't

17:35
fit. Um

17:38
uh Sue asked, "Will the beneficiaries

17:40
have to pay taxes on the QAC funds when

17:42
she dies?" The answer is yes. Just like

17:44
anything with the IRS and the IRA, your

17:48
your beneficiaries are going to have to

17:50
pay taxes on whatever's in that IRA. And

17:53
if you set it up life with cash refund,

17:55
they're going to have to pay taxes on

17:57
that unused amount. There's no way

17:59
around that is what it is. But hey,

18:02
you're dead. It's their problem, right?

18:03
No, I'm sorry. That's that's that's me.

18:06
Um,

18:08
no cola rider. We talked about cola

18:10
riditers. The answer is no. Most of

18:12
these companies do not do that. Um, and

18:15
we're going to tell you not to do that

18:16
because mathematically it just doesn't

18:18
make sense. Um, because annuity

18:20
companies don't give the increase away.

18:22
They price it into the product and they

18:24
just simply lower that um, initial

18:27
payment amount if you add a cola to it.

18:30
And you're not going to live long enough

18:31
to make it up. Feels good, sounds good,

18:34
great sales pitch. We're going to tell

18:36
you you already own the best inflation

18:37
annuity on the planet, which is Social

18:39
Security. Go with that. And then my my

18:42
opinion on inflation because really what

18:44
you're asking is an inflation question.

18:47
My opinion on inflation is that's a

18:49
moving target. It's also personal. You

18:52
know, for instance, me inflation. My

18:54
daughters are 28 and 26. I'm not buying

18:56
milk and cereal and I'm not driving them

18:58
to dance every day. So, you know,

19:00
inflation hits us differently. What I

19:02
would tell you to do is establish your

19:05
income floor, which is pension, social

19:08
security, annuities, QAX, and then

19:10
whatever that amount is, that covers

19:13
your expenses and maybe a little bit

19:15
more lifestyle travel. And if inflation

19:17
hits your specific situation, then you

19:20
can go to our site and run a reverse

19:21
engineer quote on like an immediate

19:23
annuity to solve for that. Give you an

19:25
example. Let's just say $5,000 is your

19:28
income floor and three years from now

19:30
it's now you now need $5750. Like

19:33
there's a $750 gap in that income floor.

19:36
What I would tell you is to go to our

19:38
site, run a reverse engineer quote,

19:40
meaning we you can we can run a quote

19:42
for you. You can run it yourself solving

19:44
for that 750 amount for the rest of your

19:46
life and looking at who would require

19:49
the least amount of money to guarantee

19:51
that. That's in my opinion that's the

19:54
way to do inflation. You can't throw a

19:56
dart at inflation. You can't buy a

19:58
product for inflation. Even though

19:59
everyone's trying to sell you one, they

20:00
don't have it. You solve for that

20:03
inflation when it hits your situation.

20:05
It's customizable. Okay. Um,

20:10
should you use a QAC to get a lower tax

20:12
bracket or lower RMDs for the length of

20:14
the QAC contract? Um,

20:17
possibly. But I'm I'm going to be real

20:19
blunt here as I always am as Stan the

20:21
annuity man. If lowering your taxes on

20:24
your required minimum distribution is

20:26
the goal, I would tell you to run that

20:29
number for us and tell us why. Let me

20:31
give you an example. I had a gentleman

20:33
the other day who's a good client and he

20:35
had a two or $3 million IRA and he said,

20:38
"Stan, should I buy a CQAC to lower the

20:41
taxes on my RMDs?" No, because it's

20:44
going to be a drop in the bucket. Now,

20:46
if you have a $400,000 IRA and you have

20:49
a $210,000 QAC, I think it's going to

20:52
make a big difference in the taxes on

20:54
your RMDs. My opinion, QACs are an

20:57
emotional buy, even though we're looking

20:59
at qual at at a contractual guarantee.

21:03
And the reason I say it's emotional is

21:05
it allows you to take your personal IRA

21:08
and add your spouse who's put up with

21:10
your shenanigans all these years and add

21:13
your spouse for lifetime income. So,

21:15
what you're saying is, I've got this

21:17
IRA, okay? I'm going to add you, Sue, to

21:20
my policy because you've been a

21:22
beautiful, wonderful spouse. And when I

21:24
pass away, the income continues

21:26
uninterrupted and unchanged for your

21:28
life. And when you pass, because we have

21:30
a cash refund attached, whatever's left

21:32
in the account goes to the

21:33
beneficiaries. To me, that's the real

21:35
benefit. And if Sue has an IRA and she

21:38
likes you, hopefully she can add you as

21:41
a jointed annuity as well. So, she could

21:43
do a $210,000

21:46
um IRA or ladder at 707 and 70 and add

21:49
you as a joint annuitant if she so

21:52
chooses. To me, it's a great product for

21:56
that. It's a great product to take a

21:58
personal IRA asset and add a spouse for

22:00
joint lifetime income and be able to

22:03
deduct that for for uh the the for the

22:07
requirement distributions to potentially

22:09
lower your taxes. And again, that's a

22:11
customizable run for us from a

22:13
calculation standpoint based upon how

22:15
much you have in your IRA.

22:17
Okay. So, um to be clear, you choose

22:21
cash refund or life. So, you can't take

22:23
a higher payment if you elect not to

22:24
leave a death benefit. Yeah. Cash refund

22:27
or life. Okay. So, it's life with cash

22:30
refund or life only.

22:33
Okay. The vast majority are are life

22:36
with cash refund. Life only means when

22:39
you when you die, money goes poof.

22:41
That's what that means. Okay? Because

22:44
money goes poof and you're shouldering a

22:45
little bit of that risk instead of fully

22:47
transferring it with life with cash

22:48
refund. You're going to get a little bit

22:50
of higher payment. I'm going to

22:51
encourage you as the annuity man, the

22:54
thought leader in the business to do

22:56
life with cash refund. It just it just

22:58
makes sense. We don't see that big of a

23:00
difference with the quotes, but you

23:02
know, you can go to my site at

23:03
theanuityman.com and run QC quotes to

23:06
your heart's content and check out the

23:07
payments, etc. Um,

23:11
next question was, why is the limit

23:15
210,000? Might it increase in the

23:18
future? You know, when it first started

23:20
it was 125 in 2014. Okay. Um, the reason

23:25
it's 210 is because they deemed it 210.

23:27
I mean, it's it's a political football.

23:29
Will it increase in the future?

23:30
Absolutely. It's going to increase in

23:32
the future. So, let's just say

23:35
you were so enamored with this

23:36
presentation that you purchased a

23:38
$210,000 QAC and then two years from now

23:42
it goes to 250. you can then add an

23:45
additional 40,000

23:48
to the policy or we'll quote you know

23:51
all carriers and if if the quotes higher

23:53
to do another carrier with that

23:55
additional 40,000 we'll do that but

23:57
we're doing that right now is for all of

23:59
our QAC owners you know it's it's a it's

24:01
a bevy of activity here because there's

24:03
a lot of people that bought them at 125

24:05
and they bought them at all the way up

24:07
staggering up and we keep adding to that

24:09
amount so the IRS blesses this product

24:13
Okay, they're just going to, you know,

24:15
it's a QAC and, you know, it's going to

24:17
be shown as a CQAC and the IRS is going

24:19
to see it as a CUAC. So, if you bought

24:20
210 if it goes to 250 in two years and

24:23
we add 40, they're going to bless that.

24:25
Okay.

24:28
So, since you can't be delaying payments

24:30
for 20 years or more, can you elect to

24:32
purchase a writer that will increase the

24:33
death benefit? No, you can't, Rick.

24:36
That's a good question. You're confusing

24:38
this with income writers that are

24:40
attached uh to index annuities. We

24:42
certainly do sell that and you can run

24:43
those quotes as well on our site. But

24:45
these are these are static products.

24:47
Remember IRS and the Treasury developed

24:49
them. Um and you could delay for 20

24:52
years if you're buying it as a young

24:54
person. Um so for instance, if I was I'm

24:57
61. I know you're saying there's no way.

24:59
Yeah, I'm 61 and I bought when I could

25:01
defer to age 85. That's a 24year

25:03
deferral, right? Um I could do that. I

25:06
just ran that quote early. It was pretty

25:08
big. It's pretty large, but you know,

25:10
you got to wait a little bit. But yeah,

25:11
it just depends on your age. Remember,

25:13
85 is a cut off. So if 75 is your age,

25:16
you can only go 10 years, right? You can

25:18
do that math. Are free withdrawals

25:21
possible before? No. There's no there's

25:24
no liquidity with this product. Think

25:26
about ripping the knob off a water

25:27
faucet in the backyard and the and with

25:30
the sprinkler. Water's coming. In this

25:32
case, income's coming. Or if you die

25:34
before income starts, you have a cash

25:36
refund. Money goes to the beneficiaries.

25:38
There's no liquidity. Okay, do not look

25:42
for liquidity. If you need liquidity,

25:44
don't buy it. Okay, or if you need

25:46
liquidity, don't do the 210, do 70 or

25:50
140 or whatever the amount is. But don't

25:52
look at this product as, hey, I could

25:54
pivot in the future. No, you can't

25:56
pivot. This is a static

26:00
transfer of risk, lifetime income

26:01
pension that you set up for your life,

26:03
you and your spouse's life. You can

26:05
attach a cash refund so that the evil

26:07
annuity company doesn't keep a penny.

26:09
But you cannot call up and say, "Hey,

26:12
I'd like to get 10% out of that." No,

26:14
doesn't happen. Okay.

26:19
Can a QA be used to reduce traditional

26:21
IRA balance to facilitate Roth

26:23
conversion? That's a tax question. We

26:24
don't give tax advice and we also don't

26:27
do Roth conversions um because I don't

26:29
believe in that. But um that's that's a

26:32
that's a tax lawyer um CPA question. Um,

26:37
what's the premium for return of or

26:39
premium upon death? Um, that's kind of a

26:42
broad question that someone just asked.

26:45
Um, it depends on your age. It depends

26:48
on how long you're deferring. It depends

26:50
on how old you are at the time you you

26:52
um take the payment. Um, but all of

26:54
these that we're running the QAX are

26:57
return of premium if you die before a

27:00
life with cash refund. So, if you die,

27:02
if you're going to defer for five years

27:04
and you die in year three, then your

27:06
beneficiaries get the 210 back. Okay?

27:09
That's the reason we really like doing

27:10
cash refund. You're really going to have

27:12
to convince us why you want life only.

27:14
How about the How about the fees? There

27:16
are absolutely no fees on a QA. There's

27:20
no moving parts. There's no annual fees.

27:21
There's no market attachments. And

27:23
you're saying, you're yelling at the

27:24
screen, so stop. What's your

27:26
commissions? D. All annuity commissions

27:29
are built into the product. You never

27:30
see them. Okay. So, they're paying us

27:32
from their reserve accounts, their heat

27:34
and light and water bill account. It

27:36
doesn't come out. So, the 210 goes into

27:38
the account. The 210 is what you see.

27:40
Yes, we do get paid. It's not it's not

27:42
that much, but we do get paid from the

27:45
annuity company from their reserve

27:46
account, but there's no annual ongoing

27:48
fees. Okay. Um, is the amount paid to

27:52
the survivors taxed? Um, yes, it is from

27:55
the stamp. Um, it's not like life

27:57
insurance. The question was, is it like

27:59
life insurance? No. life insurance and I

28:02
know this is a little bit confusing.

28:04
Life insurance companies issue annuities

28:06
but annuity death benefits are taxable.

28:09
Life insurance companies issue life

28:10
insurance but the death benefits are

28:12
taxfree.

28:14
So in this case life insurance companies

28:16
issue qualified longevity annuity

28:18
contracts but the death benefit is

28:21
taxable to your beneficiaries. Okay.

28:25
Is a here's a good question. Is a is a

28:27
UAC They're all good. Is a QAC fixed

28:30
rates competitive with treasuries or

28:32
fixed annuities? Can they be set up for

28:34
monthly payouts? Are they quarterly?

28:36
Okay, there's two questions there. Let's

28:37
go with the first one. Is a QAC is are

28:40
QAC fixed rates competitive with

28:42
treasuries or fixed annuities? There is

28:44
no rate. There is no interest rate.

28:47
Okay, so it's not like a treasury. It's

28:50
not like a fixed annuity. It's not like

28:51
a CD. It's not like a bond. There's not

28:53
a coupon on there. There's not yield.

28:56
All right. It is a transfer of risk

28:58
based on your life expectancy at the

29:00
time you take the payments or life

29:02
expecties if it's joint. There's no

29:04
internal rate of growth. Give you an

29:06
example. Let's say you're deferring to

29:08
QAC for five years and you die year

29:10
five. There's it's not $210,000

29:15
plus interest earned because there's no

29:16
interest earned. You just your

29:18
beneficiaries just get the $210,000

29:20
back. Okay? Now, I don't want you to

29:23
confuse things. I don't want you to

29:25
compare that these are pension products,

29:28
okay? This isn't there's no moving parts

29:30
inside of here. And the Treasury wanted

29:33
it that way. The IRS wanted that way

29:35
because they wanted you to earmark this

29:37
money for lifetime income to dovetail

29:40
and combine with social security.

29:43
They're hoping that people do that and

29:46
I'm hoping that you do that to create

29:47
that income floor that is needed in

29:50
chapter two of your life. Okay, let's go

29:53
to the next question. Oh, the the second

29:55
part of his question was, can they be

29:58
set up for monthly payouts or are they

29:59
quarterly? They can be set up for

30:01
monthly payouts. You just have to tell

30:02
us and we can set it up any way you

30:05
want. It's going to be wired directly to

30:06
your bank account. All right, let's see

30:09
what the next one is. Good questions.

30:11
Um,

30:13
how what method allows the IRS to know

30:15
amounts paid under the QAC compared to

30:17
life insurance, loans, etc. First of

30:18
all, we don't sell life insurance. stand

30:20
the annuity man. Um, even though life

30:22
insurance company issues QAX, if you're

30:25
saying how do the how does the IRS know?

30:26
The IRS knows everything. Short answer

30:29
is the annuity companies are reporting

30:32
that directly to the IRS. So there's I

30:35
mean there's a direct um communication

30:38
line so that those specific amounts and

30:40
it's a good thing. I mean this isn't

30:42
some NSA spying thing. This is a good

30:44
thing. You want the IRS and the and the

30:46
carrier to be on the same page. So

30:48
that's how they that's how they do it.

30:51
Is the cash amount of paid out?

30:56
No. Okay, good question. I'm going to

30:58
Thomas, that's a good question. I'm just

31:00
going to paraphrase it. Um, life with

31:02
cash refund, joint life with cash refund

31:04
and the second person dies in joint life

31:06
with cash refund. Can that cash refund

31:09
amount that the beneficiaries get be set

31:12
up in a payment form or they get it lump

31:14
sum, they get it lump sum? just that's

31:16
just the way they set it up. Very very

31:18
simple. Um, does a withdrawal from an

31:22
IRA for purchase of a QAC qualify as an

31:24
RMD? First of all, let's just talk about

31:27
the administrative part of that

31:29
question. You have an IRA at Fidelity.

31:31
Love Fidelity, Love Vanguard, Love them

31:32
all. You have an IRA at Fidelity and

31:34
you're going to buy a QAC at XYZ

31:36
company. I'm not going to say a name out

31:38
there because I don't want to promote

31:39
them, but we represent everybody. It's a

31:42
non-t taxable event transfer from the

31:44
IRA company that you're at. In this

31:46
case, example, Fidelity to XYZ company.

31:49
Non-T taxable event going from IRA to

31:51
IRA. So, you have an IRA at Fidelity.

31:53
You'll then have an IRA at the at the

31:55
annuity company issuing the CQAC, but

31:56
it's a non-t taxable event. So, that's

31:59
how that works. Um, discussion around

32:03
the sweet spot age to buy an annuity was

32:05
was really helpful. Thank you. I'm not

32:06
sure I did that really well. I all I can

32:10
tell you with annuity companies is they

32:12
have the big buildings for a reason.

32:13
It's because they know when we're going

32:15
to die and property and casualty

32:16
companies go come and go because they

32:19
don't know when the hurricane and the

32:20
tornado is going to hit, right? So, um I

32:22
would just tell you try not to time it.

32:25
Try not to beat them because you can't

32:27
and try to embrace the fact that you're

32:29
transferring risk for them to pay you

32:31
for the rest of their life. Let's

32:32
dovetail a little bit into interest

32:34
rates because people are what about the

32:36
Fed Stan? What about Jerome Pal and

32:38
those boys up there? What what about

32:40
him? Interest rates play about a 20%

32:43
pricing role with annuities in general.

32:45
And you're saying BS, Stan, that's crap.

32:47
No, it's not. The reason is life

32:49
insurance companies issue annuities. So,

32:51
they have a portfolio of life insurance

32:52
products. Then they have a portfolio of

32:54
lifetime income products. Then they have

32:55
their bond their their bond portfolio

32:57
from all from a long time ago and and

33:00
and current. Then they have life

33:02
expectancy tanches that they fill in

33:04
price of. And then they glance at the

33:06
Fed. I always tell PE the annuity

33:08
industry doesn't look directly at the

33:10
Fed. They glance at them because it's

33:11
just a part of it. But it really comes

33:13
down to and the reason that we quote all

33:15
carriers are annuities are commodity

33:17
products. QACs are commodity products.

33:20
Not one's better than the other. That's

33:21
the reason we quote all carriers. And

33:23
there might be carriers that really need

33:24
your age range. So they're aggressively

33:27
pricing to attract you. The opposite can

33:30
be true as well, but there's no direct

33:33
correlation to the Fed. It's all about

33:35
the portfolio and the trenches of age

33:38
ranges that they're trying to fill and

33:40
they're trying to attract. Give it a

33:42
good example. I mean, there's such a

33:44
thing called a MIGO, which is a fixed

33:46
rate annuity. They just dropped rates at

33:48
the Fed. They raised their rates. Why?

33:50
Because it's 20 25% of the pricing. They

33:53
they're trying to attract and it was a

33:55
good company trying to attract um people

33:58
to that rate. Same thing with QAX. And

34:01
it changes quotes that you see on our

34:03
our site. Think about them as like a

34:05
gallon of milk. It expires every seven

34:07
to 10 days. So you can't run the quote

34:10
and then next month calls us and go, I

34:12
really like that quote I read November

34:13
14th. Let's do that. Can't do it. Now

34:16
the way it would work if you said ran

34:19
the quote, scheduled a call. We're going

34:21
to lock in that quote for you and then

34:23
typically it takes about two weeks from

34:25
start to finish. You know, we we track

34:28
that right now. I think it's like 13.9

34:30
days to get it from start to finish. But

34:33
we would have locked in that quote.

34:35
You're not swinging in the breeze out

34:36
there. We had locked in that quote with

34:38
the application with the carrier. And

34:40
and I have the best policy delivery team

34:43
and application team in the business.

34:44
That's all they do. Now, if you schedule

34:48
a call, that's my client services team.

34:50
Um they're the best. They understand

34:51
these products backwards and forwards.

34:53
They've forgotten more than most agents

34:55
will ever know. There's they're they've

34:57
been trained by me. They've watched a

34:59
zillion videos. They understand these

35:00
products. So when you talk to them,

35:02
they're not a hammer looking for a nail.

35:04
They're going to try to figure out what

35:05
you're doing and how to go about it.

35:07
Should you do a lump sum? Should you

35:09
ladder the purchase? Should you ladder

35:12
the income? These are these are things

35:14
that we need to talk about. All right.

35:16
Next. Came in late. Why are you late?

35:18
Come on now. Is there a max amount you

35:20
can tribute to person? Yes, it's 200

35:22
currently as the time of this taping.

35:24
Check the date because it's going to

35:25
change. 210,000

35:28
um as of in two as of today 20 2025

35:32
November 14th of 2025 wife here's one

35:35
wife and I will be 73 next year we had

35:37
our CPA compare a 210,000 QAC for each

35:40
of us four laded QAs of 525 over 12

35:44
years the tax savings 731

35:47
compared to just taking the RMDs

35:50
interesting we talked about lading you

35:53
certainly can do that you can split it

35:54
up however you want to split it up. But

35:57
again, I would put a lot of emphasis on

36:00
the lifetime income stream that you're

36:01
putting together for you and your wife

36:03
more than the tax savings. Lifestyle.

36:05
Chapter 2 is all about lifestyle.

36:07
Lifestyle is all about, you know, having

36:10
that solid income floor in place to go

36:12
do the things that you do and that

36:14
you've earned the right to do and that

36:15
you scrimped and saved to do. Okay. And

36:18
QAX, they they have an additional

36:20
benefit of saving taxes legally. U

36:24
that's great. But I think the primary

36:26
reason you should really look at QAX is

36:28
for lifetime income.

36:31
Um, young person with multi-millions

36:33
want to uh earn reliable passive income.

36:36
Um, you can do that, but it wouldn't be

36:39
with QAC. Um, if you're really young,

36:42
and we have those people. I mean, I I

36:44
can give you example after example with

36:45
thousands of our clients. We do have

36:47
people that, you know, they're like,

36:48
"Hey, I've made my money early." then I

36:51
would just tell you to buy a single

36:52
premium immediate annuity uh to

36:54
circumvent the 72T pre-59 and a half

36:57
rule. Hate to get in the weeds right

36:58
there, but I needed to. Um for lifetime

37:00
income, we can do that. So, if you're

37:02
young, you really don't need to be

37:04
looking at QAX. You need to be looking

37:05
at immediate annuities because there's

37:08
no limitation. You can put in as much as

37:10
you want. It's a lifetime income stream.

37:12
And if you're young, maybe in that

37:14
situation, a cost of living adjustment

37:16
increase could make sense for, let's

37:19
just say we split it amongst five

37:20
immediate annuity companies. We might

37:22
have one or two with a COLA because of

37:24
your young age. Okay. Um, does a QAC

37:29
have an advantage over just buying a

37:30
deferred annuity with IRA money? Yes.

37:33
Okay. And you can purchase any type of

37:36
annuity with IRA money. Um, but a QAC

37:39
once again the $210,000 limit as the

37:42
time of this taping that if you go to do

37:45
your required minimum distributions that

37:47
$210,000

37:48
is not used as part of that calculation.

37:51
Example, you have a $500,000 IRA. You

37:55
buy a $210,000 QAC as an example. When

37:59
you go to do your RMDs, you're doing it

38:00
on 290, not 500.

38:03
Okay? So there is a difference um with

38:07
deferred income annuities just which is

38:09
a QAC. A deferred income annuity is a

38:11
QAC and a and a single premium premium

38:14
immediate annuity is the grandfather of

38:17
it all. Uh a deferred income annuity is

38:19
a single premium immediate annuity.

38:21
They're all the same. No annual fees, no

38:23
moving parts, transfer risk. Um very

38:26
simple products. I always say if you

38:27
can't explain it to a nine-year-old,

38:28
don't buy it. No offense to

38:29
nineyear-olds, but QACs do give you that

38:32
R&D potential tax advantage that a

38:36
straight deferred income annuity uh

38:39
cannot. Now, um if you're going to start

38:42
income using IRA money, if you said,

38:45
Stan, I really want to put more in than

38:47
210 and I want to take the income before

38:50
age 73, then a deferred income annuity

38:53
makes total sense because there's no

38:54
limitations on the money that you can

38:56
put in. Okay.

38:58
Um, can you elaborate on why you don't

39:02
believe in Roth IRA conversions? Um, I'm

39:05
gonna I'm going to take a couple seconds

39:07
to talk about that, but I'm old enough.

39:10
I I started with Dean Witter, went to

39:11
then Morgan Stanley, then Payne Weber,

39:13
then UBS, and I was around a long time,

39:15
and I do remember back in the day when

39:17
politicians promised not to tax social

39:21
security. Okay? Um, that didn't go well.

39:24
uh the same promise that they're they're

39:26
saying now with 37 trillion in debt.

39:28
They're saying a Roth IRA if you pay us

39:30
all this big lump sum money up front. Um

39:33
we're never going to change the rules on

39:34
you. I just don't trust them. Um but am

39:37
I totally against Roth IAS? No. If the

39:39
math makes sense to you, if you've run

39:41
the math numbers and calculated how long

39:42
it's going to take for you to make up

39:44
for the for the upfront taxes that you

39:47
put in, if you've run those numbers, it

39:49
makes sense for you. If your CPA's run

39:51
those numbers, it makes go for it. What

39:52
I'm really upset about is the annuity

39:55
industry using index annuities and these

39:58
so-called bonuses, which is, you know,

40:00
candy for the stupid. There's nobody

40:02
giving money away. Using that as a as a

40:05
vehicle to do Roth conversions. I think

40:08
that's horrible. Um, my next newsletter

40:10
you're going to get is on that. I just

40:12
think that's terrible. If you want to do

40:13
a Roth conversion, you you do not need

40:15
an annuity to do that. But I'm

40:17
digressing a little bit. Um, let's talk

40:19
about a couple more things that and I

40:21
got some some emails in from Ted, which

40:25
is he wanted to know can he make

40:28
withdrawals and I guess he's saying

40:30
income before the two years. We covered

40:33
this earlier. Most carriers are you have

40:37
to defer for two years. Like I said,

40:38
Florida has I think 13 months, but

40:40
again, it's carrier specific. Most of

40:42
them and most of the ones you probably

40:44
want to buy are two-year weights from

40:47
the time. So, you can turn you have to

40:49
turn on the income. The soonest you can

40:50
do that is in two years. Um, and the

40:53
other question Ted had was interesting

40:56
is does the IRS control the two-year

40:59
trigger or that rule? I don't know that

41:02
answer to be very honest with you. Um, I

41:05
would assume I would assume kind of. How

41:08
about that? Um, otherwise, you know,

41:11
carries would offer all all types of of

41:13
different start dates. Um, but for

41:16
whatever reason, Florida's kind of an

41:17
outlier. I do I do live in Florida most

41:19
of the time. It doesn't surprise me that

41:21
they're the outlier on that. But, um,

41:24
yeah, you just when you buy a QAC, just

41:27
think of this. You're ripping the knob

41:28
off a water faucet. You're getting

41:30
you're getting income for life as long

41:32
as you're breathing. If you set it up

41:33
joint with your spouse, as long as one

41:35
of you is breathing, you can set it up

41:37
for cash refunds. So, the annuity

41:38
company doesn't keep a penny regardless.

41:40
If you draw the account down to zero,

41:42
they're still on the hook to pay. It's a

41:45
good product. There's no ROI until you

41:47
die. Okay. So, what I want to do also

41:50
too is go through how to run a quote. My

41:53
apologies, we don't have it on the

41:54
screen, but I'm going to I'm just going

41:56
to pull up my laptop and if you can if

41:58
you have the ability to go to another

42:01
screen, we can walk through all of this.

42:03
But if you go to my website and you'll

42:06
see me, looks like I have the same

42:08
outfit on. I have more than one outfit.

42:09
Okay, just letting you know. Um, go to

42:12
the top and you'll see annuities,

42:14
calculators, get smarter, which we all

42:17
want to get smarter and about. So, if

42:19
you look at the calculators and you

42:21
scroll down, you're going to see QAC.

42:24
Click QAC. Okay, so it's going to take

42:27
you to another screen. And once again,

42:29
my apologies. In the future, this will

42:31
be on the screen. We had a technical

42:33
difficulty. We're blaming our our our

42:35
website guy, Zeke. Zeke the marketing

42:37
freak behind the camera and I have

42:39
already talked about that, but it, you

42:41
know, it's all good. And you can always

42:43
call us or go to our site and run it

42:44
yourself. It's pretty intuitive. So, it

42:48
it says on that screen once you hit

42:49
that, get your personal QAC quote. So,

42:52
source of funds, it's already filled in

42:54
for you. IRA, dollar amount, you can do

42:57
whatever you want, but for this

42:58
exercise, let's put in the the the 210

43:01
amount. Okay. So, let's put in 210. I'm

43:04
going to put in 210.

43:08
And then income start, let's just say

43:10
we're going to defer it for

43:13
um let's say let's say 15 years for me.

43:17
That'd make me that'd make me 75. Zeke,

43:20
I know you're saying you're going to

43:21
make it to 75. It ain't going to be

43:23
pretty, player. I'm gonna tell you right

43:24
now. So, we're we're going to defer for

43:25
15 years. So, you put in that and you

43:27
and underneath that it says next step.

43:30
You'll see a button. Hit next step. All

43:32
right. So, you're going to put in your

43:35
name, first name, last name. By the way,

43:37
we don't share any information. We don't

43:38
sell any information. Heck, if I wanted

43:40
to, I wouldn't know who to sell it to,

43:41
but we don't do that. Okay? It's

43:43
private, it's encrypted, etc. Put in

43:46
your email address because guess what?

43:47
Once the quotes over, we're going to

43:49
mail you mail you the quote so you can

43:51
look at it and and put it up on the

43:52
wall. All right? So, you put in your

43:54
name, you put in your email address, you

43:56
put in your gender. I put in mail, by

43:59
the way. And then you put in your date

44:01
of birth. You can type it in or you can

44:02
go to that fancy little calendar and and

44:04
do it the other way. But I put my date

44:06
of birth in there. I'm not going to tell

44:07
you what it is. I put in state of

44:09
resident, which is Florida. For this

44:12
exercise, I'm going to put in single or

44:14
join. I'm going to put in single because

44:16
Christine is traveling and she's not

44:18
watching this, but in real world, it'd

44:20
be join. And then you're going to see a

44:22
button under there that says get quote.

44:26
Okay. So, here we go. Hit get quote

44:30
and and it's turnurning and little men

44:32
are running. And here it is. It says my

44:35
QAC quote and it says guaranteed income

44:39
structure. Keyword, underline it, bold

44:41
it. Guaranteed contractually. And you're

44:44
going to see all carriers listed. Now,

44:47
we do not sift the bodies until we talk

44:50
to you. But for lifetime income, I need

44:53
you to look at me and I need you to

44:54
focus. A+ or better. So if an A company,

44:59
in this case, an A company finished

45:00
first, I'm ignoring them, even though

45:03
I'm sure they're fine people there. But

45:05
the second one's A+, the third one's

45:06
A++.

45:08
Okay? And and so we're that's the best

45:11
contractual guarantee on the planet. And

45:14
it shows both single life only and

45:17
single life with cash refunds. So you

45:19
can see how they price it. You can see

45:22
how they enhance the payment. if you're

45:24
just going to do life only and how they

45:27
uh price in the cash refund if you're

45:29
going to do cash refund. So for me there

45:31
is a double A plus cash refund which is

45:35
the one that I would choose. Okay now I

45:39
know you think this is magic but when

45:41
you hit that last button it's already

45:44
sent that quote to your email box. Okay,

45:47
check your spam and junk file but it's

45:49
already there. So when you go to your

45:51
email box, you can pull it up and you

45:53
can look at it again. But then if you

45:56
want to if you want to continue to run

45:57
them, by the way, if you scroll down,

45:58
you'll see QAC owner manual. Good job,

46:01
Zeke. Zeke is thinking um underneath

46:04
that and you can just fill in your name

46:05
and and your email address. We'll send

46:07
you the link to that as well. So you can

46:09
read that. I think it's like 60 70

46:10
pages. Yes, I did write it. Um but let's

46:14
just say you want to go back and run it

46:15
again. Hit the back button. Duh. hit

46:17
that and then put in a different dollar

46:19
amount and do it all over again. And you

46:21
can run as many as you want. There's no

46:23
quota on this. You can just keep running

46:26
them and running them and running them

46:28
and running them and no one's going to

46:30
call you. The only way someone calls you

46:33
is above that, you either see a buy now

46:36
button or book a call button. Both of

46:39
them take you to um a page where you can

46:41
schedule a specific time where my team

46:45
is going to call you on the dot. And by

46:48
the way, everyone in the building here

46:51
in Las Vegas, Nevada, I know you're

46:53
saying, Stan, wait a minute. You said

46:54
you live in Florida. Yes, I live in

46:55
Florida. Company is in Las Vegas. It's a

46:58
tough commute, but I'm not that smart

46:59
when it comes to that. No, it's a great

47:01
place. And the reason that we do that,

47:03
good question, is that we run two shifts

47:06
here. We're we're open from 8:30 in the

47:09
morning Eastern to 8:30 at night Eastern

47:11
Monday through Friday. That means 5:30

47:13
in the morning Pacific to 5:30 Pacific.

47:16
And then we're open 9:00 to 5 on

47:18
Saturday. And if you really want to book

47:20
a call on Saturday, book it early. We're

47:22
already booked for tomorrow. There's no

47:24
there's no slots open. Um, but the point

47:26
is you can book the specific time and

47:28
we'll call you. But we're open five days

47:32
a week, 12 hours a day. Why? We're

47:34
licensed in all 50 states and every

47:36
single person in in the building's

47:38
licensed except Zeke because he's a

47:40
marketing guy. Okay? Everybody is

47:42
licensed in all 50 states, but no one's

47:45
on commission.

47:47
No one. Okay? They're not hammers

47:49
looking for nails. Okay? their their

47:52
incentive is is is u the client being

47:56
happy doing the right thing for the

47:57
client. That's how they get paid.

47:59
They're on salary. They're not on

48:01
commission. All right. So, my apologies

48:04
once again that we don't have the quote

48:05
thing. I was hoping here's what I was

48:07
hoping and we'll do this next time is

48:09
that everybody's on the quote at the

48:11
same time. Everybody runs the quote at

48:12
the same time. And I told my u the guy

48:15
that runs the site for us, he's a really

48:17
smart guy. I think he's in some other

48:18
country. I Yeah, it's New York. and he's

48:21
in New York and and I said, 'We going to

48:23
run quotes at the same time and blow up

48:25
the site. And he goes, "Have at it. I

48:27
have confidence." I'm like, "Okay,

48:28
whatever." Great guy. Um, let's go to

48:31
some other questions. They're they're

48:32
flying in here, Zeke. Okay. Um, so right

48:35
now two 210 is a person's life, not

48:38
lifetime income max. Right now, as of

48:42
2025, 210,000 is what you can put into a

48:45
CQAC. That will change. remember when it

48:47
started in 2014 and yes I was around

48:50
that's when I wrote I wrote the Qacock

48:52
owners man in 2014 yes it's been up

48:54
updated but back then it was 125

48:58
now it's 210 will it keep continuing to

49:00
go up yes because the IRS and the

49:02
department of the treasury saying you

49:04
know what we really need to get all

49:05
these IAS looking at lifetime income

49:09
okay that's why they're doing it that's

49:11
why they're also showing up as choices

49:14
you know income products annuity income

49:16
products choices in 401ks. That's a

49:18
whole another argument, but we'll get

49:19
there. Um, how can I learn to explain

49:22
these to a nine-year-old? That's Ira.

49:24
That's a really good question, Ira. Um,

49:26
you need to be like me that went to

49:28
college, didn't go to a lot of classes,

49:29
partied like crazy. You know, honestly,

49:33
you just strip it down. QACs are pension

49:36
products. There's no moving parts, no

49:37
annual fees, no market attachments.

49:39
They're life expectancy products based

49:41
on your life expectancy at the time you

49:43
take the payment. It's just really that

49:45
simple. Do not compare them to

49:47
investments because they're not

49:48
investments. Annuities are not

49:49
investments. They're transfer risk

49:51
products. And they saw for four things.

49:53
The acronym is PIL, principal

49:55
protection, income for life, legacy, and

49:57
long-term care. We're talking about the

49:59
I income for life. That's QAC. That's

50:02
what it falls under. Um the other one

50:04
is, do you hire agents? No, we do not

50:07
hire agents. Please don't call me any

50:09
agents or FMOS or SMOS or anyone in the

50:12
industry. Please. Um, we literally,

50:15
everybody in the in in our building is a

50:17
big building, lots of people. Um,

50:20
they've been trained by mwah. That's me

50:22
in French, um, to do it exactly the way

50:24
I want, which means they're not licensed

50:26
when they come in this building. There's

50:28
a huge training curve that people go

50:30
through. That's, you know, probably part

50:32
of my OCD. But everyone here has got

50:35
gotten their license while they're here

50:38
and then worked their way up based upon

50:40
knowledge and learning things that I and

50:42
telling and me telling them how I want

50:44
them to treat the client. What we do

50:46
with clients, you know, we you know, we

50:48
consider ourselves um kind of the

50:51
thought leader out here because we're

50:52
not hammers looking for nails. We're not

50:54
just selling everything. We will tell

50:56
you if you don't need it or we will tell

50:57
you that if it's not time. Okay. Um

51:00
here's another question. If my on a

51:03
queue like is a charity do they have to

51:05
pay taxes on the cash refund? Tax

51:07
question. Tax question. We don't do

51:09
taxes. That's something for your CPA and

51:11
tax letter, but you can put them just

51:13
like in your IRA. You can list

51:15
beneficiaries. You can do that, but

51:17
that's a tax question. I'm not going to

51:18
touch that one. Um,

51:21
let's see. Who hands out the plus signs

51:23
for the annuity companies? Well, there's

51:26
four. There's Amb, Standard Pors,

51:28
Moody's, and Fitch. That's off the top

51:30
of my head. That's pretty good, right?

51:32
AM Best, standard pores, Moody's and

51:33
Fitch. We use AM Best not because we

51:37
just chose one honestly and they're kind

51:39
of the standard for the annuity

51:40
industry, but just remember A+ or

51:43
better. Now, we do have our own risk

51:45
mitigation team inside of the annuity

51:48
man that looks at carriers, that looks

51:50
at ratings, that looks at their they're

51:52
qualified to look at their financials. I

51:54
look at their financials with my

51:55
background with Morgan Stanley and all

51:56
those people. And then we also look at

51:59
are they good to work with? Do they turn

52:02
the policies around? Did they turn the

52:03
applications around? Are they good to

52:05
work with with with us ongoing? Um and

52:08
then from there we recommend but

52:10
typically A+ or better. It has to be

52:13
that for lifetime income. No exceptions.

52:16
Period. End of story. A+ or better.

52:19
Okay. Um here's one. So, okay. Just so

52:23
I'm sure. I love that start. Okay. Uh,

52:26
your company would help a rich 24 year

52:28
old acquire some s. Yes, we would. If

52:30
you're like filthy rich Bitcoin

52:32
billionaire dude and you want to put

52:35
together a lifetime income stream, we'd

52:37
be more than happy to have that

52:38
conversation with you. I personally

52:40
would probably have that conversation

52:41
with you just to make sure you are who

52:43
you say you are. Um and and if it makes

52:46
sense for you and you fully understand

52:48
the limitations and benefits, then yeah,

52:51
I mean, we'll entertain that

52:52
conversation, but again, there'll be no

52:55
high pressure. And remember, there's

52:57
limitations and benefits with all

52:58
annuities. Let's talk about limitations

53:00
and benefits of Ulax. Okay? Are they

53:02
better than sliced bread? I like sliced

53:04
bread, but no, they're not better than

53:05
sliced bread. Lifetime income, no fees.

53:08
You can add your spouse to the policy

53:10
for lifetime income, and you can

53:11
potentially lower your taxes on your

53:13
RMDs. Those are the those are the the

53:15
obvious benefits. What are the

53:17
limitations stand the annuity man? No

53:20
liquidity,

53:21
no withdrawals, rigid contract, no

53:25
internal interest rate growth. You got

53:28
to know that. Got to know the

53:29
limitations. And that's just the main

53:31
ones there. Okay. So, it's a rigid

53:34
contract. It's a pension. You're buying

53:35
a pension with your IRA assets of which

53:38
you can add your spouse to. make it's

53:41
that's the nine-year-old version right

53:43
there. Okay. So, let me go through a

53:46
couple other questions. Someone asked a

53:47
good question.

53:49
Why they they ran a DIA quote on our

53:52
site and and like I think they deferred

53:55
it to age like 70 and then they ran a

53:57
CQAC quote. Um and they were different

54:00
and they said, "Well, why are they

54:01
different?" I'm go, "I don't know. I

54:02
mean, we're just we're taking the feed

54:05
directly from the carriers." you know,

54:07
when you run a quote on our site, you're

54:09
getting live feed, live numbers from the

54:12
carriers. Um, I don't know that doesn't

54:14
happen a lot. Sometimes it does,

54:16
sometimes it doesn't. And it also has to

54:18
do with these specific companies wanting

54:21
to attract your money into specific

54:23
products. So again, these are commodity

54:26
products. That's the reason you got to

54:28
quote them all, okay? You got to quote

54:30
them all just to see who have has the

54:31
highest contractual guarantee.

54:35
Let's see. Here's another question. If

54:36
you buy a two $210,000 QAC

54:40
in 2025, can you buy again in subsequent

54:43
years at whatever those years maximum

54:45
rate are? So yes, let me translate that

54:46
into southern English. There is such a

54:50
thing. Um, you buy a 2,00 $210,000 QAC

54:53
in 2025 and in 2027

54:56
they come out and Zeke comes running

54:58
into my office screaming at the top of

55:00
his Qaks are now 250. Kaks are now 250.

55:03
Okay. Then we call you. One of my team

55:06
members calls you and say, "Do you want

55:07
to add 40?" So, we're always going to be

55:10
on top of that. We're always going to

55:11
tell you. And if they're not on top of

55:12
that, then I get to yell at my team,

55:14
which I don't do that much. But the

55:16
point is, we're going to be on top of

55:19
that if you're a client. Couple things

55:21
from the standpoint. if you decide to

55:23
use us and we'd love for you to use us

55:25
even though annuities are commodity

55:27
products. I think what sets us apart is

55:29
we represent all carriers and we tell

55:31
the truth because as my grandfather said

55:33
if you tell the truth you don't have to

55:34
remember anything. That's our business

55:36
model in a nutshell. Um but we have

55:38
people in place that will take you

55:41
across the finish line with the

55:42
application. They'll do all the calls.

55:44
They'll do all the followup and then we

55:46
will not wear you out and and call you

55:49
to death. We won't do that. But we're

55:51
going to let you know when there's a

55:53
change, you know, there's a there's that

55:54
you can put more more money in a CQAC or

55:57
if you have a mig, it's maturing, we're

55:58
going to be on top of that. I have five

56:00
divisions here that they do specific

56:03
things for our clients. Um, so you're

56:05
going to be well taken care of and

56:07
you're not going to have to make those

56:08
calls yourself. We take those bullets

56:10
for you and we run straight toward those

56:12
bullets so that you don't have to do all

56:14
that administrative stuff. Um,

56:17
it's been about an hour, Zeke. We got

56:18
about we got a little time to wrap it up

56:21
if you got any questions. We got about

56:22
three four four minutes. I know this has

56:24
been lots of fun. Um and put it down in

56:27
your calendars. You'll get it. The next

56:29
um live event will be on single premium

56:31
immediate annuities. It's going to be

56:33
Thursday, December the 18th. I think

56:35
it's going to be at 100 p.m. Eastern

56:37
time. So, um you're going to get emails

56:40
with that uh to sign up. It's gonna be

56:43
the same format. Me kind of setting it

56:45
up a little bit and talking about and

56:46
then me answering your questions because

56:48
this is a great form. A lot of the

56:50
questions that people ask, you know,

56:52
other people are either thinking them or

56:54
haven't thought of them but want to hear

56:55
that. Here's one. Does your staff work

56:57
exclusively in Las Vegas? We are. First

57:00
of all, we're licensed in all 50 states.

57:02
I think I say that a lot. Our home

57:05
office is in Las Vegas. Why, Stan? Why?

57:09
You don't drink. You don't party. You

57:12
don't, you know, you're married for 37

57:13
years, you don't gamble. That's a good

57:15
question. Um, that's true, by the way.

57:18
Um, and it's kind of ironic that we're

57:19
in Las Vegas and we do no risk. We're a

57:23
no risk company in Las Vegas. Of course,

57:26
I'm a contrarian, but the main reason is

57:28
I love Las Vegas even though I live in

57:30
Florida, but we had to choose a place

57:32
that we could be open from 8:30 in the

57:35
morning to 8:30 at night, 5:30 in the

57:37
morning Pacific time to 5:30 at night uh

57:40
in Pacific time. I wanted to be open, so

57:42
it had to be Pacific time. Um, and Las

57:45
Vegas just had the best, you know, we

57:47
were shopping for areas for the company

57:49
to go and and and be based. Las Vegas

57:52
was gave us the best deal um as a

57:54
company and supporting us and we have

57:57
grown. In fact, we're moving into

57:58
another larger facility uh next year

58:01
because of the growth. Um, and we love

58:03
it here. Yeah, we all 50 states we

58:06
handle and every single person that's

58:07
breathing in this building except for

58:09
Zeke, the marketing freak behind the

58:11
camera. Everyone else has got license in

58:14
all 50 states, but not on commission.

58:18
Okay, so that's the reason agents

58:20
wouldn't call me Zeke because they they

58:22
want to make commission. That this ain't

58:23
the place, baby. I mean, this ain't it.

58:26
Um, I think that's about it. I think

58:29
that's about it. I'll I'll give people

58:30
one more minute for questions. Other

58:31
than that, then I'm gonna like do some

58:33
freestyle rap or maybe sing. Um, what do

58:37
you think, Zeke? Should I sing? No. No,

58:40
I don't think so. Zeke, I think Zeke

58:43
just threw up. Here's one. Please

58:44
clarify, Stan. If I If I take 210,000

58:48
and buy a quack, which is QAC, but I

58:51
like that, Zeke, a quack, will that

58:53
satisfy my RMD for that year? Remember

58:57
RMDs are when you take money out of of a

59:01
IRA. So the answer is no. It would not.

59:04
Okay. That the income coming from the

59:07
QAC

59:09
and and typically two years out because

59:11
you got to defer two out two years out

59:12
that would satisfy your RMD. Um here's

59:16
the last two questions. Cut them off

59:17
Zeke after this one. All right. In the

59:20
final stages of locking in a culac with

59:22
your team. Yeah. Not doing a cola. Um

59:27
he says that he says that here that

59:30
mathematically it takes uh four to five

59:32
years to to for the cola to catch up.

59:34
I'd have to look at your specific

59:35
situation in your age etc. Um I just

59:39
don't like I I think that you're better

59:42
off not not doing a cola. Um but it's

59:46
your call. It's your money. I mean

59:47
that's just me. I just don't believe in

59:49
that because annuity companies don't

59:50
give anything away. They have the big

59:52
buildings for a reason. They're

59:53
forprofit. Okay. Um,

59:57
I see two companies that list are

59:58
A-rated. Why?

1:00:00
Okay. I see two companies on your list

1:00:02
that are A-rated only. Why are they

1:00:04
there if you don't use them? Great

1:00:06
question. Thank you so much. Because we

1:00:09
quote all carriers. We quote all

1:00:12
carriers and then my team is instructed

1:00:14
for lifetime income to only recommend A+

1:00:17
or better. We want you to see the full

1:00:21
universe of annuity quotes. We're a

1:00:23
clearing house. We represent all

1:00:25
carriers. You're going to see

1:00:26
everything. That's the reason. But thank

1:00:28
you so much for asking that. Um

1:00:34
I like to thank Stan. Last one. If I

1:00:37
purchase a joint life with cash refund

1:00:40
um

1:00:42
and I'm already receiving the annuity

1:00:43
and I pass away and my wife starts

1:00:45
taking the annuity, she passes away and

1:00:47
there's $100,000 left. If it's set if

1:00:49
it's set up with cash refund, then that

1:00:52
$100,000 in your example goes 100% to

1:00:56
your list of beneficiaries and the evil

1:00:58
annuity company never keeps a penny. And

1:01:01
that wraps it up for this live event on

1:01:03
QAX. My name is Stan the Annuity Man,

1:01:06
America's annuity agent. And yes, we are

1:01:08
licensed in all 50 states. Go to my

1:01:10
site, run quotes, download the book, and

1:01:13
book a call with my team. They're the

1:01:15
nicest people on the planet, much nicer

1:01:17
than me. and they're very very

1:01:19
knowledgeable and will listen and use

1:01:21
their ears and mouth in proportion two

1:01:24
to one. See you next time. [music]