What Are Common Sources Of Income During Retirement?

0:00
What are common sources of income during retirement? Or what I call chapter 2. Chapter

0:05
2 is about you. Hello there. My name is Stan the Annuity Man, America's annuity agent, licensed in

0:10
all 50 states, top agent in the country, and the pioneer of contractual guarantees only. Because

0:15
that's all we look at with annuities, contractual guarantees only. I think it's appropriate that I

0:20
have my I Heart Lifetime Income shirt on. See that? Ain't that beautiful? So, we're going to talk

0:26
about the common sources of income for retirement. That dovetails nicely with my shirt after this.

0:39
Alright, so, Big C behind the camera says, "Stan the Annuity Man, America's annuity agent,

0:44
licensed in all 50 states." Which, by the way, I require everyone to address me like that,

0:48
even if they're going to ask me directions. Okay? He said, "I can't see income." Income. These are

0:53
great when you walk through the airport and people go, "What do you mean by that, son?" Of course,

0:56
everybody's like, "Lifetime income." I'm like, "Do you like annuities?" "No, I hate annuities." Okay,

1:01
great. Have a nice day. Okay. A lot of people go, "I love lifetime income. I really love it. I love

1:06
the pension. I love my Social Security, which, by the way, is an annuity. I love lifetime income,

1:12
but boy, I hate annuities. I will not touch an annuity with a 10-ft pole, son." Well,

1:18
Social Security is an annuity. Your RMDs from your IRA is an annuity because it pays annually till

1:23
the money's exhausted. A pension is an annuity because it pays for as long as you're breathing,

1:28
just like lifetime income annuities, as long as you are breathing. I like doing that. I try

1:33
not to do it really hard because then I get all choked up and then we have to stop the camera.

1:37
But what are the common sources for you? It's kind of a no-brainer, but let's go through them

1:42
anyway since you're, you know, you're going toward chapter 2. Chapter 2, our synapses aren't firing

1:48
as quickly as they always have been. I know what you're saying, Stan. That doesn't apply to you,

1:53
son. You're young and vibrant and thin. And I just don't, you know, when you get older,

1:57
you just don't eat as much. I mean, so you just automatically lose. Well, and you pee out all

2:02
the water weight, too. So, well, let's talk about it. Social Security. I mean, that's the

2:07
granddaddy for everybody. Everybody with a Social Security number, even the ones that they are fake,

2:13
are going to get a Social Security payment. That's an annuity. It's political, not actuarial,

2:20
meaning that politicians raise the amount you're getting paid to get your votes. And to be nice,

2:25
I think. I think their intentions are semi-good, but it's semi-good only if you vote for them. So,

2:31
whole another argument about sovereignty of Social Security and all that stuff. Bottom line,

2:34
they'll just tax us more to get the money to pay the voters. Social Security. Then if you're one

2:39
of the 9% that has a pension, you know, work for the government, work for the state, work for good

2:43
labor union, whatever that or 9% of the companies out there. Well, 9% of the people out there, 9,

2:50
not 99, have pensions that encompasses state, federal, blah blah blah. The other 91% of us have

2:57
to create our own pension. Now, the other thing you have to look at, dividend income, things like

3:02
that. If you've inherited stock from your grandmammy and your grandpappy that they bought from

3:07
some guy on the street and it was a little company called Exxon or Texaco or whatever,

3:12
that kicks off a dividend. That's income. You know, if you own rental houses, that's

3:16
income. If you're retiring and going to take up woodworking, then that's income. By the way,

3:22
this is a great story. I'm going to come back. I can do this. This is a good one. So I was working

3:26
for Morgan Stanley a long time ago. My partner and I sitting in the office and these people

3:30
come in and we're talking, we're getting ready to retire, and nice elderly man, elderly lady,

3:36
and they had worked hard, and we said, hey, that's fantastic. We put together the retirement plan,

3:40
etc. And I cavalierly said, and I said to him, so what's going to be your hobby?

3:45
And the guy goes, well, I really like woodworking. I really do. I like making those bowls and I take

3:50
them to the fair and the farmers market and I sell them. I'm like, and I cavalierly said to him,

3:56
"Hey, just be careful. Don't lose a finger." So, the next time he comes into the office, I'm

4:01
not making this up. This is a true broker story. These three fingers were gone. So, he was like,

4:08
"Hey, how you doing, Stan? How you doing there, Stan?" I'm like, "You're number one, but that's not

4:12
a good number one." He had zinged off his three fingers, but he still loved woodworking. Okay? So,

4:18
be careful on what you decide to do out there. And my partner, who's still a good friend,

4:23
he still won't let me live that down because the wife like, "Stan, you told Ernie that did not do

4:28
woodworking and I'll be damned if he, excuse me, I'll be damned if he just zinged off three of his

4:32
fingers." He did, but it was a clean cut. So, it really wasn't gross. It was like really clean.

4:37
Like you could look at it was like zing, one of those. But look at what I call your income floor.

4:42
How's that for a pivot? Look at for your income floor. What is that amount of money that's coming

4:46
in regardless of what happens in the markets, politics, global politics, whatever conspiracy

4:54
theories floating out there, what's hitting your bank account and whatever that amount is,

5:00
is it enough? Period. Do you have to look at inflation? Okay, we'll talk about in a second.

5:06
Do you have to fill a gap? If you have to fill a gap, then that's where we come in. Because you can

5:12
buy an immediate annuity reverse engineered for the exact amount of money that you need to fill

5:17
that gap and use the least amount of money. Okay? That's the way to do it. I had a guy the other

5:22
day call in and he we're going through his income floor and it was a lot. He double dipped. He was

5:27
like a federal worker after he retired from the military and he was getting income

5:31
from everywhere and I said, "Fred, do I even have to bring up inflation?" He goes, "No, it's not

5:35
going to affect me." Exactly. People say, "What are you going to do about inflation, son?" And

5:39
the guy asking me that has like $9 million. Hey, player, it's okay. You're going to be okay. You're

5:45
going to be able to make it, son. It's all going to work out. Don't be arrogant, okay? There's

5:51
not an annuity or a product, non-annuity product, that adjusts for inflation perfectly. In my world

5:58
of being rational, you fill that gap when you need to fill it. 3% inflation doesn't affect you and

6:06
me the same way. If my kids are still at home and thank God they're not, love them, but I don't want

6:12
that. I'm not buying milk and cereal and dance gear and ballet shoes and all that stuff.

6:16
That top part of the inflation puzzle is not with me. So for inflation for all of you, everyone out

6:22
there, all 50 states, it's different, so you have to look at your income floor. You have to pat it

6:28
a little bit so you can take the wife to France and all that stuff or Ireland to the castles,

6:32
which I just did the other day. Someone said, "Stan, have you ever been to Europe?" I say,

6:36
"I went for the first time because all the other times my wife and kids went cuz I was working,

6:42
but I finally went." So, you got to pad that in. You got to pad in that kind of stuff. And then if

6:47
there is an inflation gap that does affect you personally, we will customize that solution for

6:53
you. But for people that have adequate lifetime income, you're going to be fine. Most a lot of

6:59
you, not most, but a lot of you out there going, "Should I even take Social Security?" Yeah,

7:03
who knows? I think in the future, check the date on this taping. I think the government and our

7:08
friends in Washington will means test it. Meaning they're going to find out if they categorize

7:13
you as the evil rich. And if they do, they're going to make it a little bit harder to get. I

7:19
don't know. You've worked hard for it. And there's no magic number. Someone asked me the other day,

7:22
what's the magic number to turn on Social Security? There's no magic number. I don't care

7:26
what anybody says. I don't care who the person is. It's when you need the money. And they say, "Well,

7:31
what if I waited to 67 instead of 62, I'm gonna get more money?" Of course, you are, Chester,

7:36
because you're older, which means you have less life expectancy. But if you're going to make that

7:40
decision, you got to figure out all those 5 years of payments and you waited. How long is it going

7:45
to take to make those up? And will you be drooling and wearing a diaper when that happens? There's no

7:49
U-Hauls behind hearses. Who knows how long we're going to feel good? My opinion with your income

7:54
floor and looking at all the sources of retirement income, which is what we're talking

7:59
about, chapter 2. Okay. I'm going to say, turn it on. Turn on that income. Go live your life. Go buy

8:05
the fifth wheel. Go buy the camper. Fly first class. I always have a saying. Fly first class

8:10
or your kids will, with your money. Think about it. I'm going to say it again. Fly first class or your

8:17
kids will. I'm serious. Take care of yourself. Stop trying to thread the needle. Stop trying to

8:23
save every penny. This isn't a sport that you win. Give you a crazy story and then I'll close this

8:28
up. My dad passed away probably seven, eight years ago. And like the last five years of his life,

8:33
he was on this thing where, you know, he's going to be gluten-free. I'm going to tell you, son,

8:38
I'm gluten-free. And I'm like, "Dad, if you die gluten-free, no one cares." And he died

8:42
gluten-free and no one cared. I don't know if when they cremated the flame was

8:46
bluer or something. I don't know. What the heck? My point is when you die, your strategy might be

8:52
just to have your last check bounce, right? Or if you want to leave something for your family,

8:58
that's fine. But in this exercise, which we're looking at the sources of retirement income.

9:02
I don't want you to be thinking about, well, the source of retirement income and then the kids

9:06
and then the... No. It's about you and it's about your spouse who's put up with you for all these

9:11
years. It's about lifestyle. It's about enjoying life right now. Yes, I'm yelling at you. That's

9:16
hard for people that grew up lower middle class, low class, middle class, whatever. In that world,

9:22
it's hard for us to pivot and spend money. As I tell my mom, buy the drink. And I will

9:28
close with this one because you'll get a kick out of this. My mom's 86 years old at this time, time

9:32
of this tape. She walks six miles a day. She's in better shape than all of us. When my dad was still

9:36
alive, they'd go to the restaurant and they get what I call table lemonade. Table lemonade is the

9:41
dumbest thing of all time. I'd be sitting there going, "Oh my God, I cannot believe you're doing

9:46
this in front of me." They would get ice water and then squeeze a lemon in, ask for a lemon, and then

9:51
put Sweet'N Low in it. I said, "Guys, buy the damn drink. Forget Carpe DM. Buy the drink." People out

9:59
there know what I'm talking about. I'm looking at you. I'm looking right at you. Buy the drink. So,

10:05
as you add up all these sources of income, if we can help enhance that and add more to that

10:09
or solve for inflation, go to theannuityman.com, run quotes, schedule a free consultation with my

10:15
team. You might even get me. You never know. I like floating around the office.

10:19
You might get me. Regardless, you're going to get the truth. Okay. Do me one last favor. Above

10:24
my head, there's a video. It's a countdown. Kind of did that. It's kind of cool. Click the video.

10:29
It tells about how the process works, how the annuity process works. If you decided to move

10:34
forward with a specific annuity and we locked in that guarantee for you, how does that work

10:39
from start to finish? I explain that in easy to understand English at the Annuity Man. I will say

10:44
one last thing. I say easy to understand English, but pretty soon there will be an Annuity Man

10:50
Spanish division, and I can't speak a lick of it, but I have people that can. See you next time.