What Guarantees A Steady Stream Of Income In Retirement?

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So, what guarantees a steady retirement income stream or

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an income stream in retirement? What guarantees that, Stan The Annuity Man?

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Hi there, my name is Stan The Annuity Man. I am America’s annuity agent,

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licensed in all 50 states and Puerto Rico, founder of CGO: Contractual Guarantees Only. We only look

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at the contractual guarantees of the policy. You own it for what it will do, not what it might do.

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So, let’s talk about those guarantees and income and how that works, and what

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you currently own that’s guaranteeing that. I need you in that mindset so that

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maybe we can add to that and add to your income floor, but not until we do this.

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So, what guarantees a steady retirement income stream?

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Well, you already know one. It’s Social Security. It is the best inflation annuity on the planet.

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Period. The increase is not actuarial, it’s political. And by the way, for keeping score,

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I’m contractual. I’m not Republican or Democrat. I’m contractual. Only look at

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the contractual guarantees of the policy that guarantees income in retirement.

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Another thing that could guarantee income in retirement would be a pension,

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if you’re so fortunate. There’s only 9% of the public, not 90, 9,

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that have pensions. Most of the time, that’s government workers, military, etc.

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Maybe a good labor union that sets something up like that. But most people don’t get pensions.

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Most people don’t get the gold watch. Most people have what’s called defined contribution plans,

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like 401(k)s, 403(b)s, 457s, etc. You know, solo 401(k)s, SIMPLE SEPs, all of these things over

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here that have been deferring and growing. You have to turn that into lifetime income streams.

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Okay? The softball answer to this question is, you know,

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where do you find that guaranteed lifetime income stream? There’s only one product that’s

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going to pay for as long as you’re breathing and/or on a respirator, and that’s annuities.

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Annuities, there’s four different types of lifetime income products: immediate annuities,

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deferred income annuities, qualified longevity annuity contracts, and income riders. That’s it.

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So, there’s four ways to contractually guarantee lifetime income using annuities.

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And remember, Social Security, the best inflation annuity on the planet. The one

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thing that those four types of annuities don’t do is they don’t address inflation well.

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You can put what’s called a cost-of-living adjustment on it, COLA increase. You can

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choose the percentage you want it to go up by, but the annuity company doesn’t give that away.

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And typically, it’s a seven- to nine-year break-even point, depending on your age.

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And then you have the Johnny-come-lately,

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Johnny Appleseed agent that says their index annuity increases with inflation.

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Total, utter bullcrap, which you’ll find out too late if you buy it from them. But nobody’s giving that away.

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All the annuity company does is severely lower the payment. If you want an increase,

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they’ll give it to you. It just doesn’t make mathematical sense in most cases.

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How we look at inflation and address inflation is at the time you need to

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fill the gap of your income floor. Let’s say you have a $4,000 income floor currently,

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and two years from now you need an additional $750. Then we quote an immediate annuity,

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solving for the $750 using the least amount of money humanly possible.

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Life insurance companies issue annuities. So, when you are looking at lifetime income,

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you’re transferring the risk to that annuity company to pay for as long as you’re breathing,

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regardless of how long you’re breathing. If AI

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solves everything and makes you live to 125, they’re on the hook to pay.

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I personally think right now lifetime income guarantees contractually are a

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bargain because they’re old. Okay? And AI is shortening medical breakthroughs,

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which is going to lengthen out your life expectancy, which means there’s

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going to be more projected payments, which means those payments will be lower.

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So, right now is an interesting time to look at that. That’s not a sales pitch.

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That’s just fact. And I’m the only person out here talking about this AI stuff for lifetime income.

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But where do you get that contractually guaranteed lifetime income? Where do you find it? You know,

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we’ve already gone through Social Security. We’ve already gone through pensions,

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if you’re so fortunate. When you turn a specific age, at the time of this taping, 73, 75,

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you take required minimum distributions from your IRA. That’s, in essence, a payment.

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That’s an annual payment as long as you’re breathing because as long as money is in that IRA,

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the IRS wants to get paid their taxes. So, in essence, you can call that an annuity.

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And then everything else guaranteed would be, you know,

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if you have some old legacy-type stocks that pay dividends, you know,

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the Exxons and those type of things. Maybe that’s part of your retirement income floor.

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It’s time for you to look at that income floor, what is that going to be, knowing

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that you can’t solve for inflation. You have to go into it with your blinders on, knowing

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that regardless of what any agent, advisor, or fiduciary tells you, they cannot produce

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anything contractually that’s going to address inflation. And if they’re not talking about annuities,

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they cannot guarantee it’s going to pay for as long as you’re breathing.

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Someone said to me the other day, “What about a 30-year bond?” What if you live 38 years, 35 years?

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That’s not the point. And bond underlying values can fluctuate, but we’re getting off track there.

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Annuities are pension products. Annuities solve for four things: principal protection,

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income for life, legacy, and long-term care. The income for life is what we’re talking about.

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How to determine which of the four income products or income strategies fits you:

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you just answer two questions. What do you want the money to contractually do? When do you want those

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contractual guarantees to start? From that, we can determine: A, if you need an annuity; and B,

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which one would provide the highest contractual guarantee on the planet, quoting all carriers.

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You can have us do that. You can go to my site and you can do it yourself. You can call us.

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You can schedule a free consultation where we put a customized plan together. If you don’t want to do

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any of those, you just want to talk to the source, the owner, number one agent in the country,

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you can do that. [email protected]. I’ll get to you. I’m here to help.

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I do one video per day, seven days a week, brand new.

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Why? Because I want to squash all of the sales-pitch nonsense that’s out there.

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I want to squash all of the BS that’s happening at steak dinner seminars.

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I want to squash the one-size-fits-all approach that most agents and advisors take.

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There’s no mulligans in retirement. There’s no mulligans in Chapter 2. Chapter 2 is all

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about you. And there’s three phases of retirement: go-go, slow-go, and no-go.

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Go-go, you know what that is. You feel good, but you’re old, but you still feel good.

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Slow-go, you’re kind of feeling it. You’re old, need more sleep, etc.

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No-go, it’s a wrap, as they say in the movie industry. You got diapers on, you’re drooling on yourself.

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That’s a no-go. Okay? So when we’re talking about guaranteed lifetime income,

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there’s only one category that does that: annuities.

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I’m amazed that it’s still a cuss word. I’m amazed how much the financial journalists get it wrong.

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I’m amazed at supposed advisors that are learned. They have no clue how annuities work. They have no

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clue about the customization of annuities. They just think it’s an immediate annuity,

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and if you die, the annuity company keeps the money, which is the dumbest thing on

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the planet. We can structure it so 100% goes to your family if you die. So, throw that one out.

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Annuities are pension products. Annuities, I don’t know the ROI on lifetime income until you die.

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Do me one last favor. Above me is a spinning clock, there’s going to be a video show up.

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Earlier in the video, I talked about AI. I did a video on artificial intelligence,

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how it’s going to change the annuity game, and it’s going to change it pretty soon.

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I can’t pinpoint the time. I really wish I could, but it better be on your radar screen.

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Right now, lifetime income is a bargain, so you might want to look at it. Okay? Good.

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My name is Stan The Annuity Man. See you next time.