What Is A Retirement Annuity And How Does It Work?

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Hi there, Stan the Annuity Man,

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America's annuity agent, licensed in all

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50 states in Puerto Rico. The topic of

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the day is, what is a retirement annuity

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and how does it work?

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Good question. Broad question, general

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question. Be careful who you ask that

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question to, but I'm going to answer it

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after this.

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So, what is a retirement annuity and how

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does it work? First of all, there's no

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such thing as a quote unquote retirement

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annuity. There's different types of

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annuities that do different things

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contractually. So, retirement annuity is

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I guess a phrase that uh it sounds like

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a journalist phrase like journalists

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talk about longevity risk. What's

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longevity ris? Longevity risk is the

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fear of outliving your money. That's

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what longevity risk is. But man, the uh

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financial journalist journalists love to

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talk about it. Just well, you know, we

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need to look at longevity risk. Okay,

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great. Okay, that's a fear of outliving

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your money. And annuities are the only

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category that provide lifetime income

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that solves for that contractually,

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meaning the annuity company's on on the

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hook to pay us for as long as you're

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breathing andor on a respirator.

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Annuities have the monopoly on lifetime

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income. Retirement annuity

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really is what you're trying to solve

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for. And there's four things that

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annuities solve for. The acronym that I

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use is pill. P stands for principal

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protection. I stands for income for

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life. L stands for legacy. The other L

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stands for long-term care. Again,

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principal protection, income for life,

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legacy, long-term care. If you don't

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need to solve for one or more of those

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items in the pill, you don't need an

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annuity. Never. I'm going tell you this.

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Never buy an annuity for non guaranteed

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returns. Never buy an annuity for

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hypothetical returns. Never buy an

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annuity for theoretical returns. Never

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buy an annuity for an upfront bonus.

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Upfront bonus is just part of the

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overall contractual guarantee. It it can

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also be candy for the stupid if you

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think you're getting free money.

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Retirement annuity

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is what you're trying to solve for. And

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I asked two questions. So the pill

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acronym you get the two questions are

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what do you want the money to

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contractually do and when do you want

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those contractual guarantees to start

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that's it that's how simple it is from

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those two answers then we will we we

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know the exact annuity type retirement

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annuity type to provide those highest

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contractual guarantees give an example

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hey uh Stan I need lifetime income for

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me and the wife and I need it to start

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as soon as possible that's a single

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premium immediate annuity So, you can go

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to my site, theanuityman.com.

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You can run those quotes anonymously.

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You don't have to put in your name, your

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email, your phone number, just your

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gender, your date of birth, and your

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state of residence, and you get the same

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exact quotes that everyone else tries

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tries to give you. But they want to get

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your data. I don't want your data. I

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want you as a client. There's a

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difference.

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I want you as a client. I don't need

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your data. I'm not going to sell your

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data. I'm not going to abuse your data.

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I'm going to protect your data when you

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become a client. But up until then, it

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should be anonymous to you.

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So, retirement annuity, I need you to

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Okay, that's a great That's a great

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title. That's like saying cars,

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restaurants, shoes,

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retirement annuities.

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A little bit more. I need a little bit

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more detail from you. For instance, give

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me an example. What do you want the

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money to contractually do? I want

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lifetime income, joint life. Great. When

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do you want those contractual guarantees

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to start? Five years.

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I'm gonna ask one more question after

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that. Do you have a specific number

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monthly that you want to hit? Because

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you can run on our sites anonymously a

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lump sum what that would create and

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solving for a monthly income amount. How

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much would it take? If you say, "Stan, I

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don't need lifetime income. I just want

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to protect the principal and get a

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contractual return. Contractual, not

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hypothetical, not cap spreads, all that

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nonsense. Hypo a real interest rate.

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That's a multi-year guarantee annuity.

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You don't even have to put anything but

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your state of residence and then choose

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the term. Boop, it'll pop up. This is

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very, very simple. When you're looking

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at retirement annuities,

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the key is to focus down on what you're

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trying to contractually solve for. If

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you ask anyone else this question,

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they're going to say, "Well, I got the

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best retirement annuity. I I've looked

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at them all as the best one. Best one."

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I mean

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that's what's wrong. So what is a

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retirement annuity and how does it work?

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It works contractually not

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hypothetically. What is a retirement

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annuity? How does it work? It works

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based upon the two answers you get to

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the questions. What do you want the

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money to contractually do? When do you

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want those contractual guarantees to

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start? What is a retirement annuity and

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how does it work? It works based upon

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what you're trying to solve for. The

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pill P stands for principal protection.

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I stands for income for life. L stands

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for legacy. The L stands for long-term

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care.

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What is a retirement annuity and how

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does it work?

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You're going to know how it works when

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you're a client of ours because we're

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going to tell you.

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Someone asked me the other day,

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consultant walks in, how these

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consultants just come in and and they we

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just want to pick your brain just see

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how you doing because bottom line is

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just saying, how's a redneck like you do

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it so big? How's that happen? Well,

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first of all, you know, just because you

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speak a little southern don't mean

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you're dumb. You know, I mean, bless

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bless her heart and and rest in peace,

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Dolly Parton. That lady wasn't dumb,

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okay? You're very, very, very savvy. But

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the the consultant asked me, he goes,

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[clears throat] you know, real buttoned

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up guy. Of course, I'm dressed like

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this. He's got the tie on. He's like I'm

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like like Stan, what's your, you know,

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like when you do annual reviews with

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people, what's that look like? Like, I

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don't know because we don't do them.

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What do you mean you don't do them? We

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sell contractual guarantees. If we did

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annual reviews, it would be like, "Hey,

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it's your annual review. Yeah, we bought

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those contractual guarantees. Yeah,

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they're the same because they're

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contractual. Hey, hope you're doing

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well. Take care." That would be it. No

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analysis, none of that. He's like,

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"Really?" Because see, we don't sell

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anything that's not contractual. We

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don't recommend anything that's not

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contractual. Never buy an annuity for

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non-g guaranteed return scenarios.

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You're the sucker at the table if you

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do. And if you buy for an upfront bonus,

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it's like going to the car dealership

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and buying the car for the stereo

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system. It's dumb.

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How does a retirement annuity, you know,

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how should I buy one and how does it

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work? It works contractually.

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One of the things you need to realize is

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in chapter two of your life, if you're

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there, great. If you're going there,

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super. It's all about the income floor.

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It's all about the money that's coming

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into your account every single month

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regardless of what the markets do. And I

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know at the time of this taping, markets

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are going gyrating, going straight up.

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Great. I hope that continues for

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infinity.

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But I also know this, things go in

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cycles. I also know this, we're 40

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trillion in debt. I also know this,

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the world's chaotic. I also know this

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artificial intelligence.

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No one knows what's going to happen.

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Put the guarantees in place. You'd be a

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you'll you'll be a better investor.

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Anybody that says, "Well, don't buy the

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retirement annuity. Um I'm your adviser.

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I'm Johnny Advisor, master of the

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universe, and I'm just going to take out

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the gains and then you don't have to buy

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an annuity from that Stan character and

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be a client of his." And you say to that

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master of the universe, "Hey, master of

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the universe, mou, hey moo, what happens

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when the um markets go down 25%. Do I

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still take out the 4%.

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That means we got to have a really good

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year next year. It doesn't work."

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Put in contractual guaranteed income

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flooring. Income flooring. We all like

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income flooring. The wife likes income

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flooring. That's how you sell it to the

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wife. You go, "This isn't This isn't me

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massage. This is sexist. Okay. It's just

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me and Christine, the wife, 38 years.

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I'm saying, "Yeah, you know, income

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flooring is good." She goes, "Flooring?

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Flooring? Flooring? Did you say

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flooring? Income flooring." Okay. But

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it's the same thing. It's foundational

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and you need it for your retirement.

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All right. I encourage you to go to my

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site at theanuityman.com. Download the

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books. I've written six owners manuals.

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You can get them for free. You can sign

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up for a live event and my newsletter,

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but you don't have to. You can schedule

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a call with me, but you don't have to.

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But you can go to my site and run quotes

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anonymously.

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That you should do. If there's anything

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you should do, it's that. One last

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thing. I [snorts] did a video on on the

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calculators and and how to do how to use

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calculators and and and the quote system

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properly. Again, with my, you know, my

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website, it's the only one that that

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allows you to do it anonymously. There's

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some that that'll let you do the first

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quote and then you got to sign up for an

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account. Great. Okay. [laughter] Okay,

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bait and switch, whatever. I'm okay with

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it. I just don't believe in it. I don't

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like that. When I'm when I'm on the

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internet, I want information. I don't

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want to sign up. I just want

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information. If I'm ready to buy, then

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I'll give you my information. Same thing

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with us. Boy, do I want you as a client.

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Yes, of course. Of course. But on your

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terms and on your time frame with my

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quotation systems. That video will show

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you that how you can do it anonymously

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and still get the same quotes. Sounds

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good, huh? It is good and I'm proud to

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offer that. My name is Stan the annuity

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man.