What Is An Annuity Pension And How Does It Work?

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Hi there, Stan The Annuity Man, America's annuity agent, licensed in all 50 states and Puerto Rico.

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How does an annuity pension work? Stan The Annuity Man. Well, I'm going to go through

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all of that in detail and give you a secret about yourself that you didn't know, well, you might know

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existed, but you're getting ready to know that it exists about annuities and you after this.

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So, what is an annuity pension, and how does it work? I mean,

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this could be a short video if you just want to watch this part and shut it off and go drink a

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beer. Zero beer, of course. You don't need the alcohol. You just grab the zero beer.

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Social Security. How does that work? Let's talk about Social Security right now because Social

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Security is the best inflation annuity on the planet. The older you are, the higher the payment.

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Nod your head. The younger you are, the lower the payment. Nod your head. It's going to pay

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for as long as you're breathing. Nod your head. That's an annuity pension. That's how it works.

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There's no ROI until you die. "Well, you know, my advisor said to wait till 70. You know,

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just wait till 70. That's going to be the highest payment, son. So don't give me all your malarkey,

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that southernism crap. Stan The Annuity Man." Okay. So the master of the universe,

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professional dart-thrower, said to you, that's your money manager, by the way,

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said to you, "Wait till 70." That's fine. The older you are, the higher the payment.

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But there is an argument mathematically, not emotionally, mathematically, that if you turn

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it on sooner, that's okay too, because you have to factor in how long it's going to take for

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you to make up for the payments that you miss from, say, age 65 to 70 if you wait till 70.

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Some guy called me the other day and said, "Well, I'm gonna tell you something,

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son. That math, yeah, I'm gonna be breaking even about, you know, 78,

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79 years old." I'm like, "You might be crapping in your pants at 78, 79."

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Also, too, we're talking about annuity pensions and how do they work. Just put

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something in your head here for all you evil rich people out there. And everybody goes,

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"Well, I'm not the evil rich. I just did it the right way, son. And I scrimped and I saved, and

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me and Martha went without, and she'd want to go eat the filet mignon, and we'd go get a burger."

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Yeah. First of all, you need to go get the filet mignon for Martha

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because she's put up with your rear end, okay? But the bottom line is,

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it might make sense for you to turn it on now and enjoy the money.

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I know what you're saying. You're saying, "Stan, what do you know about Social Security? You're so

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young and vibrant. I mean, you are young. You're like a track athlete that runs."

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No, I'm 62 at the time of this taping. Which, what does that mean? That means I could turn

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on Social Security. Am I? Probably. Do I need the money? No, I don't. I do not need the money. I'm

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sure the lovely Christine will find some use for it. That's probably a pair of shoes somewhere.

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But the point is, what I don't want to happen is I don't want

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the government to change the rules and say, "Stan, you're evil and you're rich,

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and you're rich and you're evil, and you're evil and you're rich, and you don't deserve it."

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And I'm waiting for the politician to stand up there, maybe like the dude from New York,

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and go, "All of you people that are rich shouldn't get Social Security,

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and that money should be distributed for the poor and the downtrodden and the people."

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I tell you what, the first person that does that on a national level is going to

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win the presidency. And then, as they say in the movies, "And scene. It's a wrap."

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So you might want to think about turning on that Social Security a

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little bit sooner than you thought. With annuities, and by the way,

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Social Security is an annuity. A pension from your company, if you're so fortunate, is an annuity.

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Annuity pensions are lifetime income transfer-of-risk products. Life

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insurance companies issue annuities. You're transferring the risk for lifetime income.

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Financial journalists say, "Well, what we're trying to solve here for is longevity risk."

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Okay, player, whatever. You know, get the pipe out of your mouth and

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the ascot. Take off the ascot. Let's talk about outliving your money. You

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don't want to outlive your money. Can we get an annuity amen on that one? Amen.

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The point is, you need to put in that income floor in combination with Social Security,

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in combination, if you have a pension, you know,

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most people now with pensions either work for the government, military,

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or a good labor union, or a handful of companies that offer that, you need that income floor.

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That's what an annuity pension is. That's what Social Security starts

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but doesn't finish. Social Security was never put on the planet to be the main source

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of retirement income. Unfortunately, it is because most people don't have any money.

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But for you out there watching this, that's part of it. You need to add to that. You need to say,

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"You know what, Stan? Me and the significant other figured out that if we get x, $6,250 a month,

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we're going to live well. We can pay the bills, and we can go eat the filet mignon."

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Filet mignon for all you out there Googling it, okay, that's just, you know,

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my fun part. The first time my daughter ordered that,

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she sounded it out. She said, "Filet mignon," and I went, "Yeah, that's probably what it is."

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But we said "fill-ay min-yawn." It's like the guy who just got off of CBS,

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whatever his name, Stephen Kohl-bair. No, it's Colbert. Filet mignon and Colbert.

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But with lifetime income, you can have lifetime income start now. You can have lifetime income

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start at a future date. You answer two questions with moi, that's French for me, and you say,

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"Stan The Annuity Man, America's annuity agent, licensed in all 50 states and Puerto Rico, founder

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of contractual guarantees only, top agent in the country, America's annuity agent, what do you

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want the money to contractually do, and when do you want those contractual guarantees to start?"

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Those are the two questions.

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So if you say, "I want lifetime income," and the second one is,

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I'll do the same voice, "I need it to start five years from now."

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Okay, great. Then we're going to shop deferred income annuities, Income Riders,

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or QLACs if it's IRA money. Yes, you can have an annuity inside of an IRA.

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I love those people that go, "Never put an annuity inside of an IRA.

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Stan, I read that somewhere, and my professional dart-thrower said that too."

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They're stupid. Everyone's stupid but me and you.

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So, you need income in the future. We can do that to the penny. "Hey, Stan, what's it going to be

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five years from now?" To the penny. "What's it going to be seven years from now?" To the penny.

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These are contracts. You own them for the contractual guarantees.

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How does an annuity pension work, Stan The Annuity Man? Well, you already have

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some foundational knowledge with Social Security because that's an annuity pension.

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What we need to do is get you to my site at theannuityman.com. Run the

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quotes yourself. If you say, "I'd never talk to that crazy boy. I'll tell you

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something right now. He ate the paint chips off his house. Something's wrong with him."

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It's not. I'm just energetic, and I'm passionate about this space and squashing bad sales pitches

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and making sure you're making a good decision only on the contractual guarantees of the policy.

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And when it comes down to lifetime income, don't say,

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"Well, this boy over here seemed pretty smart. He got a little office over here

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and did a seminar, and they said when the index increases, my income increases."

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Okay. Did you run the numbers, Fred?

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All they're doing is lowering the guarantee on a non-guaranteed assumption. Let me say

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that in English. If there's any type of increase to the income stream,

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the annuity company, which is a for-profit business with no

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philanthropists, is simply going to lower the payment to make up for that increase.

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Hello! Can't have your cake and eat it too.

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So you're saying, "Okay, Stan The Annuity Man, America's annuity agent," okay,

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you know all the rest, "What do we do with inflation? Stan, what do we do with inflation?"

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I like to say "inflation." Here's what we do, and this is the only way to do it, okay?

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When you need a gap filled for your income floor, remember the income

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floor we talked about? Nod your head. Uh-huh. Say, "Stan, that's $6,250."

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Yeah, that was good. Real good. But right now, we need $7,000. Okay? So we need an extra amount

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to get to seven. What's that? $750, something like that, give or take.

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We need an additional $750. What are we going to do, Stan?

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We're going to reverse engineer a quote for an immediate annuity using the least amount of money

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to hit that contractual guarantee. That's the only way to do inflation for annuity pensions.

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You say, "Wait a minute, Stan. Social Security increases.

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Let me tell you right there, son." You're right. But that's a political increase,

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not an actuarial increase. And oh, by the way, if you're keeping score, I'm contractual.

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So you just have politicians in D.C. going, "Uh, yeah, I need some voters here.

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Let's raise that Social Security out there. Let's talk Social Security, okay?"

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And that's what they do.

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Go to my site, theannuityman.com. You can shoot me an email at [email protected]. And if you

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book a call, there is a really good percentage that you get me. And if you don't get me,

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tell the person that answers the phone that works for me that you want me.

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Last thing, spinning above my head, there's a magical clock and there's a video that

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I did about how and why all annuities are commodities. So when some Johnny-come-lately,

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Johnny Appleseed says, "I got the best annuity. I've done the research."

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No. They're all commodity products that should be shopped with all carriers,

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which we represent, for the highest contractual guarantees.

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That video is gold. It's gold. I'm telling you, Jerry, it's gold. Right? Seinfeld. If you don't

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like Seinfeld, I don't care. There are only a couple things that were good. I liked it.

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But hey, my name is Stan The Annuity Man.

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I've written a book called, The Annuity Stanifesto, that is gold, it's great.

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I'll see you next time.