What Is the Payout Rate With Annuity Income?

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Welcome to Q&A Friday. My name is Stan

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the Annuity Man, America's annuity

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agent, licensed in all 50 states. I know

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what you're saying. You're saying, Stan,

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green hat, orange, gray. Yes, that's why

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I'm rocking today. I'm bringing it. I

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got all kinds of gear, all kinds of

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colors. Just in case your favorite color

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is orange and gray, right? Yes, this is

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orange. Today's topic is um the about

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the payout rate. What does the payout

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rate mean with an annuity? And this is

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this is important. Well, everything I

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say is important, but I digress. This

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one's very important because agents

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don't ever talk about that. They talk

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about upfront bonuses and they talk

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about 8% growth on the income writer,

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which all of that's monopoly money.

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There's no there's no philanthropist at

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annuity companies waking up in the

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morning going, you know what? I want to

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give money away today. No, it's

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for-profit businesses. Okay? So, if

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there's 100 pennies on the dollar, if

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they're if they're going to give you an

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upfront bonus and all these little shiny

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things, they're taking things away.

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Which brings us to the payout rate. Now,

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there are some sites which I chastise

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professionally for listing payout rate

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because people will call me up and say,

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"I just bought a 7.8%

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a single premium immediate annuity." No,

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you did not, sir. What you bought is a

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single premium immediate annuity. The

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payout rate was 7.8% of the total, which

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is a numerical reflection of your life

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expectancy. Remember with life lifetime

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income products issued by life insurance

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companies, annuities issued by life

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insurance companies, lifetime income

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products are primarily priced on your

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life expectancy at the time you take the

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payments. Period. Now, if you defer and

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you let them hold on to your money, they

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can enhance that a little bit. But with

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upfront bonuses and all this shiny thing

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nonsense at the bad chicken dinner

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seminar, expensive steak dinner seminar,

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or what I'm finding out is online

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nonsense

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that I'm trying to squash like a bug.

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You got to understand the payout rate is

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where the game's played. Let me give you

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an example. Every single day at the

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annuity man, where my team of licensed

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professionals, not on commission, but

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they're licensed in all 50 states,

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they're on salary. Okay? So they're not

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a nail looking. They're not a hammer

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looking for a nail. People say, "Well, I

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need um lifetime income um starting in

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seven years." Well, that's two products,

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deferred income annuities and income

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writers. But let's talk about income

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writers for a second because this is

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where the three card money is played, as

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they say. Um they'll say, "Well, we're

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going, sir, we're going to give you a

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25% upfront bonus. It's going to grow by

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8% and this is your income." And the guy

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goes, "Oh my gosh, that sounds great.

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They're giving me 25% bonus that and

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that that." And then we run the quote

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and that specific carrier that Johnny

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Apples Seed agent pitched locally

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finishes like sixth and the one that

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finished at the top didn't have a bonus

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and didn't have this really high

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percentage. Why? The payout rate was

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higher.

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So if you have to buy an annuity from

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your brother-in-law or sister-in-law or

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brother or sister who or whatever church

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member that you want to buy from, I

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don't know, ask them what the payout

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rate is. But better yet, go to our site,

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run quotes for all carriers, A+ or

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better for lifetime income. Nod your

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head, and then choose the highest

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contractual guarantee. Forget about the

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bonus, forget about the percentages,

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forget about the shiny things, forget

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about the sales pitch. What is the

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number? And what you're going to find

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out is the high bonus products and the

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really shiny thing product, where are

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they taking it away? Because 100 pennies

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on the dollar, where are they taking it

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away? They meaning the annuity company

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the payout rate

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that's where the gains play. So bonuses

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and this and that and this and then

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payout rates two or the payout rates

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three where the product same product

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without the bonus and without the shiny

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things payout rates seven. Hello.

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Hello.

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That's the reality and the contractual

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reality and the will do not might do of

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these products.

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All right. So, just think payout rate.

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When it comes to annuity payouts for

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lifetime income, it's all about the

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payout rate, not the shiny things. My

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name is Stan the Annuity Man. See you

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next time.