What Percentage Of Pre-Retirement Income Is Needed For Retirement?

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So, what percentage of pre-retirement

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income is needed for retirement income?

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Stan, what's the matrix? What's the

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formula? What is it? Hi there, Stan the

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Annuity Man, America's annuity agent,

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licensed in all 50 states in Puerto

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Rico. Tough question to answer, but I'm

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going to give you a couple of angles to

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go about answering it so that if you are

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young and preparing for retirement in

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the future, you can we can put together

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a plan that way. And if you are a little

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bit more seasoned as they say, we can

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give you that approach as well after

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this.

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So the grill in the room with this

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question is, you know, what percentage

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of pre pre-retirement income should be,

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you know, kind of set aside for real

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retirement income. Nobody knows what

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inflation's going to be in the future.

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No one can throw that dart. No one can

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predict that. What I would tell you is

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if you're young on the scale of workers,

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if you're below 50 and you're still

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working, you got a while to work, you

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need to put away as much money as you

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can. If you have a matching situation

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with your 401k or your your retirement

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plan at your employer, take advantage of

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that because that is a gift. And um the

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magic of compound interest, also called

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the eighth wonder of the world, will

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take its effect over that time. So I I

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don't think there's a specific

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percentage

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as high as you can get it. You know, the

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more you can put away the better. Um I

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don't want you to be a miser. I don't

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want you to live in your car. But um I

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do want you to just become disciplined

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and try to increase it. you know, as you

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rise in the ranks and you get um

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promotions, you know, try to take some

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of that, try to live at the same level

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as long as you can. You know, for

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entrepreneurs out here like me, that's

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that's um you know, when I left Morgan

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Stanley and and UBS there at the end and

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went to do this, I mean, entrepreneur,

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you're just you're surviving, right?

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I've been doing it a long long time. Uh

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but the initial years are hard trying to

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put money away and try to save. So for

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the youngsters out there, and I call

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youngsters in my world, anyone 50 or or

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below, they should not be looking at

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annuities at all. They should just be

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putting money away. Nonuities, listen to

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me closely.

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Even if your retirement plan has an

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annuity option, if you're Don't do it,

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okay? just that's a whole another video

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series, but don't do it because the

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annuities that are being offered in most

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plans, and I'm going to say 99%, they're

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limited, which means you're not shopping

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all carriers for the highest contractual

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guarantee.

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It's like a it's just this shiny thing

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that they put in the 401k plans. Just

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don't do it. You know, if you need an

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annuity at the end of the road with your

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retire um when you leave the company or

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you stop stop working, then come to our

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site and shop all carries for the

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highest contractual guarantee. It's that

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simple.

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Now, for the people out there that are

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over 50 or in their 60s or 70, whatever,

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and you're looking at at income in

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general, we're not looking at

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pre-retirement because you're either

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already retired or getting ready to

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retire. You're at the finish line.

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You're getting ready to go to chapter

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two. You're already in it. you need to

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be focusing on that that income floor.

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What's the income floor that you need to

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live in chapter two? Because chapter 2

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is about you. What's that amount that

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you need in combination of when you

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stack up social security, RMDs, if

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you're taking RMDs, dividend stocks,

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annuities, if you already have them in

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payout form, what's that amount that you

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have and what's that amount that you

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need? And if there's a gap, then let's

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go solve for the gap. You know, whether

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you're young working or old not working,

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income is the key.

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Income is the eventual outcome. That's

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what we're all focused on.

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Which is ironic because in the in the in

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the United States, only nine and I think

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it's now down to eight% of companies

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even offer a pension or employers. And

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most of those employers are that offer

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it are um government, state, military,

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etc. My parents benefited from that. You

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know, my dad would have been um one of

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the ones, well, I've never bought an

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annuity. I'm sure he would have said

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that if if uh he knew Well, he kind of

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said that when he was alive, you know,

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seven years ago. And I'm like, I told my

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mom. I didn't tell him, but I told my

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mom that um you already own a great

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annuity. It's the pension with the state

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of North Carolina.

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It's the best annuity of all time. I ran

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the number. It was like worth if you

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tried to buy an immediate annuity for

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the payment that they were getting, you

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would have to like put in 1.7 million.

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And my mom's like, "Well, that sounds

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good." I'm like, "It is good."

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But the rest of us that don't have that,

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that didn't work for the state or the

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government, we have to create our own

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pension. And there's only one product

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type that creates lifetime income stream

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and that's an annuity. I'm talking about

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a monopoly.

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It's the only product type that will pay

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for the rest of your life as long as

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you're breathing. And I will guarantee

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you that one person in your household,

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whether it's you or your spouse, one of

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you could care less about the markets,

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could care less about annuities, could

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care less about what I'm talking about.

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All they want to know is, do we have

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enough money for me to go see the kids

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and the grandkids and for me to travel

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and get shoes and whatever? And more

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importantly, when you die, is there

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enough for that to happen? That's my

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wife's favorite topic right now. Explain

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to me again, when you die, tell me again

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how it all works. Okay, let's talk about

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my death again. See, when I die and the

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day after the funeral and you guys are

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doing well and the party started, this

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is what's going to happen. So, income is

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the is the eventual outcome. That's what

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we're all looking for. Income is about

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lifestyle. Chapter two is about

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lifestyle. Chapter two is about you.

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Chapter two is not about your kids

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anymore. I hope.

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I want you to fly first class because

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they're going to.

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Someone called me the other day said, "I

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just can't I just can't pay that. That's

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just that first class seat is just

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double the price." I said, "Your kid

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will pay it the day after you die.

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They'll buy a first class trip to the

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Bahamas or something.

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I think the focus of this topic today is

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not the percentage of income for for for

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retirement. It's what's that income

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going to be? Even when you're young, you

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need to look in the future, go, you know

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what, I probably need $10,000 a month. I

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probably need $7,000 a month. Even

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though you might be making five right

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now a month or four, you got to start

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thinking down the road. How am I going

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to get there? What's it going to take?

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Now, things are going to change with

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artificial intelligence. The annuity

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industry will change. I know all the

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grand poos in the annuity industry go,

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"No, it's not going to change. It hadn't

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changed for 30 years. 30 years. I've

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been sitting here. It hadn't changed."

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Well, now Ernie Ernie Big Boy at uh at

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Annuity USA or wherever the heck you

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are, it's going to change. We're ready

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for it. When it does, artificial

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intelligence, it's going to change life

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expectancy tables against you. Payments

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will be lower because you're going to be

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projected to live longer. So, there's a

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lot for us to talk about. I would I

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would go to my site and run some quotes.

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Just you can run them 24/7, 365. They're

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free. Run as many as you want. See what

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the payments are. See what the life

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expecty tables are are spitting out from

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the payment standpoint. Remember, life

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expectancy drives the train with

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pricing. It's not about rates. So, look

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at that. Download the books, get

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educated. At the end of that education

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process, I hope that involves a call

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with me. And then we can get on the

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phone and talk about things and see if

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an annuity solution fits. If you're

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below 50, ignore us until you turn about

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55 and then engage. If you're above

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that, you need to be talking to us and

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I'm hoping you'll consider us for your

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annuity source. One last thing, I did a

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video on um just how annuities can take

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care of your family in a contractual

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way, in a loving way. Um sometimes I

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call it lovingly handcuffing your

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beneficiaries. Um, I'm doing that with

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my girls and and um there's just ways to

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do things in a good way contractually

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and provide when you're not here and

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you're not going to be here and I'm not

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going to be here. I know that's that's

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tough to think about, but we got to

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start thinking like that, right? I know

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I am. And if I don't, my wife will bring

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it up. My name is Stan the Annuity Man.

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See you next time.