Where Will My Retirement Income Come From?

0:00
Hi there, Stan the Annuity Man, America's annuity agent, licensed in all 50 states and Puerto Rico.

0:08
The reason I say that like that is not to be offensive, but Dr. V behind the camera is from

0:13
Venezuela, and he loves it when I roll my Rs like that, okay? He loves that. Makes him feel

0:19
like he's home. I don't know what that means. But anyway, the topic of today is a good one. Hey,

0:25
Stan, where's my retirement income going to go? I mean, where's it coming from, Stan? Where am

0:30
I going to get it? Where's it at? Where's Waldo? That's a good question. I kind of know where it's

0:40
all hidden. I do know where that retirement income can be found, and I'll talk about it after this.

0:56
So, where will your retirement income come from? Well, let's start with the basics. The first thing

1:06
is Social Security. It's the best inflation annuity on the planet because it's political,

1:13
not actuarial. And by the way, I'm contractual. But the point is, you already own an annuity.

1:18
That's the best one. It wasn't put on the planet for 100% of your retirement income,

1:24
but I read a stat the other day where it's shockingly alarming that a lot of people have

1:30
to use it for all of their retirement income, and that is sad. That's not what it's there for, okay?

1:38
Retirement income can also come from, you know, the rental houses that you have,

1:43
etc., or if you don't have any type of side hustle that you have, that's where retirement income

1:49
comes from. But annuities— many different types, there's four types for lifetime income— can provide

1:56
lifetime income as long as you are breathing, okay? Social Security, the commercial version

2:04
of that is called a single premium immediate annuity. Pays you for as long as you're breathing.

2:09
Now, one of the fallacies out there— people, and you might be that person— say, "Well, I'd never

2:15
buy that, son, because if I die, the annuity company keeps the money. I don't want them to

2:20
keep my money." Well, that's dumb, okay? Because we can structure it so 100% of any unused money

2:27
goes to the beneficiaries, and the evil annuity company never keeps a penny, even though they're

2:32
on the hook to pay. You're transferring the risk to the annuity company. Annuities are issued by

2:37
life insurance companies. You're transferring that risk. So they pay you as long as you're breathing.

2:42
What if I'm on a respirator? They're going to pay. What if I live to 150? They're going to

2:46
pay. What if it's joint life and my wife lives to 180? Going to pay. Which means that we have

2:51
to choose quality carriers: A+ or better, you don't need a sweater— A+ or better rated

2:56
for lifetime income. No exceptions. Don't let Johnny Appleseed agent down the road say, "Well,

3:02
this B-rated company's just as good." No, it's not, okay? No, it's not, and you know it's not.

3:12
So where's it going to come from? If you have an IRA, there's a product called a qualified

3:18
longevity annuity contract. So a lot of you out there are going, I read somewhere the other day

3:23
somebody said, "Never put an annuity inside of an IRA." Well, they're stupid. They're stupid.

3:29
Don't talk to that person. You'll lose IQ points. Don't read their stuff. You'll lose IQ points.

3:34
Qualified longevity annuity contracts were put on the planet in 2014 by the IRS, our friends at

3:40
the IRS and the Treasury Department, so that you can use IRA assets for lifetime income, and you

3:48
can attach a spouse for joint lifetime income. So if you have an IRA, you can use that, and there's

3:54
some tax advantages to a qualified longevity annuity contract that you can take advantage of.

3:59
You can go to my site, you can run QLAC quotes, SPIA quotes, DIA quotes. You can download books

4:04
that I've written on them. I call them annuity owners manuals. And they're easy reads, 50 to

4:09
70 pages. I've just broken it down. Or you can go down the rabbit hole and say, "I want to know

4:14
about QLACs" on my YouTube page, and there'll be a zillion QLAC videos that I've done— educational.

4:22
So, where's your retirement income going to come from? It's going to come from your IRA.

4:27
It's going to come from checking account. And you might say, "Well, I don't want to buy an

4:31
annuity. I just want to live off the interest." Okay, that's great. You can do that. I had a

4:37
guy that called the other day— this is a true story— and he said... I said, I'm always, "Well,

4:43
what's your investable asset base?" You know, that does not include your house, your car,

4:47
or your guitar, okay? What's your investable asset base? And the guy literally said to me,

4:53
9 million. And I went, "Great. You do not need to annuitize or turn anything into a lifetime income

5:00
stream because you can just take interest off the top of that and live a good life." He goes,

5:06
"You think?" I'm like, "I know. I'm pretty sure that math works," okay?

5:12
So, a lot of you have a huge asset base. First thing that I'm going to tell you is let's try

5:17
to keep the powder dry, player. We don't have to lock anything in. We don't have to annuitize and

5:23
turn it into payment form. You can just take interest off the top. And the guy said, "Well,

5:29
interest rates are, you know, they're just not high. They're not like where I want them

5:32
to be." I'm like, "I know. That's okay. I mean, if you got 3% off 9 million, you're good," okay?

5:39
"Really? How much is that?" 270 a year, player, you're good. You're good. "Really?" Yeah. Uh-huh.

5:46
I mean, annuities— contractual guarantees from annuities— this is all simple. It's the agents

5:54
and advisers that make it difficult and make it complicated. It's math. It's basic, simple math.

6:02
Now, if you're not the $9 million guy and you have a couple hundred thousand account, then we have to

6:09
look at possibly annuitizing or turning something into a lifetime income stream and transferring

6:14
that risk for lifetime income while protecting that principal if something happens to you before

6:20
you die, before you reach your life expectancy. I always tell people, if you're thinking, "Well,

6:25
the annuity company's going to keep the money when I die," that's not true. We can structure

6:29
it so that it's going to pay for as long as you're breathing, even if you're on a

6:32
respirator. And when you die, if you die early before your life expectancy, whatever's left

6:36
in the account goes to your beneficiaries. The annuity company doesn't keep the money.

6:40
So where does retirement income come from? It comes from the assets you have in place— IRA,

6:48
non-IRA— and if you have a Roth IRA, in a perfect world, I think Roth is for growth because you've

6:54
already paid all these upfront taxes. But if you say, "I don't want to do growth anymore," or,

6:57
"I want to do lifetime income," you can buy an immediate annuity inside of a Roth IRA,

7:01
and that income stream is tax-free. Now, what you've got to get in your head:

7:06
annuities are not investments. They're non-correlated assets. What does that mean, Stan,

7:12
in English? That means not attached to the market. War doesn't affect them. Politics

7:17
doesn't affect them. Nothing affects them. They're contractual guarantees.

7:22
So the question is, what do you want to solve for? Two questions: What do you want the money

7:26
to contractually do? When do you want those contractual guarantees to start? From those

7:30
two questions, we can determine: A) if you need an annuity and which one's going to provide the

7:34
highest contractual guarantee— there's many types of annuities— or B) you don't need an annuity.

7:41
Like Mr. 9 million, I said, "Hey, you could do MYGAs, you know, just protect the principal and

7:46
you can peel off the interest, but you don't have to do that." He was being too fancy.

7:52
The other question you have to— where's my retirement income coming from? If somebody

7:56
out there is saying, "Well, you just let me manage that money, sir, and then we can just take out 4%

8:02
every year and that's your income," full of crap. Full of crap. That 4% rule has been debunked,

8:12
crapped upon, factually torn apart so many times it's mind-numbing.

8:19
So the question to a master-of-the-universe guy that brings the 4% rule up is, "Hey, player,

8:27
what if the market goes down, like down 20%? We still peel off the four, right?" Uh-huh.

8:34
That means we're down 24. Uh-huh. You're never going to make that back. The 4% rule is a joke.

8:42
If anybody out there that's a financial advisor, IRA, master-of-the-universe type says we can do

8:48
it, 4% rule, been doing it— full of crap. And for those people that happen to be watching this,

8:54
I don't know why you would because I'm not hiring you and I don't want to talk to you.

8:57
[email protected], and I will filet you like a flounder factually, and you know I'm right.

9:05
You are a better investor if you have your income floor in place contractually using

9:09
annuities in combination with your pension, if you're so fortunate, and your Social Security,

9:14
which is also your pension. It's the best inflation pension out there.

9:20
So where's it going to come from? It's going to come from the assets you have

9:24
in place. Now my goal is to use the least amount of money— listen to me now,

9:30
lean in— the least amount of money to contractually solve for what you're trying to solve for.

9:36
So, if you say to me, "Hey, we need $1,000 to start in income to start me and the wife,

9:44
lifetime income in a year," we're going to reverse engineer that quote to use the least amount of

9:49
money to contractually solve for that thousand a month for the rest of both of your lives with an

9:55
A+ rated carrier or better. And unless you tell us otherwise, we're going to make sure that 100%

10:01
of any unused money goes to whoever you list as beneficiaries. That's what I'm talking about.

10:08
The other thing is you should never use more than 50% of your assets— that doesn't include your car,

10:14
house, or guitar— in annuities. We can push it if there's a special case, but typically

10:20
50%. If any agent tells you otherwise, they are a sociopath and they are lying.

10:27
Annuities aren't for everybody. You already own one: Social Security.

10:32
But just use your common sense. If it sounds too good to be true, it is every single time.

10:36
So where's your retirement income coming from? Your current asset base. We just got

10:41
to figure out how to use the least amount of that to achieve the goal.

10:44
Do me a favor. Go to my site at theannuityman.com. Best consumer site on the planet for annuities.

10:50
You can contact me at [email protected]. You have access to me if you want access to

10:56
me. A lot of people, I want no dang access to. They know me crazy. No, but you can get me if

11:01
you want. I own the company. My wife and I still own the company after all these

11:04
years. Very proud of it. It's gotten very, very big somehow, but that's a good thing.

11:10
Do me a favor. Up above me is a spinning clock. You're saying to yourself, "Stan,

11:14
you're so techy. I mean, you're just so with it." And I agree. I agree with you totally,

11:18
except for the fact that I just surround myself with really smart tech people. But

11:23
that is a video I need you to watch. It's lifetime income. It's me explaining how it actually works,

11:28
how Fed rates and all that stuff affect it or don't affect it. The real truth about it all.

11:33
I mean, and it definitely coincides with what we're talking about today,

11:37
which is, where's my retirement income coming from? Lifetime income. Lifetime income is where it's

11:44
coming from. My name is Stan the Annuity Man. See you next time.