Hi there! Stan The Annuity Man. America's
Annuity Agent, license in all 50 states including yours. We're talking about
retirement calculators. This isn't a retirement calculator,
producer. It's just a big darn calculator. A BDC as they say. But i'm doing that to
let you know that you need to look at annuities.
You need to look at contractual guarantees, what you need for your
specific situation. We're going to go through all of that.
We're also going to answer the question, the burning question
is "How long will a million dollars last for retirement?"
There's no good answer to that. But I'm going to go into the details. As I say to
everyone, "There's no good answers, just bad
sales pitches." And I don't do bad sales pitches.
But we're going to talk about a million dollars. And if you have a million
dollars, what that means it might be enough, it might not be
enough depending on your lifestyle. But let's listen to the music first. So, when it comes to a million dollars,
it's not what it used to be, right? Think about it.
I come from rural North
Carolina where if you said a million dollars you
could have said spaceship. But it made more sense
to me and my family. Still doesn't make a lot of sense to my
relatives and my mom and the million dollars.
But a million dollars, is that enough to live on? I don't know. I
mean that the easy math is if you have 20 years of
life expectancy you divide 20 into a million and that's 50,000.
Can you live off 50,000 a year for 20 years with no interest? Blah, blah,
blah. You could do it that statically. But a lot of people want to have their cake and eat it too and a lot of people buy products
under the premise of having their cake and eat it too which is unfortunate.
Which means that hey, you can get this income stream and
at the very end you're going to have the same amount of money
even though you got the lifetime income stream.
That's called a bad sales pitch.
That's called buying the sizzle not the stake. If it sounds too good to be true,
it is every single time. Especially in the annuity world. But in
the investment world in general, so as a million dollars or half a
million dollars or whatever your amount is, is that enough?
It really comes down to lifestyle. It really comes down to what you want your
income floor to be. So, if you look at your income floor and
the income floor is not some wood floor… Even though my wife would like that.
Income floor is the guaranteed income stream that comes into your
account every single month. Social security,
if you're so fortunate to have a pension. You know, if you have dividend stocks or
something like that, rental income, whatever's coming in,
then you need to determine what gap is missing. If there's no gap missing,
you can just live off that and you live the lifestyle you want to live, fine.
But most people and with 10,000 baby boomers hitting retirement age every
single day, the biggest question that we're getting
is about income, about lifetime income.
Annuities are the only product on
the planet that can provide a lifetime income that will pay you
regardless of how long you live. The fact that you don't know that
is one of the biggest marketing blunders of all time that the annuity industry
just hadn't pounded into the floor. I mean, you already own the best inflation
annuity on the planet.
That's social security.
If you own a pension, that's a great annuity as well. Both of those pay for
life. You don't know the ROI until you die,
return on investment. And you don't care because all you want is income. So, when
you're looking at the million dollar lump sum or the half million dollar lump
sum or the quarter million dollar lump sum, whatever that lump sum is to you
and you need income, then you need to shop
specific from a calculator standpoint. Every single site seems to have one.
And some have calculators and available calculators
that are so complex and you can quote so many things.
But as i say to people all the time, annuities are kind of like the unknown.
Most people just say i hate annuities which is crazy because that means you
hate social security.
But you don't know what you don't know. Meaning that do you know the 40 ways to structure a
single premium immediate annuity or 30? Whatever you want to, 30 to 40? I mean, you
can structure a myriad of ways. Do you know those? Do you understand
those? I hope not because I hope you have a life.
That's what… That's what I'm here for. I'm here to explain
those structures and how they work and the good and the bad and the limitations.
That's the reason we need to connect one-on-one. Go to the annuityman.com and
set a time with me. You'll get me not some little underling.
You'll get me. Not some agent farmed out from Pakipski. You'll get me
one-on-one. You need an expert at the finish line. When you're talking about
quarter million, million, half a million dollars,
you're just going to talk to the next 20 something year old on the phone and say,
"What have you got?" Give me a break.
You don't do that when you go to the doctor.
You like to go to the doctor. I mean, you go to the mayor or you go to somewhere
for a specific situation that's big time. And I'm assuming a million
dollars is big time to you. It should be. You know, we need to have that
conversation. Remember, you have 2 questions to ask –What do you want the
money to contractually do and when you want those contractual
guarantees to happen? From those 2 answers,
then I can determine what type of annuity fits best.
And then we go shop all carriers for the highest contractual guarantee
for your specific situation.
Hey, just remember with all lifetime income with
annuities, it's all about life expectancy. Life expectancy drives the train. It's
the primary pricing mechanism to lifetime income. Meaning that the
older you are, the higher the payment. It's just like social security. So,
people are always trying to time annuities and say is it the right time.
You know, interest rates are low. Interest rates play a secondary role to the
annuity pricing process for lifetime income. Now, yes if Jimmy Carter rates
were here and they were sky high, it'd be… It would be a
higher amount for you. But that's not going to happen. Doesn't look like it's
going to happen for a long time. So, it's all about life expectancy. And
you cannot time it. You just can't. Don't try. Got a call the
other day guy said, "Hey, I want to buy an immediate annuity but I think rates are
low so i'm going to wait 5 years." And I said, "That's fine.
You can do what you
want. But if you wait the 5 years then you
have to factor in the payments that you missed
during those 5 years and how long it's going to take you to make those up
after you turn on the income stream in 5 years."
In other words, it's math. And you're not going to beat the annuity company at
their own gain, period. Don't try. I got a question the
other day, "What's the average amount that a retiree spends during
retirement?" I thought that was the broadest… I mean.
That is a broad answer. If you're living in Manhattan it's different than if
you're living in St.
Augustine, Florida. It's
completely different. Because the lifestyle is different,
the rent's different, the cost of living is different. So, it really comes down to
your lifestyle and the amount that you feel comfortable spending. Now,
one thing that always comes up when I have these conversations about using
retirement calculators, how to use retirement calculators and
when we run quotes for you. We'll run quotes
showing cost of living adjustment increases
for inflation, etc. The one thing you'll find we do that is that the
annuity company does not give that away.
Any agent or advisor that says that they
have the annuity product or product in general
that adjust for inflation perfectly, they're lying to you or they just don't
know or they're just trying to sell something.
There's no product like that. If there was a product like that, then all of my
videos would be on that product. Annuity companies don't
give that away. Visually, here's the annuity without a
cost of living adjustment rider. Visually, hears the same annuity with.
So, all the annuity companies do is they lower the initial payout when you attach
a cost of living type increase to the income stream.
It's common sense.
Now, social security, the reason I say that's the best inflation annuity on the
planet because it is. Because politicians they just vote for that
increase. And then they just print more money and send it to you.
Annuity companies don't do that. They they look at your life expectancy.
If you want the increase, then they are going to lower that payment.
Doesn't mean you don't buy one but it means that you have to understand
that if it sounds too good to be true, it is. Same thing for people that are
pitching index annuities that have index increases that will increase your
your income stream. They do the same thing. They lower the initial payment to
make up for that potential increase to your income stream.
So, what does a retiree spend? How do you coordinate the annuity
purchase based upon what the average return? You don't because you're not
average. It's all about you. Forget everybody else.
Forget the stats,
forget the articles, forget everything. You know, from the
calculator standpoint, I want you to go to our site and use the calculator at
the annuityman.com. But as a inroad to us having a
conversation. Because our calculator is in my opinion the best
one out there. But it doesn't let you go 100,000 different quotes
because you'd just be all over the board. You don't know.
You know, I need to get from you during our conversation.
What are you trying to
achieve? Tell me about the family. Tell me about the spouse and partner. Tell me
about the other investments. Tell me about where you live.
Tell me about what you're trying to do. Tell me about the lifestyle you want to
live. Tell me about the income stream goals.
Tell me about that. Everybody's different. Nobody. No case is the same every time
with me. And I've got thousands of clients in all 50 states.
America's Annuity Agent. You've got to… You've got to break it down
confidentially to me and let me put together a customized plan
using our retirement calculators. So, retirement calculators as a whole,
they're great. They're on every site. Everybody seems to have one.
You know, everyone's got their formula. But understand there is no formula when
you're customizing something. There is no formula when you're trying to achieve a
specific goal like for you. So, just remember that. So,
remember, big darn calculator, BDC. Retirement
Everybody has one. It's great. It's a good starting point.
Use them all. But understand at the end of the day, it's a customized quote. And
buy the steak. Not the steakhouse. Buy the contractual guarantees. Don't buy the
sizzle, buy the stake. Because you're going to own the
contractual realities. Don't buy the dream.
And go to my site to use our retirement calculators, our annuity calculators for
all types. And I hope to speak with you one-on-one just schedule call. Also too,
sign up for me to ship you my books. I have 6 owner's manuals on all annuity
types. I'll ship you for free under no obligation. They'll come in
to you in the mail in this really neat gold foil bubble mailer. You'll be the
talk of the street. But it'll start you in the process of
understanding how these products work.
So, click the subscribe button and i'll
see you on the next Stan The Annuity Man video..