Retirement Calculator | Is Your 401(k) Enough?
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Hi there. Stan The Annuity Man at the
annuity lab. It's the annuity lab we're in today. You
didn't know that. You thought you're at the Stan The Annuity Man Video channel. No.
It's the annuity lab. I have on my coat but i do have on the Annuity Man's shirt.
And I have a big calculator. And I have my safety goggles in case things fly.
But the reason i have all of this and to get your attention is that
we need to talk about your 401K. Is that enough for you to retire on?
How do we know? How do we go about figuring that out? First of all,
you go to my site at theannuityman.com. Get all my books. I'll ship them to you
for free.
You can set a time to talk with me and you can
use our proprietary annuity calculators. But we're getting
ready to go deep in the lab. I would put on my goggles but it would
mess up my makeup. We don't want to do that. Makeup? Because
this is a face for radio as we all know. But
annuity calculators, lab coat, annuity lab, let's talk about your 401K. Alright. I'm going to keep the safety
goggles on just in case things start flying and things get crazy.
And you always want to protect your eyes. But let's talk about your 401K. I mean,
401Ks replaced the pensions. Most companies don't have
pensions. Private companies don't have pensions anymore. I think
over 90% do not offer a pension. They offer a 401K. And what's a 401K?
It has mutual funds or whatever inside that. Hopefully it grows during the time
that you're working. And the employer is putting money in and
matching and all that stuff. But at the end of the time period that
you work, when you retire, when they don't give you the gold watch, when you just
say, "I'm out of here.
I'm going to take my 401K, I'm going to roll it over
to an IRA." And i'm going to try to convert that
to income. Then the question is do you have enough money in your 401K to retire?
With over 10,000 people reaching their retirement age
every single day in the United States, want you to think about that for a
second. 10,000 people every day. So, think of a
football stadium that seats 10,000. That football stadium every day retires
and they have to figure out what they're going to do with that 401K rollover
money. I guess that's the reason you have fidelity and vanguard and all those
companies like that that are so huge. But a lot of people are looking to
annuities as a possibility for a transfer of risk
lifetime income. Which is a good thing. Because annuities are the only
product on the planet that provide a lifetime income stream
that you can never outlive. That's the reason it's called lifetime.
They were developed in the in the roman times as a pension payment for the
dutiful roman soldiers and their families.
That's where annuities come from.
And that's what's been sold in this country
for the last 200 years. And by the way, you already own an annuity. It's called
social security. And it's the best inflation annuity on the planet. Because
those increases are political. They're not actuarial. So, that's a good thing as
well. But when you have your 401K and you have
the lump sum, you can go to our site at theannuityman.com and start punching in numbers and looking at quotes. But
the bottom line is kind of you don't know what you don't know.
With annuities,
you can structure these things a myriad of different ways. 30 to 40
different ways you can structure a lifetime income stream payment.
Life only, joint life only, life with 10 year, life with 20 year, life with cash refund,
life of the installment refund. That's the reason you need to talk to me
because i need to make sure that we have your best interest at hand.
And you're getting the quotes that you need to get
from the product that provides the highest contractual guarantee.
There's only 2 questions you need to ask to even determine if you need an
annuity. Number 1 is what do you want the money to contractually do? And number
2 is when do you want those contractual
guarantees to start. From those 2 answers,
we can match you up with the right annuity type
that will provide the highest contractual guarantee for your specific
situation.
We'll quote all carriers. But getting back to the 401K, let's just
say you have half a million dollars in your
401K upon retirement and you call me say, "You know
what?" I want to set it up life only or joint life with my spouse
or partner. And we want the income to start
6 months from now or a month from now or a year from now." We can run those
quotes to see what that $500,000
would generate from a lifetime income stream.
But
I don't like to see people put all their eggs in one basket. And annuities are not
for everybody. I mean that's an
understatement. They have to fit and be allocated properly and in proportion.
Okay? So, what I would rather you do is say,
"Me and the wife me and the spouse me and the partner need
$1,225 a month. We've looked at
social security. We've looked at all of the other income producing
items that we have. And this is the gap that we need to fill." And then I can
go do a reverse engineered quote to solve for that amount and use as little
money as possible. I think i'm the only guy on the planet
out here in the annuity business that would look at a lump sum of money and
try to use as little of it as possible to solve for that contractual guarantee.
Now, there's most of the people in the new
industry are great people.
But there are some people that want to take all your
money and put an annuity. That's not good. The industry does not
like that. I mean you shouldn't have all your eggs in one basket.
And in fact, the annuity industry encourages
through the application process that you do not have more than 50% of your
investable assets in an annuity of any type. So, you
can't go all in. That's good. That's protecting you as the
consumer. They don't want the agent to go see
the little old lady in Saint Augustine Florida and put all of her money into an
annuity. That's not a good thing. So, that's kind of the process of if you
have a 401K to determine if it's enough for you to
live off of. If you don't need the income, if you don't need an income string from
that 401K money, then it comes down to what do you want the money to
do.
If you want to protect the principal, then there are
certainly annuity types and non-annuity investments that protect the principal
fully like CD's, the multi-year guarantee annuity is the
annuity industry version of a CD. That protects the principal and
you get an interest rate payment. So, it really comes down to your customized
situation. All right, for those of you out there
that their moms used to drop you off at the store and used to go in the candy
section she said, "Go get some candies, dad." I'd go and get
these now and laters or these taffy things, this is
surprising I have any teeth left. But II used to love the grape now in laters. But
now, I've transitioned that into now and laters for annuities.
And what does now
and later mean? Now and later for income. You either need
income right now or you need income later.
And with your 401K or your whatever investable assets you're looking at,
that's what i'm going to be asking. You remember the 2 questions –what do you
want the money to contractually do? And when do you want those contractual
guarantees to start? If you say, "Hey, we need income right now."
Then that's an immediate annuity.
A single premium immediate annuity we're
going to quote all carriers. If it's income later down the road,
say 2. 3, 4, 10 years down the road, then we're going to quote
income riders, deferred income annuities and possibly a QLAC, qualified
longevity annuity contract so that to the penny what that
income stream will be when you start it in the future. That's a
really good planning tool. But the bottom line with all of this is
kind of a one-on-one conversation, a consultative approach to
say what's in your best interest as for you
your family for your beneficiaries how do you want to structure it from a from
a lifestyle standpoint, a legacy standpoint.
In other words, annuities are customizable. People always call… I get a
call the other day from a good client and he said, "Well, this guy pitched me
this product and he said this product does this this this and this.
And this product does this this this and this." And my answer is "Who cares?"
I mean, you're trying to fit that person's product into your life.
It's the reverse. Fit your life into the product.
Let me do that again.
If someone's pitching you a product, they're trying to fit that
product into your life and you're trying to figure out how it fits in your life.
No, wrong. It's the reverse. Your life has to fit in the product. And it might not.
Getting back to the questions, what do you want the money to contractually do
and when you want those contractual guarantees to start,
that's the starting point for determining even if you need an annuity.
So, be careful out there.
There's a lot of what I call agenda selling where
you know an agent is pushing one product. They must love it. They've only learned one or they love that product or if they sell enough
of it they go on a trip with their girlfriend to bora-bora. Whatever. Don't
just listen to one product. Annuities are commodities,
period. People always call me, "Hey, Stan. What's the best annuity that you have?"
I don't know. I don't even know if you need an annuity. And even if you do need
an annuity, I need to know what type and
then I'm going to quote all carriers.
So, the best
annuity for you is the one that provides the highest contractual guarantee for
your specific situations and goals, period. All right. So, remember
retirement calculators. There's a lot of them out there.
It seems like every site has them. But you really don't know what you don't
know. Right? I would encourage you to go to my
site at theannuityman.com. Use our calculators.
But at the end of the day, you need to talk with me 1 on 1
to determine the structure, the perfect structure for your specific situation.
Don't guess at it. I mean, I'm going to send you my books.
You're going to sign up for those.
I'm going to send you those. You're going to
learn about the structures. But at the end of the day, you can do it
yourself to a point with annuities. But at the very end of the finish line, you
need an expert on the other end of the phone (which is
me) to help you decide how to structure it and if it
fits your specific situation. So with that,
hit the subscribe button right below me and I'll see you
on the next Stan The Annuity Man video..