“Fun With Annuities” The Annuity Man Podcast

In this episode, The Annuity Man discussed:  * The four lifetime income products * How annuities are priced  * The simplicity of SPIA  * Getting the highest guarantee    Key Takeaways:  * There are four lifetime income products: Single Premium Immediate Annuities, Deferred Income Annuities, Qualified Longevity Annuity Contracts, and Income Riders that can be attached to Variable Annuities and Indexed Annuities.  * Annuities are priced primarily on your life expectancy at the time you start the payment. Interest rates play a secondary role.  * Deferred Income Annuities are, in essence, just a Single Premium Immediate Annuity that is deferred past a year. A SPIA has no moving parts, no market attachments, and no annual fees. It is a straight transfer of risk.  * The highest possible payments you can have from an annuity are from a life-only annuity. This is the annuity for people who don’t want to give to any beneficiaries. Companies often issue these without the option to change the start date, but you can change the start date if the contract has a cash refund or period certain attached to it.    "That income for life transfer risk strategy with annuities, typically four primary types SPIAS, DIAS, QLACs, and Income Riders. We can structure it so that you have the ability to pivot and change that income start date." —  Stan The Annuity Man.    Connect with The Annuity Man:  Website: http://theannuityman.com/ [http://theannuityman.com/]  Email: Stan@TheAnnuityMan.com  [Stan@TheAnnuityMan.com] Book: Owner’s Manuals [https://www.stantheannuityman.com/how-do-annuities-work]: https://www.stantheannuityman.com/how-do-annuities-work [https://www.stantheannuityman.com/how-do-annuities-work] YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g [https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g]  Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator! [https://www.stantheannuityman.com/annuity-calculator]

In this episode, The Annuity Man discussed:  * Buying an annuity that you understand  * Annuities aren’t one-size-fits-all * How to know if you understand a product    Key Takeaways:  * When buying an annuity, remember that if a product sounds too good to be true, it is every single time. Some annuities are more complex, and most agents cannot explain them well, let alone even comprehend them themselves.   * Currently, the annuity industry has an unbalanced way of compensation for different types of products. Agents get a higher commission for selling a certain type of product. The problem is that annuities aren’t one-size-fits-all. It takes some consideration to determine a person’s needs and what product would solve that.  * Buy products that you understand. A good indicator that you do understand something fully is if you can explain it to your spouse, family, or friends and have it make sense to them.    "You have to be able to understand what you're buying, and you have to be able to go into a second-grade class and explain it to them." —  Stan The Annuity Man.    Connect with The Annuity Man:  Website: http://theannuityman.com/ [http://theannuityman.com/]  Email: Stan@TheAnnuityMan.com  [Stan@TheAnnuityMan.com] YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g [https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g]  Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator! [https://www.stantheannuityman.com/annuity-calculator]

In this episode, The Annuity Man discussed:  * Why do agents tell stories?  * Protecting yourself from bad pitches  * Don’t listen to these stories  * The only two important questions    Key Takeaways:  * In sales, managers will often tell their people that stories sell and that they do, so you have to watch out for hypotheticals, testimonials, and anecdotal “evidence.”  * Here’s how you can protect yourself from liars who’d sell you stories: write down their sales pitch exactly as they said it and how you understood it. Sign and date it at the bottom and flip it over to them. Have them sign the contract, so they’re on the hook if they lie in their pitch.  * Never base your decision on a back-tested number; those are stories. If they tell you all about the people who own what they're selling, don’t listen - those are stories. Never base your decision on up-front bonuses; you’re smarter than that - there’s no such thing as free money.  * There are only two important questions: “What are the contractual guarantees?” and “When do you want those contractual guarantees to start?” By answering those two, we can determine whether you even need an annuity or which type will provide the highest contractual guarantees if you need an annuity. There are no stories with contractual guarantees.    "Don’t buy the dream because you’re going to own the contractual reality. Don’t buy the story, buy the contract." —  Stan The Annuity Man   Connect with The Annuity Man:  Website: http://theannuityman.com/ [http://theannuityman.com/]  Email: Stan@TheAnnuityMan.com  [Stan@TheAnnuityMan.com] Book: Owner’s Manuals [https://www.stantheannuityman.com/how-do-annuities-work]: https://www.stantheannuityman.com/how-do-annuities-work [https://www.stantheannuityman.com/how-do-annuities-work] YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g [https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g]  Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!  [https://www.stantheannuityman.com/annuity-calculator!]

In this episode, The Annuity Man discussed:  * Annuities for your spouse and loved ones  * Throwing darts at death  * Planning for cognitive decline  * Filling in financial gaps   Key Takeaways:  * Using a trust, you can set up an immediate annuity purchase to trigger when you pass away to provide lifetime income for your spouse using a designated lump sum. You can use annuities to lovingly handcuff your young beneficiaries, providing them with guaranteed income instead of a lump sum.  * Buying an income rider, deferring it out, and setting it up as a joint-life policy is like throwing darts at death because you don’t know when you’re going to die. Death is not a good strategy.  * The problem with planning for something for your spouse in case of cognitive decline is that you don’t know when you will have cognitive decline, especially if you are already in cognitive decline.  * You can set up a plan that will fill in financial gaps that your spouse can enjoy when you pass away, and it can be set up so that your death triggers it. However, you can also throw some calculated, contractual darts if that’s what you prefer.    "Now, while you're alive, if there's something like a pension or something that's going to be reduced upon your death, we should start planning upon your death to replace that gap for your spouse. That can be done at the time of your death - it can be triggered by your death. Or we could throw some calculated contractual darts. " —  Stan The Annuity Man.    Connect with The Annuity Man:  Website: http://theannuityman.com/ [http://theannuityman.com/]  Email: Stan@TheAnnuityMan.com  [Stan@TheAnnuityMan.com] Book: Owner’s Manuals [https://www.stantheannuityman.com/how-do-annuities-work]: https://www.stantheannuityman.com/how-do-annuities-work [https://www.stantheannuityman.com/how-do-annuities-work] YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g [https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g]  Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator! [https://www.stantheannuityman.com/annuity-calculator]

In this episode, The Annuity Man discussed:  * Solving for longevity risk  * Four products for lifetime income  * Focusing on guarantees    Key Takeaways:  * There is no ROI until you die. Up until then, it’s a transfer of risk to the annuity company to solve for longevity risk. The longevity risk is the fear that you’ll outlive your money. An annuity will pay as long as you’re breathing, even if you are on a ventilator.  * The annuity industry has four major types: Single Premium Immediate Annuities, Deferred Income Annuities, Qualified Longevity Annuity Contracts,  and Income Riders. All four provide a lifetime stream as long as you are breathing or if you set it as joint-life, as long as you or your spouse is breathing.  * Forget all the shiny things that agents try to make you fixate on. Focus on the guarantee that you will get paid as long as you’re breathing. You could also structure the contract so that your money goes to your beneficiaries when you die.    "The good thing about turning on lifetime income stream and transferring that risk to an annuity company to pay for as long as you're breathing or on a ventilator is that it's turnkey. And there will come a point if we live long enough that we will need that income to be turnkey." —  Stan The Annuity Man.    Connect with The Annuity Man:  Website: http://theannuityman.com/ [http://theannuityman.com/]  Email: Stan@TheAnnuityMan.com  [Stan@TheAnnuityMan.com] Book: Owner’s Manuals [https://www.stantheannuityman.com/how-do-annuities-work]: https://www.stantheannuityman.com/how-do-annuities-work [https://www.stantheannuityman.com/how-do-annuities-work] YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g [https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g]  Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator! [https://www.stantheannuityman.com/annuity-calculator]