100k Annuity Payout

Hello, out there! Stan The Annuity Man. You have landed in the right place. Who am I? I'm Stan The Annuity Man, America's Annuity Agent, licensed in all 50 states, including yours. You're sitting out there, wherever you're sitting. Thanks for reading along with me.

Today's Topic: How Much Does a $100,000 Annuity Pay?

The topic today is the general question that everybody asks me because they think all annuities are one type, work the same, and are all priced the same. So, the question is, how much does a $100,000 annuity pay? Or, let me do it in my client's voice: "How much does a $100,000 annuity pay, Stan? What's it paying?" I need more information from you there, Chester. Let's dive in.

Answering the Big Question

So, answering the question everybody asks, "How much does a $100,000 annuity pay?" There's no good answer. In fact, in the annuity world, there are no good answers, just bad sales pitches. First of all, what type of annuity are you talking about? There are different types. Most people asking that question are asking it based on a lifetime income stream question. They're saying, "I want to put $100,000 into the annuity, and I want it to pay for life." Okay, that's a good question, but remember that annuity lifetime income streams are based on your life expectancy at the time you start the payment. If you're setting up joint with a spouse or partner, it's life expectancies, plural, so it's based on two life expectancies. So, I will need your date of birth or dates of birth. If it's single, date of birth, obviously. Dates of birth if it's joint life.

Structuring Lifetime Income Streams

In addition to that, because there are 35 or more different ways to structure a lifetime income stream payout, you're going, "Wait a minute. 35?" Yeah. Most people think, "Hey, when I die, when my Learjet hits the mountain, when my Bentley hits the tree, when my Ferrari runs off the road, when my heart stops beating, and I die, the evil annuity company keeps the money," that's only one way. That's called Life Only. Now, that's going to pay the most because you're accepting some of that risk. But most people work very hard for their money. They're saying, "Hey, I don't want that to happen. I want the lifetime income stream guarantee, but if I die, I want any unused money going to the listed beneficiaries of the policy." Most people want that.

Factors Influencing Annuity Payouts

So, you've worked hard for your money, and you're saying, "Okay, how much does a $100,000 annuity pay?" I need that information. I also need to know what state of residence you're in. I'm licensed in all 50 states. It doesn't matter from my standpoint, but from your standpoint, it matters because Fixed Annuities are approved and regulated at the state level, so we have to shop all carriers for those annuities that are approved in your state. In addition to that, I need to know what type of account you want to use: an IRA, a non-IRA, a non-qualified ticket account, or a Roth IRA. Whatever it is, the guarantees will be the same, just the taxation of the income coming out will be different. Right? Yes, those are the details that I'm going to need. So, what does a $100,000 annuity pay? It depends on what you're talking about. We're going to talk about a couple of other types of annuities, answering that question as well.

Period Certain Annuities

Let's talk about payment annuities and income annuities, but not for life. Okay, so the question again, "Hey Stan, what's a $100,000 annuity pay?" How about if you're not looking at a lifetime income stream, you're looking at just, say, it's going to pay for 10 years, or it's just going to pay for 20 years, or it's just going to pay for 15 years. That's called a Period Certain Annuity. You need to tell me exactly the period certain; maybe you need a gap filled for some income stream. We'll run that. So, it depends on the period certain that you want. It doesn't have to be a lifetime income stream. And for any income quote, the other thing I will need to know from you is when you want the income to start.

Gathering Necessary Information

So, dates of birth, where you live, state of residence, and how you want it structured. When you want the income to start and the type of account. I need that as well. All of those parameters feed into the contractual guarantee. Of course, we have the best annuity calculators on the planet, and I represent all carriers and am licensed in all 50 states, so when we put your information in, we're going to find the highest contractual guarantee for your situation. And when you're looking at these types of products, income types of products, whether it's for life, or whether it's for period certain, or whether it's for a combination of the two, we're going to need all that information. And then I don't really care who the carrier is. What I do is I put the information in, we get the number, and you're going to fall in love with the number, not the company.

Evaluating the Carrier's Claims Paying Ability

Now, at the end of the day, we have to look at the Claims-Paying Ability of the carrier. We have the carrier backing up the guarantee; we have to make sure that they can pay it. Common sense.

Distractions and Competitor Concerns

While I was writing this, a drone flew overhead, and we were like, "Where's the drone, man?" Just like, "Zzz," so someone's trying to spy on Stan The Annuity Man like my competitors, which I really have none. They want to know what I'm doing; they want to know where I'm writing this blog. We never reveal where we are. I fly into undisclosed locations and write these because I'm getting tracked and followed. At least in my mind, I am. So, listen. Let's go back to the question. "What's a $100,000 annuity pay?" We talked about the income type annuities, how about Multi-Year Guarantee Annuities, which are the industry's version of a CD? What's that pay? Well, it depends on the duration that you choose and the guaranteed interest rate. If you're taking out the interest on, say, a five-year, it's going to pay a specific interest rate annually if you want to take that out. So, that's the answer to what that pays.

Variable and Indexed Annuities

Let's talk about other products. Variable Annuities or Indexed Annuities. "Hey Stan, what's a Variable Annuity or Indexed Annuity pay?" I don't know. Those are products where the accumulation value of them is not guaranteed. In other words, Variable Annuities are based on mutual funds; they call them separate accounts for some reason, the annuity companies. Indexed Annuities are a little different. It's a Fixed Annuity, but the return is a non-guaranteed return based on a call option. Long story. But with those, you really can't answer that $100,000 question.

Wrapping Up

Hopefully, I have answered the question of, "What does a $100,000 annuity pay?" or, "How much am I going to get from a $100,000 annuity?" Walk away from this blog saying, "Hey, he can't answer that." Nobody can truly answer that without getting specific information on what you want to look at. The type of product, and if it's an income product for life, we need dates of birth and all the specific information. The bottom line, annuities aren't just one product. When people say, "Well, I just hate all annuities, Stan." First of all, you own one; it's called Social Security. Second, saying that is like saying you hate all restaurants. It's crazy talk, but it is what it is.

Never forget to live in reality, not the dream, with annuities and contractual guarantees! You can use our calculators, get all six of my books for free, and most importantly book a call with me so we can discuss what works best for your specific situation.