Guaranteed Lifestyle Income

Understanding Annuities and Their Role

Annuities, as a category, are the only financial product that provides income as long as you are breathing. There's no return on investment (ROI) until you die. So, when people say, "I don't know about annuities," it's because they're thinking of them as a pension product. You can't say you hate all annuities because you already own at least one—Social Security. If you have a pension, you own two. If you have CDs, you kind of own three because Multi-Year Guarantee Annuities (MYGAs) are the annuity industry's version of a CD. So, it's pretty much the same thing. There are many types of annuities.

The Importance of Lifestyle Income Guarantees

When it comes to income, most people who think about retirement focus on their lifestyle. It's about Chapter Two. It's about what you're going to do after your current job, after the markets. You're going to retire, and you'll want to put guarantees in place to ensure you can live the lifestyle you want. Lifestyle income guarantees can mean several things, including immediate annuities, deferred income annuities, Qualified Longevity Annuity Contracts (QLACs), or Income Riders for lifetime income as long as you breathe.

Lifestyle income guarantees can also mean buying MYGAs, taking the interest off the top, just like you would with a CD, and never touching the principal. It's about ensuring a lifestyle.

A Simple Conversation with Us

When you talk to us, visit The Annuity Man and schedule a 30-minute call. Nothing crazy is going to happen. We're not going to try to close you on the first call. I had a consultant ask me once, "What's your closing ratio, Stan The Annuity Man?" I said, "Not everyone I talk to needs an annuity, so what are you talking about? You think everyone's a nail and I'm the hammer?" I love sales consultants. You know what they are? People who couldn't sell, so they become consultants. It's like managers at brokerage firms. Most are failed brokers who now manage successful brokers. Makes no sense, right?

The Reality of Baby Boomers Retiring

Lifestyle income guarantees are what you need to be looking at. Every single day, 11,000 Baby Boomers turn 65. That's 11,000 people, Monday through Sunday, every single day. These people are starting to think about contractually guaranteed lifetime income or wondering if they can put their money in CDs, money markets, Treasuries, and MYGAs, taking the interest out and never touching the principal. Do they have enough money to do that? Or do they need a lifetime income annuity, combined with Social Security (the best inflation annuity), and maybe a pension if they're one of the 9% or 10% who have one? It's about lifestyle. It's about living. It's about Chapter Two. It's about you.

The Importance of Focusing on Lifestyle

I know I keep preaching this, but every month, I get calls from clients who say, "I should have listened to you. I was just diagnosed with XYZ, and I wish I'd spent the money." I always joke around—there are no U-Hauls behind hearses. A client once made me do a video called "If You Don't Fly First Class, Your Kids Will." My kids like the finer things, of course. I fly first class because I've worked hard for it, and you've worked hard for it.

Instead of lifetime income streams or guarantees, I want you to focus on lifestyle. We're changing our lifestyle so that we have enough money hitting the bank account every single month—regardless of what happens with the Republicans, Democrats, Libertarians, communists, socialists, Russians, Bulgarians, or whoever. It doesn't matter. What matters is that we live our lifestyle.

Focus on What You Can Control

You have to control what you can control. We can't control our politicians, the media, geopolitics, or the uber-rich who seem to run everything. But we are who we are. Most of us grew up poor or lower middle class, but we love this country and everyone in it. We would fight for any of them. But at the end of the day, that same energy, patriotism, and drive for others and our families needs to be directed toward ourselves. That's where lifestyle income guarantees come in. Yes, it's for lifetime income, but it's also about lifestyle, and we can structure it so that 100% of any unused money goes to the family, not the evil annuity company.

The Power of Social Security

You already own the best lifestyle income annuity on the planet—Social Security. Why? Because it increases with inflation, they don't lower the amount; they give you the increase. That's fantastic. That's a lifestyle income guarantee that takes care of the country. I'm proud to pay for it as a taxpayer. It's a lifestyle income guarantee that helps people live well.

Exploring Lifestyle Income Options

At the end of the day, you're going to shop for lifetime income with me. We'll discuss the types of lifetime income and four ways to do it. But remember, it's about your lifestyle. It's about living Chapter Two and checking off those boxes. Make sure you're maximizing every day and be happy about it.

Three Phases of Retirement

Remember, there are three phases of retirement: go-go, slow-go, and no-go. My good friend Steve Parish reminded me of that on my podcast Fun With Annuities. We're all going to go through all three phases if we live long enough. Let's maximize go-go into slow-go. And when you reach no-go, at least you can look back and say, "Yep, Stan told me to maximize, and I did. I put the contractual guarantees in place, and we went for it." That makes me happy. And I look forward to speaking with you.

Closing Thoughts

If you haven't caught it by now, I'm not a good salesperson. I sell a lot because I listen and educate, but there's no high pressure. I'll tell you if you don't need an annuity, and we'll try to use as little money as possible to achieve the goals you've set.

I look forward to that conversation. I look forward to helping you put lifestyle income guarantees in place.

My name is Stan The Annuity Man. We'll see you next time.