In this episode, The Annuity Man discussed: 

• Annuities that increase with inflation 

• The role of interest rates in pricing 

• For products that adjust for inflation

• Reverse-engineering your income floor

Key Takeaways: 

• Annuities don’t give things away for free. A product that magically increases with inflation doesn’t exist. 

• Lifetime income is primarily priced based on your life expectancy at the time you take the payment. Interest rates play a minor role. 

• For products that have a potential or contractual increase for inflation, the annuity company will severely lower the initial income as compared to the exact annuity without the increase. 

• Don’t focus on things that you can’t control. Focus on building up an income floor that suits your needs. Compute the number you’ll need to cover your expenses; we can reverse-engineer a product for that. 

"It's math to the annuity companies. It should be math to you. If it sounds too good to be true, it is every single time. " —  Stan The Annuity Man. 

Connect with The Annuity Man: 

Website: http://theannuityman.com/ 

Email: [email protected] 

Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work

YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g 

Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!

In this episode, The Annuity Man discussed: 

• CDs and MYGAs

• I-bond no-brainer

• The safest product in principal protection 

• How safe are MYGAs? 

Key Takeaways: 

• Here’s how CDs (Certificate of Deposit) work: you give the bank money, they protect the principal, and you don’t have to pay any fees. You can take the interest if you want to at the end of the term and do what you want with your money. MYGAs are basically the annuity industry’s version of a CD. 

• Treasury bonds are a no-brainer. Go to treasurydirect.gov to buy them for yourself. The only downside of treasury bonds is that there’s a limitation on how much money you can put in it. 

• Of these three safe principal protection options, treasury bonds are the safest because the government can tax or confiscate money in order to pay it, and they will. The second safest one is CDs since they are government-based as well. 

• MYGAs are safe products to invest in, and their safety is based on the annuity company’s ability to pay. They are commodity products, and the money you’ll get from them can be used to buy another MYGA from another company. However, you can’t put all your money on annuities; you got to spread it around. 

"This trifecta is a contractual guarantee:  CDs, Treasury's, Multi-Year Guarantee Annuities. You’re owning these because of what they will do, not what they might do. You're buying the yield. The yield is contractual." —  Stan The Annuity Man.

Connect with The Annuity Man: 

Website: http://theannuityman.com/ 

Email: [email protected] 

Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work

YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g 

Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!

In this episode, The Annuity Man discussed: 

• Products that adjust for inflation 

• Thinking rationally about inflation 

• Reverse-engineering annuity 

Key Takeaways: 

• Many bad sales pitches out there mention a way to beat inflation using indexed products that adjust for inflation. What really happens is that the annuity company severely lowers the initial payment to make up for any potential increase. 

• Think rationally about inflation. It’s customizable to everybody, meaning not everyone is affected the same way. Some are not even affected at all. 

• Start with the goal or the need. How much more do you need in order to live the life that you want? To solve for that difference, you’ve got to shop all carriers and see which offers the highest contractual guarantee that will fit the goal or the need. 

"Just hold until you need to fill the gap in income for inflation. Don't be proactive; don't throw darts at it. But if you do want to throw darts - let's buy income that starts at a future date." —  Stan The Annuity Man. 

Connect with The Annuity Man: 

Website: http://theannuityman.com/ 

Email: [email protected] 

Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work

YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g 

Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator! 

In this episode, The Annuity Man discussed: 

• Threading the needle with volatility

• Freedom from volatility

• Annuities are the haystack 

• Time to secure guarantees 

Key Takeaways: 

• Threading the needle to get market returns makes you dependent upon so much unknown. You’re dependent on world markets, geopolitical events, and meltdowns that are impossible to predict. 

• A lot of people can retire from their jobs and the market, and they should; those who can’t yet should make it a goal to do that and be free from being dependent on volatility. 

• There’s no threading the needle for principal protection; there’s no finding the needle in a haystack for lifetime income. You don’t need to find a needle; you need the haystack. Use an annuity to have the highest contractual guarantee. 

• What phase of your life are you in right now? If you’re in the no-go stage, then it’s time to stop losing sleep over the markets, and it’s time to secure guarantees. 

"Investing in markets a lot of times is like surfing the side of a cruise ship. Sometimes you’re going to catch a wave right beside that cruise ship, but a lot of times, you’re going to get sucked under the boat." —  Stan The Annuity Man. 

Connect with The Annuity Man: 

Website: http://theannuityman.com/ 

Email: [email protected] 

Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work

YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g 

Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!

In this episode, The Annuity Man discussed: 

• Annuities are contracts 

• How Indexed Annuities Should Be Used 

• Don’t buy an annuity for market returns 

Key Takeaways: 

• To say that something is “guaranteed and backtested” means that there is nothing guaranteed at all. Annuities are contracts; buy them for what they will do and not what they might do. 

• Indexed Annuities have the potential to go down in value, but they can be used as an efficient delivery system for guaranteed lifetime income through an income rider attachment. 

• If you want market returns, never buy an annuity. Annuity solves for four things: Principal protection, Income for life, Legacy, and Long-term care. 

"Do not buy the annuity dream because you're gonna own the contractual reality." —  Stan The Annuity Man. 

Connect with The Annuity Man: 

Website: http://theannuityman.com/ 

Email: [email protected] 

Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work

YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g 

Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!

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/ 

Email: [email protected] 

Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work

YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g 

Get a Quote Today: 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/ 

Email: [email protected] 

YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g 

Get a Quote Today: 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/ 

Email: [email protected] 

Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work

YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g 

Get a Quote Today: 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/ 

Email: [email protected] 

Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work

YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g 

Get a Quote Today: 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/ 

Email: [email protected] 

Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work

YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g 

Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!