What Is The Primary Reason For Buying An Annuity? - YouTube

Hi, there! Stan The Annuity Man, America's  Annuity Agent, licensed in all 50 states.  

The crew is going crazy over my new Stan The  Annuity Man logo because there's camouflage. So,  

if I turn this way you won't be able to see  me. Like if I do this, you can't see me.  

What? See? Look, I just blend in. It's  amazing. I know what you're saying. "Why?  

Why all of this?" Why not? What the heck? We're  talking about annuities. We have to have fun  

with annuities which is the name of my podcast.  So, what is the reason to buy an annuity? What  

is the reason? There's a lot of reasons, good  and bad. I'm going to cover both after this.  

So, what is the most common use of an annuity?  Well, to answer that question properly as  

Stan The Annuity Man, I have to do a little bit  of a history lesson. Annuities were put on the  

planet in the Roman times as a pension type gift  for the dutiful Roman soldiers and their families.  

That's where annuities started. That's the single  premium immediate annuity structure. It was for  

lifetime income. So, what's the most common use?  Lifetime income. Why? Because it's the monopoly  

that the annuity industry owns. Now, you got to  ask yourself because sometimes the best questions  

asked are from me. Why isn't the annuity industry  promoting the monopoly that they have that no  

other financial product has? Good question, Stan  The Annuity Man and I don't have a good answer.  

Lifetime income. Now, you might say, "Well, then  I hate all the annuities because this guy on tv  

said I hate all annuities." Really? You already  own one. It's a lifetime income stream annuity,  

the best inflation annuity on the planet for  lifetime income stream. And oh, by the way,  

it's called social security. It's an annuity.  It's for lifetime income. People love it. Why?  

because it's for lifetime income. It pays you  forever as long as you're breathing. Annuities,  

that's the primary reason to own them. Now, yes  there are other types that do other things. But if  

you said to me, "Stan The Annuity Man, America's  Annuity Agent, what's the primary reason to own  

or consider owning an annuity?" I would tell you  for lifetime income, as part of your income floor,  

as that guaranteed pension and we live in a  pensionless world with 10,000 baby boomers  

reaching the age of 65 every single day and they  don't have guarantees, guess what? You need to set  

up a pension. So, of course, you're saying, "Well,  what's the return on investment on that thing? Was  

the ROI?" I don't know the ROI until you die.  Up until that point, it's a transfer risk. You  

either see value in transferring the risk for  that lifetime income stream or you do not. So,  

bottom line, there's not another financial product  on the planet that can provide lifetime income  

except annuities. Alright, so Chester calls me all  the time. The mythical Chester and says, "What do  

I get on a 100,000-dollar annuity." Need a little  bit more information than that, Chester. So,  

what is a 100,000-dollar annuity pay? You know,  what would 100 thousand-dollar get me? Well, it  

depends on the type of annuity. But I'm assuming  that you're thinking lifetime income. Well,  

just remember this: Life expectancy at the time  you take the payment drives the pricing train.  

Interest rates play a secondary role. Some people  say, "Well, I'm going to wait to buy my annuity  

until interest rates go up." Well, then, you have  to factor in the payments that you miss while  

you're trying to be Gordon Gekko of annuities  which you can't because you can't time it,  

period. It's kind of like when you look at your  social security, you go, "Well, if I wait to age  

70, those payments will be higher than if I  may take them at age 65." Duh, it's because  

life expectancy. It's really that simple. But that  doesn't mean you wait till 70 and not take it to  

65. You have to run the number. So, if you wait to  70, then you have to factor in the payments that  

you missed, the 60 payments. 5 times 12, 60. The  60 payments those 5 years that you waited to time  

it to get the higher payments. So, then you have  to figure out how long it's going to take to make  

up for that. I know i'm getting into the weeds but  when you ask me "What is a 100,000-dollar annuity  

pay or what is the 200,000-dollar annuity pay or  what's a million-dollar annuity pay?" It depends  

on how you structure remember this too: If it's  single life only, it's going to pay more than  

joint life only. That doesn't mean you leave  your spouse out of it. I would recommend you  

considering a joint life payment if you're looking  for lifetime income stream because when your  

leader jet hits the mountain and you die then the  income continues uninterrupted and unchanged for  

your beloved spouse or partner's life. Isn't that  good? So, they drive back from the funeral, they  

drive past the bank. They glanced at the bank.  And they go, "Huh, yeah the payments are still  

going. That's too bad Jim died." You know what I'm  saying? It's a transfer of risk. It's a pension.  

So, what is a 100,000-dollar annuity pay? I'm  going to need dates of birth, date of birth/dates  

of birth. I'm need the type of account. Even  though the contractual guarantee is the same,  

the taxation of that money coming out is going  to be different depending on the account. I'm  

going to need when you need the income to start.  All those details, all those confidential details  

when you go to the annuityman.com and schedule a  call with moi(me). So, what is the primary reason  

for buying an annuity? We've already talked about  lifetime income. I yelled at you about that. So,  

drove it into your head. But let's be very clear  about something. Coming from Stan The Annuity Man,  

America's Annuity Agent, licensed all  50 states, the top agent out here.  

You might not need an annuity. "He said it!"  The annuity gods looked down upon him and go,  

"Never say that, Stan. Always sell the annuity.  You are the hammer and everyone's a nail."  

No. No. You might not need an annuity. And let me  tell you how to figure that out. I've come up with  

2 questions, if you ask yourself this and answer  it. Or I could answer it, ask it and you could  

answer it. Here's the first question: What do  you want the money to contractually do? (Keyword,  

contractually) Second question: When do you want  those contractual guarantees to start? (Keyword,  

contractual) Annuities are contracts. You make  the decision on the contractual guarantees not  

the hypothetical, theoretical, projected,  back-tested, hopeful agent-return scenarios,  

unicorns chasing the butterflies nonsense. You  buy for what it will do. Not what it might do. So,  

again, the questions: What do you want the money  to contractually do? And when do you want those  

contractual guarantees to start? If you answer  any form of, "I like market growth. I'd like a  

reasonable rate of return." Something like that,  then never ever, ever, ever buy an annuity. Do  

not buy an annuity for market growth. Hello? And  I'm talking to people that are considering index  

annuities that's been pitched as market growth  products. They're not. They're not securities,  

they're fixed annuities. CD type products.  Nothing wrong with them. Great products.  

Variable annuities, nothing wrong with them, I  don't sell them but you have limited choices.  

And when it comes to me, Stan The Annuity Man in  my previous life at Dean Witer, Morgan Stanley,  

Paine Webber and UBS. I've done it, I've been  there, I've been on that side of the table.  

Never buy an annuity for market growth. Hear  me? Nod your head. I need to make sure that you  

understand that. Now, those are the 2 questions.  Here's the other thing that I've come up with.  

Very unique to Stan The Annuity Man. Trademark,  copyrighted, there's people with armed guards with  

guns up when I start talking about this. It's  called the PILL. It's an acronym that you need  

to remember in addition to the 2 questions. I even  have a sign for it. Ready for that? PILL. P stands  

for principal protection. I stands for income  for life. L stands for legacy. The other L stands  

for long-term care/confinement care. Let me do it  again. P stands for principal protection. I stands  

for income for life. L stands for legacy, leaving  money to your heirs. And the other L stands for  

long-term care/confinement care. If you do not  need to contractually solve for one of those 4  

items in the pill... Let me say this real slow,  you do not need an annuity. It's that simple. So,  

when you're making that decision, if an annuity  even makes sense for you... "Do I even need an  

annuity? I've been pitched all these annuities",  ask the 2 questions and remember the PILL.  

Okay. This is the part of the video where I play  air guitar. But I'm playing air guitar in order  

to teach you something. So, let's go. I'm going  to spell out a word so hang in there with me.

S H A

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