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Retirement Tips | What Are The Four Best Annuity Types For Retirement? - YouTube
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Hi! Stan The Annuity Man, America's
Annuity Agent, licensed in all 50 states.
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so the question is what are the 4
best annuities for retirement. Part of my
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retirement
tips annuity series on the Stan The
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Annuity Man YouTube
channel, we're going to go over annuities
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and which types I think are the best for
retirement. That doesn't mean you need an
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annuity. But these are the ones that I think are
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pro customer if used correctly. So,
before we do that, I would encourage you
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to subscribe to this YouTube channel
because
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we're just getting started. I'm putting
these out every single day, Monday
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through Friday.
And I would encourage you to go to my
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site at the annuityman.com and get my
books.
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6 owners manuals. I'll send them to you
for free and under no obligation. I
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also encourage you to schedule a call
with me if you're really considering
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an annuity strategy or someone's pitched
to an annuity
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and you might want a little bit more
clarification, I will give you the brutal
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facts
of how these things work. So, let's get
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started after this music.
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Okay. So, the first type of annuity I
think that is really good for retirement
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is called a multi-year guarantee annuity.
This is for the person that says, "I don't
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want any market volatility.
I don't want to pay any fees. I want it
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to be simple. I want to know what the
interest rate's going to be and I want
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to control the term
in other words how long i lock it in."
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That's a multi-year guarantee annuity.
What is that? It's a fixed rate annuity.
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It's the annuity industry version of a
CD. A certificate of deposit.
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Neither is better than the other. CDs are
good and short term like from a year or
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less up to about a 2-year time period.
A MYGA, multi-year guarantee annuity, they
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typically have a higher
contractual guarantee 3 years in out.
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So, they work well in conjunction with
each other.
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You can ladder CDs and MYGAs at the same
time. But
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for the retirement person, the retiree,
pre-retiree or if you're already retired
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and you don't want to lose a penny,
you don't want to pay any fees, you
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really don't want to keep up with it. Uou
just want to know exactly what you're
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going to get annual interest rate,
multi-year guarantee annuity. Now,
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theannuityman.com, I'd encourage you to go
there. We have a
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live feed, a proprietary live feed of the
best fix rates
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in the country. Now, MYGA --multi-year
guarantee annuity is
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a fixed rate annuity and and it's issued
by life insurance company
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and it's approved at the state level.
Okay, so when you go to my site, you're
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going to pull up the the MYGA feed
and you're going to filter the state of
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residence and the duration. So, let's just
say you're from Oregon. You're going to
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put Oregon. And i'm interested in 5
years. You'll hit 5 year,
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hit go and it'll list the top carriers
that have contractual guarantees for
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five years for that multi-year guarantee
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annuity. You can do 3 years, 4 year,
5 year, 2 years, 10 years, whatever.
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The point is these are fixed rate
annuities. They protect the principal,
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there's no market attachment, there's no
moving parts,
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they're very simple and easy to
understand and they are very good
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for retirement. Oh, the other thing i
forgot to tell you about multi-year
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guarantee annuity.
Some of the the carriers that offer them
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allow you to peel off that interest,
every month and it hits your bank
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account. So, it also can kind of be an
income stream as well.
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Not all of them do that but that's the
reason me and you need to talk so we can
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filter down to exactly what you're
trying to achieve and what you're
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looking for.
Okay. The other, the second type of
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annuity I think is good
for retirement is an indexed annuity
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with an income rider. You're like, "Oh! Did
you really say that, Stan?"
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Yeah. But indexed annuities in my world,
in my terms,
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the way that I look at them, indexed
annuities are CD products. They were
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developed in 1995
to compete with CD returns. That's
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exactly what they do.
But I think for retirees, you might be
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looking for
income in the future. And the way that we
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like to use
indexed annuities a lot of the time is a
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delivery system for that income rider
guarantee. So, if you come to me and say,
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"You know, I think I need income in 4
years or 3 years or 7 years or
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10 years.
But I want to control the money. I want...
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I'm not sure i'm going to turn on the
income stream.
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I want to control the money and if I
need to pivot." And say, "Stan, I don't want
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to do that anymore. Just
send me the money", indexed annuities with
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the income riders are pro retirement.
Pro retiree because you kind of have
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your cake and eat it too a little bit.
You're going to get CD returns on the
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index side.
Understand that. Not market returns. I
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know, that's what people are telling you
but listen to me. The top agent in the
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country. I've written a book on it which
I'm going to send you if you go to my
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site at theannuityman.com
and sign up for it. But when you attach
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that income rider,
now you have a pension guarantee that
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you can turn on at your discretion
for future lifetime income and you can
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attach a spouse or partner.
It's really a good strategy. What we
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found though is the indexed annuity with
the income rider
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provides the highest contractual
guarantee on the income rider side when
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compared to other products
that have income riders attached. So, the
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second product I want you to
think about and consider and talk to me
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about is if you need future income but
you want to control the asset,
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fixed indexed annuities with an income
rider might be a good fit.
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Okay. The third type of annuity that i
think is good for retirement
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is the SPIA-DIA category which is single
premium immediate annuity, deferred
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income annuity. That's what that stands
for.
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The reason i combine those 2 products is
they're pretty much the same product.
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It just depends on when you want the
income to start. Now, immediate annuities,
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single premium immediate annuities were
designed
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and introduced in the roman times back
in the day
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as a pension guaranteed gift to the
dutiful roman soldiers and their
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families. Now,
immediate annuities have been sold in
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this country for a couple hundred years
plus.
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Now, deferred income annuities are
immediate annuities that you defer. So,
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let me give you the rules. But they are
great for retirement because these are
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pure pension products. There's no moving
parts, there's no annual fees, there's
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no market attachments. The income stream
guarantee is primarily based on your
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life expectancy (or life expectancies if
joint) at the time you take the payment
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with interest rates playing a secondary
role. They're commodity products.
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I mean they really, really are. You just
need to quote all carriers for the
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highest contractual guarantee.
And oh, by the way, I bring this empty
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gallon of milk is because
SPIA and DIA quotes is pretty much all
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annuity quotes but definitely immediate
annuity and deferred income annuities
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are like a gallon of milk. "What does that
mean, Stan? Why do you have a gallon of
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milk?"
Is because the quotes expire every 7
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to 10 days just like a gallon of milk.
So, think about that. When we're quoting
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SPIAs and DIAs think of gallon of milk.
You don't have to make a decision every
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7 to 10 days,
but if we are in the process of talking
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and 7 to 10 days go by,
I'll have to re-quote those for you. And
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oh, by the way, that gallon of milk
analogy is a good one.
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That doesn't mean that you have 7 to
10 days to decide.
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You have seven ten days to get the
paperwork into the carry if you want to
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lock in that specific
rate. Now, let's go over the rules
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with immediate annuities. If you said,
"Stan,
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I want income to start between as soon
as 30 days
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up to a year. That's an immediate annuity.
That's a single premium immediate
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annuity.
Once you go to that 13 month, I want the
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income to start in 13 months or
or beyond. And some deferred annuity
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companies allow you to
to defer up to 30 or 40 years. Yeah,
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people do that because they want those
contractual guarantees
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for their kids or wondering and ambiguity
kids or people they just love and
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they know they're not going to have an
income stream at the
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in the future. They want that deferred
income annuity. But in essence, that's how
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it works.
"Hey, Stan. I need income now." Between now
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and a year, if that's an immediate
annuity. "Hey, Stan. I need income in a year
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or 5 years from now." That's a deferred
income annuity.
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Once again, no annual fees, no moving
parts, no market attachments.
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Very, very simple to understand. And
remember this:
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Immediate annuities are the best annuity
type for retirement if you need income
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right now.
Deferred income annuities, when you need
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income later, we're going to
going to quote not only those but we're
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also going to quote income riders as
well because those are the 2
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strategies
that we quote for what we call income
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later, income down the road.
Okay, the fourth type and final type that
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i think is really pro customer, good for
retirees is what's called a QLAC,
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qualified longevity annuity contract.
It's a deferred income annuity.
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So, an immediate annuity is a deferred
income annuity and a QLAC is a
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deferred income annuity. Are we confused
now?
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The bottom line is it's a transfer of
risk,
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pension product that you can use in your
traditional IRA. And some,
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not all, some employ your sponsored plans.
Most people are using QLACs in their
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traditional IRAs. The good news about a QLAC
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is you can defer as far out as age 85.
Doesn't have to be that far.
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You can start it sooner. Let's say, age 70-
72. Whatever.
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The other good thing about a QLAC is
you can attach a spouse or a partner for
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joint lifetime income even though it's
your traditional IRA.
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The other good thing about a QLAC is it
has the potential to lower your taxes
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because
any amount of money that you use in a
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QLAC
is not subject to rmd calculations.
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Which is a good thing. Now, the kind of
the downside of the QLAC is you
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can't put a ton of money in it
at the time of this taping which is 2020.
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And this will change.
So, you need to connect with us. And I've
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written a book on it. I'll send you as
well.
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It's $135,000 is the max you
can put into QLAC. Nut if you and your
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spouse have QLACs, you both can do
that amount. But the good news is you can
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use your retirement account
to plan for future income. Now, QLACs were
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actually
designed and put on the planet by the
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department of the treasury and our
friends at the IRS,
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they wanted us as a as a country
to start utilizing those IRA assets for
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future income needs. Now,
you already own the best inflation
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annuity on the planet. That's called
social security.
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QLACs and DIAs, deferred income
annuities work just like that.
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The older you are, the higher the payment.
So, you need to connect with me if you
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want a QLAC so I can
get a little bit better picture what
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you're trying to do. We can structure a
myriad of ways we can ladder the income.
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We can buy 2 or 3 different policies under that premium
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limitation to
have income starting in future years to
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address inflation. The bottom line is
they're
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great, great products. I hear sometimes
pundits say, "You should never buy an
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annuity inside of an IRA."
They obviously have not heard of a
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QLAC. Hey, I encourage you to look at all
my retirement tips and videos i'm just
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pointing to one. But you can go to the
playlist
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and see the series. Also, hit the
subscribe button
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or go to theannuityman as well and set
a time to talk with me. Remember,
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contractual guarantees only. You buy an
annuity for what it will do, not what it
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might do. Not the hypothetical,
theoretical,
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back-tested, projected, hopeful stuff. The
4 annuity types that i talked to
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about today.
We're looking at contractual guarantees
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only. Maybe that's for you. If it is,
contact me. I'm Stan The Annuity Man,
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I'll see you on the next video.
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