Average Retirement Income | How Can Annuities Help? - YouTube

Hey! Stan The Annuity Man, Americans Annuity Agent. License in all 50 states.

That includes yours. Author of 7 books on annuities. 6 of them I'll

send to you for free. "Why not 7, Stan?" Because I'm

rewriting that one. It's called The Annuity Stanifesto. It was the

original one. I'm rewriting. But the other 6 owner's manuals, I will send to you

for free. If you go to theannuityman.com. So, average retirement income, how

can I do it he's helped with that? Obviously, annuities can help because

they're the only product up on the planet that provide a lifetime income

stream that you can never ever, ever, ever, ever, ever, ever outlive. But what's the

average retirement income? I read something the other day where the

average income stream in America currently at the time of this taping.

I guess the dates of above me somewhere,

it's to income family $55,000 a year. Seems about right. You know, you might

think that's low you might think that's high but I think that's what I just read.

But let's dig into how annuities can help,

why annuities should be part of your overall income floor plan. What is an

income floor and then how you can plan for the future as you go to chapter 2 of

your life of living your life living the dream and having income hit your bank

account. But we're not going to do any of that until we hear music. And the music

starts now.

As you probably know I do all these. These annuity videos on the Stan The

Annuity Man YouTube channel. I did one recently "How does a pension annuity work?"

You might want to look at. And why do I bring that up now? It's because we're going

to talk about creating a pension, right? We're talking about average retirement

income. You might want to know what that is. You know, what's the average

retirement income? You might want to know that because hey, you want to know if I'm

doing better, if I'm doing worse, if I'm on track. I don't really think it comes

down to that. I don't think it's a comparison that you need to make. My

opinion. I think it really comes down to what you need. What are your expenses? And

when I talked about income flooring in the first part of this video right

for that need music hit. What income flooring means is what is the guaranteed

income amount that you need to hit your bank account every single month that

covers expenses. That's including some lifestyle. But you know, your basic

expenses so you don't to worry about the stuff that's not going to be

affected by the markets or by volatility or a geopolitical event. It's the income

stream that's coming in. That pension type income stream. Now, what does that

include? What's your income floor include? It includes Social Security which is an

annuity because it plays it pays a lifetime income stream. It includes a

pension if you're so fortunate to have a pension. That's an annuity that pays a

lifetime income stream. It includes dividends or rental income or... You know

what else includes income floor? Your RMD's from your IRA. You're required minimum

distributions. You kind of have to lump into an income stream because that is

providing income into your account. I know some pure income. That's not a

purist definition. But it's money coming in. So, money coming in. How much do you

need? And then from that, so find out that gap. If you don't need to fill a

gap of income... If you're like, "Hey, we've got it all covered.

We got enough income." Then great. You already own the best inflation in

annuity on the planet. That is called Social Security. Because it just...

They raised that cost-of-living increase based upon political whims of our

friends in DC. If you got the same type of cost-of-living increase with the

regular annuity in the private sector, you're going to pay for that. Annuity

just don't give that away. In fact, visually, here's the annuity that does

not have a cost of living adjustment increase. Visually, here's the same annuity

with it. So, they're not going to give that away. That mean you don't buy it. But

they are going to price that in. And typically, we've seen it anywhere for 6

to 9 year break-even point. I know you can't say that cart blunts before our

client base that's kind of what it is based upon their age. So, the

average retirement income and how to annuities help. Annuities help because

you can solve it a couple ways. Lifetime income is the primary way that people

structure annuities. So, for instance, a person call me other day and they said,

"Hey, we've got $4,000 in income coming in a month. We

need an extra 1,000 to cover some expenses. Some lifestyle some travel." So

we did a reverse-engineer quote to solve for that $1,000 dollars a month for

both his life and his wife's life. And then we also structured it so that

100% of any unused money if they happen to die early in a plane

crash or a car crash or whatever would go to their list of beneficiaries of the

policy. The good news about like a joint life payment like that is if one spouse

dies, the income stream continues uninterrupted and unchanged for that

second spouses life. And that's a good example of what I call income flooring.

The question then begs is, "Okay, Stan The Annuity Man, we've got the $5,000 a

month. What happens when inflation hits?" Again, you have the best inflation

annuity on the planet which is Social Security. But if that's not enough to

cover it, then you're going to have to go back in the marketplace and shop for a

single premium immediate annuity. Reverse-engineering for that gap that's

needed for your income. So, average retirement income. I don't know. It

depends on who you are. It depends on your lifestyle, depends on your bills,

depends on what type of money you want coming in. And everyone's different. It

has really nothing to do with net worth. I've clients all the way from 100

million dollar net worth all the way down to no net worth, right? Or really

small. Doesn't matter to me. It all matters

about contractual guarantees and what they're trying to solve for. Some

people might need $100,000 a year of income flooring or

$200,000 a year income flooring and then somebody might need

twenty thousand dollars a year of income flooring.

Regardless, annuities can fill that gap contractually. So, that you can sleep at

night and you've transferred that risk. Meaning, transferring the risk to that

annuity coming to pay you for the rest of your life regardless of how long you

live. So, the good and the bad about using the annuities with for a lifetime income

with what I call a nuit ization products, which are lifetime income stream,

irrevocable contracts. These are immediate annuities, deferred income annuities,,

qualified longevity annuity contracts, there's no liquidity. I mean, you're going to

get your money back if we structure it properly, if you die early in the

policy. But you're going to get your money back in payment form not in a lump

sum form. There are some annuities out there that you can just peel off the

interest. Like a CD. A multi-year guarantee annuity is the annuity

industry's version of a CD. Meaning that you could buy a 5-year multi-year

guarantee annuity that pays an interest rate say 3 or 4 percent

or 5%. Whatever that current rate is. By the way, we have a live feed

of that of theannuityman.com. You can see the best rates for your specific

state because they're regulated at the state level. But my point is you might

say, "I don't want to tie up my money in an irrevocable contract. I don't want to

annuitize the policy." We have a couple of answers for that. First is a multi-year

guarantee annuity which you just peel off the interest. So, let's just say for

instance you put $100,000 into a 5-year multi-year guarantee annuity,

getting 4% just as an example. Then you could peel off that 4%. Get $4,000 a year

and never touch 100,000 and be completely in control of that asset.

And you're just peeling off interest. That's income. That's a good way to do

income as well. You can also do that with what's called a fixed indexed annuity

which is another version of a CD. You could take that whatever that gain is on

that index option and just peel that off and never touch the principal. You can

also attach what's called an income Rider to that which is a future

guaranteed income stream that you dictate when that income stream is going

to turn on. Unfortunately, with that, that does draw down subtract from the policy.

But you have the opportunity and the option to shut that on and off if needed.

I don't think a good way to do it from a principal

protection standpoint. But you are in full control of that asset as compared

to say an annuitized product where that income is going to flow just like

ripping the knob off of a water faucet. That water is going to flow with an

annuitized product, that income is going to flow. With an income rider, most of

them, majority of them allow you flexibility to shut them on and off if

needed. That's just food for thought. Bottom line with all of this, it's

customizable. I represent every single carrier on the planet. Pretty much

every single carrier on the planet. And we have the best annuity calculators out

there that will shop all carriers for the highest contractual guarantee for

your specific situation. So, I would encourage you to go to theannuity

man.com to get my books. My 6 owner's manuals to listen to podcasts, to read

articles. All that stuff. To get educated. And if you want to set a call with us,

you certainly can. And we'll speak with you one on one to be your specific

one-on-one annuity advisor to put together a plan for you. So, with that,

thanks for joining me. I'll see you on the next Stan The Annuity Man video