Annuity Examples | Deferred Income Annuities - YouTube

Hi there!

Stan The Annuity Man, America's Annuity Agent, Licensed in all 50 states.

Including that beautiful one you're sitting in right now.

Today's topic is a good one.

We're going to do some annuity examples looking at deferred income annuities.

Acronym --DIA.

D-I-A.

Deferred Income Annuity.

So, it's kind of a newer product in the annuity world.

I mean it's the cousin of the single premium immediate annuity.

I'll talk about all of that and how it's structured and give you some examples.

But not until I hear music.

Alright, Stan The Annuity Man, so what is a deferred income annuity?

It's really an immediate annuity, a single premium immediate annuity that you defer.

No moving parts, no market attachment, no annual fees.

By the way, I love it when people go, "Don't buy an annuity because it's there's a high-end

fees."

Come on!

That's dumb.

I mean, there's only a couple of annuities that charge annual fees within the policy.

That doesn't make them bad.

Variable annuities and indexed annuities.

But when people say, "Annuities are expensive."

No, they're not.

The majority of them are not.

Deferred income annuities, single premium immediate annuities.

No annual fees, no moving parts, no market attachment.

These are pension products.

Now, the deferred income annuity is just like the immediate annuity.

So, what's the difference, Stan The Annuity Man?

Well, an immediate annuity payment, income can start as soon as 30 days from when the

policy is issued up to a year.

It turns into a deferred income annuity if you're deferral time period, the income start

date is 13 months or longer.

With some deferred annuities, you can defer it 30-40 years if you want to.

It's a future pension income stream.

Period.

End of the story.

Now, a lot of people that look at deferred income annuities because the 2 things that

I ask people every single time...

If you talk to me and I hope you do.

Go to theannuityman.com.

You can..

I guess you can punch in stantheannuityman.

My slides going to show up on theannuityman.com.

And you schedule a call with me.

I am going to ask the following 2 questions: What do you want the money to contractually

do and when do you want those contractual guarantees to start.

And if the answer to the first question is "I want lifetime income."

And the answer to the second question: "I want that income to start in 2 years" (1 year,

3 years, 7 years), whatever.

We're going to quote deferred income annuity.

We're also going to quote income riders.

I've done videos on that.

But we're going deferred income annuities.

Because that's what solves for what I call income later.

You need contractual guaranteed income later a year or so down 13 months or so down the

pike.

And remember, remember this: Deferred income annuities just like single premium immediate

annuities, the primary pricing mechanism is life expectancy at the time you take the payment.

Or if it's joint, it's life expectancies.

Interest rates play a secondary pricing role.

Interest rates play a secondary pricing role.

INTEREST RATES

PLAY A SECONDARY

PRICING

ROLE.

So, don't be a master of the universe and try to time it because you can't.

The annuity companies, you can beat them.

Believe me.

If we could beat them, I'll tell you, okay?

There's no arbitrage in the annuity world.

Life insurance companies have the big buildings for a reason.

They sponsor sports stadiums for a reason.

They have the big logo on a plane for a reason.

Why?

Because they know when we're going to die.

And they price their products accordingly.

That's the reason that property-casualty companies have teeny buildings because they don't when

the tornado and the hurricane is going to hit.

But life insurance companies had the big buildings, big tall ones because they know when we're

going to die.

It's that simple.

So, deferred income annuities, let's talk about kind of positives and negatives.

Positives, in my opinion, no moving parts, no annual fees, contractual.

And the big boy's play.

The big huge carries that you know and love and love their commercials, they are the ones

that quote...

And we quote them all.

The negative to it is it's irrevocable.

Okay?

The majority of them.

And don't go to a deferred income annuity looking for liquidity.

Please!

You're going to lock and load like they say on the south.

When they go hunting, "We're going to lock and load."

Deferred income annuities is a future pension.

You're going to know to the penny what that guarantee is going to be.

And for you planners and box checkers out there, that' music to your ears.

But the limitation is there's no trackable growth on that amount.

So, if you're deferring for 3 years, there's no like interest rates, growth, or whatever

during those 3 years.

Now, understand, the longer you allow the annuity company to hold on to the money, the

more they're going to pay you.

They're going to enhance the payout.

The more you let it cook, the more you're going to get as the say in the south.

But a lot of people have a problem with "Oh!

I'm not earning anything...."

Then don't buy it.

That's what it is.

But when we look at simplicity at a future pension plan, deferred income annuities are

very, very good.

They have a sister product called the qualified longevity annuity contract that I'm getting

ready to do another video on after this one.

After I rip this one.

But these are pension products.

Annuities are the only product on the planet that can provide a lifetime income stream

that you can never outlive.

There's no ROI til you die.

It's a transfer of risk.

It's insurance, right?

Car insurance, home insurance, income insurance, life insurance.

Issued by life insurance companies.

So, you need to look at the companies as for what they are.

And you can't just say, "Well, I hate all annuities."

I know the guy who's running at the ad.

"I hate all annuities", really?

Do you hate all 6 different types or 7 different types?

There's diffrent types!

There's types for principal protection.

And then there's types for lifetime income like this deferred income annuity.

And at deferred income annuity, like an immediate annuity is an annuitization product.

Meaning, it's going to be a lifetime income stream in most cases.

Yes, you can do some period certain things.

And which leads me to the obvious.

You need to schedule a call with me.

Go to theannuityman.com and we need to discuss your situation because I will put together

a customized plan.

This isn't playing vanilla stuff.

This is about you.

This is about you, your life, what you worked hard for.

And I tell people to do this all the time.

There's no u-halls behind hearses.

And if you see one, take a picture and send it to me.

You can't take it with you.

Alright?

All of this lifetime income product should be to put together that income floor that

you can never outlive so you can go live the life and the lives that you've earned.

Yes, covid at the time of this taping has come thundering the ranch.

But it is the moment in time, okay?

Moment in tme, player.

It's going to happen to where you're going to enjoy your life.

Deferred income annuities might be a part of that plan for future income.

So, I know what you're saying.

You're saying, "Alright, Stan you need to calm down a little bit.

You must have not taken a break."

And you got a question for me.

So, go ahead ask.

Go ahead.

Okay, I'll ask you that.

So, the question for everyone was from everyone at YouTube land is "Are deferred income annuities

a good investment?"

By the way that's a tricky question.

It's a trick question.

Why is it a trick question?

Deferred income annuities are not investments.

They're contracts.

Okay?

They're contractual guarantees.

Better question, better rephrasing is, "Should I own one?

Does it make sense for me?"

Well, it make sense for you if you need income later at a future date and you want to know

to the penny what that payment is going to be.

And you can't time it.

"I want to wait until rates go up.

And then I want to..."

No, you can't.

I know it sound sales...

It's not sales pitch.

It's just reality.

You can't beat the annuity company at their own game.

Because remember, the longer they hold on to the money, the more they enhance the payout.

So, if you're waiting to be the master of the universe and finding annuity arbitrage,

you're killing time, okay?

You're wasting time.

You're nailing jell-o to a wall.

It doesn't work like that.

I know the question I get all the time and it drives me crazy a little bit is "What is

100,000-dollar deferred income annuity pay?"

Aaaahhhhhhhhhh....

Broad question.

Let me give you the details that I need to run that quote.

By the way, you can go to my site theannuityman.com and run your own deferred income annuity quote

without having to talk with me or someone else.

Now, eventually, you do need to talk with me.

And when I talk to you on the phone, it will be less animated.

It'll be just me and you on the phone and we'll go through everything.

You know, the whole thing.

But what does 100,000-dollar deferred income annuity pay?

No way to answer that.

And if someone does, get them walk out or [...] I need date of birth or dates of birth.

I need when do you want the income to start.

I need the type of account --IRA, Roth IRA, non-qualified.

I need that.

I need the amount of money that you're looking to put in or how much money you're looking

to solve for.

If you say, "I've got the Speadsheets.

I love these calls.

I got to get them all the time."

"Well, Stan The Annuity Man, I've got this spreadsheet out and in 5 years from now, me

and the missus need $2,221 per month."

I love that.

I love that!

That's how to do it.

If you really want to focus in.

Because we can run a reverse-engineered quote to solve for that specific monthly income

amount using the least amount of money.

Again, the annuity gods yelled at me because they're whispering in my ear right now.

"Stan, don't say it.

Don't say it, Stan."

I'm going to say it.

People make a mistake putting too much money into an annuity, annuity gods.

Yes.

Use as little amount of money humanly possible for the contractual guarantee that's desired.

And with the deferred income annuity, you can do that.

Run it in your head like...

If you're a planner, this is your product for the future because you can know to the

penny what is going to be.

And we can structure it so that, if you...

If you running a joint life or you pass away then your spouse or partner is going to get

the same exact payment, uninterrupted and unchanged for their life.

And we can structure it so that no money will go to the annuity company.

It's income insurance.

You're going to get income insurance from Stan The Annuity Man.

I don't sell life insurance but I sell income insurance.

What's income insurance?

Income insurance is making sure that you have income coming in, that income floor every

single month regardless of how long you live as long as you're breathing, hello social

security, let's add to it.

Nod your head.

Hey, do me favor, yes this is big darn calculator.

That's a BDC.

Big darn calculator.

Why do I hold this up?

You go to my site theannuityman.com and you can use our proprietary calculators to run

your SPIA and DIA and QLAC quotes and get an indexed annuity quotes and income rider

quotes.

You can get my books, you can schedule a call, you can do it all!

But the last 2 things you need to do after that...

Well, actually right now will be good.

Share this video.

Why wouldn't you?

Be nice and share it.

Do you not share things?

Are you mean?

Share it.

Right now, share it.

That's S-H-A-R-E.

Share it.

And then hit subscribe and I'll see you next time.