Episode Transcript
[00:00:00] Hello and welcome everybody, to the Annuity Straight Talk podcast, episode number 178.
[00:00:06] I'm your host, Brian Anderson with a new Hawaiian shirt on today, founder and creator of annuitystraighttalk.com so we now have live annuity income calculators with a total of features that you're not going to be able to find anywhere else online unless you have a subscription or you pay money to see it.
[00:00:29] So in this episode, I'm going to show you guys how it works and I'm going to explain to you how to do it. But it still takes a little bit of advice to filter through the options a little bit. But now I guess I would say this is maybe a little bit of verification in what I do and what I recommend.
[00:00:48] So different products are best for different situations.
[00:00:53] If you're 55 and you want to take income in seven years, it's very different solution than someone who's 65 and wants to take income right away.
[00:01:02] So you guys are all welcome to go and play with these calculators, but if you want to figure out and need a little help, I'll try to explain it.
[00:01:12] Let's share my screen and we'll get after it. Okay? Okay. As I have talked about in the past, and I might have to do a couple of episodes or at least videos to explain the difference, but if you have income starting within one year, you're typically going to get the highest payout with a single premium immediate annuity. That's a spia.
[00:01:35] And this is the type of calculator that is widely available online.
[00:01:39] A lot of other people have it. It's not that hard to find this stuff, but it does not tell the whole story. That's why we had two, and that's why it's taken so much work to get there.
[00:01:49] So we added the guaranteed lifetime withdrawal benefit calculator for fixed index annuities because those have immediate income as well, and in a lot of cases, that will produce more income.
[00:02:00] So you got to look at both if you want to know if you're really actually getting the best deal. I'm going to run you guys through one hypothetical scenario and understand that yours is probably different, but you got to see both to understand how it works.
[00:02:14] So there is no one else online that has complete options like Annuity Straight Talk does. Now, last year I met a guy who was only being pitched fixed index annuities with a GLWB guaranteed lifetime withdrawal benefit for immediate income. I talked to him about that. He called. Can you tell Me, if this is the best deal, I saved him more than 15% on the purchase of that contract. It was not a small amount in his case with him and his wife. Bia was a better option for him. Saved him 15%. Think about that. Now, there was another couple who came to me and said, we're looking for immediate income we want because a lot of people are making sense of the options. We don't understand what annuities are.
[00:03:02] And they had only been shown spias single premium immediate annuities for immediate income.
[00:03:09] But in that case, different parameters. A glwb paid almost 10% more income.
[00:03:18] That also was not a small amount of money in both cases. We're talking hundreds, right? Hundreds of dollars a month difference.
[00:03:27] I was able to sell both because I had a more complete list of options in each case. Now the GLWBs pay more commission, but I was able to sell a spia to that guy and take less commission but deliver him a better deal.
[00:03:41] And in the other couple, they were being shown spias, which paid a lower commission, and I made more money. So it all balanced out. And if I hadn't been doing this, I would have made no money and both of those couples would not have had the best deal they could find. So who cares? What's in it for me, the spia calculator is the first stop. And I'm an assumption that income needs to start right away.
[00:04:06] So it's going to change. And we'll do a little deferral example as well. But I got a hypothetical couple of John and Jane Doe, age 65 and 62.
[00:04:15] Now, if you're. It doesn't matter. Just like open your mind and realize that there's a different solution for everyone. And that's why so many annuities exist. That's why everybody gets confused. If you think about the episode last week with Nate, and there's a lot of guys only show the same thing to everybody, and that's why people get angry and don't get the best deal.
[00:04:37] So the hypothetical couple is John and Jane DOE. They're age 65 and 62, respectively.
[00:04:43] So we're going to start with the single premium immediate annuity. Okay, so they're starting in immediately. Go to the next step.
[00:04:55] And I've got your $250,000. Nice average round number. Okay, I could go into it. So here's the calculator. If you look at it online, first name, last, last name, email address that you put in is only going to be for just so it goes logged into our system. So if you make an appointment, we can go get your details and kind of start ahead of the game a little bit.
[00:05:22] So I set him at. You put in the date of birth. I set him at 65.
[00:05:28] And I set her at 63.
[00:05:31] Submit the deal. This one takes a little bit longer because it draws from a database that was pretty quick.
[00:05:39] And we got that.
[00:05:41] Immediate income is $16,810 per year with 32 cents. Guardian Life offers the highest payout.
[00:05:50] I have a soft spot in my heart because Guardian Life was my first insurance company that I started with big, strong, beautiful mutual company.
[00:06:01] Forget all the other news that you hear about the risks in insurance companies now. Guardian Life is awesome.
[00:06:08] So is New York Life, which is second in place. Okay, so if you're looking at the other calculators online, if you're talking to, this is the kind of thing that Fidelity is going to say. These are the companies. And maybe they don't have all of these, but this is going to run you through all the companies that offer products. And you realize the highest paying companies are also the strongest companies that exist. Guardian, New York Life 100 Comdex, 99 Comdex, like, okay. But it is not always the highest payout. And so I'm going to go to the GLWB calculator and we'll make this seamless for everybody to see. Go between the two. It's easy. I just have two pages opened up. So IRA money, you get to pick the type of money you have and then what happens is the same details for you on your local computer will be saved. I have them saved here. There's this little checkbox. Save my info for future quotes.
[00:07:08] So it saves between the two. It's the same parameters, inputs, and we get a quote of.
[00:07:16] Delaware Life pays 17,375 annually. So Guardian was, if you remember, 16,810. Delaware Life is paying a little more than $500 more per month so you can approve your payout. And that's where the example I showed before where it's like they were only getting SPIA quotes and now they're getting GLWB quotes. So sometimes. But if you think about it, and one thing we'll add to the calculator is we're going to add the rating of these companies here.
[00:07:50] Delaware Life is an A rated company where Guardian Life on the other page was A plus.
[00:07:58] So for people that are very picky, you may say, I'll take the $500 per year haircut and because I want the higher rated company, that's up to you.
[00:08:11] Now things are going to change from an income perspective because a lot of people right now are buying income early, where you're going to buy it maybe three or four years, five years out of before you take the income.
[00:08:26] And so what you're going to do is we're going to start with what I've talked about in past podcasts is that the GLWB actually pays higher, pays more money, right?
[00:08:38] So if we do $250,000 for the same couple and we select a five year deferral, then same inputs, then you've got American General at the top paying 26,362 annually.
[00:08:54] So a lot of people have come in with these and I would say, okay, five year deferral, let's go back and do the spia calculator again.
[00:09:03] You want the top top companies, right?
[00:09:06] So I back out and it saves the input from before. So the same couple deferring five years with 250,000 and that's 23,460.
[00:09:17] And Guardian again is on the top.
[00:09:20] So between American General, good solid company, 26,362 versus Guardian's 23,460, it's nearly $3,000 difference. So if you want to step up in rating, this one's going to cost you a little bit more as far as payout and you got to make that decision.
[00:09:39] One thing I want you to know is that on the spia calculator on that deal, it pulls from a database so we have no control over what pops out on the top.
[00:09:51] If I go back to the GLWB calculator, these were hand picked companies that I would choose and I would say I'm comfortable with recommending and selling.
[00:10:03] So I excluded A minus or B plus companies and I did that a few years ago. And now Sentinel securities in trouble and people are calling me telling me hey what, what should I do? So I didn't tell you to buy it in the first place, so take your pick. But I use quality companies.
[00:10:21] So guaranteed lifetime withdrawal benefits most often create the highest deferred income payments and SPIAs most often create the highest immediate payments.
[00:10:39] So now you guys have the option of doing all of it while you're here. And if we have a meeting and you want to talk about or think about it, the only thing you really have to question is whether I'm showing you the right stuff, which we're going to do. Like as far as like as far as GLWBS go, you have to verify whether I'm showing you the right thing. But before you commit to anything, we're going to verify it in a different database to begin with. But this is just publicly available, top of the market.
[00:11:10] Get you in the ballpark to say, is this going to help you?
[00:11:14] And then we can go down the road and say, and show you analysis in a spreadsheet of how the annuity is going to actually affect your retirement positively with extra growth in your portfolio and all that stuff. That's the next episode.
[00:11:34] So you get inflation adjustments.
[00:11:37] Just makes it makes you more money and a lot of people miss that point. We've done it a few times in the past, but I'm really excited about the calculators we got on annuitystraighttalk.com immediate income or deferred, whether you're trying to create it in retirement. Now, if you want to do required minimum distributions only depends on the size of your portfolio. But you can use these products to do the same thing as well.
[00:12:01] But if you guys want to talk about this and talk about your situation and how it can help, my name is Brian Anderson. I founded this. I created it. I got a lot of good help to make sure this stays on the cutting edge of the best advice and best options you can receive.
[00:12:21] This has been episode 178, Annuity Income Tax Calculators, live on annuitystraighttalk.com like subscribe or comment on any of your favorite podcast platforms or on YouTube. Top right corner of any page on annuitystraighttalk.com schedule a call.
[00:12:39] We'll talk about your situation. We'll use those calculators to make sure you understand and have full disclosure about how things work. I appreciate you guys watching and tuning in and sticking with me this far. It's been a big development.
[00:12:54] We're working hard to make it better. I'm not just sitting back and collecting checks or whatever. We've got to make sure that we stay on the cutting edge and we stay in tune with current economic conditions. Right now, income is a good deal.
[00:13:07] I will be back to talk about this in more detail in terms of portfolio management and growing a portfolio in retirement next week with EP number 179. Thank you so much. Have a great day. Okay, bye.
