Episode 010: How to create a guaranteed income floor

The Annuity Man

With over 10,000 baby boomers reaching retirement age every single day, the key concern for most people reaching this milestone is the guaranteed amount of income needed to live the lifestyle they have worked so hard for. 

Social Security is a primary source for many people, even though it was never intended to be the main part of the income floor.  Pensions (if you are so fortunate) are also a guaranteed lifetime income stream that you can't outlive, and annuities are the only product type that contractually offers that longevity income guarantee.

Other income flooring sources could be rental income, RMDs (Required Minimum Distributions) from your Traditional IRA, dividends, interest, and a salary if you choose to work a part-time or full-time job.  Just think of your "income floor" as the amount of money that hits your bank account every month regardless of politics, world events, or stock market volatility.  It's your worst-case scenario guaranteed income stream.

Annuities were first introduced during the Roman Times for lifetime income needs for the dutiful Roman soldiers and their families.  Most annuity types available are designed for lifetime income starting immediately or at a future date of your choice.  Lifetime income streams are primarily priced on your life expectancy at the time the payments start.  Interest rates play a secondary pricing role.

In this episode, The Annuity Man discusses:

  • What an income floor is and why it should matter to you
  • Creating an income floor for your specific situation
  • Laddering and structuring strategies that contractually work
  • Income Flooring is customizable to fit your specific situation

Key Takeaways:

  • Two Key Questions: 1) What do you want the money to contractually do?.....2) When do you want those contractual guarantees to start?
  • Quotes can be “reverse engineered” to solve for a specific income dollar amount
  • Quote all carriers to find the highest contractual guarantees for your specific situation
  • Pension payments, Social Security payments, and Annuity payments all provide income you can never outlive 

Fun with Annuities Podcast is hosted by America’s Annuity Agent, Stan Haithcock, The Annuity Man. Hear brutal annuity facts with no sales pitches from the top independent agent in the country, licensed in all 50 states. Author of 7 books, Stan dives deep on all annuity types and strategies. It’s fun, learning the contractual truths on how annuities actually work and if they’ll fit your personal retirement lifestyle. Listen in on how you can be livin’ the reality, not the dream.

Listen on Stitcher, Apple Podcasts, and Spotify. Get the best and highest confinement care and enhanced benefit quotes using Stan's proprietary annuity calculators. You can also receive all 6 of The Annuity Man Owner's Manuals for free and under no obligation and see a live feed of the best fixed rates for your specific state of residence. 

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