Shaq’s Secret to Preserving Wealth: What I Learned About Annuities

I was randomly scrolling through YouTube today and came across an interview of Shaq with David Meltzer, the creator of The School of Hard Knock.

In the interview, Shaq talked about how the secret to preserving wealth is through annuities.

This was actually something new to me. So I looked it up, and I finally understand what he means by that. An annuity is basically a financial tool that provides a steady stream of income, ensuring you never run out of money. The more I learned, the more I realized—this might be something worth looking into for long-term financial security. I guess I better start channeling some of my money into annuity plans and programs in Malaysia.

Shaq’s Investment Mindset Shift

In the same interview, Shaq shared a quote from Jeff Bezos:

“You invest in things that are going to change people’s lives.”

Shaq said, “I heard him say that, and I changed my whole investment strategy. And I’ve been very successful.”

This really stuck with me. It made me realize that investing isn’t just about making money—it’s about creating long-term value and sustainability. Annuities do exactly that: they provide lifelong financial security, ensuring you don’t just get rich, but stay rich.

So What is an Annuity?

An annuity is a contract between you and an insurance company where you pay a lump sum (or periodic payments), and in return, the insurer guarantees regular payouts over time—either for a fixed period or for the rest of your life.

It’s a popular retirement tool in the U.S., and now I understand why Shaq loves it: it prevents overspending, provides lifelong financial security, and protects against market risks.

And Why Would Someone Invest in Annuities?

At first, I wondered—why would anyone put their money into an annuity instead of just investing in stocks or real estate? But after digging deeper, I realized annuities have some major benefits:

1. Guaranteed Lifetime Income – No matter how long you live, annuities keep paying you a steady income. This means you never have to worry about running out of money.
2. Protection Against Market Volatility – Unlike stocks, annuities provide stable, predictable returns, making them perfect for risk-averse investors.
3. Spending Discipline – You receive payouts gradually, reducing the temptation to spend everything at once.
4. Tax Advantages – Some annuities offer tax-deferred growth, meaning you only pay taxes when you withdraw, allowing your money to compound faster.
5. Peace of Mind – Knowing you have guaranteed passive income lets you take bigger risks with other investments.

No wonder Shaq swears by it—he’s securing his fortune for life instead of gambling it all away.

So Are Annuities Available in Malaysia?

Yes, but they’re not as popular as in the U.S. In Malaysia, annuities are offered mainly through insurance companies and retirement schemes. Here are some options:

1. Private Annuities from Insurance Companies – Prudential, AIA, and Great Eastern offer plans similar to annuities under retirement savings or investment-linked insurance policies.
2. EPF Structured Withdrawals – While EPF doesn’t have a formal annuity program, you can withdraw in phases, mimicking an annuity.
3. Private Retirement Scheme (PRS) – PRS providers like Public Mutual and Kenanga offer retirement savings plans that provide steady payouts.

How Much Do I Need to Retire Comfortably in Malaysia?

Let’s say I want to retire at 50 years old with a passive income of RM20,000 per month. How much do I need?

Using a 4% withdrawal rate, I would need:

RM20,000 x 12 month = RM240,000 per year needed.
Divide that by 4% =RM6,000,000

That means I need RM6 million saved up by 50 to withdraw RM20,000 monthly without running out of money. Wuuuuuu, that’s a lot of money.
Convert that to USD, and it’s roughly 1.35 Million. Now that’s more achievable 😀

Anyway, Just to entertain my curiousity, how much should I invest to save up to 6 Million by 50?

Okay, so let’s say I want to hit RM6 million by 50 to get that sweet RM20,000 per month in passive income. How much do I need to invest?

If I start from zero and aim for 8% yearly returns, I’d have to put in around:

• RM12,000 per month 😬 (yikes)
• But if I can push for 10-12% returns, I might only need RM7,000 to RM9,000 per month (a little better, but that figure is hard to achieve through passive investing.

Now, if RM12,000/month sounds crazy (which, let’s be real, it kinda is), I have a few options:

• Work a few more years (maybe push retirement to 55 or 60)
• Go for higher-return investments (stocks, ETFs, real estate)
• Start a business that makes US Dollar, which is why I do funnel and web design, primarily targeting US clients and businesses.

Final Thoughts

Shaq’s approach to wealth preservation makes total sense now. Instead of worrying about money running out, annuities guarantee a stable income for life. While they aren’t the fastest way to get rich, they protect wealth, making them a solid option for retirement.

I’m definitely considering Malaysian annuity options and structured retirement plans to ensure I have financial freedom in the future. If Shaq—a multimillionaire—believes in annuities, maybe it’s time to start thinking like him too.

Want to hear Shaq’s full insights on wealth and investing?

Watch the video interview here: