I describe hanging in there through market volatility and stock market craziness as if you were surfing beside a cruise ship. You might catch a wave occasionally, but eventually, you will get sucked under the boat. Getting sucked under the boat means market losses in AnnuityMan speak. I have a question: Why do you want to do that? Do you have to do that? Is an advisor telling you to do that? How about putting contractual guarantees for lifetime income and principal protection in your portfolio so you can take a stress-free vacation on a cruise ship instead?

For all of you that are waiting for me to “weigh in” on the recent banking crisis and if there are any correlations to the annuity industry, be on the lookout next Tuesday for my newest Fun With Annuities podcast. It answers ALL of your questions, and my celebrity guest host, John Lenz, knocked it out of the park. It’s a must-listen in these chaotic times.

One of the dumbest statements I hear regarding annuities is that you should never buy one inside of an IRA or using IRA funds. That might be the dumbest and most uninformed nonsense ever. This week’s YouTube video covered how annuities work using IRA money. Before you send me the hate mail, know that there is actually an annuity type that can only be used with IRA assets. It’s called a Qualified Longevity Annuity Contract (QLAC). All annuity types can be used inside of an IRA because you buy them for their contractual guarantees. These transfer of risk strategies work in all account types. Period.

Should you add more annuities to your portfolio if you already have a pension? This week’s Q&A video factually hammered this topic. Remember that you already own the best inflation annuity on the planet (Social Security), so the question is if you need to add more contractual guarantees to your retirement party. Everyone’s situation is different, so watch this quick video to understand how some easy-to-understand rules might apply to you.

A comment that I’m hearing too often right now is that people are trying to time annuity guarantees with projected rate increases by the FED. I would rather you try and nail Jell-O to a wall. Either would make more sense. Remember that what the FED does is just a small part of the annuity pricing model. If an annuity company has brought in enough money, they will lower their contractual guarantees regardless of what the FED does. That’s an annuity fact.

Yawning at the FED,
STAN