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How I Really Feel About Indexed Annuities

Stan Haithcock
March 11, 2024
How I Really Feel About Indexed Annuities

Hi there, Stan The Annuity Man, America's annuity agent licensed in all 50 states, including the beautiful one you're sitting in. I know you can't see me, but my shades are on. And you got to be saying to yourself, hey, Stan The Annuity Man, why do you have shades on? Why do you look so cool and suave? It's not because I'm trying to look cool and suave, which happens automatically, right? Okay, maybe not. The reason I got the shades on is because I'm going to tell you how I really feel about Fixed Index Annuities, Index Annuities, the hottest thing on the planet. The shades are for all these sales pitches that are coming at you. Bam, bam, bam. The too good to be true bad chicken dinner seminars, aka the greatest thing since sliced bread. No, it's not.

‌Here's the thing. Index Annuities are contracts; we will go over the details of Index Annuities. You're going to hear about how I really feel about Index Annuities. That is guaranteed. The other thing guaranteed is that I will tell you the brutal truth about what they are.

‌Are Fixed Index Annuities a good investment? Why are Fixed Annuities bad? What is the difference between a Fixed Annuity and a Fixed Index Annuity? What are the best Fixed Index Annuities? All those questions and more will be covered in this blog. I will explain what an Index Annuity is, which used to be called an Equity Index Annuity. Now it's called a Fixed Index Annuity. I know that's confusing, but I will strip all that away. I'm going to explain everything to you so that you fully understand. The key here with Fixed Index Annuities is you need to understand that they were developed for CD returns. Don't believe the hype. Don't believe the sales pitch. Buy the contractual guarantees. That's it.

‌The History

‌All right, here's your annuity history lesson for the day. When did Index Annuities start? The year was 1995. Back then they were called Equity Index Annuities. Now they're called fixed index annuities. But know this: in 1995, they were put on the planet to compete with CD returns, and that's exactly what they do.

‌Hybrid Annuities

‌Hey, if you want to blow the top of my head off, use the word hybrid. Hybrid's a plant, hybrid's a car, hybrid's a mattress. Hybrid is not an annuity. Hybrid is a word that Index Annuity gunslingers use out there to sell Fixed Index Annuities. Don't believe it. Hybrid means that the annuity can do multiple things, right? Well, heck, if that's the bar being raised there, then every annuity would fit into the hybrid classification. I'm just warning you about if someone's standing up there at the bad chicken dinner seminar and they say, well, I got this hybrid, and this hybrid annuity is really good because it's a hybrid, and you should own a hybrid because it's hybrid. Get up; after you eat, obviously, get up and walk out. Hybrid hype crap. Do not believe it.

‌Income Riders

‌In my opinion, Stan, the annuity man, America's annuity agent, and the top independent agent in the world, Index Annuities, are a superior strategy and an efficient delivery system for Income Riders. That's how I use them. Index Annuities are CD products, but when someone says, you know what, Stan, I want income in seven years, eight years, five years, 13 years, 11 years, 12 years. I use Income Riders attached to Index Annuities and shop all Income Riders for the highest contractual guarantee for your specific situation.

‌Locked In

‌People ask me all the time, they say, Stan The Annuity Man, America's annuity agent, top agent in the country, yes that's how they phrase all questions to me. They say, do you really hate Index Annuities? No. I bet you I sell more Index Annuities than almost anyone on the planet. I just take a different look at them. One of the things that I do like about Index Annuities, one of the positives is that the index gain is permanently locked in.

‌Let's say this year you got a 3% or 3.5% gain; it locks in right here, and then the market goes in the tank. Boom, you're still here. Market's down, you're still here. That's a good thing. So, if it's a gain the following year, it locks in again. That's the positive that an Index Annuity can offer you. Now, I warn you, don't believe the hype; don't believe the sales pitch that you will get market upside with no downside. You're just not. One year, you might, but most of the time, it will be a CD-type return. But the good news about that is that it will lock in and stair step in, bang, bang, bang. And that's a good thing because you're never ever going to participate in market losses, and that's a good thing.

‌Sales Pitches

‌I know I just mentioned the market upside with no downside pitch. That's the sales pitch. That's a really good pitch. If you think about that statement briefly, market upside with no downside or participation with no principal loss, that sounds so good. It's just unbelievable. That's when you're sitting at the bad chicken dinner seminar and go, "Hey, Martha, that's pretty good. We should do that." If it were that good, the FED would just buy Indexed Annuities. Think logically. You need to not buy the sales pitch dream because you're going to own the contractual realities of the policy. So, if someone's saying the word market with an Index Annuity, the first question you ask is, "Oh, Index Annuities are securities? I didn't know that because they're not." They're fixed products. They're life insurance products that are issued at the state level. They're not securities. You're not going to get market returns.

‌If some yahoo, no offense to the yahoos out there, if some yahoo is saying you can get market upside with no downside, and he's just clicheing you to death, you know better than that. Index Annuities are CD products. They're good products; they're efficient delivery systems for Income Riders. But don't fall for the hype; don't fall for the cliche. You're smarter than that.

‌The burning question everyone has on their mind at this point after we've gone through the blog and all the details is, how does Stan The Annuity Man, America's annuity agent, top agent in the world, feel about Index Annuities? I like them. I sell them as CD products, principal protection products, and efficient delivery systems for Income Rider guarantees for future pensions. Yeah, that's great.

‌By the way, you can get an Index Annuity quote and an Income Rider quote if you visit my site at The Annuity Man . No cost, no obligation. You can use all of our proprietary annuity calculators. You can download all 6 of my annuity owner's manuals for free. But here's the best part. You can schedule a call with me or someone from my team, and then we'll talk about your specific situation and answer all your questions. I'll see you on the next Stan The Annuity Man blog.

Never forget to live in reality, not the dream, with annuities and contractual guarantees! You can use our calculators, get all six of my books for free, and most importantly book a call with me so we can discuss what works best for your specific situation.

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