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Why Do Some People Hate Annuities?

Stan Haithcock
August 31, 2023
Why Do Some People Hate Annuities?

Man, am I glad you clicked that button to read this because you're trying to figure out why people are always saying they hate annuities? Why do some people hate annuities? I don't know. Annuities are the financial curse word. That's for sure. But we're all familiar with the ads of the money managers and the people that say they hate annuities or the journalists that write these articles about it. All annuities are expensive, or all annuities are bad. That's just garbage. Before we get into it, I want you to hang in there with me because I will go into some detail and tell you how to get some books I've written. After all, I'm an author. I am America's annuity agent. I am the person that can talk about people hating annuities because I can debunk that factually, and that's what I'm getting ready to do. Remember this before we hammer this topic, do you hate all restaurants? Do you hate all cars? Do you hate all trucks? Then you can't hate annuities.

You Already Own an Annuity

So, I did a speech recently and speak a lot nationally because I am Stan The Annuity Man. And a guy stands up. Question and answers at the end, and I always do that, which is fun. It's like catching bullets, but I can do it. And the guy stands up. He goes, "I would never buy an annuity in my life. I hate all annuities, and I just hate them." And I say, "Hey, I respect that you can hate them all you want." I said, "A couple of questions, though. Do you have a pension?" And the guy goes, "Yeah, I worked for IBM for about 20 years," or some big company. "And I'm getting a pension." "Hey, that's fantastic. How old are you?" And he goes, "I'm in my seventies." I ask, "Are you getting Social Security?" "Yeah, I'm getting Social Security." "Yeah. Okay." So, I just paused, and everybody started giggling.

You can feel the room. And this guy was clueless. He didn't know what was getting ready to hit him. He had answered those two questions. I said, "All right, so you still had annuities?" He goes, "Wouldn't ever buy one." I said, "You own two, player. You already own two." And he just said, "No, I don't. I've never bought one." "You own a pension, right? And you own Social Security, right? You own annuities." And the guy was mad. He didn't accept it well because everyone started clapping. And I didn't try to embarrass him. But at the end of the day, when people say, "I hate all annuities." You cannot be a hypocrite and say; I love social security because Social Security works like a Deferred Income Annuity. The longer you wait to take the payment, the higher the payment because it depends on life expectancy.

Brief History of Annuities

The older you are, the higher the payment. So that covered that. And well, I don't like annuities, but I like my pension. Well, a pension is a Single Premium Immediate Annuity. In fact, that came from the Roman times when the Roman soldiers were laying it on the line for the empire. What they did in Roman times was come up with an annuity. Back then, the Latin word annual, A-N-N-U-A, was a lifetime income stream for the dutiful Roman soldiers and their families. It's a pension. So that covers the haters.

The P.I.L.L

Let me grab something really quick because I'm going to cover why people are out there running ads saying they hate annuities. All right, here's what I'm going to grab, these books. Now, I've written a bunch of books and you can download them completely free by clicking on this link. I also do podcasts and videos all the time on my YouTube channel. I want to educate you on the facts about annuities. Annuities are contracts. They're transfer of risk products that solve for specific things. I've come up with an acronym called P.I.L.L that tells you what annuities contractually solve for. And in my opinion, if you don't want to solve these things, you don't need an annuity. That acronym is P.I.L.L.

The P stands for principal protection, I stands for income for life, L stands for legacy, and the other L stands for long-term care. You don't need an annuity if you don't need to solve one or more of those. And annuities are contracts. But let's get to the point of why you keep hearing people say they hate annuities; you see the ads, or your financial advisor or money managers say they hate annuities. What's behind that? Because there are annuity types that function just like CDs. Multi-Year Guarantee Annuities are just like CDs, right? They pay a specific interest rate for a specific period of time. How can you hate that? You can't hate CDs and MYGAs at the same time, can you? No. Now, why are people doing that?

That's a Guarantee

You have to be smart enough. In the world that we're in now with fake news and agenda news, or whatever you want to call it, there's an agenda behind that message. If a money manager is saying to you that they hate all annuities, they want to manage your money and charge a fee on that money. Now, their argument is they can get a better return, blah, blah, blah, but they can't guarantee that. There's only one product on the planet that can guarantee a lifetime income stream. That's an annuity. That's the unique benefit proposition. Nobody can guarantee that.

That doesn't mean you need one, but you might need a pension that you want to create. And in a pensionless world where some companies don't have pensions, how do you create a lifetime income stream that you can never outlive? There's only one answer, and that is annuities. And the other thing, this might happen to you too, and nod your head if it did. Your financial advisor locally, whoever you deal with, probably says they hate annuities. Now, I'm going to give them the benefit of the doubt because they probably don't know a lot about annuities. And the firms, because I used to work for the major firms, for goodness sake, before I was Stan The Annuity Man, I worked for some of the biggest firms on Wall Street. They don't want you to sell annuities because they can't charge a fee on that annuity.

It's not the asset class they want their army of advisors pushing. And I understand that. They have a completely different agenda, which is the growth of your money from the standpoint of markets, etc., but it also doesn't make sense for them to say, "I hate annuities." It would be like Stan The Annuity Man, saying, "I hate all stocks," or "I hate all mutual funds," or "I hate all ETFs," or "I hate old bonds." I don't. They have their place. I think they're great. But in some cases, they're not great. Sound familiar? Annuities. It is what it is. Put your thinking cap on out there. Don't fall for the bait of, I hate all annuities. If you do, then don't take Social Security.


All right, enough about this hate stuff. I've done a video. It answered the question, is a pension the same as an annuity? Of course, it is, but I went into depth about the details of that. But it coincides with what we're talking about.

I hate annuities, but I love my pension. I hate annuities, but I love my Social Security. I hate annuities, but I love my CD. Come on, man. Come on. You know better than that. So, with that being said, make sure you visit my site for any type of quotes, books, or podcasts, and subscribe to my YouTube channel because I'm putting out these educational videos every single day. And who knows, they might land in these haters' inboxes, and they can see it and maybe come off those ads a little bit.

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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