Replay: Live Q&A What To Know Before You Buy - August 2022

Stan Haithcock
Stan Haithcock
August 15, 2022

Recorded: Saturday, August 13th at 12 p.m. EST. Stan The Annuity Man kicked off the Live Q&A discussing what to know before you buy. He then answered detailed questions from viewers on the fly. The questions are below, and click the link to watch for the answers. Do you see your question below? If not, join us for the next monthly Live Q & A.

29 Questions from the Live Q&A “What To Know Before You Buy”

  1. Any downside to using the 10% fee-free withdrawal allowed by MYGA's to buy new annuities if interest rates are rising? Some of MYGA's pay less than 3%. Now some are over 4%—non-qualified accounts.
  2. Greetings from the West coast...what are unique challenges for CA residents and insurance carriers doing business here? Compared to NY? 80% state guarantee association? CA State premium tax?
  3. Is the annuity withdrawal amount guaranteed if you purchase the annuity five years prior to when you want to start receiving the payments?
  4. I viewed an earlier video where you stated annuities were like a gallon of milk. With this in mind, would it be wise to buy smaller dollar amounts but set up ladders to take rate changes to account? <200b>In reference to MYGA.
  5. Hello Stan, Does it make more sense to purchase a 3-year MYGA then convert to a SPIA for lifetime income or just purchase a 3-year DIA? Or possibly allocate a portion to both?
  6. I have noticed a Kansas City carrier chooses to offer only a 5-year MYGA here in CA but other term periods in other states. That's their call, but do you have any comment?
  7. If you plan on purchasing a SPIA at the beginning of next year, what are the benefits and non benefits of doing that now rather waiting til next yr?
  8. Your calculator for 3-year MYGA’s show “1st year rate”, “base rate” and “yield to surrender” all with the same interest rate. Will this 1st year interest rate be locked in for all 3 years?
  9. I'm new to annuities and interested in learning more about immediate annuities. Can you talk more about these? What goes into deciding which ones (and riders) are appropriate?
  10. Are the payouts from a SPIA or DIA in an IRA subject to a 10% penalty if the IRA owner is younger than 59 1/2? Or do they satisfy the substantially equal payment provision? Thx for these great chats.
  11. With interest rates rising, does it make sense to wait to get into a SPIA/Immediate Annuity?
  12. Do you view MYGAs as a replacement for bond allocations in an IRA due to stability of principal and bond-like interest rates for the timeframe selected?
  13. My renewal for my fixed index to nudi was 4.7% so could you tell me is that in line with what other carriers are doing.
  14. Is Florida a tax-friendly state with a SPIA?
  15. Insurance agent here. I have been binge-watching your videos and let me say, you have provided more information about annuities than my insurance class "teaching" me about annuities
  16. The current two-year MYGA rate is pretty good relative to CDs and Treasuries for the same duration. Do you recommend adding a two-year MYGA to an income ladder for planned distributions?
  17. What % of SPIA payouts are based on the current interest rates? For example, if the 10-year rate increases by 1%, how much of an impact will it have on the annuity payout?
  18. Is it true that the income from a QLAC counts toward satisfying the RMD on any remaining tax-deferred assets?
  19. After we purchase an annuity through you do we deal with the issuing company going forward with questions or issues with that specific annuity or do we continue working through you? Or both?
  20. How often are distributions with MYGAS?
  21. If you cash in your MYGA at the end of the term can they take out taxes if it's not an IRA?
  22. You often mention P.I.L.L – Principle Protection, Income for Life, Legacy & Long Term Care. I get the first three but what do you mean by “Long Term Care” as it refers to an annuity?
  23. When you invest in a SPIA, how protected is your payment stream should the underlying insurance company default. Any feel for how often this happens?
  24. When we schedule a call, do you (or your staff) review all assets to determine the best annuity options, or do we need to have in mind the products we want/need for the meeting?
  25. Can you change the Beneficiaries on a SPIA at any time after purchasing?
  26. With a MYGA is the interest compounded annually, quarterly or monthly typically.
  27. Was recommended a 10-year FIA. If time frame is 10-years why not purchase a 10-year DIA? I kind of think your answer will be “what it will do® and not what it might do” but curious of your thoughts.
  28. If you purchase a MYGA with your Ira, can you roll that money from your MYGA back to your traditional Ira after the time frame is completed from your MYGA?
  29. Are you limited to 50 percent of your net worth with MYGAs?