037 Timing Your Annuity Purchase...Is it Possible?

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welcome to

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fun with annuities with your host me

0:07
stan

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the annuity man america's annuity agent

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can annuities be fun

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can contractual guarantees be fun

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absolutely they can

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find out the brutal facts about

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annuities with no sales pitches or high

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pressure nonsense

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just the brutal and factual annuity

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truth which is all you need to hear

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let's have some fun with annuities and

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let's have that fun

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start right now

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[Music]

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welcome to fun with annuities i'm stan

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the annuity man your host this is the

0:43
number one annuity podcast on the planet

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i want to welcome everyone who's

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listening

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to this on a podcast format which is you

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know stitcher and itunes and spotify and

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all that

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and also the people that are tuning in

0:55
to watch this being filmed

0:57
on the fun with annuities youtube

0:59
channel also have a stand the annuity

1:01
man youtube channel that has

1:02
hundreds and hundreds of videos on

1:04
annuity types etc but let's jump into

1:07
the topic today because it's a good one

1:09
can you time your annuity purchase is it

1:11
possible

1:13
to time annuities you know is there

1:16
an arbitrage or is there a bell that

1:18
rings

1:19
that's the right time to buy now you

1:22
know in the annuity world there's no

1:23
good answers just a lot of bad sales

1:25
pitches right

1:26
so um when you ask people if you ask

1:29
10 annuity agents there'll probably be

1:32
seven or eight that say yeah you can

1:33
time it

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i'm just telling you you can't i'm the

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number one agent in the country i'm

1:37
licensed in all 50 states represent

1:38
every pretty much every single carrier

1:40
out there i have worked for

1:42
you know on this on the stock side of

1:44
the the ledger for a long long time

1:45
because

1:46
before i became stan the annuity man i

1:48
worked for dean witter morgan stanley

1:50
payne weber and ubs

1:52
so i'm familiar with investors

1:55
looking at you know stocks and etfs and

1:59
and those type of investments mutual

2:01
funds from a timing standpoint

2:03
and actually you know there's there's

2:05
legitimate timing strategies for that

2:08
which is leads us to kind of the problem

2:11
when

2:11
people make the transition from owning

2:14
investments like stocks and bonds

2:16
etfs and mutual funds things like that

2:18
and then transitioning to looking at or

2:20
owning

2:22
um annuities and there's all different

2:24
types you know let's let's stop for a

2:26
second say

2:26
i heard all annuities stand you can't

2:28
you already own social security that's

2:30
an annuity

2:30
there's many different types of

2:32
annuities so just

2:34
whoever's saying that out there that's

2:36
that's crazy there's

2:37
a couple of people out there doing it

2:38
from a marketing standpoint i hate all

2:40
annuities

2:40
that's like saying you hate all

2:41
restaurants it's crazy but getting back

2:43
to the timing thing because it's a big

2:45
it's a big question that i get a lot in

2:48
the current

2:49
interest rate environment at the time of

2:51
this taping

2:52
we all know that the 10-year treasury

2:54
and interest rates cd rates multi-year

2:56
guarantee rates which are fixed annuity

2:58
rates

2:59
they're at perceived lows when people

3:01
say well it's low low compared to what

3:03
low compared to when

3:05
jimmy carter was in office maybe uh yeah

3:08
definitely are we going to see those

3:09
types of interest rates again in our

3:11
lifetime

3:12
um people like me in the late 50s

3:14
probably not i just can't see

3:17
rates going up but you never know no one

3:19
ever knows

3:20
um you know when rates are going to move

3:22
which kind of leads to the answer

3:24
of of this podcast question can you time

3:27
your annuity purchase i was thinking

3:29
when i was preparing for this

3:31
podcast that uh in filming this

3:34
i'm thinking this could be the shortest

3:36
podcast on the planet because i could

3:38
just say

3:39
no and then it's over i'm going to give

3:41
more

3:42
explanation to that but i think getting

3:44
back to the the conversation

3:46
of investors versus annuity buyers and

3:50
you know annuities are contracts you

3:52
know i say that all the time but they

3:53
are you don't believe me

3:54
buy one or or ask someone who's bought

3:57
one they've got a policy that policy is

3:59
a contract

4:00
in my world you own an annuity for what

4:02
it will do not what it might do the will

4:04
do is the

4:04
the uh is the contractual guarantees of

4:07
the policy they might do

4:08
is the hypothetical theoretical

4:10
back-tested projected hopeful agent

4:12
unicorns change the butterflies

4:14
hopefully

4:15
it returns scenario that seems to never

4:16
happen but it's really good in a sales

4:18
pitch or a bad chicken dinner seminar

4:20
but when you transition to buy an

4:22
annuities you're buying contracts so the

4:23
question is

4:24
not the timing of it but

4:28
more do the contractual guarantees work

4:30
for you

4:31
are they exactly what you're looking for

4:33
here's the call i get

4:34
every single day that i'm in the annuity

4:38
man office and by the way this is being

4:40
for the people out there this is being

4:41
shot in the wilderness studios

4:43
on the annuity fund cam and i guess is

4:45
the annuity fund microphone for the

4:47
people listening to podcasts

4:48
but here's the person that calls me and

4:50
he's the you know he's the ch

4:52
he's the guy called chester chester's a

4:53
good guy chester was my uncle chester

4:56
in the south so he kind of talked like

4:57
this but this is what he'll call him and

4:59
say

5:00
well uh stan i'm not gonna buy uh an

5:03
immediate annuity because i'ma wait to

5:05
rates go up

5:07
okay chester let's think through that

5:09
for a second and this is the greatest

5:11
example

5:12
of not being able to time annuity

5:14
purchases

5:16
so a single premium immediate annuity is

5:18
the original pension annuity

5:20
it's primarily based on life expectancy

5:22
at the time you take the payments

5:23
interest rates play a secondary roll

5:25
now without foundation being laid there

5:28
um

5:28
and factually in place my answer to

5:32
chester's you know statement is he's

5:35
gonna i'm gonna wait

5:36
for rates to go up well let's just say

5:38
that chester says i'm going to wait

5:40
five years until rates go up instead of

5:42
buying the immediate annuity

5:44
well then chester has to or you in this

5:46
case have to factor in

5:48
those five years or 60 months of

5:50
payments that you

5:52
missed while you're waiting for rates to

5:54
go up and you're

5:55
and you're making the bad decision uh

5:57
based on the fact that

5:58
lifetime income with annuities

6:01
regardless of the type is primarily

6:02
based on your life expectancy at the

6:04
time you take the payment not interest

6:05
rates

6:06
so so many people say well i'm just

6:07
waiting till rose go up

6:09
well you gotta factor in the payments

6:11
let me give you another example if you

6:12
don't want to believe that

6:13
believe this when you go take your

6:16
social security

6:17
and you're at 65 what what goes through

6:19
your mind well

6:20
if i wait till i'm 70 the payments will

6:23
be higher

6:24
why because you're older why because

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your life expectancy is less

6:28
why because the payments are are fewer

6:31
which means they're going to be higher

6:33
now let's take that example again so

6:36
you're 65 should you take payments now

6:38
or should you wait till 70. obviously

6:40
they're going to be higher when you when

6:41
you're 70 because

6:42
you're older but you also just was

6:45
just like an annuity and by the way

6:47
social security is an annuity

6:49
with social security you have to factor

6:52
in the payments that you miss while

6:53
you're waiting for it to

6:55
to go up when you're 70. so so if you

6:58
took the payments from 65 what those are

7:00
going to lock in

7:01
65 and take six times 60

7:04
and then wait to your 70 and you turn on

7:07
that payment you know it's going to be a

7:08
social security by the way you know what

7:09
it's going to be with an annuity because

7:11
social security's annuity

7:12
then how long is it going to take for

7:14
you to make up for weighting

7:16
that break even point in a lot of cases

7:20
it's better to start the income stream

7:22
now which throws the timing thing

7:24
out of the window so

7:27
now with that being said we're talking

7:29
about lifetime income annuities and

7:30
those are the single premium

7:32
immediate annuities deferred income

7:33
annuities qualified longevity annuity

7:36
contracts and income riders that are

7:38
attached

7:39
to deferred policies like variable and

7:40
indexed annuities those are the income

7:42
the lifetime income stream annuities

7:44
uh those are the strategies they're all

7:46
not the same they're all

7:48
different okay but remember life

7:51
expectancy drives the pricing train so

7:53
if you're

7:53
if you're like chester and you're

7:54
waiting for interest rates to move then

7:56
you're missing the point because the

7:58
point is

7:59
life expectancy drives the train

8:02
bingo bango bongo that's it that's that

8:05
that's that's a fact but

8:06
so let's go through the different types

8:08
of annuities

8:09
the primary different types and try to

8:13
attach some relevancy to can you time

8:16
the annuity purchase

8:18
um just remember annuities or contracts

8:20
so let's look at the first type of an

8:22
annuity it's a multi-year guarantee

8:24
annuity

8:24
the annuity industry version of a cd

8:28
so you if you like cds you can't hate

8:29
annuities right so

8:31
um do interest rates you know can you

8:34
time

8:34
interest rates with multi-year guarantee

8:36
annuities absolutely not the best thing

8:38
that you can do

8:40
is you can ladder uh durations give you

8:43
an example if you said okay

8:44
i'm thinking about buying three hundred

8:46
thousand dollars worth of

8:47
multi-year guarantee annuities we

8:49
probably would do a three four to five

8:50
year ladder

8:51
hundred thousand in the three year

8:53
hundred thousand in the four year

8:54
hundred thousand five year why

8:55
because we don't know when rates are

8:57
going to move and if they're going to

8:58
move at all

8:59
and but if they do we want in your favor

9:01
we want money coming due so that we can

9:03
go attach

9:05
to those rates transfer from the one

9:07
miga that is maturing to

9:09
hopefully a higher rate so that's

9:10
multi-year guarantee annuities

9:12
so let's let's go into um the

9:15
the immediate annuity single premium

9:17
immediate annuity the grandfather of all

9:19
annuities that started back in the roman

9:21
times as

9:22
as pension payments and gifts to the

9:24
dutiful roman soldiers and their

9:25
families

9:26
still is it's a pension payment to you

9:28
as creating your own pension now do

9:30
interest rates play a role can you time

9:32
it

9:32
no because it's life expectancy so going

9:35
back to those examples that i gave you

9:37
about social security

9:38
in chester saying he's going to wait

9:39
five years to buy the annuity

9:41
again life expectancy drives the train

9:43
and in my opinion when you're buying

9:45
lifetime income

9:46
you need to transfer the risk to that

9:49
annuity company

9:50
so that they can pay you for the rest of

9:52
their life remember this

9:53
the value proposition of any lifetime

9:55
income stream i don't care what product

9:57
type

9:57
qlik deferred income annuity uh qlik is

10:00
a qualified longevity annuity contract

10:02
deferred income annuity

10:03
single premium immediate annuity income

10:05
rider i think

10:07
transferring the risk sooner than later

10:08
is is best because you're getting

10:10
in essence the lifetime income stream is

10:12
you're getting your money back with

10:13
interest

10:14
okay so let's draw it down to zero your

10:16
account is zero because when the

10:18
account's at zero

10:19
okay the annuity company's on the hook

10:22
to pay they're going to pay you

10:24
for the rest of your life regardless of

10:25
how long you live regardless regardless

10:27
of what's in that account

10:28
and by the way that's the unique benefit

10:30
proposition of an annuity

10:32
for for lifetime income annuities for

10:35
lifetime income this is the only product

10:37
on the planet the only strategy

10:39
ever to provide a lifetime income stream

10:41
there's no roi until you die so with a

10:43
single premium immediate annuity

10:45
you know that's with income starting as

10:47
soon as 30 days from the policy being

10:49
issued up to about 13 months

10:50
from 13 months out it turns into a

10:52
deferred income annuity a dia

10:54
but it's pretty much the same structure

10:56
so can you time that

10:58
no you can't time it interest rate wise

11:00
because

11:01
when you're deferring an annuity payment

11:03
like you say okay i want income to start

11:05
in two years or three years or four

11:06
years whatever

11:08
the longer you allow the annuity company

11:10
to hold on to the money the higher the

11:11
payment

11:12
now you can go to my site at the

11:14
annuityman.com

11:16
and run quotes yourself for dias and

11:18
speeds and q likes and see

11:20
how it works if you're going to get it

11:21
immediate or new or you're going to

11:23
defer it you can see the

11:24
you can figure out the breakeven points

11:26
i would encourage you to also get my

11:28
books i've written books on all of these

11:29
topics like 50 to 60 page owner's

11:31
manuals

11:32
i'll send them to you for free just give

11:34
us your shipping address

11:35
no one's going to show up at your door

11:36
no one's going to call you you know i'm

11:38
a professional i'm the number one agent

11:39
out here we'll send you that and you can

11:40
also

11:41
schedule a call with me as well but

11:43
getting back to like the deferred income

11:45
annuity and the single premium immediate

11:46
annuity you can't time it you can't time

11:49
the purchase of that because it's life

11:52
expectancy based and look i think the

11:54
sooner you transfer the risk the better

11:55
a qualified longevity annuity contract

11:58
is a deferred income annuity which

12:00
remember is an offshoot from a single

12:02
premium immediate annuity

12:03
but a qualified longevity annuity

12:05
contract was put on the planet in 2014

12:08
for use inside of a traditional type ira

12:10
and some employ your

12:12
retirement plans um and they're starting

12:15
to

12:15
to gain some momentum in those

12:16
retirement plans and the good news is

12:18
you can attach your spouse or partner

12:20
um as a lifetime income recipient as

12:22
well you also can

12:24
be set up joint once again can you time

12:27
the annuity purchase with a qlik no

12:29
you can't the longer you allow the

12:31
annuity company to hold on the money

12:33
the more they're going to enhance the

12:34
payout and you understand that

12:37
the primary pricing mechanism is your

12:39
life expectancy at the time

12:41
you take the payment so that's single

12:43
premium immediate annuities

12:45
deferred income annuities which is a

12:47
single premium immediate annuity but

12:48
deferred

12:49
and then qualified longevity annuity

12:51
contracts which is which is a deferred

12:52
income annuity

12:53
that you can use in qualified ira type

12:56
accounts which

12:56
is kind of funny because a lot of you

12:58
said would you never put an

13:00
annuity inside of an rra damn the

13:02
annuity man

13:03
really uh qualified longevity annuity

13:06
contracts

13:07
were designed developed and introduced

13:09
by the department of the treasury and

13:10
the irs for use

13:11
in your iraq so for the genius

13:15
advisors out there that i hear that are

13:17
saying that i'm like y'all need to y'all

13:19
need to slow down and read a little bit

13:20
more because

13:21
q lakhs were designed to put inside of

13:24
iras and once again

13:25
go to my site the annuityman.com you can

13:27
run these quotes 24 7

13:29
at your leisure without having to talk

13:31
to anybody etc but i do encourage you

13:33
once you

13:34
start running the numbers and getting my

13:36
books and all that stuff and digging in

13:38
i would encourage you to to um schedule

13:41
a call with me standing

13:42
80 minutes not some some junior stan is

13:44
it's me

13:45
um and we're going to talk for 30 minute

13:47
block it's not going to be salesy and

13:49
i'm going to put together a customized

13:50
plan

13:51
and if timing the purchase or trying to

13:54
to i guess you know have the have the

13:57
bell ring at the top as they said in the

13:58
stock market the bell never brings at

13:59
the top and the bottom right

14:01
there's really no arbitrage and

14:02
annuities uh so to speak so you really

14:05
can't time it but i can set it up to

14:07
where we're

14:07
we're either laddering income laddering

14:09
the purchase laddering the start dates

14:12
or if it's

14:12
a multi-year guarantee annuity laddering

14:15
durations

14:16
so you're getting a lifetime getting an

14:18
interest payment off of that

14:19
there's a myriad of ways to do it but

14:21
just understand that no one has the

14:22
perfect answer don't let any advisor say

14:25
well i know how to time this for

14:26
instance no they don't know how to time

14:28
annuity payments

14:29
it all comes down to the contractual

14:31
guarantees it all comes down

14:32
to do those contractual guarantees

14:36
fit your goals you know that i mean

14:38
that's really the bottom line

14:40
let's go to the fourth um type of income

14:42
type product it's not

14:44
actually an annuity it's an attachment

14:46
to an annuity that provides a lifetime

14:48
income guarantee

14:49
and they're very popular right now but

14:50
missold they're called

14:52
income writers and an income rider is

14:55
something that you can defer

14:56
you know as short as one or two years

14:58
but as far out as

14:59
say 10 or whatever plus years

15:02
there's two products that do what i call

15:04
income later income later is

15:06
you know deferring past the 13 months

15:08
anything past 13 months i'm going to

15:10
quote defer income annuities or q lakh

15:12
depending on what kind of

15:13
account we're talking about or and

15:15
income writers and income riders

15:17
are attached benefits to typically a

15:19
variable annuity or

15:20
indexed annuity i don't sell variable

15:22
annuities because i don't sell anything

15:23
that that's not contractual guarantee no

15:25
no

15:26
offense to the to the variable annuity

15:27
people out there selling them but what

15:29
we have found are the

15:30
income rider guarantees that are

15:31
attached to indexed annuities are

15:33
typically um high they provide a higher

15:36
contractual guarantee

15:37
than the variable annuities for a myriad

15:40
of reasons okay

15:41
but i only look at the contractual

15:43
guarantee so if you said

15:44
hey stan i want to you know turn on

15:47
income

15:48
in seven years i want to use non-ira

15:50
money

15:51
i want to attach my spouse or partner as

15:53
a joint lifetime recipient

15:55
i can quote all carriers and tell you to

15:57
the penny what that income rider

15:59
guarantee or that deferred income

16:01
annuity guarantee is

16:03
again you can go to my site with income

16:04
riders you have to fill out a form

16:06
and within uh that day we'll get you

16:08
that quote typically it's

16:10
within that working day we gotta um

16:13
go to all the carriers and get that

16:14
income writer quote we can get you an

16:15
income writer quote so but income riders

16:17
can you time income rider purchases

16:20
no uh you can't the other thing that i

16:23
think is important talking about

16:24
um you know lifetime income type

16:27
annuities

16:28
is the fact that people are always you

16:31
know worried about interest rates am i

16:33
timing interest rates

16:34
i've already shot that down factually

16:36
okay but people still come back oh those

16:38
do because

16:39
oh interest i'm like stop it's about

16:40
life expectancy

16:42
but i think the other thing you have to

16:43
keep in mind which is very important

16:46
is life expectancy tables changing

16:48
against you meaning that

16:50
the annuity companies project you to

16:52
live longer which means there'll be more

16:54
payments which means the payments will

16:55
be lower

16:56
annuity companies have the big buildings

16:58
for a reason annuity companies

16:59
sponsor sports stadiums for a reason

17:01
annuity companies have the big logos on

17:03
the plane for a reason

17:05
okay they make money they know when

17:06
we're gonna die they don't give anything

17:08
away

17:09
and with that being said in a low inch

17:11
perceived low interest rate environment

17:13
world

17:14
um how to enter how would an annuity

17:17
company make more money

17:19
um they would lengthen out the life

17:20
expectancy think about it now

17:22
is that going to happen don't know could

17:24
it happen absolutely

17:26
which means you can't time to purchase

17:28
you can't time the interest rates you

17:30
can't time the life expectancy it all

17:32
comes down to does the contractual

17:34
guarantee

17:36
make sense and as america's annuity

17:38
agent license in all 50 states i'm going

17:40
to tell you

17:41
that you can't time it please don't try

17:44
to time it

17:45
you can you can schedule a call with me

17:47
and say you figured out how to time it

17:48
and then i can actually say you know you

17:49
haven't

17:50
but i'm not it's that's not some sales

17:52
pitch and that doesn't mean you need to

17:53
buy an annuity right now

17:55
remember there's two questions when

17:57
buying an annuity i say this every

17:59
single podcast i'm going to say it for

18:00
every single podcast

18:02
for infinity because i want the industry

18:04
to adopt this it's two questions what do

18:06
you want the money to contractually do

18:08
and when do you want those contractual

18:09
guarantees to start

18:12
it's that simple what do you want the

18:14
money to contractually do

18:16
income principal protection whatever and

18:18
where do you want those contractual

18:20
guarantees to start and i also have an

18:21
acronym called pill p stands for

18:23
principal protection

18:24
i stands for income for life l stands

18:26
for legacy the other l stands for

18:27
long-term care

18:28
if you don't need to contractually

18:30
long-term care confinement care and

18:32
with income writers there's some

18:33
confinement care benefits as well but if

18:34
you don't need to contractually solve

18:36
for one or more

18:37
of those items in the pill acronym then

18:39
you do not need an annuity you do not

18:41
ever buy an annuity for market growth if

18:43
you want market growth and you want to

18:45
time

18:45
purchases with etfs and stocks and and

18:48
mutual funds

18:49
go get it knock yourself out and there's

18:51
ways to do that i remember back in the

18:52
day

18:53
when i was with the the firms on the

18:55
street there were ways to time

18:57
mutual fund purchases and those type of

19:00
things you could time it

19:01
um you could time it with announcements

19:03
you could time it with product

19:04
announcements and things like that with

19:07
annuities it's pretty boring it's static

19:09
there's there's there's just a handful

19:11
of types of annuities

19:13
you can't say that you know that i hate

19:15
annuities or

19:16
i'm not going to buy an annuity what

19:17
does that mean i'm not going to go to a

19:19
restaurant what kind of restaurant

19:20
there's many types of annuities but from

19:23
the standpoint

19:24
of timing it i think the timing really

19:27
comes down to

19:28
your specific situation your specific

19:31
situation comes down to

19:33
do i want to continue to shoulder risk

19:35
and time non-annuity type investments or

19:37
do i want to transfer some risk

19:39
to the annuity company um to solve for

19:42
either you know principal protection

19:44
income for life legacy

19:45
long-term care confinement care now

19:48
i would encourage you once again to get

19:50
my books we'll ship them to you for free

19:51
there's six owner's manuals i've written

19:52
they're all like

19:53
50 60 pages long you can get them at the

19:55
annuityman.com

19:57
and also too um in conjunction with my

19:59
fund with the annuities podcast

20:01
and the filming of this with the fund

20:03
the annuity fund with annuities youtube

20:04
channel i do have a stanley nude man

20:06
youtube channel

20:07
with over 300 and counting by the way we

20:10
add every week

20:11
um informative product non-salesy

20:15
factual in your face fun

20:18
you know chuckle adam they're fun videos

20:21
um they're typically five to nine

20:22
minutes long so i would go to the stand

20:24
they knew it you can go to my site at

20:25
theannuityman.com and

20:27
re-watch all of them and then we also

20:29
have this annuity lifestyle magazine

20:30
that comes out

20:31
every week that you can sign up for but

20:33
getting back to the topic of

20:35
can you time your annuity purchase is it

20:38
even possible

20:40
the answer is no the answer is a pound

20:43
the table no

20:44
um and that's the reason kind of the

20:47
podcast is

20:48
you know the saying of the podcast or

20:49
kind of the tagline is living the

20:51
reality not the dream and the dream is

20:54
with some people pitching annuities that

20:56
you can time it this is the right time

20:58
um you can't you gotta buy the

21:01
contractual reality you got to live the

21:02
reality not the dream

21:04
the other thing about timing the

21:05
purchase and i it just hit me

21:07
when i was saying that um a lot of times

21:10
i get calls from

21:12
from clients and people that are there

21:13
are potential clients that say

21:16
this agent or this this advisor is

21:18
telling me i need to buy this now

21:20
because things are changing

21:21
i need to buy this specific product

21:25
because you know the rate the the the

21:28
interest rate or whatever

21:29
whatever sales pitch they're getting is

21:30
going to change

21:32
understand this and never forget this

21:35
there's never

21:36
an urgency to buy an annuity the only

21:39
urgency

21:40
is to fully understand the annuity

21:42
before you buy it

21:43
that's the urgency now when we run

21:45
quotes and you run quotes at my site at

21:47
the annuityman.com

21:48
quotes are like a gallon of milk they

21:49
change every seven to ten days the only

21:51
way to lock a quote in

21:52
permanently is to go through the

21:54
application process

21:56
and so if you're just doing some

21:57
analysis and running quotes just

21:58
understand you just got to re-quote and

22:00
re-quote

22:01
and if we get on the phone one-on-one

22:02
we're gonna have to do the same thing

22:04
and re-quote and re-quote and re-quote

22:06
that's fine until you feel comfortable

22:08
with how the product works limitations

22:09
and benefits and i've answered all your

22:11
questions

22:12
and more importantly the contractual

22:14
guarantee makes sense for your specific

22:16
situation

22:17
you know the timing it's hard to

22:19
transition like i said earlier in the

22:21
podcast from

22:22
stocks and mutual funds and etfs and

22:24
that's all about timing you watch cnbc

22:26
and fox business and

22:28
and get the newsletters and listen to

22:29
the pundits and read the timing books

22:31
and

22:31
traitor traitor traitor timing timing

22:33
timing been there done that

22:34
i get it understand it but when you

22:37
transition from that world to

22:39
annuities all types migas

22:42
queue lacks dsp as index annuities

22:45
variable annuities

22:46
then you have to stop right there and

22:48
it's not about timing

22:50
you know we haven't talked about

22:51
variable annuities in index and it was

22:53
again

22:53
i don't i don't sell variable annuities

22:55
have nothing against them you know there

22:56
are some really good no load variable

22:58
annuities that i think if you want tax

23:00
deferred growth which is

23:01
the reason they were put on the planet

23:02
that's fine from the standpoint can you

23:04
time it

23:05
with variable annuities because there's

23:07
mutual funds they call them separate

23:08
accounts in the industry

23:09
inside the policy

23:13
can you time it you could try but what

23:15
you're going to find with a lot of the

23:16
variable annuities

23:17
is that the separate accounts mutual

23:18
funds whatever you want to call them

23:20
there's a limited choice there's a most

23:23
most variable annuities out there

23:24
limited choices or internal house funds

23:27
that you can only find with the variable

23:28
annuities there are a couple of no loads

23:30
that have

23:31
300 plus mutual funds which is really

23:33
good but once again with for pure market

23:35
growth and stand the annuity man the

23:37
number one age in the country america's

23:38
annuity agent i say don't buy any an

23:40
annuity

23:40
any annuity at all for for market growth

23:44
now the last one we'll talk about timing

23:46
can you time index to nuis

23:47
absolutely not indexed annuities

23:52
were put on the planet in 1995 to

23:55
compete with cd returns

23:57
that's exactly what they do remember

23:59
that the index

24:00
option strategies do not include

24:02
dividends so if you just look

24:04
rationally at the s p 500 over 50

24:06
percent of the returns

24:08
annually are dividend-based so with with

24:10
the s p 500

24:11
indexed option with an index annuity

24:14
that does not include

24:16
the dividends you're just literally

24:17
taking a snapshot of the price on the

24:18
contract anniversary date

24:20
and then another snapshot of the price

24:22
and then there's a there's a limitation

24:24
on the upside which can be changed at

24:25
the annuity

24:26
company's discretion so um it's a cd

24:30
product you know

24:31
are there some years that you can get a

24:32
little bit more than that yes but the

24:34
blended return since 1995 has reflected

24:36
cd returns

24:37
with indexed annuities which i think is

24:39
great it's a principal protection

24:41
product a cd product

24:42
and a very good and efficient delivery

24:44
system for what for the

24:46
income writer guarantees that that's

24:47
what you want income later but

24:49
can you time it absolutely not you know

24:52
there's a lot of indexed annuity sales

24:53
people out there to say

24:54
well we need to buy it now because the s

24:56
p is at x and the

24:57
in whatever made up index whatever index

24:59
they're pushing internally we need to

25:01
buy it now

25:02
well just remember this and just just

25:05
the way the game's played don't make it

25:06
good or bad but this is just reality

25:08
when you buy

25:10
an indexed annuity let's say most of

25:12
them have one year call options okay

25:14
not to get in the weeds i've written a

25:15
book on it go to my site get the book on

25:17
index and news i'll send it to you

25:18
but in essence if you buy a 10-year

25:20
product

25:21
you're really buying a one-year

25:22
contractual guarantee because the index

25:24
option is guaranteed for that one-year

25:26
calendar year

25:27
contract anniversary date to contract

25:29
anniversary date

25:30
and then the annuity company can change

25:32
that the way that the gains are

25:34
calculated at their discretion so

25:37
i guess if you're thinking about timing

25:38
it you're only timing it for that one

25:40
year because you're at the mercy of the

25:42
carrier

25:42
on how they're going to create the

25:44
renewal rate for the

25:46
for the years that are going to come

25:48
after that

25:49
that don't make it good or bad there are

25:50
some annuity index annuity companies

25:52
that are very fair to the

25:54
consumer with the renewal rate some are

25:56
not as as fair

25:57
um have kind of teaser rates at the

25:59
front but just understand when you're

26:01
going into an indexed annuity go into it

26:02
just like you would a mygo which is the

26:04
cd product

26:05
multi-year guarantee annuity because

26:07
indexed annuities are the sister product

26:09
it's a cd

26:10
product as well multi-year guarantee

26:12
annuities and indexed annuities should

26:13
be primarily purchased for their

26:15
principal protection

26:17
aspect they protect the principal you're

26:19
never going to lose a penny

26:20
from any type of market gyrations or

26:22
anything like that it's a fixed annuity

26:25
ish both of those are issued at the

26:26
state level they're not securities

26:28
indexed annuities or not securities so i

26:31
guess to wrap

26:32
all this up and i know i've gone over a

26:34
lot i took a big deep breath and just

26:36
jumped in ran 100 miles an hour

26:38
like stan the annuity man does i'm

26:39
passionate about this that's the reason

26:41
i call it fun with annuities but i do

26:42
think

26:43
that contractual guarantees transfer

26:45
risk annuities can be fun and can be

26:48
enjoyable because they enhance your

26:49
lifestyle because you're transferring

26:50
the risk

26:51
but it's got to be done properly and in

26:53
proportion and allocated properly within

26:55
your

26:56
portfolio which you know i do encourage

26:59
you

26:59
to reach out yes you will get me

27:02
one-on-one for 30 minutes

27:04
stand the annuity man america's annuity

27:05
age license in all 50 states including

27:07
the one you're sitting in

27:09
but let's conclude it as i probably

27:10
should have started it and stopped it

27:12
very

27:12
early in the podcast and the question is

27:16
can you time your annuity purchase is it

27:19
even possible stan the annuity man

27:23
all types which type all types here's my

27:25
answer

27:26
no you cannot time

27:30
annuity purchases so do not try only

27:34
look at the contractual guarantees and

27:36
make your decisions

27:37
on just the contractual guarantees and

27:39
remember to shop

27:41
all carriers for the highest contractual

27:43
guarantee for your specific situation

27:45
i certainly can do that you can do that

27:47
on your own at the annuitymen.com

27:49
and i hope you join me next week on the

27:52
number one annuity podcast on the planet

27:55
just happens to be called fun with

28:00
annuities

28:03
thanks for listening to fun with

28:05
annuities please hit the subscribe

28:07
button and make sure to go to my site

28:09
at the annuityman.com where you can run

28:12
your own spea dia and culat quotes

28:15
and see a live feed of the best mica fix

28:17
rates

28:18
in the country and even get indexed and

28:20
income writer quotes as well

28:22
you can also sign up for my six annuity

28:25
owner's manual books and i'll ship them

28:27
for free

28:28
and under no obligation i also encourage

28:31
you to schedule a one-on-one call with

28:33
me

28:34
stan the annuity man so we can have a

28:36
full discussion

28:37
of your specific situation it will be

28:39
the best

28:40
brutally factual and truthful advice you

28:43
will ever get and that's one guarantee

28:46
you should definitely take advantage of

28:47
so join me next time for the number one

28:50
annuity podcast

28:51
on the planet fun with annuities

28:59
[Music]

29:08
you