043 Why Renewal Rates are the secret to Fixed Index Annuities

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welcome to

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fun with annuities with your host me

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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 the number

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one annuity podcast on the planet i'm

0:44
your host stan

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the annuity man america's annuity agent

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license in all 50 states

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welcome to everybody that's listing

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with annuities youtube channel where you

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get to see

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me yell at the the camera and by the way

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this is the annuity fun cam and this

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is the will do not mind do studios that

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were taking a look at today

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um but you can you can watch the video

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which is kind of cool because you get to

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see what kind of

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stand the annuity man gear i have on

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today because the topic is so hot

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i have a bright red and orange adidas

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track suit which i'm holding up to the

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fun with annuities

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uh youtube video people watching and for

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the people that are

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uh you know listen to me on podcast

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platforms just you're probably lucky not

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to see it because it's

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really really loud and it's hot it's in

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fuego why

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is this important because the topic is

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important

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and the topic for today is why renewal

1:40
rates are kind of the

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the secret the hidden secret to fixed

1:43
indexed annuities

1:45
um fixed indexed annuities are currently

1:48
the go go product it's the

1:50
it's the product that everyone's you

1:52
know trying to sell you

1:54
you know if you're breathing you have a

1:55
bank account someone's trying to pitch

1:57
you an indexed annuity i can guarantee

1:58
it

1:59
um that doesn't make them bad i mean i

2:00
sell more index annuities than anyone on

2:02
the planet probably

2:03
um i sell them correctly for sure uh

2:06
their they're

2:07
cd products and typically we use them

2:09
here at the annuityman.com

2:11
um as a efficient and cost-effective

2:14
delivery system

2:15
for the income rider guarantee if you

2:17
want future income if you want to know

2:19
what

2:19
what the income will be 10 8 5 13 years

2:22
down the road

2:23
you want to know to the penny that's an

2:25
income rider attached to an indexed

2:27
annuity

2:27
and what we found is that the indexed

2:29
annuity income riders

2:31
outperform and offer higher contractual

2:34
guarantees than

2:34
variable annuities with income writers

2:37
and by the way we don't sell

2:38
variable annuities because i don't sell

2:40
anything that goes down because you own

2:42
an annuity for what it will do not

2:43
not what it might do not the

2:44
hypothetical theoretical back test it

2:47
projected

2:48
unicorns chasing the butterflies return

2:51
scenario that everybody tells you about

2:53
but

2:53
with indexed annuities let's kind of go

2:55
backwards so let's talk about what is an

2:57
indexed annuity back in

2:58
1995 they were first introduced

3:01
to the public and i think at that point

3:03
in time they were called equity indexed

3:04
annuities

3:05
they're not called that anymore because

3:07
they're not securities they're not

3:09
they're not regulated by the sec or fin

3:12
or anything like that

3:13
it's a life insurance issued product by

3:16
life insurance company at the state

3:18
level

3:18
in order to sell an indexed annuity you

3:21
have to pass

3:22
a state insurance exam and in most cases

3:25
score 70.

3:27
so in other words you could take the

3:28
crash course on a monday pass the test

3:30
on friday and by the next weekend you're

3:32
given the bad chicken dinner seminar

3:34
that's not good but that's just reality

3:36
so you got to be real careful out there

3:38
when people are pitching too good to be

3:40
true sounding

3:42
products like index annuities they're

3:44
not too good to be true they're very

3:45
good

3:46
but they're not too good to be true

3:47
they're c d products but that's not

3:50
how you're going to hear it being

3:52
pitched the way that you're going to

3:53
hear being pitched is

3:54
market upside with no downside market

3:56
participation with no with principal

3:58
production

3:58
um look at these bug toasted numbers mr

4:00
johnson give me a break

4:03
and by the way in some states the back

4:05
tested numbers that you see well if you

4:07
owned it 10 years ago

4:08
you'd have got this that's illegal in a

4:11
lot of states i mean they're not even

4:12
allowed that allowing that to happen

4:14
because

4:15
it's it's not a good representation of

4:17
the product in my opinion i totally

4:19
agree with that i think we

4:20
we should get away get get far away from

4:23
that as an

4:23
industry and the industry has earned

4:25
this bad reputation the annuity industry

4:27
has earned

4:28
its bad sales reputation because people

4:31
are buying dreams not the contractual

4:33
realities

4:35
think about it like this if someone

4:36
pitches you an indexed annuity and says

4:38
the following

4:39
mark it upside with no downside you're

4:41
first

4:42
as a patriot you should say hold that

4:44
for a thought i'm going to call the fed

4:46
and that's all the fed should buy

4:49
because

4:50
there is no such thing i mean if that

4:53
product was re

4:54
if you got consistent market returns

4:57
with principal protection

4:58
then the everybody would buy that you

5:01
can't be the rube at the table you can't

5:03
be the sucker you can't be that person

5:06
that the agent a lot of agents are

5:08
looking for that just you want to

5:09
trust them don't trust anybody

5:13
period you trust the contract that

5:15
you're getting ready to buy

5:16
now today's topic about renewal rates

5:18
and index annuities

5:20
it's an important one because this is

5:22
the part that no one's going to tell you

5:24
except me

5:25
nobody i guarantee you no one's ever

5:28
told you about renewal rates

5:30
or if they have they've kind of brushed

5:31
it by i'm telling you it's the key

5:34
i'll give you an example let's say you

5:36
bought a 10-year index annuity 10-year

5:38
surrender charge

5:40
and there's a one-year call option on an

5:42
s p and that's how the returns are

5:44
are calculated i'm not going to get in

5:45
the weeds with indexed annuity

5:47
you know caps and spreads and

5:49
participations and participation rates

5:51
and all the call options strategies

5:53
i've done that on videos on standing

5:55
nudity man video channel

5:56
and if you go to the annuityman.com i'll

5:58
send you my book on indexed annuities

6:00
that will be you know it'll be like

6:03
life-altering you go oh okay that's the

6:04
truth

6:05
i mean i always tell people there's

6:06
about five people on the planet that

6:08
really

6:08
understand indexed annuities and i think

6:10
i know the other four

6:12
i mean these are pretty complex products

6:15
and as i say if you can't explain it to

6:16
a nine-year-old you might not

6:18
might not want to buy it you know warren

6:20
buffett would never buy an index annuity

6:22
because he probably doesn't understand

6:23
it

6:23
there's a lot of moving parts but

6:25
getting back to my original premise of

6:26
you bought

6:27
a 10-year surrender charge indexed

6:29
annuity which most of them

6:30
are at that level either 7 or 10 years

6:32
but typically ten

6:34
and you have a one-year call option on

6:36
the s p and oh by the way that s p

6:38
index doesn't include dividends which

6:40
represents over fifty percent of the

6:41
returns

6:44
so you got that one year so in essence

6:46
what you're doing is you're buying a

6:47
10-year surrender charge

6:49
with a one-year guarantee think about it

6:52
i'm going to stop for a second let's

6:54
process that you have a one-year call

6:56
option on the s p you know what the

6:57
either

6:58
the cap the spread or the participation

6:59
rate is on that

7:01
but you have a 10-year surrender charge

7:04
but you have a one-year guarantee that's

7:07
where renewal rates come into play

7:08
because renewal rates

7:10
are when the carrier the second year

7:13
what they

7:14
put the participation rate caps and

7:16
spreads i.e the limitations on the

7:18
upside

7:20
and by the way the annuity carrier

7:23
can change that every year at their

7:26
discretion without talking to me

7:28
as the agent or you as the owner

7:33
how about that one don't believe me ask

7:36
me to send you a

7:37
specimen policy i'll send you the

7:38
specimen policy now

7:40
most of these indexed annuities have a

7:42
one-year call option

7:43
but there are some that have a two-year

7:44
call option some with a three-year call

7:46
option or some with a four-year call

7:47
option

7:48
back in the day they were as long as a

7:49
five-year call option but let's just say

7:51
one two and three

7:52
that's your typical most of them are one

7:54
year but you will find two and three

7:55
let's just look at a two-year that means

7:57
from contract to anniversary date

7:58
in 2020 to contract anniversary date in

8:01
2022

8:02
you get to lock in the gains on those

8:04
two days those days

8:06
okay now there's some there's their

8:09
index annuity companies i mean they're

8:10
they're commodity products but all of

8:12
the carriers have these little whistles

8:14
and bells

8:14
that try to differentiate themselves

8:16
from others but they

8:17
really don't their cd products um but at

8:20
the end of the day you're slave to the

8:22
renewal rate

8:24
so you probably need to i mean if you're

8:26
an indexed annuity buyer or thinking

8:28
about buying one or someone's trying to

8:29
pitch you one

8:30
and you ran across this this podcast or

8:32
video you got to be saying

8:34
wait a minute i wasn't told about the

8:36
renewal rate that seems rather important

8:39
stand the annuity man america's annuity

8:40
agent that's because it is

8:43
you know we can help you find companies

8:46
that have historically

8:48
been fair to their clients with renewal

8:50
rates there are carriers that have not

8:52
been

8:53
i'm not going to mention them by name

8:54
that's not fair i'm not going to do that

8:57
but i we will tell you on the phone if

8:59
you if you get me on the line i'll say

9:00
yeah

9:01
this this company based upon our

9:03
research

9:04
has not done a good job with renewal

9:06
rates and if you're looking at

9:08
an indexed annuity for accumulation

9:12
i don't want to say the word growth

9:14
because it's not a market growth product

9:17
then you need to know about renewal

9:19
rates

9:20
i think that's pretty i mean that's

9:22
pretty that's pretty important

9:25
now the sales pitches out there with

9:26
index annuity annuities are the reason

9:28
that the annuity industry has earned its

9:30
bad reputation it goes something like

9:31
this

9:32
you buy an indexed annuity from me mr

9:34
jones you get a 10

9:35
up front bonus you get market upside

9:38
with no downside

9:39
you get lifetime income guarantee and

9:41
you get long-term care

9:43
that's that's just horse crap but that's

9:46
typically the pitch and you probably

9:49
have heard it

9:50
let's go through it one by one ten

9:52
percent upfront bonus

9:53
there's no philanthropist at annuity

9:55
companies that wake up in the morning

9:56
wanting to give you money as part of the

9:57
overall contractual guarantee who cares

10:00
you know and typically you have to own

10:02
it invest it for you know as long

10:04
like a 10-year surrender charge you have

10:05
to vest it for that time period for it

10:07
to be your money

10:08
now do we factor that in when we're

10:10
looking at the contractual guarantees

10:12
absolutely but it doesn't hold any

10:14
weight

10:14
i call bonuses candy for the stupid

10:18
it is if you're buying a fixed index

10:20
annuity for a bonus

10:22
you're the rube at the table they're

10:23
looking for i had a i had a

10:25
a lady calling today and say stan what's

10:27
the what's the most upfront what's the

10:28
big stuff from bonuses you can get i

10:30
said stop

10:32
it's not about the upfront bonus i'd

10:33
explain it to her but she had people

10:35
telling her well we can get you at 15

10:37
or 12 percent of terms but there's no

10:39
free money there's no free lunch if it

10:41
sounds too good to be true it is

10:42
every single time so bunk the 10 percent

10:45
up from bunk the bonus okay

10:47
mark it up cyber with no downside i just

10:49
explained to you since 1995

10:51
when when index annuities were first

10:53
introduced

10:54
they produced cd type returns that's

10:56
what they're designed to do

10:57
period so there's no market upside with

10:59
no downside will you get

11:00
a good return one year or one every one

11:03
out of every three or four years maybe

11:04
but the blended return is going to be

11:06
like cd rates

11:08
or better than c or mica type rates

11:10
fixed annuity rates

11:11
that's fine why because it's a fixed

11:12
annuity then the next one is

11:14
life lifetime income that part of that

11:17
pitch is true

11:18
with an income writer but you have to

11:19
understand that if you attach an income

11:20
rider

11:21
for future pension needs and it's

11:23
attached to an indexed annuity

11:24
the annual fee of the income writer

11:27
comes out of the accumulation value that

11:29
indexed annuity value

11:31
for the life of the policy that's the

11:33
reason annuity companies have the big

11:34
buildings

11:35
okay it's that simple and then the last

11:37
one free long-term care

11:39
that's impossible because long-term care

11:41
is a health insurance product

11:42
and and fixed indexed annuities as a

11:44
life insurance product

11:46
what they're talking about is

11:47
confinement care it's a guaranteed issue

11:48
product that means

11:49
in the south if you get sicker you get

11:51
your money back quicker

11:53
so be careful with the too good to be

11:55
true sales pitches that are out there

11:56
because

11:57
they are every single time without

11:58
exceptions the other thing about renewal

12:00
rates let's get back to that

12:02
so you have the one year option and you

12:04
don't know what the two year is going to

12:05
be and you're at the discretion

12:07
of the issuing carrier they're going to

12:08
do whatever they want period

12:10
understand that currently there's over

12:13
700

12:14
different index option strategies in the

12:17
marketplace

12:18
with indexed annuities 700 period

12:21
as i said i i'm one of five people on

12:24
the planet that truly understand these

12:25
things okay

12:27
that's a lot of choices and they're all

12:29
kind of designed to create the same type

12:31
of return

12:32
the other thing that's happening in the

12:33
industry right now that i'm not a huge

12:35
fan of

12:36
companies are creating in indexes

12:39
indices whatever you want to call them

12:41
out of thin air they're they're they're

12:43
basketing

12:44
a group of investments they're actually

12:47
they're running back tested numbers to

12:48
get

12:48
algorithmic type numbers to get a return

12:51
so that they

12:52
can show and present that back tested

12:53
number once they find it then they name

12:56
it

12:56
and then they say the following mr jones

12:59
if you own the

13:00
flickety flockity index whatever it is

13:02
10 years ago you'd have made

13:04
x well flickety-flockady index wasn't

13:06
even around

13:07
six months ago and in some states that's

13:09
illegal and it should be illegal

13:11
we should not be able to as an industry

13:14
create an index out of mid-air

13:16
and then say if you'd owned it ten years

13:17
ago this would this is what you'd

13:19
made that's garbage and french that's

13:22
crap

13:24
so renewal rate history on an index that

13:27
just was created

13:30
there is no renewal rate history on an

13:32
index that was just

13:33
created because it was just created now

13:36
there are some carriers that

13:37
historically have been very

13:39
fair to the consumer with the renewal

13:42
rate

13:42
and we can tell you who those are but i

13:45
encourage you

13:46
i plead with you i pound the table with

13:48
you

13:49
to not look at indexed annuities as

13:51
market growth products because they are

13:54
not market growth products

13:56
period end of story they're not

13:58
securities they're not regulated by the

14:00
sec or finra or any of that

14:02
they're issued at the state level and

14:05
you can if you pass a

14:06
life insurance test at the state level

14:08
you can sell an indexed annuity i'm not

14:10
saying that's bad

14:11
i'm just saying that when when agents

14:14
are talking about

14:14
markets and market return and market

14:17
this and market that and market upside

14:19
and market participation and using the

14:21
word

14:22
market they better have the licensure to

14:25
back that up

14:27
period they better have a series seven

14:29
or series 63

14:30
65 whatever but that's the reason i

14:34
they're cd products that's really going

14:35
to tell agents that call me i'm like

14:37
stop

14:37
selling them as market products they're

14:39
not market products

14:41
now with a renewal rate history let's

14:43
talk about how to dig

14:44
in and how to dig into that now we can

14:46
help you go to my site at the

14:47
annuityman.com you can schedule a call

14:49
with me

14:50
if you want to uh to look at renewal

14:53
rate histories and give my

14:54
get my opinion my staff's done a really

14:56
good job of looking at

14:57
the history and that's in history

14:59
doesn't mean jack i mean

15:00
history i mean that doesn't mean that

15:02
next year they're not going to that

15:04
carrier that's been really fair is not

15:05
going to be fair

15:06
um but i don't want you to go into the

15:09
index and knew he said well if i owned

15:10
it 10 years ago

15:11
yeah but under that premise each year

15:14
you're at the discretion of the carrier

15:16
to change the index option limitations

15:19
on the gains now the good part about

15:21
indexed annuities

15:23
any type of gain that you do get let's

15:25
say it's a cd type return

15:27
it's going to lock in permanently so the

15:29
next option strategy starts at that

15:31
locked in

15:32
number that's a little bit higher okay

15:36
but that what you need to do is if

15:39
you're digging in you can ask for a

15:41
specimen policy from us

15:43
i got a call today and someone said you

15:44
know i i need a specimen policy for this

15:47
this uh index annuity i've been pitched

15:49
because uh the guy that's pitching to me

15:51
won't send it to me well if the person

15:52
won't send it to you then that's not

15:54
your person

15:55
there's no reason not to send a specimen

15:58
policy

15:59
annuities fixed annuities are contracts

16:02
okay they are contracts period

16:04
so you might want to read what's in the

16:06
contract i'm not sure

16:07
you're going to understand all the index

16:09
annuity and reading the policy

16:10
might turn you away from indexed

16:12
annuities in general that's okay

16:15
but you should if you want to see the

16:16
specimens policy we can get you the

16:18
specimen policy

16:20
now once again we use indexed annuities

16:23
as an efficient and cost-effective

16:24
delivery system for the income rider

16:26
guarantees

16:27
period end of story that's what we do we

16:30
really don't

16:31
focus on the index option returns

16:34
because historically they've been cds

16:36
you know multi-year guarantee ask type

16:38
of return so

16:39
you know the index option strategies all

16:42
700 of them

16:43
um you know they pretty much return the

16:45
same thing we we just don't

16:47
we don't think they're a growth product

16:49
we think they're a cd type product

16:50
and a very good delivery system for that

16:53
income rider but getting back to the

16:54
made up indices out of midair we talked

16:56
about

16:57
i mean currently there's i think there's

16:58
over 50 plus at the time of this taping

17:01
indices indexes to choose from when you

17:04
look at the

17:04
the the whole industry of indexed

17:07
annuities all the offerings and over

17:09
700 index option choices

17:12
it's a lot and it's complex and as i

17:14
tell people all the time

17:15
if you can't explain it to a

17:17
nine-year-old you might not want to buy

17:18
it

17:19
now when we sell indexed annuities with

17:21
the income writer attach and we're only

17:23
focused

17:24
on the on the income rider guarantee

17:27
then that's our focus we're not focused

17:28
on that other that other is just a

17:30
delivery system

17:31
we'll throw a dart at the index option

17:32
strategies and whatever

17:34
you know we'll just or in a lot of cases

17:36
with index annuities they have they

17:38
offer what's called a declared rate

17:40
which is a fixed rate you just you just

17:42
don't even look at the index option

17:44
strategy you just do the

17:45
declared rate and typically if it's more

17:47
than the the fee coming out

17:49
that the writer is coming out of the

17:50
accumulation we just choose the decline

17:52
declared rate

17:53
because we're buying the guarantee of

17:55
the income writer i'll give you a visual

17:57
for the people that are listened to on a

17:58
podcast

17:59
draw a line down a blank sheet of paper

18:01
visually left hand side at the index

18:03
option side accumulation value side

18:05
right hand side is the income rider side

18:08
the income rider side is the separate

18:09
calculation

18:10
and will always without fail be higher

18:14
in value than the accumulation value for

18:16
a lot of reasons but

18:18
one of the reasons is the fee from the

18:19
income writer comes out of the

18:20
accumulation value

18:22
but the income rider is the income

18:24
amount you can it's monopoly money in a

18:25
phantom account that you can only use

18:27
to calculate the first income stream but

18:29
the reason it's always higher is because

18:32
when attached to an indexed annuity and

18:34
in order to get the benefit of that

18:36
income rider you have to turn on the

18:37
income stream

18:38
you can't cash it in you can't transfer

18:40
it you can't you know cash out lump sum

18:42
with the income rider

18:43
the real money is the left-hand side of

18:45
the ledger which is the accumulation

18:46
value index option side okay

18:48
so for us you know renewal rates

18:52
aren't as big a deal but we do have some

18:54
clients and you might be one of them i

18:55
hope you you'll contact us at the

18:57
annuityman.com

18:59
if you want to just look at index

19:01
annuities for um

19:03
you know the the limited upside that

19:04
they provide i'm not going to say growth

19:06
because they're not

19:07
market growth products even though

19:09
that's how so

19:10
many people have been sold and they

19:13
believe that you know that's what they

19:14
are

19:15
um you know if you think logically about

19:18
it with some of the sales pitches which

19:20
is

19:20
you know market upside with no downside

19:22
or market participation with

19:23
with you know with with uh um

19:26
you know no no downside as well um

19:30
think about this for a second if that

19:32
was true if you could get market upside

19:33
with no downside that's all the fed

19:35
would buy

19:35
right that's all institutions would buy

19:38
that's all

19:39
anyone would buy um it's a great sales

19:42
pitch

19:43
until you dig in until you understand

19:46
the product

19:47
um but that doesn't make it a bad

19:49
product i think

19:51
index annuities are very good but

19:53
they're not too good to be true

19:54
i guess that's the best way to put it

19:56
you know we we like them for

19:58
what they do deliver income rider

20:00
returns or if someone wants to

20:02
ladder multi-year guarantee annuities in

20:04
addition to

20:05
and add a fixed index annuity we have

20:08
something called a

20:09
a mixed fixed ladder you know you have

20:12
two types of fixed annuities that are

20:13
deferred which is multi-year guarantee

20:15
annuities which are

20:16
the annuity industry version of a cd and

20:18
then you have indexed annuities

20:20
which are also cd type products and like

20:22
a mixed fixed ladder would be like a

20:24
you would do a two year myga a three

20:27
year myga a five year myga and then a

20:29
seven year

20:30
indexed annuity with no rider just a

20:32
seven year indexed annuity

20:34
and hopefully we can um we'll choose a

20:36
carrier for you that has good renewal

20:38
rates and you have the

20:40
potential for it to do a little bit

20:42
better than omiga that's your hope

20:45
in a mix fix type setting but market

20:47
returns consistent

20:49
it's just it's just not going to happen

20:51
um

20:53
how the sausage is made with um with

20:55
with fixed index annuities

20:57
it's it's hard to get into those weeds

20:59
in this type of a setting

21:01
that's the reason i've written a book on

21:02
index annuities i've done i've actually

21:04
done

21:04
videos at stand the annuity man youtube

21:07
channel

21:08
that explain participation rates

21:11
caps spreads and all of the all the

21:13
typical indexed

21:14
annuity jargon on the index options that

21:17
can really really help you

21:19
and obviously we need to talk as well if

21:21
you're really digging in but just don't

21:23
buy the hype of market upside with no

21:25
downside and renewal rates are

21:27
so so important because you know if you

21:30
buy the seven year product or the

21:31
10-year product

21:33
and you have a one-year option you're

21:34
buying the one-year guarantee with the

21:36
10-year surrender charge a one-year

21:37
guarantee with a seven-year surrender

21:38
charge

21:39
so you need to be aware what those

21:40
renewal rates are and i know what you're

21:42
saying

21:42
why hasn't anyone told me this i mean

21:44
why a lot of times i don't i'm not sure

21:46
agents really have thought it through

21:49
to tell people the renewal rate story or

21:52
the fact that that's so

21:53
important to that side of the ledger you

21:56
know the left-hand side of the ledger

21:57
the real money

21:58
and what it can potentially increase by

22:01
um

22:02
you just have to be aware of it because

22:04
one year your cap

22:05
your first year there's a lot of

22:06
companies out there do what i call

22:08
teaser rates on the first year

22:10
they'll do like a really high cap like a

22:11
seven or eight percent cap on the first

22:13
year

22:13
and then the renewal rates at three so

22:17
you know the first year you could get

22:18
seven in the second year you get three

22:20
um or two i've seen it as bad as that

22:23
and who knows

22:25
what's going to happen in the future

22:26
with interest rates um with the economy

22:29
with just the fact of of indexed annuity

22:32
companies

22:33
or annuity companies in general life

22:35
insurance companies in general who knows

22:37
what the offerings are going to be

22:38
that's the reason that you really can't

22:39
look back at the 10

22:40
at a 10-year you know hypothetical

22:43
theoretical

22:44
projected back-tested unicorns chasing

22:46
the butterfly return

22:47
and say well you know if you owned it 10

22:49
years ago it's going to do this

22:51
no it's all about right now it's all

22:52
about right now's

22:54
cap spreads and participation rates for

22:56
this year and it's definitely

22:58
all about it the second year and the

23:00
third year and the fourth year

23:02
and the fifth year and the sixth year

23:03
and the seventh year and the eighth year

23:05
and the ninth year and the 10th year

23:08
if you have a 10-year surrender

23:10
surrender charge

23:11
that's that's important you should know

23:14
the carrier's background

23:16
in history on what they do with renewal

23:19
rates

23:20
period so i'm hoping that i'm stripping

23:23
away some of the sales pitch nonsense

23:26
i'm stripping to lay away a lot of the

23:27
fluff i tell people all the time

23:29
don't buy the dream because you're going

23:30
to own the contractual reality i mean

23:32
that's just a fact

23:34
and especially with indexed annuities do

23:36
not believe

23:37
that what you've been shown told or

23:39
promised is going to happen

23:41
because it's not um one of the smartest

23:44
people in the industry in the indexed

23:45
annuity side

23:46
um she said she said the following to me

23:49
one time

23:50
and um and it's it's just always suck in

23:53
my head and she said this

23:55
i've never seen and and she's the

23:58
biggest

23:58
fan of index and knew he's on the planet

24:00
okay but here's what she said

24:02
i've never seen an indexed annuity

24:05
proposal come true think about that

24:09
with that being said and that expert

24:12
laying it on the line by the way i say

24:14
there's five people on the planet than

24:15
indexed annuities she's one of them i'm

24:17
one of them

24:18
but the point is to then base your

24:22
decision on back tested numbers is crazy

24:25
and in fact in some

24:26
states the back testing is illegal i

24:28
think it should be illegal

24:29
across the board i think that is

24:32
misleading and i think that people

24:34
should never

24:34
ever ever ever base their decision on a

24:37
back-tested number

24:39
you should base your decision on the

24:42
company the carrier the claims span

24:43
ability the renewal rate history if it's

24:45
an indexed annuity

24:47
and if it's an index annuity and you're

24:48
looking for income then going and

24:50
shopping for the highest contractual

24:52
guaranteed income riders and shopping

24:53
all carriers

24:54
for for that um i got a call today and a

24:57
guy said well

24:58
this guy pitched me an index knew with

25:00
this carry you familiar with him i said

25:01
yeah you know i'm standing the annuity

25:03
man america's annuity agent i'm

25:04
licensed with everybody i there's not a

25:06
product that there i haven't seen or

25:08
looked at

25:09
so i said yeah i'm familiar with it and

25:10
he said well this guy said

25:12
it's the best product out there he done

25:14
all the research and this is the only

25:15
one this is the only one i should look

25:17
at

25:17
that's garbage that's crap buying

25:20
annuities is like buying a plane ticket

25:22
there's not in my opinion there's not

25:24
one index annuity that's better than the

25:26
other indexed annuity what separates

25:28
them as we're finding out in this

25:30
podcast

25:31
right is the is a renewal rate history

25:34
that's where the rubber meets the road

25:36
that's the secret sauce

25:37
that's the secret ingredient of index

25:40
annuities that

25:40
not many people not many agents talk

25:43
about but not many people know about

25:45
but if you're a client of stand the

25:46
annuity man you're going to know about

25:48
it

25:48
if you want to look at index annuities

25:50
you're going to know about it

25:51
period end of story so i want you to

25:54
feel comfortable with the fact that

25:56
yes indexed annuities are they're

25:58
complex

25:59
but we can make them simple for you um

26:02
the book that i've written the fixed

26:03
index annuity owner's menu

26:04
that you can get at the annuityman.com

26:06
just fill in your just fill in your

26:08
information i'll ship it to you for free

26:09
no one's going to call or show up your

26:10
doorstep and

26:11
you know we treat you like a

26:12
professional i'm going to send it to you

26:14
and then i would encourage you to stand

26:15
the annuity man

26:16
youtube channel and and under playlist

26:19
find fixed indexed annuities i've done a

26:21
bunch of

26:21
videos just on fixed indexed annuities

26:24
i've done them on

26:25
participation rates and caps and spreads

26:27
and what that means

26:28
i've i've really kind of stripped away

26:30
and peeled back the onion

26:31
so that your you don't have to guess and

26:34
hope and trust

26:36
what that agent's saying one thing about

26:39
me you're going to find out i'm going to

26:40
shoot it straight my grandfather told me

26:41
this a long time ago

26:42
stan if you tell the truth you don't

26:44
have to remember anything

26:45
and i'm from stanley north carolina

26:47
which is right outside of gastonia

26:49
that's where i grew up

26:50
and he's right and that's what we do i'm

26:52
going to tell you the truth i'm going to

26:54
tell you if you need an annuity i'm

26:55
going to tell you if you don't need an

26:56
annuity i'm going to tell you if you're

26:57
putting too much money into an annuity

26:59
i'm going to tell you if you're dreaming

27:00
i'm going to tell you if you're dreaming

27:01
on the sales pitch

27:02
i'm going to tell you what you need to

27:04
hear i'm never going to be your friend

27:06
i'm going to be the best

27:07
advisor you've ever had i'll be the gold

27:10
standard of all your advisors

27:12
period that's not me being cocky or

27:15
or confident and overstating that's just

27:18
a fact

27:18
i've been doing this a long time i was

27:20
with dean witter payne weber morgan

27:22
stanley

27:23
and ubs i've been in the financial

27:25
services business for a long

27:27
long long time i became stan the annuity

27:29
man

27:30
you know a decade ago decade plus ago

27:33
to clean this mess up sometimes it feels

27:36
like i'm screaming into a hurricane

27:37
that's okay because the message is

27:40
getting through

27:41
annuities are contracts they're not

27:43
investments indexed annuities are

27:45
cd type products like multi-year

27:47
guarantee annuities they're not market

27:49
growth products

27:49
i'm going to pound the table until

27:51
people understand that

27:52
and i'm also going to tell people that

27:54
renewal rates with indexed annuities

27:56
are the secret and hidden sauce

27:59
that no one ever talks about but that me

28:01
and you need to talk about

28:03
so with that i really appreciate you

28:05
joining me on fun

28:06
with annuities the number one annuity

28:08
podcast on the planet my name is stan

28:10
the annuity man america's annuity agent

28:12
and i hope you join me next week for

28:14
another thrilling fun

28:16
episode about annuities

28:23
thanks for listening to fun with

28:25
annuities please hit the subscribe

28:27
button and make sure to go to my site

28:29
at the annuityman.com where you can run

28:32
your own spea dia and culat quotes

28:35
and see a live feed of the best mica fix

28:37
rates

28:38
in the country and even get indexed and

28:40
income writer quotes as well

28:42
you can also sign up for my six annuity

28:45
owner's manual books and i'll ship them

28:47
for free

28:48
and under no obligation i also encourage

28:51
you to schedule a one-on-one call with

28:53
me

28:53
stan the annuity man so we can have a

28:55
full discussion

28:57
of your specific situation it will be

28:59
the best

29:00
brutally factual and truthful advice you

29:03
will ever get and that's one guarantee

29:05
you should definitely take advantage of

29:07
so join me next time for the number one

29:09
annuity podcast on

29:11
the planet fun with annuities

29:28
you