045 Fixed Index Annuities Are They a Good Investment

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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 my name is

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stan the annuity man america's annuity

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agent license in all 50 states i'm glad

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you joined me today today's topic

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is a hot one and i've got a cool outfit

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on for the people in podcast land out

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there

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yes we do film this on the fun with

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annuities youtube channel and we also

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have a second channel

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called stan the annuity man that are

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about all the products and all the stuff

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really good informative videos

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non-salesy

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but today's topic is a is a timely one

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because

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i get a lot of calls about this and the

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topic is are fixed indexed annuities a

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good investment

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i don't know let's talk about it what

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are fixed indexed annuities first of all

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let's kind of do some history they've

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been around since 1995. yes i was around

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in 1995 in the financial services

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business

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when they were first introduced so i

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kind of remember them coming

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out and they were being explained to me

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and even back then they were a little

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bit complex i thought

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and then they kind of caught traction

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um after the after the last kind of

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debacle

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hiccup in 2008 in my opinion that's just

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kind of when they took off

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but they were designed in 1995 to

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compete with

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cd returns now initially they were

1:59
called

2:00
equity indexed annuities but that got

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dropped because they're not

2:04
a security fixed indexed annuities

2:06
regardless of what you've been told

2:08
about market returns on no they're not

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they're not

2:12
uh securities they're regulated at the

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state level

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um and and they have to be approved at

2:17
the state level and in order to sell

2:19
them

2:20
in a specific state you have to have a a

2:23
life insurance license in that state to

2:26
sell it so obviously

2:27
i'm licensed in all 50 states i have a

2:29
life insurance license all 50 states

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and i'm i'm able to sell all types of

2:34
fixed annuities

2:34
but there's all types of fixed annuities

2:36
i mean there's there's a fixed rate

2:38
annuity also called a multi-year

2:40
guarantee annuity there's a single

2:41
premium immediate annuity a deferred

2:43
income annuity

2:44
a qualified longevity annuity contract

2:47
and then there's a fixed index annuity

2:49
now

2:50
the multi-year guarantee annuity is a cd

2:53
is the annuity industry's version of a

2:54
cd i mean it looks like it it

2:56
works like it i mean it's it's pretty

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close um because you you

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lock in a guaranteed interest rate for a

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specific period of time

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but the indexed annuity has become a

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very controversial

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product and it's unfortunate because

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people say

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is it you know is it too good to be true

3:15
is the annuity

3:16
is the indexed annuity sales pitch i'm

3:17
hearing too good to be true

3:19
and i'm like yes it is but the product's

3:20
pretty good it can be good if you

3:23
understand

3:24
how it works not how it's pitched

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um because the current pitch out there

3:30
too many of them not all but that's

3:32
majority i hear

3:33
is mark it upside with no downside or or

3:36
mark it upside with principal protection

3:39
um

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if that was true i mean truly you have

3:43
to just think for a second put on your

3:45
your smart cap and not don't be the rube

3:47
at the table in vegas like to say

3:49
if you don't if you don't know who the

3:51
rube at the table is in las vegas it's

3:53
you

3:53
with rube means sucker um

3:56
if if if the product could consistently

4:00
deliver market returns year after year

4:02
after year and protect the principal

4:04
then the fed should only buy indexed

4:06
annuities i mean

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i mean think logically for a second it

4:11
it can't be true

4:12
and i tell people this all the time with

4:14
annuities if the sales pitch sounds too

4:17
good to be true

4:18
it is every single time

4:22
regardless there's no exceptions

4:26
it is and the typical index annuity

4:28
sales pitch that

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you know currently at the time of this

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taping you know we're going through

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kovitz so there are no bad chicken

4:33
dinner seminars but in the bad chicken

4:35
dinner seminar circuit a lot of you've

4:36
been out there and i always say

4:38
swallow the food not the pitch um one

4:41
size fits

4:42
all the the person's up there pitching

4:43
the index annuity and they're gonna sell

4:44
it to everybody

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um which i mean which is crazy typical

4:49
pitches

4:49
you get an upfront bonus you get market

4:52
upside with no downside

4:53
you get a lifetime income stream down

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the road when you want

4:56
want it and you get free long-term care

4:58
well three out of four that three out of

5:00
four of those are completely misleading

5:02
and wrong

5:03
the ten percent bonus there's no

5:06
philanthropist at annuity companies i've

5:08
i've said a million times you know you

5:09
know

5:10
that's not that's not free money it's

5:12
part of the overall contractual

5:13
guarantee and i call upfront bonus candy

5:16
for the stupid

5:17
and if you are dumb enough to fall for

5:19
it i'm gonna buy this annuity for the

5:20
bonus then you're you're the sucker

5:22
they're looking for i hate to be that

5:23
blunt

5:24
but if you deal with me staying the

5:25
annuity man i don't miss words i'm going

5:26
to tell you the truth

5:27
i'm never going to be your friend but

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i'm going to be the best advisor you've

5:30
ever had i'm going to be the gold

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standard

5:32
because you know when you call me i'm

5:34
going to tell you the truth so the

5:35
bonuses

5:35
is a is is contractual but the way it's

5:38
sold is a joke

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the market upside with no downside is is

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also a joke

5:43
um and i don't care what back-tested

5:46
hypothetical theoretical

5:47
projected hopeful agent scenario

5:50
unicorns chasing the butterfly

5:53
type scenario they're showing you um

5:56
you're not going to get consistent

5:57
market returns i know that's what they

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want you to believe

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but that's not the way the product is

6:02
designed so

6:03
market ups i would know downside blown

6:05
up the lifetime income is legit it's an

6:07
income rider attached

6:09
to an indexed annuity but there's no

6:11
income right or better than the other

6:12
one

6:13
and what you do if you're gonna work

6:15
with me and you say hey stan if you

6:16
answer the two questions

6:17
what do you want the money to

6:18
contractually do and when you want those

6:20
contractual guarantees to start

6:22
which i ask everybody and you say you

6:23
know what i need income in

6:25
seven years nine years eight whatever

6:26
the years then we're going to run

6:28
the quote with all income writers to

6:31
find the highest contractual guarantee

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because

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that's a separate calculation within the

6:35
policy and if you're going to buy an

6:37
income rider you make your decision

6:39
solely on the income rider

6:41
a lot of agents are out there pitching

6:42
index annuities that increase

6:45
potentially the income stream with the

6:47
index return

6:48
sounds fantastic but you know annuity

6:51
companies have the big buildings for a

6:52
reason

6:53
they're not going to give that away they

6:55
significantly and drastically lower that

6:57
initial payment

6:58
if you want to get one of those types of

7:00
annuities but people buy the dream and

7:01
they're like well

7:02
my inaudible increases with inflation

7:04
yeah but sure it's gonna take you eight

7:06
to ten years

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uh to make up for the drastic lowering

7:11
of that initial payment

7:12
and then the last part of the sales

7:13
pitch is free long-term care which is

7:15
garbage because you know long-term care

7:18
is a health insurance product

7:19
fixed into net indexed annuities is a

7:21
life insurance product

7:23
so that doesn't match what they're

7:25
talking about is a confinement care

7:27
rider that's a guaranteed issue

7:29
and in the south we call it if you get

7:31
sicker you get your money back quicker

7:32
what they do is they double the

7:33
the um the income stream for about five

7:36
years most of them

7:38
which is fine you know it's fine it's a

7:39
guaranteed issue product but it should

7:41
only be used as supplemental coverage

7:43
and never as a replacement for

7:45
traditional and very good long-term care

7:48
coverage

7:49
it's supplemental coverage but the

7:51
reason it only pays out five years is

7:52
when you can't when you qualify and

7:54
typical

7:55
qualification is you know in the realm

7:58
of you can't feed yourself

7:59
and clothe yourself bathe yourself that

8:01
type of stuff first of all life stinks

8:02
second of all

8:03
you're gonna live an average of three

8:04
years and a maximum of seven

8:06
so that's kind of the pitch you're gonna

8:09
hear and

8:10
um i got a call today and it was

8:11
hilarious uh the person had been pitched

8:14
an indexed annuity i said

8:15
we'll go over that and that's fine you

8:17
know but i asked him the two questions

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what do you want the money to

8:20
contractually do and when do you want

8:22
those contractual guarantees to start

8:24
and the answer was well stand the

8:26
annuity man america's annuity agent we

8:27
need

8:28
income and we need income to start

8:29
immediately you know like in 30 days

8:31
that's not an indexed annuity that's i

8:34
mean that's a great example of

8:36
fitting this you know trying to fit a

8:37
square peg into a round hole

8:39
under that scenario of lifetime income

8:41
starting immediately

8:42
that's called a single premium immediate

8:44
annuity why did that agent not show them

8:47
that

8:47
because the single premium immediate

8:49
annuity commission is

8:51
drastically lower than an indexed

8:53
annuity commission by the way all

8:54
commissions with all annuity types

8:56
are built in um and hidden from the

8:59
consumer but

8:59
understand that the the more uh the more

9:02
simple the product the lower the

9:03
commission the more complex the product

9:05
the higher the commission or the longer

9:06
the surrender charge

9:07
the higher the commission so that's the

9:09
reason that regardless of what

9:11
i told the guy i said if you would have

9:12
said to the person well i've got a sore

9:14
throat and i got a sprained ankle

9:15
what should i do mr advisor what should

9:17
i do what what product should i buy

9:19
they'd say an indexed annuity i mean

9:21
they're not even listening a lot of

9:23
these guys they're just selling

9:24
indexed annuities um which is

9:26
unfortunate because once again

9:29
it's it's a good product the way that

9:31
stan the annuity man america's annuity

9:33
agent top independent agent in the

9:35
country

9:36
licensed in all 50 states and i've been

9:38
doing this a while you know one of our

9:40
ads that's running out there i love it

9:41
it says

9:42
talk to someone with 30 years experience

9:44
me or

9:45
you know because i'm in the ad right

9:47
talk with someone with 30 years of

9:49
experience not some 30 year old you know

9:51
not some person that's just selling

9:52
indexed annuities

9:53
you know and just got their life

9:55
insurance license i mean the way that we

9:57
use them i think is the way that they

9:59
should be used

10:00
as an efficient and cost effective

10:02
delivery system

10:04
for the income rider guarantee so under

10:06
the scenario of

10:08
what do you want the money to

10:09
contractually do and when you want those

10:10
contractual guarantees to start

10:12
if you said you know i need income

10:14
starting seven or nine or ten or five

10:16
years

10:17
that's an income rider attached to an

10:19
index annuity now do we get caught up in

10:21
all of the

10:21
spreads and caps and participation rates

10:24
and all that stuff

10:25
no because drawing the line down the

10:27
middle of a page i'll for you

10:28
podcast listeners out there i'm doing

10:30
this for the fun with annuities

10:32
youtube channel watchers draw a line

10:34
down the middle of the page

10:36
the right hand side is the income rider

10:37
side left hand side is the

10:39
index option side we could care less

10:41
about the index option side all we care

10:43
about and make our decision is the

10:44
income

10:45
writer's side because we know that two

10:47
things are going to happen on the index

10:48
option side number one is a fixed

10:50
annuity you're not losing money

10:51
okay that's great number two you're

10:54
gonna get cd type returns or miga type

10:56
returns

10:57
that's fine too but you're not going to

10:59
knock the cover off the ball and get

11:00
market returns

11:02
when people call and i had to recall

11:04
today guy called me i asked him the

11:05
two questions what do you want the money

11:07
to contractually do and when he want

11:09
those contractual guarantees to start

11:10
now he gave me

11:12
an answer that i hear a lot i would like

11:14
a reasonable rate of return i'd like for

11:15
it to start now

11:16
so one more question what's a reasonable

11:19
rate of return

11:20
chester and the answer was you have

11:23
seven to nine percent

11:24
i'm like seven to nine percent what are

11:26
you talking about

11:28
it's not going to happen with index

11:29
annuities i don't care what they

11:31
show you i don't care the back-tested

11:33
stuff

11:34
and in some states by the way showing

11:36
back-tested numbers

11:37
is legal i think it should be illegal in

11:39
all 50 states

11:41
i mean to look backwards and say well if

11:42
you're 110 years ago

11:45
come on man you're you're you're smarter

11:47
than that

11:48
don't fall for that and the other thing

11:50
that's happening in the index annuity

11:51
space which i do not like

11:53
are these indices indexes that are made

11:56
up out of thin

11:57
air meaning that the annuity company is

12:01
they're back testing for a return once

12:03
they find the return with the basket of

12:05
investments then they

12:06
name it they pla put a name on it and

12:09
they put it in the indexed annuity

12:11
i'm not saying there's bad intentions

12:12
there's not but you can't then go

12:14
say well if you'd own this this index

12:18
10 years ago you would have made this

12:20
well it hadn't been around but for six

12:22
months how could i owned it 10 years ago

12:24
i understand the semantics that they're

12:26
playing the word games

12:27
but it's misleading to the consumer

12:30
period

12:30
and the other thing i tell people all

12:32
the time about index annuities

12:34
is let's just say you bought a an

12:36
indexed annuity

12:38
that has a 10-year surrender charge and

12:40
a lot of them have 10-year they're

12:41
either around seven to ten years but a

12:43
lot of them are ten years

12:44
first of all the commission's really

12:46
high but but

12:48
then it it still could be suitable and

12:49
appropriate but i'm just saying if

12:51
someone's just saying

12:52
you know this by the index annuity

12:54
there's a reason they got a car payment

12:55
and all that stuff

12:56
but they bought you buy the 10-year

12:58
product it has a 10-year surrender

13:00
charge

13:00
and it has a one-year option on the

13:02
let's just say it's the s

13:03
p like the old days the s p 500 is a one

13:06
year option contract anniversary date to

13:08
contract anniversary date

13:09
okay um what you really own

13:13
is a 10-year surrender charge with a

13:15
one-year guarantee

13:17
i pause for a second because i want you

13:19
to process that now there are some index

13:21
options that are two years in length and

13:22
three years in length et cetera

13:24
but even under those scenarios let's

13:26
just say you bought a

13:27
10-year surrender charge product with a

13:29
two-year option okay

13:31
what did you really buy you bought a

13:32
10-year surrender charge with a two-year

13:34
guarantee you know what that guarantee

13:36
is

13:37
the renewal rate history i just did a

13:39
podcast on this and got a lot of a lot

13:41
of love and hate love from

13:42
consumer hate from the industry the

13:44
renewal rate

13:45
is really where the games played with

13:47
indexed annuities meaning that

13:49
that first year or two years if it's a

13:52
two-year option

13:53
that first year option they can have a

13:55
really good

13:57
upside cap on it or limit upside

14:00
limitation

14:01
by the way the limitations and the

14:02
levers that are used

14:04
um to limit the upside are called caps

14:07
spreads and participation rates now i've

14:10
done youtube videos on that at stan the

14:12
unity men youtube channel

14:13
i've also written a book called the

14:14
fixed indexed annuity owner's manual

14:17
which if you go to my site and sign up

14:18
for it i'll send it to you for free

14:20
no one's going to call you or show up at

14:21
your doorstep i'm telling you it's worth

14:23
it

14:24
to read that book it's like 75 pages of

14:27
the most

14:27
brutal factual indexed annuity truth

14:30
ever

14:31
it should be required reading it should

14:32
be part of the policy

14:34
that everybody is like if you bought an

14:36
index annuity from someone else

14:37
i don't know why you'd do that and not

14:39
use stanley nudie man

14:41
himself but it should be part of the

14:43
policy so people understand things i've

14:45
been told that by the way

14:47
but i mean the k the levers the caps and

14:50
the express

14:51
those can be changed by the annuity

14:54
carrier the carrier that issued the

14:56
product

14:57
at the company's discretion without

15:00
talking to me

15:01
or without talking to you so

15:05
do they change them yes do they change

15:08
them

15:08
sometimes drastically yes

15:12
are there carriers out there that that

15:13
have a history of being

15:15
fair to the consumer and to the annuity

15:18
policy owner on renewal rates yes there

15:20
are some companies like that

15:22
and we certainly can work with you on

15:24
that but what i want to walk you off the

15:26
ledge

15:26
and make sure that you truly understand

15:29
is that

15:30
indexed annuities fixed indexed

15:32
annuities

15:33
are not market growth

15:37
products now one of the things that's

15:40
happening in the industry right now is

15:42
so many agents and advisors are using

15:45
the word market that don't have the

15:47
licensure to back that up because to

15:49
talk about market products and give

15:50
advice on market products

15:52
you have to have a series seven or sixty

15:53
three sixty five whatever i mean you

15:55
have to have

15:56
lo i mean really tough to get licenses

15:59
i know that because i used to have one

16:01
it's i mean you

16:02
it if every indexed annuity sales person

16:05
had to pass the series seven it would

16:06
clear out that it would clear a lot of

16:08
people out

16:09
it's a hard test you have to understand

16:11
finance you have to understand options

16:13
and munis and stocks and

16:14
and prefers that you got to understand

16:16
it all but to say the word market

16:19
um and you don't have the proper

16:20
licensure that's where

16:22
things are kind of running into trouble

16:25
when when people say market upside with

16:26
no downside they better have the

16:27
licensure to say that

16:29
they shouldn't be saying it at all

16:30
because that's not how the product's

16:32
designed

16:33
so you know for us once again

16:36
it's a it's a delivery system that's

16:38
cost efficient

16:40
uh for the income rider now let's go

16:42
let's let's look at that so stan the

16:44
annuity man america's annuity agent

16:45
all right you saw me this income rider

16:47
with the indexed annuity option what do

16:49
we do every year when the

16:50
when the indexed options come up

16:52
literally just throw a dart at it

16:54
typically there's a declared rate as one

16:56
of the choices in addition to all the

16:58
index option choices there's a declared

17:00
rate we sometimes just

17:01
tell you to choose that because the

17:03
income rider

17:04
that we're basing our decision on solely

17:06
the contractual guaranteed lifetime

17:08
income stream

17:09
has a fee and it's an annual fee and

17:12
that annual fee is for the life of the

17:14
policy hello

17:16
that's the reason annuity companies have

17:17
the big buildings right

17:19
but that fee does not come out of the

17:21
income writer account it comes out of

17:22
the accumulation value account so let's

17:24
give an example

17:25
if the if the income writer fee is one

17:28
percent annually

17:29
then you start every year at minus one

17:33
with the with the accumulation value in

17:35
the index option strategy

17:36
which if it's designed to create

17:39
cd type returns okay or mica type

17:42
returns

17:44
then you're at minus one minus the you

17:46
know you're at a migrate return minus

17:48
one every year because you're paying for

17:49
the income rider

17:50
that's the reason we don't really focus

17:52
over there we don't spend much time and

17:53
we're not going to go over and analyze

17:54
we're just not you're buying the income

17:56
rider it

17:57
is what it is getting to the inc in

17:59
index option

18:00
strategies at the time of this taping

18:04
there are oh and i mean if you're not

18:06
sitting down or pull a car over

18:08
get off the treadmill i'm getting ready

18:09
to tell you something that's going to

18:10
just throw you for a second

18:12
there are over 700

18:15
index option choices currently available

18:18
with indexed annuities

18:20
700 there's over 50

18:23
different indices indexes to choose from

18:27
most made up out of thin air uh one

18:30
state

18:30
i know that's trying to get this

18:32
legislation through is

18:34
they're saying you can't use and i love

18:36
this i wish it would go through

18:37
you can't use an index or indicee unless

18:40
it's been

18:41
in the marketplace for 10 years i think

18:43
that's what they're saying or five years

18:45
or something like that in other words

18:46
it has to be established because you

18:48
can't say well if you'd own this

18:50
index 10 years ago and it's been around

18:53
four months

18:54
i mean you just can't do that and so a

18:56
lot of states are

18:57
realizing what's happening out there a

18:59
lot of the consumers are feeling like

19:01
they've been burped

19:02
and unfortunately the annuity industry

19:05
has earned its bad reputation when it

19:06
comes to sales practices

19:09
and it's not the carrier's fault it's

19:11
not their fault

19:12
and i'm not trying to warm up to them

19:13
because most of them don't like me

19:15
because i

19:15
shoot it straight and i tell the truth

19:17
uh and they like the truth that they

19:19
i'm not sure they like the brutal truth

19:21
like i tell it

19:22
um but you know

19:25
indexed annuities with 700 choices

19:28
on the on the on the index option

19:30
strategies holy crap that's a lot and

19:33
with 50 indices

19:35
a lot of them made up out of thin air

19:36
there's just a lot of moving parts out

19:38
there that's the reason

19:39
the contractual guarantee of an indexed

19:42
annuity

19:43
is truly the the principal protection

19:45
side of it i think one

19:47
really good thing about indexed

19:48
annuities

19:50
is that if you have a gain whatever that

19:52
gain is it's locked in permanently so

19:54
let's just say the first year

19:56
option it locked in and you got a 3.2

19:58
percent gain on that index option

20:01
it locks that in permanently so the next

20:02
year you start at that

20:04
level so you're at you're in essence

20:06
stair stepping up

20:07
which is a good thing you're just not

20:09
going to be stair stepping up with

20:10
market returns you're going to be stair

20:11
stepping up

20:12
with cd mica type returns and that's a

20:15
good thing

20:16
i get accused of hating indexed

20:18
annuities i will guarantee you we sell

20:20
more than most

20:21
because we use them for delivery system

20:23
for the income riders i don't hate index

20:25
annuities at all

20:26
i think they're fantastic cd products

20:28
they're complicated

20:29
but we strip away the complication you

20:31
know if you're going to buy them for

20:33
you know if you're going to buy it for

20:34
accumulation value which

20:36
sometimes we we allow people to do that

20:38
or we will agree with you to do that if

20:40
it's part of like a miga ladder where

20:41
you have

20:42
you know multi-year guarantees like you

20:44
say you have a three-year multi-year

20:45
guarantee

20:46
a five-year multi-year guarantee annuity

20:48
and then we do a seven year index

20:50
annuity without a rider

20:51
to try to get a little bit more yield

20:53
that makes total sense but if you're

20:55
saying i'm just going to buy the indexed

20:56
annuity for

20:57
for for growth and i'm putting quotes

20:59
around the growth

21:01
you probably don't want to do that i

21:03
mean if you want market growth

21:04
never buy an annuity if you want that

21:07
seven to nine percent growth never buy

21:08
an annuity

21:09
now a lot of the confusion comes comes

21:12
as well with the income riders that

21:14
that grow by that uh or that increase by

21:17
that fictitious roll-up amount

21:19
of seven or eight or nine percent sounds

21:21
great that's not jimmy carter you can't

21:22
get to the money you can't

21:24
you can't peel it off you can't cash it

21:26
in you can't transfer it can only be

21:27
used that growth at a

21:29
high percentage amount to lock in that

21:32
for that lifetime income stream amount

21:34
the first

21:34
i mean it's used to calculate their

21:36
first payment it's also used to keep you

21:38
in the policy

21:39
because the indexed annuity side the

21:40
accumulation value side is never

21:42
ever ever ever let me say it one more

21:44
time ever

21:45
going to be higher than the than the

21:48
income writers side

21:49
period because they're separate

21:51
calculations

21:52
and the annuity companies are smart

21:53
because if you buy an indexed annuity

21:55
with an income rider

21:57
you're pretty much in the policy because

21:59
if you tried to transfer it to another

22:01
annuity or let's say another index

22:03
annuity someone said i've got a voter

22:05
industry

22:05
that's a joke number one but if they

22:07
said that

22:08
you're only going to transfer the

22:10
accumulation value you're not going to

22:12
transfer that income writer value which

22:14
leads me to a call i got today which was

22:16
really horrific i had a call

22:18
today from a really nice gentleman and

22:21
he was uh he was from the boggle heads

22:22
the the

22:24
forum that's really smart investment

22:25
people and i'm i'm on there for some

22:27
reason because they know i'm going to

22:28
tell the truth so people

22:29
always call me from boggleheads and he

22:31
told me a story that his friend had

22:32
bought

22:33
an index annuity and three years into a

22:34
10-year surrender charge

22:36
the agent made him or suggested and did

22:39
make him move to another index annuity

22:41
and use the

22:42
upfront bonus which is monopoly which is

22:45
candy for the stupid

22:47
to make up for the surrender charges

22:48
which by the way is illegal

22:50
i don't know how it got through he must

22:52
the agent must have fictitiously filled

22:53
in the paperwork

22:54
but never ever ever ever buy in

22:58
an indexed annuity for for the upfront

23:00
bonus and never ever ever

23:01
ever let an agent try to flip you out of

23:05
that for an upfront bonus

23:06
they should lose their license

23:08
immediately for that and if they were

23:09
caught they would

23:10
if so if they were turned in from that

23:12
they would lose their license

23:14
immediately period um and if you're an

23:17
agent that has

23:18
happens to be listening to me out here

23:19
please don't do that because if i find

23:21
out i'll turn you in no i'm kidding

23:23
i mean seriously someone's going to turn

23:24
in somebody is going to be looking over

23:26
your shoulder

23:27
and one of the things that that i get a

23:29
lot of people said to me okay

23:30
here's what i own but most of the stuff

23:32
i get is here's what i've been pitched

23:34
and one of the things that kind of kills

23:36
me all the time is with indexed

23:38
annuities

23:39
some some agents say well this is you

23:41
know i've looked at them all and this is

23:42
the best one

23:43
garbage they're either lazy or they can

23:45
go on a trip to bora bora with their

23:47
girlfriend or boyfriend

23:49
if they sell enough of it because their

23:51
incentive trips attach

23:53
these are commodity products you buy

23:56
annuities of any type regardless of type

23:58
like you buy a plane ticket you shop for

23:59
the highest contractual guarantee

24:01
for it for and and you lock it in it's

24:04
just that simple

24:05
so you know this most people that come

24:08
to me and say well this guy pitched this

24:09
one

24:09
product to me you're telling me that the

24:11
person only pitched one indexed annuity

24:13
and there's tons of them out there you

24:16
you need to if you're looking at indexed

24:18
annuities or say index annuities with

24:19
writers

24:20
you need to see at least three different

24:22
carriers with the same quote parameters

24:25
for this for the same contractual

24:26
guarantee do not let someone steer you

24:29
into a product

24:30
do not let someone say well

24:33
this is the best one for you no

24:35
translation is the best one for them

24:37
the other thing that i would encourage

24:38
you to do is with indexed annuities

24:41
they are complicated i don't care what

24:43
anyone says are complicated and i have

24:45
made them as simple as anyone on the

24:47
planet

24:47
with my videos and books and again go to

24:49
my site the annuityman.com

24:51
and sign up for my books i'll send you

24:52
my books and at stan the annuity man

24:55
uh youtube channel i have a playlist

24:58
i've done hundreds and hundreds of

24:59
videos

25:00
but i have an actual playlist of indexed

25:01
annuity videos that i've shot

25:03
i mean so so make make sure you do that

25:06
but what i was going to say is they are

25:09
complex products

25:10
so i would encourage you if you're

25:12
really digging in and you want to read

25:14
about

25:14
the the policy the index options

25:16
strategies and all that stuff

25:18
ask for a specimen policy and i got a

25:21
call the other day that a guy

25:22
said listen can you send me a specimen

25:24
policy on this this index annuity

25:26
because my agent won't

25:28
if your agent or advisor will not

25:29
provide a specimen policy

25:31
then that person is not your agent or

25:33
advisor

25:34
i mean these are contracts wouldn't you

25:37
want to read it before you own it

25:38
the only thing that's not going to be in

25:40
there is your name and the dollar amount

25:41
you put in

25:42
everything else in the specimen policy

25:44
is the exact same verbiage

25:46
wouldn't you want to read it before you

25:48
buy it do not trust that 30

25:51
000 foot sales pitch of market upside

25:54
with no downside

25:55
from abundance don't care no

25:58
ask for the specimen policy uh hopefully

26:00
you're you're going to deal with stan

26:01
the annuity man after listing this

26:02
podcast

26:03
okay but if it's your brother-in-law

26:05
selling you the indexed annuity and you

26:06
got to do business with the

26:07
brother-in-law to make your sister happy

26:09
whatever ask for the specimen policy

26:12
we can get you the specimen policy the

26:14
other thing too is

26:16
there's never ever ever an urgency to

26:18
buy an annuity of any type including

26:20
indexed annuities

26:21
the only urgency is to fully understand

26:23
it but as i always say to people

26:26
if you can't explain it to a

26:27
nine-year-old then don't buy it

26:30
ever no offense to nine-year-olds and

26:32
sometimes

26:33
you know showing people indexed annuity

26:37
option strategies is like showing

26:38
paintings to blind people

26:39
no offense to blind people it's complex

26:42
i also said there's only five people on

26:44
the planet that actually fully

26:46
understand indexed annuities and i

26:47
believe

26:48
i know the other four i'm one of them so

26:51
i'm not going to allow you to go down

26:53
the rabbit hole of

26:54
of believing the too good to be true

26:56
sales pitch

26:57
believing the back tested numbers

26:59
believing that it's going to it's too

27:01
good to be true because it's not

27:03
it's not too good to be true but it's

27:05
pretty damn good excuse my french

27:07
and the way that we use it at the

27:09
annuityman.com

27:11
is as a efficient and cost effective

27:14
delivery system for an income rider

27:16
guarantee for future pension needs

27:18
and the good part about that is you is

27:20
it you have principal protection

27:22
you have the guaranteed income in the

27:23
future and you have mica type cd type

27:25
returns

27:26
as you're waiting to turn on the income

27:28
stream that

27:30
to me and people say i hate index and

27:32
news i don't i just

27:33
explained to you why you should probably

27:35
consider looking at one

27:36
but you just have to be rational you

27:38
can't buy the dream because you're going

27:40
to own the contractual realities

27:41
remember what fun with annuity saying is

27:43
living the reality not the dream we're

27:46
living the contractual reality

27:48
not the sales [ __ ] dream and that's

27:50
what you need to look at from annuity

27:52
standpoint so

27:53
you know our fixed indexed annuities a

27:55
good investment

27:56
i say yes if you fully understand how to

27:59
use them

27:59
and fully understand how how they are

28:02
designed and fully understand the

28:03
realistic

28:04
uh return expectations you should have

28:08
if you if if we can get you there

28:10
mentally

28:11
and you can stop dreaming and understand

28:14
the realities i think you'll be

28:16
happy with it because the contract does

28:18
what it does

28:19
period it protects the principle it

28:21
gives you mica type returns

28:22
and you can attach an income rider for

28:24
future income needs do i like

28:26
fixed index annuities as an investment

28:28
under those parameters absolutely

28:32
pound the table what i don't like is how

28:35
they're sold and it's unfortunate

28:36
and if i was annuities are for the day i

28:39
would i would clean it up

28:40
so if you want to see a fixed index

28:43
annuity quote

28:44
we can provide that to you if you want

28:45
to see an income writer quote we can

28:47
provide that to you just go to the

28:48
annuityman.com

28:50
sign up we'll get you those quotes also

28:52
remember to get my book

28:53
also too this podcast is the number one

28:56
annuity podcast on the planet heck it's

28:58
fun with annuities

28:59
you know i'm your host stan the nudity

29:00
man america's annuity agent i'm shooting

29:02
it straight but we're doing these every

29:04
single week so i hope to

29:06
to see you if you're my youtube

29:09
uh viewers i hope you can see me every

29:11
week and for my podcast listeners out

29:13
there

29:14
i appreciate you joining me and i'll see

29:16
you all

29:17
next week on fun with annuities

29:26
thanks for listening to fun with

29:27
annuities please hit the subscribe

29:29
button and make sure to go to my site

29:32
at the annuityman.com where you can run

29:34
your own

29:35
spea dia and culat quotes and see a live

29:38
feed of the best

29:39
mica fix rates in the country and even

29:42
get

29:42
indexed and income rider quotes as well

29:45
you can also

29:46
sign up for my six annuity owner's

29:48
manual books and i'll ship them for free

29:50
and under no

29:51
obligation i also encourage you to

29:53
schedule a one-on-one call with me

29:56
stan the annuity man so we can have a

29:58
full discussion

29:59
of your specific situation it will be

30:02
the best

30:02
brutally factual and truthful advice you

30:06
will ever get and that's one guarantee

30:08
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so join me next time for the number one

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30:13
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30:30
you