069 Mr. FIA-X: More Index Annuity Secrets

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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 i'm your

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host stan the annuity man america's

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annuity

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agent license in all 50 states the top

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independent agent in the country and

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proud of that because i

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only look at contractual guarantees and

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are saying here on the fun with

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annuities podcast is living the reality

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not

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the dream live in the contractual

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realities by the way

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uh welcome to everyone that's watching

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this replay

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on the fun with annuities youtube

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channel and welcome to all of you

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listening

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on all the podcast platforms out there

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podcast which

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itunes i'm sorry if i listen out but

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without further ado we have a repeat

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guest on because the last time we had

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him

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on it was it was a firestorm

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people wanted to ask questions they

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emailed questions in

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agents sent me emails that were hateful

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which are that's a good sign by the way

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when they do that

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now this this guest as you know we've

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had him on before we call him

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mr f i a x f i a stands for fixed

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indexed annuities

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this is a person we cannot reveal his uh

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identity or where he's

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located he's got a mask on for a reason

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for the people that are listening on

1:49
podcasts he has a mask on

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because um the people on the fun with

1:53
annuity's youtube channel uh

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you know he can't show his face but boy

1:57
is he an insider to the game

2:00
of indexed annuities now as a disclaimer

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you know i saw a bunch of index

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annuities but i saw them a different way

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i sell them for the

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uh income rider contractual guarantee

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for future income we really don't focus

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on the accumulation value um because

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that's where the

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sales pitch nonsense gets in in the way

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now the the topics we're going over

2:22
today

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are actually from what people emailed

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me and called me and said hey next time

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you have mr fiax on

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ask this so without further ado

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the one the only the confidential

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mr f i a x

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well with that introduction i can't let

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you get out so there you go

2:46
i i i want to start off because i have a

2:49
question because you're going to love

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this

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okay i got a phone call last week from a

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marketing company and as you know in our

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industry

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people call you with marketing companies

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pitching selling their wares to you for

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you to represent to the clients right

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the opening line was we have a brand new

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indexed annuity that has averaged nine

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and a half percent

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for the last 10 years that's a flat out

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lie

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this is where the laughs came in if it's

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brand new how did it average nine and a

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half percent see that won't slide out of

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the lay person but

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this is what i have do and have done

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so i sat there and i'm like well how

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does it basically if you're telling me

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an average nine and a half percent for

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the last 10 years i'm 10 years too late

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is what it sounds like no absolutely hey

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by the way mr fiax i need you to yell

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or get closer to the mic because the

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people i'll do my best but they

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so that's it whatever you did right

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there lean in

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brother okay so so they told me nine and

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a half percent average for ten years and

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it's brand new i'm like well if it

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averaged ten percent tonight

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that percent for ten years is brand new

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how does that work i'm confused

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uh we've talked about the back tested um

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and why don't we just start there you

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know one of the things that

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mr fiax and stan the annuity man two

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very unique names in the annuity

4:10
industry but beloved

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um we hate the back tested stuff i mean

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and a lot of in a lot of states

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it's not even legal to show back tested

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numbers and i wish it was across the

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board because

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that's where aids can juice the numbers

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so if anyone's out there saying

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well if you don't under 10 years ago you

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would have made this or like mr

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mr x just said well this is a brand new

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annuity but if you know

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for the last nine or ten years that have

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made x i'm just telling you if you're

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if you're that dumb and if i'm offending

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you i apologize

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but if you're that dumb and you're the

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sucker at the table

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in vegas you know what they say mr x if

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you don't know who the sucker at the

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table is and

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uh when you're sitting in vegas it's you

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so

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you're not for us you're not you know

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you're not for i i wouldn't

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work with people like that and i know

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you wouldn't either you just

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can't well but people want to

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believe it's true people want to believe

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that they take the pill they don't have

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to exercise their diet and they can get

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skinny

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people want to believe that they can

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just put their money in bitcoin and

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retire

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right um i mean it's it's

5:21
there's a reason that ponzi schemes

5:23
proliferate

5:24
the united states and by no means

5:27
annuities are not

5:28
annuities are contracts it's a heavily

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regulated industry

5:31
and that's the reason i say buy the

5:33
contractual guarantees mr x the first

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question that came in

5:36
was we're we are officially in indexed

5:39
annuity silly season

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and what that means is there's a lot of

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of annuities out there being pitched

5:47
with

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what's called upfront bonuses now mr x

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and i do not mention any carrier names

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because

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we just don't we're pros we're not going

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to do that and plus i represent

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everybody

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i don't want to make them mad but i call

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mr x i call up front bonuses

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candy for the stupid and i mean that

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if you're buying if you're buying an

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annuity for an upfront bonus

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it's like buying the car for the stereo

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system

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that's how stupid it is well imagine

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going to the bank and you gave the bank

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a dollar and they gave you 1.20

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how long would that bank stay open great

6:24
example that's a great way to put it

6:27
they're not

6:27
giving away free money they're not just

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a charity

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they are a company that makes a very

6:34
nice sum of a return on their investment

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right by taking in these dollars it

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doesn't work that way

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okay the reality of the deal is is

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i call it shiny thing candy for the

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stupid you can put whatever

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moniker you want it is a gimmick it is a

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trick

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it is a sucker's bet it's a way to pull

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you in

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because i can assure you and promise you

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this two things are going to happen

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number one the money's not real

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number two if the money is real they are

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gonna just keep chipping away at you

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over the length of the contract

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to recover that money meaning you will

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get less participation

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a lower cap you understand a lower rate

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of return

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they have a bunch of levers and they'll

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just pull a different level for the term

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of the contract

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until they recruit what they have and

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thus they have the big huge building

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with all the people in it and that's how

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the game works

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if the agent says well this company

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company's giving you x amount of bonus

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and i want to be careful because i don't

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want to offend any companies and get

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nasty butters

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no they don't know where to send yours

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they know where to send mine

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if they give you x amount of money for a

7:40
bonus for you to put your money in here

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and we're going to give you all this

7:45
cash up front

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seriously i mean yeah there's no

7:51
there's no philanthropist that annuity

7:52
comes mr x i need to get really close to

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the screen because people want to hear

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you

7:56
all right so yeah plus they want to see

7:58
the mass by the way for anyone that's

7:59
watched the tv series mr robot

8:01
what is that is that the anarchy mask

8:03
what is that that you have on it looks

8:05
like salvador dali doesn't it

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no it's good it's actually better than

8:09
your i actually know mr x's

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original face which uh i'm kind of happy

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we do have the uh

8:15
the mask on but bottom line to close it

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up and a nice little bow

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um give people your up front bonus

8:22
definition

8:23
using your hundred pennies and a dollar

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definition

8:26
there's only 100 pennies in the dollar

8:28
how can the company give you 110 115 120

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135 or whatever

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cockamamie number they throw at you the

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second part is

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where does that cash go that alleged

8:40
bonus where does it go

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they typically put it into where the

8:45
income account

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correct now some will go into the cash

8:48
account i'm going to break these down

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separately

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if they go to the income account stand

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i've heard you say this a thousand times

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the income counts funny money play money

8:56
all the income account does is create

8:59
some fake number

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of cash that they allow you to multiply

9:04
by a percentage to withdraw from your

9:06
cash now

9:07
and that's a good thing that's how we

9:08
that's how we that you know we recommend

9:11
income riders and we shop them all for

9:12
the highest contractual guarantee

9:14
that's what he's talking about yeah it's

9:16
irrelevant what the number says

9:18
it's what the guaranteed payout is not

9:21
what it could be

9:22
not what it could grow to you not what

9:24
it could step up to

9:25
i want to know contractually

9:28
think of your mortgage payment well

9:31
contractually your mortgage pays almost

9:33
by the variable

9:35
mortgage rate right your payment's this

9:37
today but next year it could be this

9:38
could be this it could be that it could

9:40
be all over the board we don't know

9:42
i want to know what i'm paying period

9:45
and exactly as an annuity client

9:48
i want to know what i'm getting perry

9:51
and the story i don't care what the pie

9:54
in the sky is

9:55
what's the paper saying what's the

9:56
contract say what's the guarantee you

9:58
say

9:58
what's going to my checking account

10:00
could it be more great

10:02
i want to know what i'm getting and

10:04
these bonus

10:05
bonus products are are very

10:08
they proliferate the bad chicken dinner

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seminar

10:12
circuit so those are coming back because

10:14
cove is being lifted and if you're going

10:15
to the bad chicken or really good steak

10:17
dinner seminar they're going to pitch

10:18
you a bonus product

10:20
and you're going to elbow your wife or

10:22
spouse and say man that sounds good

10:24
because they're giving

10:25
their governors free money marge no

10:28
they're not

10:29
mr x is nicer than i am he says they're

10:31
shiny things

10:32
i say bonuses are candy for the stupid

10:35
i'll leave you with this this um

10:37
this great story somebody bought an

10:39
income rider from us we shopped all

10:40
carriers because they're commodity

10:41
products for the highest income writer

10:43
guarantee

10:43
he got his policy and called called me

10:45
up and said stan

10:47
if there's 10 percent more money in here

10:49
you didn't tell me about the bonus

10:51
i didn't even tell him that because i

10:52
don't care it's part of the overall

10:54
contractual guarantee

10:56
and i had to explain it to him using mr

10:58
x's 100 pennies in the dollar definition

11:00
which i have taken from him but i do not

11:02
pay royalties

11:04
um yes actually i do when i see him i

11:06
buy him drinks but

11:07
and that by the way that's an expensive

11:09
royalty but

11:10
but i'm just telling you it's not

11:12
something to focus

11:14
on period and if someone's pitching that

11:18
to you and they're

11:19
spending a lot of time on the bonus

11:21
they're either stupid

11:23
lazy or a sociopath well i'll give one

11:26
more quick analogy i think this is right

11:28
think of a magician right when they

11:29
always do sleight of hand and they take

11:30
your watch they're always wiggling their

11:32
hand over here to distract you while

11:33
they're pulling your watch off that's

11:35
exactly what the bonus is it's the

11:36
wiggle

11:37
for you to miss all the other things

11:38
behind it i'm not saying that

11:41
that there that they don't work or they

11:43
don't have

11:44
a a purpose to some degree but what

11:47
we're saying is does the guarantee

11:50
fit what you're trying to accomplish if

11:54
the guarantee doesn't solve what you're

11:55
accomplishing

11:57
then you don't have a solution and if

11:59
the and if the contractual guarantees

12:01
the highest one is a product with a

12:03
bonus then great

12:05
if it isn't then great who cares and

12:07
that's a lot of times

12:09
spoiler alert when we quote all carriers

12:11
the highest contractual guarantee

12:12
is not the one with this high chunky

12:15
bonus so

12:16
i think we've done a pretty good job on

12:18
that mr x next question we don't want

12:20
we don't want you guys to have to hear

12:22
that word caveat emptor

12:24
buyer beware you're right okay right

12:27
careful

12:28
right no i don't work no i totally i

12:31
totally agree

12:32
um next question that came in from a

12:35
viewer

12:36
index renewals they they mentioned that

12:39
the the first

12:40
the first year they had it a couple

12:41
years and it's never

12:43
it's never the renewal rate the

12:44
participation rate caps and spreads

12:47
on that accumulation value the index

12:49
option value has never

12:50
returned okay to that original first

12:54
year

12:55
explain what's going on mr x well

12:58
there's a

12:58
let's go back to that lever situation

13:00
that we talked about just previously so

13:02
let's let's stay on the bonus subject

13:06
so you bought a bonus and then in the

13:07
year

13:09
it renewed that less money who would

13:12
have saw that coming right

13:15
they gave you all this free money yeah

13:18
it doesn't seem so free now does it

13:20
right so his comment was the cap was

13:24
five or six and now the cap is two

13:27
well they keep chipping away they have

13:28
to recover the bonus they just kind of

13:30
gave it to you up front

13:33
that's i mean about the easiest way to

13:35
put it so now they chip away so

13:37
that's one way they do it stan the other

13:39
way that they do it is

13:40
obviously the the price of the options

13:42
when

13:43
when they have to go do these index

13:45
annuities they buy an option and say the

13:47
s p for instance

13:48
okay and we talked about this a little

13:50
bit on the last one is

13:53
if they put a cap on it say five percent

13:55
okay

13:57
and when you go to the market makers

13:59
okay to the investment banks and you

14:01
want to buy

14:02
an option there's no cap on the option

14:04
right options are have an unlimited

14:06
upside

14:07
they also have 100 downside too right

14:09
right

14:10
a traditional option well what the

14:14
companies do is they buy that five

14:15
percent what they do is they take

14:17
from five percent over right five and a

14:19
half six

14:20
seven they sell that upside back to the

14:23
investment bank

14:24
so now they're getting a discount off

14:26
the options they're not paying as much

14:27
and they sell that

14:28
they sell the upside away because why

14:30
what was the count

14:32
it was fine so you could never make over

14:34
five so they don't need to pay for the

14:36
whole option they just need to pay for

14:37
up to the five percent part

14:39
so what they do now is every year when

14:41
you have a say an

14:42
annual reset you have to keep going to

14:44
the market and buying

14:46
a new option for that year well if the

14:48
market's volatile

14:50
it'll cost you more if the market's calm

14:52
it may cost less

14:54
so that's another pricing way to where

14:57
it's kind of out of their control i'll

14:58
give the insurance company props on that

15:00
one

15:00
what the market does is out of their

15:02
control and they just have to pay the

15:03
piper

15:04
okay but i tell people all the time if

15:06
you buy a 10-year surrender charge

15:07
indexed annuity and you bought it for

15:09
the

15:09
for the index option for the

15:11
accumulation dream that's been sold

15:13
and it's a one-year index option

15:16
contract

15:17
then you're really buying a 10-year

15:19
surrender charge with a one-year

15:20
guarantee am i missing something mr x

15:23
that's no that's that's fine it's a

15:25
one-year guarantee

15:26
you're gonna get a one-year guarantee

15:27
some other companies have two year

15:28
option three year option for your option

15:30
you're just gonna get a two

15:31
three four year guarantee right and

15:33
there's some other challenges with those

15:35
and we can get into that too

15:36
but but the reality is that's just that

15:39
one option and every year they have to

15:40
go re-shop the market and pay what

15:42
current market value is

15:43
to to re-up so to speak and then

15:47
now remember they gave you 20 15 10

15:50
up front bonus well all right well it

15:53
was fine last year well if it's 10-year

15:55
contract

15:56
we gave them 10 percent maybe we'll make

15:57
it three and a half or four this year

15:59
and then next year we'll drop it a

16:00
little bit more

16:02
recover that bonus over that time and

16:04
that's how they do it

16:07
um are there are there care and we've

16:09
had this discussion

16:10
but does it still hold true that some

16:13
carriers are

16:14
very favorable toward the consumer on

16:16
renewal rates and some of them just

16:18
bait and switch and stick it to you not

16:20
to mention names

16:22
you know i think yes and no

16:26
and everybody's gonna laugh when i say

16:27
that okay i think some carriers

16:30
are are are less favorable i think some

16:32
carriers are more favorable

16:33
but there's also more that goes into it

16:35
than that it really does sometimes play

16:37
on market conditions

16:38
okay and what you know the last thing

16:40
you want to have happen is

16:42
where you put your money to have

16:43
financial problems

16:45
but i wouldn't want my company where my

16:47
money's at and not that they do their

16:48
back they're regulated they have all

16:50
that stuff but

16:51
market conditions play a part greed

16:53
plays a part

16:54
traffic margin plays a part you know all

16:57
those things do play a part in it so

16:59
it's a it's a myriad of factors

17:01
that lay into what the renewal rate is

17:03
another

17:04
call a call that came in and they wanted

17:07
uh you to clarify

17:08
this bad chicken dinner seminar pitch

17:11
was in pennsylvania

17:12
you probably know who that person is

17:14
there's some there's

17:15
there's some bad dudes there's pitching

17:18
stuff

17:18
and they're pitching uncapped

17:22
unlimited options on index annuities

17:26
please

17:26
shoot that down with a bazooka

17:29
ah well okay you could have it uncapped

17:34
but there's gonna be what they call

17:35
there's a modifier somewhere

17:37
so let me let me i'm gonna pitch this to

17:39
you stan

17:41
you put all your money put a hundred

17:42
thousand dollars in

17:44
you get 100 participation rate it's 100

17:48
uncapped no spreads no fees no nothing

17:52
does that product exist with a guarantee

17:55
mind you can't lose your principal can't

17:57
lose your money does that exist

17:58
let me put all my money in there mr x

18:01
i'd be running down there right now to

18:02
put my money in there if that was

18:04
if that existed but that's how it's

18:06
pitched i mean honestly that's how

18:07
people are pitching it

18:08
it doesn't it doesn't exist and and

18:11
here's

18:12
i'm going to defend the agent for a

18:13
second oh okay look look at that blank

18:16
look on your face

18:17
okay sometimes maybe what they say maybe

18:20
it's misinterpreted and that happens

18:24
people does that sometimes what they

18:25
want to hear that does happen that does

18:27
happen

18:29
if the the way that i usually hear it

18:32
and see it

18:33
is they make it sound so grandiose

18:36
yes that the people heard right

18:39
they make it sound so grandiose that it

18:41
is what it is look it

18:42
i'm going to tell y'all right now

18:44
there's no way

18:46
no shape know how you can find an

18:48
uncapped product with 100 participation

18:51
rate with no fees

18:52
just put your money in there and just

18:53
let it run it doesn't exist

18:56
and if it does we're going to stop the

18:58
podcast we're going to fly to washington

19:00
and meet with the and meet with the fed

19:03
and we've solved the problem we've

19:04
solved a lot of problems for a lot of

19:06
people

19:06
we'll fix cuba tomorrow with with that

19:09
with that kind of deal

19:10
there's always got to be a catch and

19:12
instead of a catchment we'll call it a

19:13
modifier or a

19:15
a stop gap or something there always is

19:18
something if you have an

19:19
unlimited upside they're only going to

19:22
let you play so much in that unlimited

19:23
upside

19:26
direction that's a t-shirt a t-shirt is

19:28
there's always something

19:29
there's always well think about it if i

19:31
have an unlimited upside maybe they only

19:33
let me pay 30 40

19:34
in that unlimited upside right because

19:37
here's why

19:39
if they don't have that if the consumer

19:42
doesn't have a downside right

19:43
contractual guarantee you can't lose

19:45
your principal et cetera right

19:46
right well let's say the market crashes

19:48
say we have a 08

19:49
who eats that loss

19:53
no exactly it's not the consumer

19:57
the company can't eat that loss for six

19:59
seven eight billion dollars a year or

20:00
whatever they take in an annuity

20:02
business

20:03
so there has to be some type of yeah

20:06
when i say that the consumers aren't

20:07
going to lose any money but the the

20:08
limited on

20:09
on the upside right and just a

20:11
disclaimer again people are saying well

20:13
stay in the annuity man you must hate

20:14
all index annuities

20:15
i sell more indexed annuities in one

20:17
week than 95

20:18
of all agents but we still we seriously

20:22
but we but we sell them

20:25
properly in my opinion and mr x has

20:27
deemed it appropriate and blessed

20:29
as well for the contractual guarantees

20:31
of policy in in

20:32
and most of the time for the income

20:35
writer guarantees for future income

20:37
because my saying is you own a new

20:38
annuity for what it will do not what it

20:41
might do

20:42
and they might do is about all these

20:43
index options strategies but i think

20:45
it's important to have you on mr x

20:46
because

20:47
you know it's one thing for me to say it

20:50
but for someone insider

20:51
to kind of tell how the annuity sausage

20:53
is made

20:54
i think helps the consumer and the

20:56
response that we got from your first

20:59
appearance on fun with annuities was

21:00
overwhelming

21:02
which is why you're on again i think

21:03
you're our refer our first repeat

21:06
celebrity guest you should take that as

21:08
a compliment mr x it's not your good

21:10
looks it's your good

21:11
brain hey here's another question give

21:14
give the people out there an example of

21:17
a point to point

21:19
index option with an indexed annuity

21:22
point to point is

21:23
the simplest one to understand you start

21:25
at a

21:26
so let's say that the market the s p 500

21:28
was at 1 000

21:30
okay this is the contract issue date

21:32
right contract issue date we'll say

21:33
january 1st the s p was out a thousand

21:36
whatever the s p does to december 31st

21:39
at the close of the market that day

21:41
because january 1st would be your

21:44
anniversary date

21:45
so you go from point a to point b

21:49
whatever it does that's the return so

21:52
let's say the thousand went to eleven

21:54
hundred that's a ten percent

21:55
delta right ten percent return that

21:58
would yield 10 percent

22:01
now however now you have to put the

22:04
modifier on it

22:05
is it a participation rate meaning how

22:07
much of your money is actually

22:08
participating in that

22:10
is it a tap okay that's pretty much

22:13
the two ways they do it or they can give

22:15
you a spread

22:16
um all of it goes they do a spread and

22:19
then you go from there

22:21
just understand that what he's talking

22:22
about spreads and and counts and

22:24
participation rates those are levers to

22:27
lower the return

22:29
well it's it's two things to do it's a

22:31
lever to lower the return and it's a

22:33
lever for the insurance company to hedge

22:35
against

22:36
the dollars good point exactly it serves

22:39
a purpose

22:40
but you have to pay attention to the

22:42
lever

22:44
now put a bonus on top of that lever

22:46
they might pull one of those levers two

22:47
of those levers

22:48
all three of the levers i don't know

22:50
because and they can change that lever

22:53
every year that's the that's the renewal

22:55
rate we're talking about the levers

22:57
they can change what those levers are

22:59
and what percentages of those levers

23:02
at their discretion

23:06
they're not going to call you up and

23:09
call me up as the engine go

23:10
you know guys um we're thinking about no

23:14
they're going to change it um or or not

23:16
change it one of the two

23:17
and then i'm going to play the agent i'm

23:20
going gonna play the unscrupulous agent

23:22
okay well mr jones you don't need to

23:24
worry about that because see they have

23:26
different strategies and we can move the

23:28
money into the different strategies and

23:29
we'll capture whatever

23:30
they do in the best as soon as i hear

23:34
that i ask them where their crystal ball

23:36
is

23:36
because how do they know what's going to

23:38
return the best how do they know what

23:40
the future holds how do they know

23:42
where's what's going

23:43
and i can promise you this that 90 99 of

23:46
your customers probably have more money

23:47
in their checking account than those

23:49
agents have in theirs

23:50
[Laughter]

23:52
here's i i totally agree with that um

23:56
now the one-year point-to-point applies

23:57
the same if it was a two-year option or

23:59
three-year option a snapshot from

24:01
contract anniversary date

24:02
to that renewal date correct you

24:04
basically start to finish

24:05
your start to finish could be one year

24:07
two years three years the longer that

24:09
you'll take

24:10
the the hedge the longer that you'll

24:13
take the point to point

24:15
the more upside you'll be able to

24:18
because they're buying the options

24:20
cheaper in theory capture

24:23
because what if you go up two year if

24:25
you have a three year reset and you go

24:26
up two years in the third year you

24:27
collapse

24:28
right you could you could get nothing

24:32
right so it you know

24:36
here's the kind of a rule of thumb

24:40
you buy it for what it will say it's

24:41
going to do in the contract

24:43
not what it says it's going to do from

24:44
the insurance agent right

24:46
or the investment right okay

24:49
what's the insurance company say they're

24:50
going to do for me it says well they'll

24:51
do this that's what it's going to do

24:53
anything other than that's great no i i

24:56
totally agree and

24:57
at the time of this taping and i know mr

25:00
x and if you're viewing this on the

25:01
phone with annuities youtube channel i

25:03
mean we look young and vibrant i get

25:04
that

25:05
i mean that goes without saying right

25:08
you must have a very good filter

25:09
exactly we do have editors and makeup

25:11
people but

25:13
at the time of this taping there's over

25:15
750 index

25:16
options with indexed annuities and this

25:18
is my favorite part

25:19
over 50 indices indexes some that most

25:23
made up

25:24
out of midair and we talked about that

25:26
on the last um

25:29
made up out of midair because it's

25:30
cheaper to buy the options in those

25:32
made up indices than in the s p the dow

25:34
or the nasdaq and so

25:36
for the insurance companies and for the

25:38
participant for the attractiveness of

25:40
the product

25:41
to be out there they have to shop other

25:44
ways to create return

25:45
so they can buy it at a cost effective

25:47
level so they can make the

25:49
product look attractive so you buy it if

25:52
i

25:53
i can think of one right now we won't

25:55
mention any names no and they came out

25:57
and said since

25:57
inception if this would have been in the

25:59
inception it's never ever ever had a

26:01
down year

26:02
ever index never

26:06
and stan you know exactly what this is

26:07
the index never existed

26:09
and it still hasn't returned positive

26:11
and it's been what now 10 years

26:12
12 years mr x i've never gone a year

26:15
without gaining weight

26:18
i just want to i just want to throw that

26:19
out to you that's the same thing

26:21
it's ludicrous hey we i talked about the

26:23
700 plus index option strategies

26:26
in today's uh podcast we're going to go

26:29
over two

26:30
which means we have a lot more podcasts

26:31
to go thank you but um

26:33
the other one that is is one of my

26:36
favorites

26:37
not favorite from a recommendation

26:38
standpoint but the one that i hear a lot

26:40
in the bad chicken dinner seminar and

26:42
this typically is the rookie agent that

26:44
just learned about indexed annuities

26:46
um it's the monthly sum mr x

26:49
can you help me with the can you explain

26:51
because here's the pitch

26:52
i get a call the other day and the guy

26:54
says i went to the bad chicken dinner

26:55
seminar

26:56
and i laughed because everything he said

26:58
you said and then and then standing

27:00
annuity man america's annuity agent

27:02
he said that there is a potential 36

27:06
upside for the year because each month

27:10
i can get up to three percent three

27:11
times 12 is 36

27:14
stan the annuity man and i just after i

27:16
laid down the floor

27:18
and and you know it was sucking on my

27:20
thumb like an infant because i went into

27:22
just a reclusive moment then i explained

27:25
it to him

27:26
i need you mr x to knock the cover off

27:28
of that monthly

27:30
some nonsense it is probably literally

27:33
one of the worst

27:34
strategies you could ever pick and i

27:35
know agents will argue with me and fight

27:37
with me because they

27:38
got lucky that the market went up for

27:41
sure

27:42
you know and they they got lucky like

27:45
one percent of the time

27:46
okay playing the other 99

27:49
right when you build a pyramid you put

27:51
the fat end on the bottom or the fat end

27:53
on the top

27:55
hopefully on the bottom there right well

27:57
think of

27:58
the monthly sum as having the pyramid

28:00
built the other way

28:02
and here's why i'll go that with you and

28:04
i'm gonna grab a piece of paper because

28:05
i like to scribble

28:06
well you can't you can't show the piece

28:07
of paper mr excellent i'm not showing

28:09
you it for me oh that's good i mean i'm

28:11
i'm just i

28:12
i understand that the college years took

28:14
a toll on your brain so it makes it it

28:16
makes me think good so so think of it

28:18
this way okay we'll we'll use your

28:19
example but three percent

28:21
yes yeah here's what they're saying you

28:24
can make

28:24
up to three percent a month at three

28:26
anything over three percent in one month

28:28
you've capped out that's it market goes

28:31
up 12 in one month you get three

28:33
you get three great example okay

28:36
what i didn't hear in that sales pitch

28:38
is what's my downside stan

28:40
oops whoops wait a minute mr x i thought

28:43
indexed annuities

28:44
had no downside explain well let's talk

28:47
about this

28:48
my downside on a monthly sum contract as

28:51
they call it

28:52
is unlimited you're not going to lose

28:55
your money

28:55
you're just going to lose your return

28:57
let me explain the difference here real

28:59
quick

29:00
so let's take it the market goes up you

29:02
said 10 in one month we get three

29:04
the market goes up ten percent the next

29:06
month we get three

29:08
the market goes down ten percent the

29:10
next month what do we get

29:12
we're minus four

29:15
because it was it was minus 10 that

29:17
month in other words unlimited

29:19
unlimited downside minus 10 which wipes

29:21
out the minus

29:22
the plus three and the plus three that

29:24
takes us to minus four correct

29:26
so the so the unlimited on the downside

29:29
cap on the upside right

29:30
correct yummy now this gets fun

29:34
let's say the next uh eight months

29:38
we do zero we're flat uh-huh

29:42
the last month we do

29:44
[Music]

29:46
25 santa rally

29:50
just crush it in december you get three

29:53
you get three we're negative four i

29:56
finished the year at negative one

29:58
but the market was up 21

30:01
and you get zero and you got zero now

30:04
indexed annuities are principal

30:06
protected

30:08
the options you know if they expire

30:09
worthless or are out of the money as

30:11
they say then you're not going to get

30:12
anything credit to your account

30:14
but monthly some is it to me

30:18
that is you know if ted bundy and i'm

30:21
assuming people consider him

30:23
guilty at this point if he was an

30:25
annuity agent

30:26
or or madoff was an annuity agent they

30:28
would be selling the monthly song

30:30
well i mean it's just i think the

30:33
easiest way to think a monthly sum is

30:34
this your

30:35
your monthly upside is capped your

30:37
monthly downside is unlimited

30:39
when you add them all up at the end of

30:41
the year you're going to never see them

30:42
36 percent

30:44
[Music]

30:45
i love the pitch though i'm like and

30:48
then yeah well

30:49
what if the cap was too it would be 24

30:51
i'm like oh my gosh

30:53
i can hear i can hear you getting dumber

30:55
through the phone i can yeah i hear the

30:57
echo

30:58
yeah i mean you're the guy you're the

31:00
mark

31:01
you're the bullseye found it he found

31:04
him i put 30 people in the room and i

31:06
found him

31:07
and not only that mr jones we're going

31:08
to give you a 25

31:10
up front bonus plus you get a potential

31:13
36

31:14
per year annual return fantastic

31:18
doesn't work um i mean let's do it well

31:21
let's go back to the hundred pennies in

31:22
the dollar let's say you put 100 pennies

31:24
you put a

31:25
100 100 000 in there and they give you a

31:28
25

31:28
bonus right right out of the gate the

31:31
insurance company only has 75 000

31:33
to invest

31:37
because they gave 25 000 away

31:41
so they're investing 75 000 insurance

31:44
companies make what five six seven

31:46
percent on their portfolio on a

31:47
great day right now it's probably worth

31:49
two it's probably two

31:51
two to four honestly how long does it

31:53
take for them to recapture twenty five

31:54
thousand dollars at four percent on

31:56
seventy five thousand dollars

31:59
disclaimer everyone indexed annuities

32:02
are great products they're fixed

32:03
annuities they're regulated at the state

32:04
level they were designed and introduced

32:06
in 1995 to produce

32:08
normal cd returns typical myga type

32:10
returns

32:12
if it sounds too good to be true it is

32:13
every single time unfortunately

32:15
and and mr x and i do not blame the

32:17
carriers

32:18
it's once they give the product to the

32:20
agents and the and the wholesalers that

32:22
are pitching it to them

32:24
that's when things get out of whack

32:25
that's when the stories start getting

32:27
way out of whack

32:28
and i don't think there's a way to

32:29
regulate that mr x really it's not the

32:32
product it's the way the story is

32:34
crafted

32:34
i agree with that the product is static

32:37
it doesn't move

32:40
the person disclaimer stand the annuity

32:43
man america's annuity agent sells

32:45
millions i'm telling you tons and tons

32:48
and tons

32:49
you know agents call me i don't know why

32:51
you're hating news why aren't you so i

32:52
said

32:52
dude i sell more than you do in a day

32:55
and in one year

32:56
i sell in a day because i sell them

32:58
correctly

33:00
telling people you're not going to get

33:01
market returns by the way

33:03
on a side note if anybody is talking and

33:06
says the word

33:07
market or stock in the in the in the

33:11
phrase with index annuity they better

33:13
have the proper licensure to say that

33:15
because they're not market products

33:17
they're not

33:18
securities they're regular fixed

33:21
annuities

33:21
you know in my years of doing this from

33:24
since they first came out in like 94

33:25
until now

33:26
95. you have a chance of stop

33:28
market-like returns

33:30
no you don't period

33:34
agent tells you that he is so full of it

33:36
and

33:37
he's wanting to see if you're the one

33:39
and now you've been educated you're not

33:41
here's what it does do here's what an

33:43
indexed annuity will do for you

33:46
it will give you a better than average

33:47
chance at a better than average return

33:50
yep that's it yep

33:53
yep i don't even want to put it i don't

33:55
even want to equate a number to it it's

33:57
just

33:57
better than average and better than

33:59
average return and here's why

34:01
with the way that the 10-year note is

34:02
right now with the way the market is

34:04
right now everything's kind of depressed

34:06
return wise if you look at fixed income

34:07
accounts at the time of this taping

34:10
absolutely yes look at look at the date

34:12
of when we're doing this

34:14
so index and duty returns are going to

34:15
be less than what they were

34:17
now 10-year note gets really really high

34:19
gets it down five and six percent

34:21
then guess what index annuity returns

34:23
are going to be a little bit higher

34:24
because they'll be able to offer more

34:26
it's like big teeter time

34:28
that's all it is we're old enough to

34:31
remember what a seesaw looks like

34:33
i'm assuming that that some of our

34:35
clients

34:36
and the people that are tuning into this

34:37
understand that i want to jump into the

34:40
last

34:40
last couple of topics which are i mean

34:44
this

34:44
i get a lot of questions about this

34:46
first one um because

34:47
the tv ads are rolling we're not going

34:50
to mention the name of the companies

34:52
but i i call them copay annuities

34:57
in the industry they're called buffer

34:58
annuities

35:00
and to me this is what happens when

35:03
interest rates are low annuity companies

35:06
and brokerage firms

35:07
create products out of midair to attract

35:10
money

35:11
opportunity and you know they just do

35:13
that and it sounds too good to be true

35:15
because it is

35:16
but these buffer products mr x

35:19
um what they're saying is you're going

35:22
to get a little bit more upside than an

35:24
indexed annuity

35:26
but you share in the downside some of

35:28
them will give you the option to share

35:29
in 5 or 10 or 15

35:31
of the downside i call that a copay

35:34
annuity

35:34
and i'm going to tell you this right now

35:36
mr x the first phone call that

35:38
that eager agent that sold that has to

35:40
make into the client say

35:41
oh by the way um

35:45
it's going to cost you 10 percent

35:46
because the market went down that's not

35:48
going to be a good call

35:48
and i've always said this i have cowboy

35:50
boots older than the majority of agents

35:53
and advisors and

35:54
registered reps in the business they

35:56
haven't seen things go down

35:58
i mean it's it's a layer give me your

36:00
take on these buffer annuities because

36:01
they've

36:02
kind of taken the brokerage industry by

36:03
storm which means that if those cats are

36:05
selling it and i've been there morgan

36:07
stanley dean witter payne webber ubs

36:09
if they're being told to sell it uh

36:12
watch out

36:14
well here's what i don't understand on

36:16
that on the buffer annuity is

36:18
if i'm gonna participate in some of the

36:20
risks why not just have a well-balanced

36:22
portfolio pay less than fees and not

36:24
and you're still in the same boat and

36:26
not have them be able to change

36:28
the rules right that makes no

36:32
that that doesn't make a lot of sense to

36:33
me i would just have a

36:35
better properly allocated portfolio that

36:37
diversified my risk to where my drawdown

36:40
is

36:41
you know going to be somewhere in that

36:42
range based off of my

36:44
allocation you know why mr x i just got

36:46
the best correlation of all time

36:48
because people love packaged products

36:51
down down here and i i live uh

36:54
better we'll call it bundling like all

36:56
the like i can bundle my

36:58
my cable and my this we'll call it

37:00
bundle well

37:02
and your comment about well balanced

37:04
portfolio just just hit

37:05
this hit me in the head and i live in a

37:07
couple places west coast and east coast

37:09
but i'm living on the east coast right

37:10
now and there's a place called rooms to

37:13
go and rooms to go

37:14
is a place you go in and you can buy

37:17
your whole

37:18
entire living room you know the

37:20
tchotchkes the table

37:22
the couch the chair the pain everything

37:24
so for the

37:25
for the um designed challenged out there

37:28
you go under rooms to go and say i want

37:30
that bedroom and it's the whole shooting

37:31
match

37:32
to me buffer annuities kind of fall into

37:35
that category or the person's like ah

37:37
i'll just buy and get it done in one

37:39
place

37:40
wrong well i see i i see the

37:44
i see it in my head when you're sitting

37:47
down with the representative and they're

37:48
like look we'll put the stuff

37:50
in here look your upside is whatever it

37:52
is seven percent

37:54
but the beautiful part about this is

37:56
your downside is protected

37:57
it could be five ten fifteen percent

38:00
protected so

38:01
we already know what our worst case

38:02
scenario is and our best case is this

38:05
and

38:05
if we just keep dropping it out of the

38:06
park yeah we won't get as much but we'll

38:08
get

38:09
it'll be buffered against our downside i

38:12
mean i totally see the sales

38:13
oh it's a great sell mr mrs jones i'm

38:15
here for you

38:17
and i'm acting as a fiduciary and i want

38:18
to buffer any losses because you've

38:20
worked so hard for the money

38:22
that this product this package product

38:24
will give you a little bit more upside

38:25
than the index annuity that the guy at

38:27
the bad chicken dinner seminar pitched

38:28
you

38:28
which oh by the way he's not licensed to

38:30
talk about this buffered annuity

38:32
how you like this that voice um so let's

38:35
do this and you can share

38:36
there might be some times randomly some

38:39
years that

38:40
you might have to share in the downside

38:41
i can hear that pitch

38:43
if you turned off your morals

38:46
at the door and let them in and flip the

38:49
fiduciary sign at the door

38:51
it's an easy sale that is the best part

38:54
tell me when the down year's coming when

38:55
i might have to draw where i'm at

38:57
financially at that point in time when

38:58
that down here comes and what happened i

39:00
mean

39:05
here's my head here's my thing and i

39:06
always tell people this because i've

39:07
been on the other side of the table at

39:09
these big firms

39:11
not everybody needs an annuity you need

39:12
an annuity if you want to transfer

39:14
risk to solve for primarily principal

39:15
protection or or lifetime income okay

39:17
that's that's the primary too

39:19
you can also get them for death benefit

39:21
or or long-term care but the primary two

39:23
are principal protection income for life

39:25
but if you're sitting with a person

39:28
that's a registered rep

39:29
wealth architect master of the universe

39:32
and they're selling you packaged

39:33
products

39:34
you need to ask them what are you doing

39:37
what am

39:37
i paying you for i thought you were

39:39
going to manage my money

39:41
right am i missing something there well

39:44
no because i laugh because i'll never

39:45
forget one time when one of my agents we

39:47
were going through a client's portfolio

39:48
she had two million dollars of bonds

39:50
and she was getting charged one and a

39:52
half percent wrapped before the age

39:54
on a ball

39:57
which leads me to the to one of the

39:59
biggest things that blows the top of my

40:01
this green hat just goes straight to the

40:02
ceiling is when i hear

40:05
agents right we covered this on the last

40:08
podcast

40:08
putting a rat fee on an indexed annuity

40:11
it just should be illegal

40:15
mr x it should be illegal i agree 100

40:19
you're not doing anything by the way as

40:22
you're supposed to review that policy

40:23
every year with your client anyways you

40:25
were paid

40:26
up front for the life of the contract

40:28
for you to service it

40:30
exactly i just had that discussion

40:32
yesterday but a lot

40:33
a lot of of of the major brokerage firms

40:36
are putting these rap fees on that

40:38
i don't know how compliance signed off

40:40
on that i know the people in the

40:41
compliance departments at these places

40:43
because every office had one

40:45
they're the baddest people on the planet

40:47
they do not take any

40:48
any gruff and and it's their job to make

40:51
sure

40:52
it's it's um in the client's best

40:54
interest

40:56
everybody answers to the compliance

40:58
department the compliance department

40:59
only answers to the sec

41:01
and i'm trying to figure out how they

41:03
sign off on that if that's just

41:05
corporate

41:06
wink and nod saying yeah yeah yeah let

41:07
that go through because

41:09
people have to understand in the

41:10
brokerage world and i was there before

41:12
rap fees i'm so old i was there before

41:15
you know we when you when you did a

41:17
stock order you put them in a vacuum

41:19
tube

41:19
the vacuum tube was shot across the the

41:22
office to this

41:23
to the secretary input order people they

41:25
took the paper and then put the order in

41:28
that's how old i am mr x and that was

41:30
high technology

41:32
that was i mean and we had one computer

41:34
there was four of us sitting

41:35
and we we shared one computer i mean

41:37
that's how i mean

41:38
i've seen it all okay so

41:42
but there was a transition and one of

41:43
the reasons that i exited building

41:45
at the major warehouse is they wanted

41:48
everything wrapped

41:49
like your bond example they wanted

41:51
everything wrapped and because well

41:53
they're just

41:53
they're on my side of the table there's

41:55
an ad out right now we're on your side

41:56
of the table because

41:57
you know we charge a fee and if it goes

41:59
up we share in that no

42:00
the reason that brokerage firms want

42:02
that to happen

42:03
is so that they can project future

42:05
revenues well they get paid whether it

42:07
goes up or down that's something that

42:09
everyone has to understand and so

42:11
when you see those as well we only get

42:13
paid if your account goes up

42:14
we make work they fail to mention that

42:16
if your account goes down well they

42:18
still get paid they just make a little

42:19
less

42:21
it's that again you know people that you

42:23
know

42:24
fee only advisors love fee-only advisors

42:26
because fee only advisors

42:28
do not sell product fee only advisors

42:31
not fee based

42:32
difference fee only advisors

42:36
are definitely sitting on your side of

42:38
the table but still if markets go down

42:40
they're still charging their percentage

42:42
nothing's perfect but i'm saying if

42:44
you're going to manage it how about

42:46
and i know some really good fee only

42:47
people that if you want to contact me at

42:49
theannuityman.com i can point them to

42:51
you

42:52
but um i think we covered that one last

42:55
question this might take us the whole

42:57
shooting match

42:58
okay because this is the i got more

43:00
questions after you

43:01
came on well first of all they wanted to

43:03
say you know he sounds so

43:06
so fantastic is there any way that we

43:08
can see his face i'm like

43:09
no i said in fact he's wearing the mask

43:12
um you know even when we're off camera

43:14
but that's how much he likes the mask so

43:16
the great tan you should see the crazy

43:18
can i have with the mask

43:20
for the people that are listening to us

43:21
on the podcast he's got an ac dc t-shirt

43:24
on so

43:25
obviously you know we me and him see eye

43:28
to eye musically which is good ac dc for

43:30
all the people out there it's rock band

43:32
um but here's the last question here's

43:35
what i got a ton of stuff on because

43:37
this is what's being pissed out here

43:39
mr x what's better stand the annuity man

43:42
america's annuity agent

43:44
indexed annuities or index universal

43:47
life

43:50
hello i'm i'm laughing under my mouth

43:54
well here's the pitch here's the pitch

43:57
and i got nothing against people that

43:58
sold life insurance in fact i have

44:00
millions and millions and millions of

44:01
dollars of life insurance on myself so

44:03
if i die unexpectedly my wife

44:05
is the first one to look for um but life

44:08
insurance is great it's the best return

44:10
on investment you'll never see

44:12
ever because you're dead but what people

44:14
our agents are selling out there and

44:16
this

44:16
by the way this pig has been had the

44:18
lipstick put on it

44:20
for 30 years they just keep changing the

44:21
name and what they say to you is this

44:24
you put your

44:24
you lump sum this money into the in into

44:27
the life insurance policy

44:28
and you get tax-free income mr x

44:31
tax-free income

44:33
and i'm like wait a minute no that's a

44:35
loan

44:36
all loans are tax-free you're getting a

44:39
loan

44:40
l-o-a-n off of the life insurance policy

44:43
that is not tax-free income can you

44:46
please knock the cover off of this

44:49
well let's address a few things so we

44:51
got to go backwards to go forwards

44:52
please do tonight there was an old

44:55
insurance product back in the day

44:56
called single premium whole life might

44:58
have been the greatest tool ever in bed

45:00
you put say a hundred thousand dollars

45:03
in you got maybe like a hundred and ten

45:05
thousand dollars of life insurance so

45:06
you didn't get a lot of leverage

45:08
right but what you got was was a lot of

45:10
cash value

45:11
and the cash would have key like the key

45:14
to like accumulate and then you could go

45:15
back

45:16
and borrow the money out at what they

45:18
used to call zero wash loan

45:20
anything above your principal i'd take

45:23
the cash out i had no interest no tax on

45:26
genius well take a wild guess who hated

45:30
the idea of taking money out of not

45:32
getting any taxes

45:33
who would that be mr x that'd be the

45:35
government there

45:37
so the government went in in 19 i

45:39
believe it was 1986 and they

45:41
created something called camera the

45:42
technical miscellaneous revenue act

45:44
right and they changed the law and they

45:47
created what's now called

45:48
a map a modified endowment contract

45:51
or a non-non-modified endowment

45:55
so basically what it said is section

45:57
7702 of the irs code said that if you

45:59
put money in over seven years

46:02
you pass the non-modified endowment and

46:04
then you can take the money out tax-free

46:06
and do all the kind of stuff you did

46:07
before

46:09
so what happened was a lot of the agents

46:13
transitioned into selling annuities

46:14
their thought was well if i'm going to

46:15
sell modify to government a mac

46:18
i'm just going to sell one that doesn't

46:19
involve the underwriting and i don't

46:20
have to wait 60 days to get done

46:22
right and that's not really all the

46:23
annuity this is kind of so

46:25
let's get back into the iul this concept

46:28
has been around

46:29
literally 40 years forever i mean i

46:32
remember when i was

46:33
in the business back in the day when i

46:35
was skinny and cut up

46:37
like a raw athlete yeah i mean it's been

46:40
around since the day i got in here which

46:41
was a long long time ago

46:45
and so here's the big sales pitch that's

46:48
going on right now

46:49
you can go google and look at lawsuits

46:51
and you'll see that

46:54
oh they're coming fast and furious so

46:57
first of all what's better an index

46:59
community or the insurance

47:01
it depends apples and oranges it depends

47:04
what the need is

47:05
okay if it needs to cover an obligation

47:08
well then you need life insurance um if

47:11
if your need is to have income

47:13
for life well then you have to really

47:16
look at

47:17
and we're going to get a lot you're

47:18
getting a lot of hate mail on this one

47:19
you really have to balance it out

47:21
of the guaranteed versus the projected

47:25
because here's how they do with the iul

47:28
if you're

47:28
older let's say you're 70. okay that's

47:31
not old at all

47:32
in today's world no say you're 70 years

47:34
old

47:36
there are people out there telling

47:38
people to

47:39
cash in their iras and pay out

47:42
pay the taxes pay out over a five to

47:45
seven year period

47:47
okay create a non-modified endowment

47:49
hang on

47:50
and let it accumulate and then you can

47:52
take the money out income tax-free

47:55
and if the indexed annuity does its

47:57
average return

47:58
yada yada yada spears and they'll show

48:00
you the illustration

48:02
and it's all bull you know what because

48:05
this is the first thing i try to explain

48:07
to people stan when is the last time the

48:09
market went

48:10
up in an average never

48:13
ever never ever never never never

48:17
it's never returned the same return

48:18
twice back-to-back ever

48:21
so they show you these returns that you

48:23
know six six and a half or whatever the

48:24
rule is now six point eight three is

48:26
right

48:27
whatever it is so they show you look it

48:30
goes up every year at six point eight

48:31
three and it's

48:32
h78 you can take out a hundred thousand

48:34
dollars a year

48:37
what happens if when you start it goes

48:40
zero

48:40
zero the first two years you're done and

48:43
what happens if they

48:44
raise the internal cost on that you're

48:47
done

48:48
if everything changes so i caution

48:51
every listener and for all you agents

48:53
that are going to say

48:54
hate mail to me this is great mr x

48:58
you're going to create the firestorm and

49:00
i'm going to get the flood

49:01
of of email which is fine bring it now i

49:04
know how your wife feels in reverse you

49:06
can click the button

49:07
for the wife's got to think but i don't

49:09
want everyone to think about this so

49:10
if you go google you could go google iul

49:13
lawsuits

49:14
don't get me wrong indexed annuities

49:16
have their share too but the iul one is

49:18
incredibly dangerous and here's why

49:20
because they're having people the the

49:23
the plan was to cash in their

49:25
iras pay the taxes over a certain amount

49:28
of time

49:30
some of the companies were doing it in

49:31
three years

49:34
well you've got to do seven for the so

49:36
what they do is they manipulate the

49:38
insurance contract

49:39
so they make the base amount real high

49:41
they put the money in to create the

49:43
non-modified endowment

49:44
then after three years they lower the

49:46
face amount back the insurance amount

49:48
back down sorry i was getting into

49:50
to go down that route

49:54
down so the policy won't implode they've

49:57
materially

49:58
changed the contract i have a strange

50:01
feeling the government's not going to be

50:03
too happy about that

50:06
here's the thing you know you buy life

50:08
insurance

50:09
for for the most death benefit you can

50:11
get for the least amount of money

50:13
it's the best return on investment

50:14
you'll you'll never see if you buy it

50:17
for

50:17
any other reason

50:20
in my opinion then legacy okay

50:23
tax free lump sum death benefit to your

50:25
beneficiaries

50:27
then you're being sold and you're buying

50:28
lamborghinis for your agent you'd be

50:30
better off just buying the

50:32
lamborghini for him

50:35
i think in some cases it may work it'll

50:37
be right here for a little bit in some

50:38
cases it may work but in some cases

50:40
but but the way that they sell it to

50:42
anybody 65 and over

50:44
oh my gosh i know there's asterisk cases

50:47
for entrepreneurs i get all that

50:48
i get all that but that's not they're

50:50
selling this to the masses

50:52
yeah and that's and i i and here's what

50:55
they do

50:56
they will run you a spreadsheet that

50:58
says here's what we put in

51:00
here's what the return is here's how it

51:02
accumulates

51:03
here's what you can draw for the rest of

51:04
your life and i'm here to tell you

51:07
that it's 100 bold you know what

51:10
it doesn't work the way it's shown on

51:13
the page

51:13
it's not contractually guaranteed no you

51:15
own things that are contractually

51:16
guaranteed

51:18
um mr x of course we could keep going

51:21
i mean that's an understatement and and

51:23
obviously i'm going to hold you to this

51:24
are you going to come back because i

51:26
know

51:26
that the questions are going to come in

51:28
we need you back can you can you i have

51:30
to come back because i can't wait to see

51:32
these questions

51:32
[Laughter]

51:34
well you know we might i promise you

51:36
this for everybody listening

51:39
stan and i have created an absolute

51:41
firestorm today

51:43
with that topic absolutely

51:49
yeah and i just i recently had one of

51:51
the top

51:52
uh iul sales people contact me want to

51:55
be on

51:56
fun with annuities and we're thinking

51:58
about it i don't know he wants to

52:00
step into the ring with someone like me

52:03
that's

52:04
um there's one other part here's one

52:06
other part too that they don't tell you

52:08
is that first of all i don't know what

52:10
the return is going to do and you might

52:12
be able to accomplish with traditional

52:13
life insurance versus iul sure same

52:16
exact thing that you want to do

52:17
right the second part is is what they

52:19
can do is in the indexing strategy they

52:21
can hide the mortality

52:22
that's yeah they can charge you more

52:26
than a traditional policy will because

52:28
they can bury it in the

52:30
mechanism don't buy the

52:33
don't buy the sales pits dream because

52:35
you're going to own the contractual

52:36
realities i've said that

52:38
many a time um give do you have any and

52:41
of course you

52:42
do because you're you know mr fiax but

52:45
do you have any words of wisdom on the

52:46
way out of this wonderful podcast mr

52:50
f-i-a-x do your homework

52:54
no legitimately do your homework guys

52:57
perfect

52:57
there's no perfect thing and and i think

53:00
stan will be the first person to tell

53:01
you look the annuities that stan works

53:03
with or that i work with or what we do

53:05
um it's not a panacea it's not gonna you

53:07
know be a be all end-all cure-all

53:09
but when they're placed properly

53:12
for the proper need sure they do exactly

53:15
what they're supposed to do

53:16
right they're contracts they're

53:18
contracts it's it is a contract

53:20
where the problem comes in is not the

53:23
company

53:24
not the product it's the person that

53:28
represents it do your homework ask your

53:31
questions get your worksheet together

53:33
run it past stan the annuity man you

53:36
know

53:37
that's pretty good resource isn't it

53:38
yeah go to the annuityman.com you can

53:40
the top left-hand corner

53:42
you can book a call with me yes me not

53:44
junior stan

53:45
or stanetta or stanielle stan

53:49
and i'm going to give you 30 minutes of

53:50
my time and we're going to tear

53:52
into the facts so hey mr x it's been a

53:55
it's been

53:56
a pleasure always being in your presence

53:58
even though it's virtual

53:59
i really appreciate you being there any

54:02
time

54:02
and i appreciate you enjoy it i hope

54:04
we're teaching some people some some

54:05
good stuff

54:06
i think we're saving people for some

54:08
really bad decisions i was gonna say i

54:10
don't want anybody to step in it

54:11
and and then you know yeah i guess

54:14
here's the one good downside if you did

54:15
step in it with annuity you know exactly

54:17
what it's going to cost you to get out

54:18
of it

54:19
correct that no that that is correct so

54:22
with that little

54:23
nugget of wisdom i want to thank

54:25
everybody for joining me

54:26
standing annuity man america's annuity

54:28
agent on america's number one annuity

54:32
podcast

54:33
and it's the number one nudity podcast

54:34
on the planet mr x and it just happens

54:36
to be called

54:38
fun with annuities see you next week

54:46
thanks for listening to fun with

54:47
annuities please hit the subscribe

54:49
button and make sure to go to my site at

54:52
the annuityman.com

54:54
where you can run your own spea dia and

54:56
culat quotes

54:57
and see a live feed of the best mica fix

55:00
rates

55:00
in the country and even get indexed and

55:03
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55:05
you can also sign up for my six annuity

55:07
owner's manual books and i'll ship them

55:09
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55:11
obligation i also encourage you to

55:13
schedule a one-on-one call with me

55:16
stan the annuity man so we can have a

55:18
full discussion

55:19
of your specific situation it will be

55:22
the best

55:22
brutally factual and truthful advice you

55:25
will ever get and that's one guarantee

55:28
you should definitely take advantage of

55:30
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55:33
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55:50
you