3 Strategies for Principal Protection

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Welcome to Shooting It Straight with

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Stan. I'm your host, Stan the Annuity

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Man, America's annuity agent, licensed

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in all 50 states. Today's topic is your

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principal protection trifecta. Yes,

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trifecta. That means three to all you

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people in North Kalaki where I'm from.

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That's North Carolina. I can say that

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because I'm from rural America. But what

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am I talking about? I'm talking about

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right now in volatile times. And and

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there's always going to be volatile

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times. Nod your head. But I mean,

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there's pending wars at the time of this

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taping. There's inflation. There's

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market volatility. There's elections

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coming up. There's always elections

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coming up. And people that are retiring

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are tired of it. They're tired of the

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volatility. They're tired of ups and

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downs. I got a call today from a guy and

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he said, "I'm just worn out. I've lost

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$300,000 in the markets in the last last

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uh 100 days or so, and I'm just worn

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out. I'm looking for safety." Now, for

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the market mavens out there, they're

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going to say, "Well, if you just kept

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your money in the markets for the 13

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days or the seven day, whatever the

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number is, that you would still make

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it." I I listen, I get all that. I I was

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with Dean Witter and Payne Weber and

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Morgan Stanley and UBS, did all that.

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Did all the market stuff. I get it. But

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Stan, the annuity man is all about

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contractual guarantees. It's all about

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what an annuity will do, not at what it

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might do. Or in this case, the trifecta

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of principal protection. what those

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products will do, not what they might

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do. Everything I'm looking at is will

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do. Now, two of the three products we're

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going to talk about today, I don't sell.

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I will never sell. And you say, "Wait a

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minute. I thought you'd be trifecting

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three annuities." No. What are the three

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products? CDs, certificates of deposit.

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I do not sell those. I will never sell

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those. Those are bankisssued or

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brokerage issued CDs. You give them the

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money. They protect the principal. You

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don't pay fees and you can take out the

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interest if you want to at the end of

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the term. You can do whatever you want

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with your money. That's one part. That's

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one product. Second product is

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multi-year guarantee annuities. The

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annuity industry version of a CD. You

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give the annuity, the life insurance

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company, the annuity company money. They

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protect your principal. They don't

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charge you any annual fees. No gotcha

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fees. You get a guaranteed annual

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interest rate period every single year.

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You have the ability to pull out the

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interest with most of these carriers.

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And at the end of the term, guess what?

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you can take all your money back just

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like a CD. And the third part of the

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trifecta are treasuries. I don't sell

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treasuries. You can go to

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www.treasurydirect.gov

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gov and buy them yourself. I just did a

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recent video called Ibond no-brainer.

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Ibonds are no-brainers. The only problem

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with Ibonds, which are treasuries, is

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the fact that you can't put a ton of

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money in. I think the limitation is very

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low. Heck, if you could whack it with a

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hundred and $200,000, I'd say hit it. Go

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all go all in. But that's your principal

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protection trifecta. That's safe money.

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That's when your principal never

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fluctuates. You never are charged a fee.

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You get a guaranteed interest rate. I

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mean, the difference like mas compared

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to CDs, multi-year guarantee annuities

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in a nonIRRA setting, the interest can

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grow and compound tax deferred. Doesn't

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make it better than CDs, but that's the

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difference. Now, Migas, CDs, all that

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can be put in Roths, IRA, noniras, you

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know, etc. treasures are their own

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animal. Buy them direct. People say,

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"Well, are they safe?" Well, you know,

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if you're going to go down the

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conspiratorial rabbit hole and say,

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"Well, you know, the United States

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government X and Y and Z and the debt."

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I get it. I understand that. But I think

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personally treasuries are the safest of

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the three because the government can tax

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and or confiscate our money to pay it.

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And guess what? They will. Okay? If you

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rank the three, treasuries are number

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one, safest on the planet. If you want

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to go down this conspiratorial rabbit

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hole, I guess I'll see you in the

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mountains of Idaho and we'll shoot a

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deer together because you know people

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say, "What happens that goes that goes

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bill?" Then me and you are in the local

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grocery store fighting for the cheap

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loaf bread and I'm going to win because

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I'm going to punch you in the knee

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unless you hit me in the knee first and

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then it's over and you win. The second

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thing, the second one that's safest

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would be CDs. Why? FDIC. F means

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federal. Same thing as treasury. they

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can tax or confiscate. And then

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brokerage type CDs, brokerage issue CDs

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is under SIPC, Securities Investment

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Protection Corporation, I think that is

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safe, safe, safe. Migas are safe, but

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they're as safe as the claims paying

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ability of the issuing carrier. Yes,

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there are state guarantee funds. You can

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go look at that at www. nolhga.com.

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But your primary decision should be

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based on the claims paying ability of

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the multi-year guarantee annuity

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company. As I tell people all the time,

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when you buy MAS, the annuity industry

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version of a CD, we're not marrying

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them. We're dating them. What does that

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mean, Stan? In English, this is what it

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means. If we're buying a three-year MA

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or a 5year MA or a sevenyear MA, my

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recommendation is based on the claims

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paying ability for that duration. It's

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not a lifetime income stream. If we're

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lifetime income stream, we're going to

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have really good paper. A typically A+

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or better if it's lifetime income stream

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as long as you're breathing even if

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you're on a ventilator. But when we're

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talking about principal protection

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short-term paper like 2 year, three

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year, four year, 5 year, sevenyear,

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whatever, even a 10year MA, we're going

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to be looking and recommending based

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upon the claims paying ability for that

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term. Why? Because in most cases at the

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end of that term, we're either going to

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be sending the money back to you or

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transferring it to another MIGA. In most

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cases, it's not the MIA you came from

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because these are commodity products. I

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just did a video about you need to

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retire from both your work and the

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markets. These three products, the

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trifecta of safety, which is CDs,

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treasuries, and migas, the trifecta can

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get you there. No, this isn't Jimmy

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Carter interest rates where rates were

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12 and 15 and 18 or whatever, where your

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granddad used, well, back in the day, I

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used to get 15% of my CDs.

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Yeah. Uh-huh. It's I mean that's not

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going to happen. But right now at the

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time of this taping interest rates are

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fair and they're pretty chunky compared

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to what they used to be and the bell

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doesn't ring at the top. So what I would

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tell you is if say 5% at the time of

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this taping you most durations with MAS

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you can get 5% most durations with

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treasuries or CDs like three to four

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year CDs they're giving good rates. So

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the question I have for you if you could

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average 4% on all three and why do I put

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all three in there? Because number one

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yes I am Stan the annuity man. Yes, I am

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America's annuity agent. And yes, I do

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sell annuities and more than anyone in

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the world. But you can't have all your

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money in annuities. Nod your head. Can

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we get an annuity? Hallelujah on that.

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Hallelujah. You can't. You can't put all

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your money there. So, you have to spread

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it around. But if you could get that 4%

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or four and a half% in combination with,

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you know, you're getting five plus with

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the migas. Can you live off that and not

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and not touch the principal? Can you do

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the math? Do you really need to be in

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the markets when you do that math? If

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you combine that with what your current

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income floor is, which is social

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security, a pension if you're so

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fortunate, if you have, you know, a

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legacy portfolio of dividend stocks that

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you're never going to sell, but they're

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kicking off a dividend. What's that

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income stream coming in? Rental houses,

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things like that, side hustle, if you're

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selling popcorn at the fair, whatever,

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you're making money on the side, right?

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But the point is, can you live off the

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principle? Take all of your investable

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assets. I say, you know, car uh and

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guitars and all that stuff. No, no, no,

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none of that. house, car, guitar, no

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investable assets. Take the total, then

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multiply it by four, four and a half, or

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5%. Can you live off that? I mean, can

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you? Because if you can, then why are

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you doing all this other nonsense? Play

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the trifecta. People say, "Well,

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trifecta is like gambling, right? I

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mean, I go to the the dog tracks and I

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got a trifecta going. I bet the football

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game is a trifecta." This trifecta,

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you're going to win every single time.

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This trifecta, you bet this, it ain't a

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bet. This trifecta is a contractual

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guarantee. CDs, contractual guarantees.

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Treasuries, contractual guarantees.

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Multi-year guarantee annuities,

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contractual guarantees. Will do, not

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might do. You're owning these because

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what they will do, not what they might

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do. They will do the yield. You're

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buying the yield. The yield is

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contractual. Can you live off those

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contractual guarantees? Can you miss out

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on the next Tesla or Apple or Bitcoin or

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whatever? Do you have the capacity to do

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that? Do you have the maturity to go to

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the cocktail party and go, "Yeah, I'm in

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tri I'm in the trifecta. I'm I'm

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investing in the trifecta. I'm doing

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trifecta financial planning." What's

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that? Treasuries, CDs, and MAS. I'm just

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peeling off the interest and living off

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that. And then and the principles never

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touch. Talk about legacy. That's legacy.

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Talk about safety. That's safety. Talk

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about something you can sell to your

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spouse who doesn't give a crap about the

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markets and every every time it goes

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down, they're elbowing you in the rib

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and going, "Why are we there? Why are we

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doing that? Why are we losing? Why are

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we with that advisor?" How about having

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that conversation with them? Go, you

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know what? We're going to take our x

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amount of money and just live off the

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interest and never touch the principal.

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My spouse loves that strategy. That's

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all we do. I drink the Kool-Aid because

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I've come to the conclusion that making

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more money in the markets isn't going to

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change my life. Is it going to change

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yours? Think about it. You're going to

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eat differently, dress differently,

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drive differently. Are you really? And

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even if you are, you could afford it by

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just peeling off the interest. So, I

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want you to think about the trifecta of

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safety, the trifecta of principal

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protection, the trifecta of guaranteed

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interest, the trifecta of no fees, the

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trifecta of will do, not might do, the

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trifecta of principal protection and

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safety, treasuries, CDs, and multi-year

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guarantee annuities. You might have just

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found the portfolio that you're looking

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for. Now, we want to handle those migas

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for you, but you can get CDs and you can

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get treasuries from from just about

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anywhere. treasurydirect.gov,

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bankrate.com. I'm have no affiliation

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with either except for the treasuries. I

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pay a lot of taxes. But go to

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theanuityman.com and pull up our live

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feed of migrates, the trifecta of

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principal protection. I hope that I'm

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making you think because let's think

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differently. Let's solve things

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differently. Let's solve things

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contractually. My name is Stan the

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Annuity Man, and that's shooting it

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straight.