Annuity Definition in Finance

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Hi there, Stan the Annuity Man,

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America's annuity agent, licensed in all

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50 states of Puerto Rico. Founder of CGO

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contractual guarantees only. You own an

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annuity for what it will do, not what it

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might do. Weird weird topic for the day.

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You know, my consultants sometimes throw

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ones at me and I'm like, "Yeah, okay.

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I'll do it." You know, we have this big

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meeting around this big table. We're

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like sitting at the top of a penthouse.

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You know, I'm being fed grapes by people

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being fanned. And then they throw these

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topics to me and go, "Okay." Um PE

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they're like people are looking for it

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and the topic is annuity definition and

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finance like the finance version of a of

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an annuity was the definition like I

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guess if you talk like this you know if

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Morgan Stanley what is the definition of

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an annuity in Charleston South Carolina

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with the really rich people?

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We'll do that because you know what? I

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used to deal with those really rich

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people in Charleston a long time ago

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when I was at Morgan Stanley. We'll talk

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about that after this.

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[music]

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So, I guess I should try to talk the

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whole time without opening my mouth as a

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as a uppy upper person on the upper east

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side, upper west side of Manhattan

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talking about annuities, all things

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finance.

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Okay, let's talk about just Wall Street

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in general. um

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came out of college worked for Dean Whit

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then it got purchased by Morg and

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Stanley and then I went to Payne Weber

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and it got purchased by UBS and so then

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I decide okay I've had enough of that

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but in that world of finance

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um annuities you think it's a cuss word

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where you are at your cocktail party

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it's a it's an outandout curse word

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um with the big firms and there's I

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mean, there's reasons why, but let me

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tell you the reason why. Um, and and

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I'll get to the definition, but but I

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guess I'm I'm giving you the answer in a

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roundabout way. I was at Dean Witter

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when it was transactional. You charged

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for every stock that was sold and every

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stock that was that was purchased and

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then it went to wrap fees where

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everything was paid. You you paid a a

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management fee and that's what they

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wanted because and the only reason they

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wanted that, by the way, is so that that

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the firms could track future revenue.

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That's the only reason they wanted it.

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And they ended up wrapping things that

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shouldn't be wrapped, like mun bonds and

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things like that. But annuitities

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can't charge a fee for them. Well,

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there's some firms that try, but morally

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you shouldn't charge an annual fee for

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it. It kills me some when people say,

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"Well, this guy's charging me an annual

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fee for my index annuity. It locks in

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one day per year. What's he doing the

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other 364? Holy crap.

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But the fact that Wall Street can't wrap

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a fee around these annuities and even

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worse with SPAS and DAS and QAX which

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are annuitized products for lifetime

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income. Once that money is annuized,

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it's like ripping the knob off a water

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faucet and but it's not water, it's

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income. Meaning that the Wall Street

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firms can't reinvest that money and move

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that money around and go from here to

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there. There's a reason that

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Vanguard got out of the annuity

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business, which thank you, made me a lot

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of money uh because I used to love their

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annuity platform, but then they had a

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new CEO come in and go, I don't

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understand why anybody would buy an

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annuity. I'm like, I don't understand

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why you're the CEO.

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One of the dumbest things I've ever

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heard. It's similar to the IBM CEO a

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long time ago saying, "I just don't see

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a future for everyone in a house, each

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house having a computer."

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What?

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Here's the interesting part, though.

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The annuity industry has blown it.

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They've been given this opportunity of a

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lifetime to chisel out their niche in

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the market. And what have they done?

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What have they done? They've said, "You

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know what? I know we have a a monopoly

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on lifetime income products. I know that

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we're the only category that can pay as

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long as you're breathing, and people

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want that type of longevity risk

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covered. I know that we are the only

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ones that can do that. But let's focus

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on growth.

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We have a monopoly, but let's be Wall

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Street people. Let's let's do this. And

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maybe we get invited to their cocktail

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parties.

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The finance world laughs at annuities

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and they should.

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At the time of this taping last year,

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annuity industry

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accounted for only $400 billion.

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That's a joke.

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That's that's the float for Goldman

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Sachs money market account. I mean, it's

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minuscule. So, Wall Street doesn't even

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look. I came out here from Wall Street

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and went, I can dominate that space

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pretty quickly. And I have. We are the

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number one direct to consumer u company

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in the world. Period. I have the most

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staff

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by headcount. I have the most staff by

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headc count that's licensed, but they're

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not on commission. And I have the most

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staff by headcount that's underneath one

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roof in Las Vegas. No one works virtual.

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We're open 12 hours a day, Monday

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through Friday and eight hours on

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Saturday. That's 68 hours player

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just so you can get to somebody on your

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on your term on your terms around your

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schedule.

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The annuity definition in finance is

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stay away. Most advisors

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um that you sit down with will say,

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"Nah, I don't want to do annuities.

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We'll just manage the money and we'll

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just take money out when needed for

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income."

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What?

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That's the 4% rule. You're the dumbest

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adviser on the planet. you just

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disqualified yourself. I had a guy I had

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a guy email me the other day. It was

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over the weekend. He goes, "Stan, we

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really need to talk about lifetime

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income because our advisor doesn't want

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to talk about annuities." Your advisor

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is an idiot. That's crazy. That's like I

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guess there's doctors that do this, but

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I just thought of this correlation.

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That's like the doctor going, "You know

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what?

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We're not going to talk about vitamins

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or anything like that. We're just going

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to talk about med, you know, medicines

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from pharmaceutical companies. We're not

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going to talk about vitamins or any type

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of supplements. Okay. Sure. Great.

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Great. When did Mayo fire you? Mayo just

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fired you. I heard him fire you. Yeah. I

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mean, that's that's for an adviser to

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say that. So, we're talking about

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finance. Finance, you know, people that

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have these, you know, work for Morgan

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Stan. Well, I work for them.

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I work for those blue buds. I I know

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what you're saying. They hired your

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redneck ass to work for them.

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IQ, baby. IQ. Plus, I outworked all

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those little preppy frat boys. Great

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story. Off the subject, man. We're

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having fun. So, I go into work for, you

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know, it it's Wall Street. It's the It's

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what you think it is. It's it's it's a

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pit where people sit and then there's

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offices around and the manager goes,

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"You know, if you do well, you get one

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of those offices." and one of the guys

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from the offices comes out and says

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something disparaging to me.

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[clears throat] Well, I'm an ex-

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alathlete, so you know, everybody can

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get dunked on at least once. So, I

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looked at that guy and I said, "In one

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year, I'm coming to get your office."

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Because what happens is you get to

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choose. Like, if you if you make your

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way out of the pit, you get to choose.

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Guess what I did the next year? I walked

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right over to that idiot and said, "Get

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out of my office."

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But finance co finance companies big

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Wall Street companies money managers

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hedge funds PE

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annuities

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whatever that's middle that's middle

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America that's like the political

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pundits looking at middle America for

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votes and and what people in middle

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America think they just look at the

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coast

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the definition

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for annuities and finance is the same

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definition for you you buy You buy for

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the contractual guarantees. It solves

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for four things. Annuities solve for

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four things. Princ principal protection,

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income for life, legacy, and long-term

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care. You ask two questions. What do you

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want the money to contractually do? When

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do those contract when do you want those

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contractual guarantees to start? There

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will come a time, I might not be on the

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planet, where firms will then embrace it

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and come back and do exactly what I say

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because what they don't understand

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is my approach

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with annuities is the best thing that

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could happen to Wall Street. I I'm the

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first one that says do not buy annuities

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for growth. Do not buy annuities for

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growth. Do not buy annuities for growth.

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Annuities

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are contracts. Real market growth should

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not have surrender charges.

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Eventually, there will be someone at a

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Wall Street firm go, "Hey, man, that

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redneck down there doing those videos."

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Well, that redneck knows what he's

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talking about. In the interim, I just

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keep doing videos and making money.

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Right? For the queen and the princess,

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do me a favor. Go to my site,

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theanuityman.com. You can run quotes

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without putting in your personal

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information and get real quotes. I'm the

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only one doing that. Period. I'm not

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trying to build a database of people.

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I'm trying to build clients that trust

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us. So, I'm going to give that away to

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you. That's the way it should work. You

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can schedule a call with me. You can

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email me [email protected].

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You can download my books, six owners

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manuals for free. I've done 2,000 videos

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and I do one every day. This in the

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game. This in the movie. I'm dead

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serious. I'm gonna change this industry

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and I want you to be a part of that

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change with me. You buy annuities for

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what they will do, not what they might

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do. One last thing. Spinning clock above

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me. I did a video that's called um

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attention annuity haters. You already

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own an annuity. That's kind of that's

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kind of a shot at the finance people on

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Wall Street. You own one, too.

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[laughter]

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They're all like, "No, I do not." You

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know, when I went to the Ivy League,

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they said, "Never buy an annoy." Well,

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you own one, loser.

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You already own one. But, you know, I'm

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Wall Street's best friend. I really am.

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Because if people have an income floor

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in place, they're going to invest the

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money better and not disrupt the

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investments. Duh. [sighs and gasps] My

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name's Stan the Annuity Man.

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See you tomorrow on the next video.