Annuity vs. Real Estate Investment

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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 in Puerto Rico, the founder of

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CGO, Contractual Guarantees Only. We

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look at annuities for what they will do,

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not what they might do. The contractual

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guarantees of the policies. Today's

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topic is an interesting one. I have a

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couple stories on it. Annuitities or

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annuity versus real estate. Um, let's

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look at that from the standpoint of just

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allocation. Which one makes the most

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sense? how you can choose etc after

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this.

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[music]

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Okay. The first thing that I want to do

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is talk about annuitities and real

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estate. Annuities are transfer of risk

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products. You're transferring the risk

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to the life insurance company that

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issues the annuity to solve for four

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things. The acronym is PIL. Principal

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protection, income for life, legacy, or

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long-term care. One of those four you're

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trying to solve for. Again, principal

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protection, income for life, legacy,

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long-term care. For example, for

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lifetime income, you're transferring the

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risk to that life insurance company,

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issuing the lifetime income guarantee so

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that it's going to pay for as long as

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you're breathing or if you set it up

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with your spouse for as long of as one

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of you is breathing. And we will

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structure it so that 100% of any unused

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money will go to the family and not the

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evil annuity company. Don't hit me with

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if you die come to keep some money

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unless you tell us to do that and you

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hate your beneficiaries and you're

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complete missenthrop. We're going to set

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it up to where the money's going to come

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to your family. So that's annuities

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transfer of risk.

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Real estate,

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you're not transferring risk at all.

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You're shouldering the risk. Long-term

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investment, it's a good one. They don't,

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as as my grandfather used to say, he's

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the one that also said, if you tell the

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truth, you don't have to remember

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remember anything. Which is our business

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model at the annuity man. But he also

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said, "They ain't making land no more,

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son." He's right about that. So, I had a

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situation the other day. Gentleman wants

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to wanted to buy an annuity, but he

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calls me up and he goes, and he was like

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in the application process. He'd already

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made up his mind. It was going through

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the application process. He calls me, he

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goes, "Stan, this this house land came

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up came up for sale just after we talked

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um and after the application was in and

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what do you think? Should I buy the land

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and this beside me or should I buy the

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annuity without hesitation? Buy the

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land. Buy the annuity.

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And he was one of those guys that could

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fix things and he, you know, he was

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handy and all that stuff. See, I can't

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do any of that. Like my wife, see, she

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she married me because, you know, I'm a

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mediocre guitar player. You know, I'm

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I'm some sometimes fun. I buy her all

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kinds of nice things, but I can't fix

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the flapper on a toilet. She has to do

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that. She's from Nebraska. I mean, they

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she they grew up learning that stuff. I

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can shoot a basketball. My dad, he

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didn't teach me how to like change a

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tire, but I can shoot a three-pointer.

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And you know, that's really good when

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you're like applying for a job, you

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know, shooting three-pointers. Hey,

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you're fat. You know, what are you doing

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shooting three-pointers? But the point

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is this guy was he was looking at this

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real estate and I said, "No, we'll

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cancel the application. Go buy the real

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estate." good friend of mine in Winter

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Park, Florida, arguably the top life

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insurance agent in the country, sells

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just straight life insurance. He his

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with his other money, he he buys and

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renovates uh rental houses. I think he's

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got 50 or 60. I mean, this he's like a

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he's like this mogul, but he loves doing

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that. And if he called me up and said,

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"Should I buy an annuity or real

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estate?" Real estate. Because what he's

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doing is creating an income stream from

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the rental properties. That's in essence

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an annuity type payment. Now you have to

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the annuity income stream is turnkey.

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You don't have to mess with it. You

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ain't you ain't got to fix nothing.

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Okay? You ain't got to fix the air

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condition on annuity. But if you know

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how to do that stuff, that's also an

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annuity type payment. We're talking

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about income floor a lot of times.

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What's your income floor? What's that

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amount of money that's hitting your bank

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account every single month regardless of

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what happens? Annuitities, social

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security, pension, dividend stocks, real

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estate,

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rentals. So there's not one that's

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better than the other, but I don't think

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they can be in the same category. I

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don't look at annuitities as

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investments. They're contracts. They're

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transfer of risk contracts. Real estate,

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that's an investment, you know, and

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there's so many variables to that. You

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know, there's, you know, where are you

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living? Taxation, is it a rental

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property? Is it raw land? What is it?

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Are you just buying it because you don't

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want another neighbor? That's why I'd

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buy it. I'd be the guy that like on the

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culde-sac by all the houses. They'd all

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be empty and I'd be at the end of the c

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culde-sac kind of on your neighbors. You

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know, I know what you're saying. Really?

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Yeah, that's me. Um, but so real estate,

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I mean, you really can't compare the

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two. What I'd rather you do is say,

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okay, why am I buying the real estate?

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What is my goal? I always for anything

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investments, because I came from Morgan,

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Stanley, Deanwood, or Payweber, UBS.

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What's your goal? What are you trying to

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do with with annuities? I know what you

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better be trying to do.

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Looking at the contractual guarantees,

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principal protection, income for life,

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legacy, and long-term care. You got to

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solve for one of those. But over here,

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what are you trying to do, Chester? Are

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you just buying land? Are you running

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cattle on it? Are you building a house

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for rental? What are you doing? Good

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teammate of mine from uh from college.

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He could be the tallest and largest

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um building constructor guy in the

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country. He's like 610 340

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in change. But what he does is that he

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buys he buys up houses that are just

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beat up, fixes them up, rents them.

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Fixes up, rents them. My grandfather,

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Hunter Garrison, that gave us all the

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great sayings of, you know, if if you

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tell the truth, you don't have to

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remember anything. That's Hunter

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Garrison. Hunter Garrison worked in the

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textile mills in North Carolina. And

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people out there know what that is. I

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mean, they all got shipped away overseas

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and those plants all closed. But he

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worked as a loom operator and you know

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with any extra money he would build

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houses on his farm and rent them out.

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Rent them out. He and he would you know

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he didn't borrow money. There's no

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borrowing money back then. He'd save the

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money, build the house, rent them out.

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That was a good investment to him. Great

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story on that side note. My grandmother

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Margie um they would not rent to anyone

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back then that had facial hair. So Dr.

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V, you'd be out of business, man. You go

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to rent the house, they'd be like, "Get

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out." Because they called people with

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facial hair woolly boogers. That was it.

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I don't think there's any racial

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undertones. I just think they thought

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they were woolly boogers. And my

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grandfather's like, "If they got facial

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hair, they might not pay the rent on

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time." I'm thinking, "Okay, that's a

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filter. Um, that's I guess that's

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suitability. I don't know." But real

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estate for him made sense. I get calls

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all the time. I did have one the other

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day and the guy calls and he goes, "This

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is my first annuity I'm looking at.

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primarily do real estate. My question,

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my question was, are you good at it?

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Yeah, I'm pretty good at it. Been doing

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it for 30 years. I kind of know what I'm

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doing. Then why are you buying an

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annuity?

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It's how I make my living, but I'm not

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going to put a a square peg into a round

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hole. This guy told me that's what he

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does. That's what he feels comfortable

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with. Now, I did have another call a

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couple months ago. Guy said the same

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thing. And I said, "Well, the real

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estate." He goes, "Yeah, but I don't

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want to do it anymore." Okay, that's a

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whole different story.

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Or he feels like his he's not hitting on

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all cylinders anymore. My wife just she

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don't want to do this anymore. She wants

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me to sell the property. Okay, then buy

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annuities. Buy the contractual

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guarantees and go live your life. Go buy

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your wife all that stuff that you didn't

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buy her because you're buying

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refrigerators and washerd dryers for the

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rental properties you had. But they

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cannot be compared from the standpoint

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of one's an investment, one's a transfer

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risk product. But they both can be

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compared. What are you trying to do?

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What are you trying to accomplish? What

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do you feel most comfortable with? What

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are you good at? What are you trying to

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do with your life? Chapter two. Well,

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I've been doing this for 30 years. I

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don't want to do real estate anymore,

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Stan. I just want lifetime income, the

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same income stream I was getting from

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the houses. I just don't want to fix the

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refrigerator anymore. Got it.

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done. Or Stan, I'm just going to take

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that real estate money and buy mas and

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just get the interest. Okay, got it.

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But annuities and real estate is a great

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example of what are you trying to do?

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What's the goal?

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And when it comes to money, whether

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you're talking about annuity as a

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transfer risk product, whether you're

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talking about the stock market, whether

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you're talking about real estate,

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whether you're talking about art, coins,

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gold, whatever, what's your goal? What's

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your time frame? Don't just meander into

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something and buy it. Well, it sounded

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like a pretty good deal. I thought I'd

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buy it. Okay, great.

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Okay, that didn't work. Have a goal. Go

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to my site, theanuityman.com. You can

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run quotes 247365.

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You can email me, Stantheanuity Man, or

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set a a call that I'll call you right on

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the dot um free and we could talk about

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it. You might be in this situation where

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you're thinking real estate, annuities,

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real estate, Bitcoin, real estate,

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stocks, real estate. We'll talk about

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it. We'll have an honest conversation

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about it.

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The only agenda I have is to get the

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truth out of you and then we can make a

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decision. All right, one last favor.

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Above my head, one of the greatest

9:36
videos ever shot. It's called Why People

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Still Hate Annuities. It's brutal. It's

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honest. It's transparent. It's kind of

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what you're thinking, but not because I

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cover it from a couple of angles and I

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agree and disagree with you at the same

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time. How about that? All in a 10-minute

9:54
package of absolute fun and enjoyment.

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All right. Hey, my name is Stan the

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Annuity Man. I really thank you for

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joining me and clicking this button, and

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I hope to see you next time.