Annuity Withdrawals: Everything You Need to Know

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hi there Stan the annuity man America's

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annuity agent and oh yes I'm so glad you

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asked I am licensed in all 50 States

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including that nice beautiful one you're

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sitting talking about today is annuity

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withdrawals and everything you need to

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know about that going through specific

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annuity types so you buy the annuity and

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obviously if you buy it from us you're

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going to know those withdrawals but

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we're going to go over all those details

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each specific product type so that you

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fully understand the liquidity

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Provisions which is in essence what

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we're talking about annuities after

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this okay so annuity withdrawals the way

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that I look at that is is you're taking

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money out of an annuity now there's two

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ways to do that there's

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anization which is ripping off the the

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knob of a water faucet and this much

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Southern speak and incomes coming those

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would be immediate annuities Spas

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deferred income annuities Dias qualified

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longevity annuity contracts CAC those

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are just irrevocable pension products

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are going to pay you as long as you're

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breathing we can structure it 40 plus

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different ways Etc that to me falls

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under the category or withdrawals when

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most people to us and me and my team

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about withdrawals from annuities they're

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talking to us about multi-year guarantee

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annuities which is the annuity industry

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version of a CD and also fixed index

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annuities which is a fancier version of

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a CD but it's still C designed in 1995

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to compete with CD return so what's my

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withdrawal provision Stan what's my

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liquidity provision how can I get to the

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money without paying penalties because

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you have to understand when you buy say

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a three-year MGA or 5-year MGA or

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seven-year index annuity or 10year index

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in when I say that that means there's th

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that many specific years of surrender

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charges if you pivot and want to get all

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your money out before that end of that

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surrender period for instance you have a

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seven or 10e index

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annuity charges if you got out in year

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five you're going to have to pay a

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surrender penalty if you take all the

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money out but most index news let's just

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talk about those first they have what's

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called a liquidity provision and

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typically it's around 10% a lot of them

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are 10% annually of the total

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accumulation value so I mean it's just

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really that simple if you put in 100,000

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and it um you know it grew to

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120,000 um and you want to take out

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income you could take out a withdrawal

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you can take out 10% of that that

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$120,000 without penalty if you want to

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take out more the first 10% will be

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penalty-free and whatever you take after

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that those uh surrender charges will be

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applied sometimes it's most of the time

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it's 10% with index annuities a lot of

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times it's

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5% with multi-year guarantee annuities

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it's not not that static of a rule it

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just depends on the multi-year guarantee

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annuity that you're looking at I would

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encourage you to go to my site and see

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the the best fixed rates in the country

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we have a live mea feed that's you can

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put in your state you can put in your

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duration and you're going to see these

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all these companies come up and the

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yield is surrender but in those middle

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columns you're also going to see the

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liquidity Provisions can you take out

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just interest only which would be listed

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as int on our grid or can you take out

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5% every single year or 10% every single

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year when you SK schedule a call with us

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if you go to our our main page it says

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book a call and you schedule a time for

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me or one of my team members to call you

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right on the dot when you tell us to

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we're going to ask you um do you need

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liquidity or do you want to plan for

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that worst case scenario if you need to

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pull money out not that you will but

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maybe you want to or maybe you might in

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the future maybe you want to have that

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flexibility to take money out we'll ask

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that and then we'll pair you up with

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highest contractual guarantee that

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provides those specific needs and wants

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and goals of yours with these deferred

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annuities also remember when you take

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money out when you withdraw money out of

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a policy you're going to pay taxes gains

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first last in first out is what the

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accounting people call it Lio you're

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going to pay gains first at ordinary

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income tax levels obviously see your CPA

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and tax lawyer on those specifics but

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also understand this when we're talking

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about annuity

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withdrawals and you're taking money out

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of an annuity you're reasing I.E

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subtracting from the total so don't let

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anyone try to sell you that yeah you can

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take withdrawals but the gains will

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offset the withdrawals and all that

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that's sales pitch nonsense that's

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garbage if you're taking money out okay

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then it's going if you take more than

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than what you've earned then it's going

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to disrupt the guarantee give you an

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example let's just say at the time of

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this taping you purchased a 5-year

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multi-year guarantee annuity that's the

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annuity industry version of a CD and the

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guaranteed interest rate annually is

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4.5% okay and let's just say that

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annuity company allows you to take out

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10% penalty-free every single year but

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you say you know what I I only want to

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take out the 4 and a half% I don't want

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to ever touch the principal we can do

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that and the principal's intact but if

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you take out more than the 4 and a half%

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obviously it's going to total so you

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have to be very clear with us what your

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goals are and we will structure

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everything to match those goals right on

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the money on the last example I gave

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about the uh 4 and a half% multi-year

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guarantee annuity for 5 years that was

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that was under the assumption it was

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using non-qualified non Ira money let's

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talk about if you had that same 4 and a

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half% Miga in an IRA any money coming

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out of an IRA 100% of that money is

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going to be taxable why because it's

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been an IRA you know deferring taxes as

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they say understand this too if you're a

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youngster out there if you're pre 59 A2

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years old and you're taking money out of

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an annuity period if it's not anything

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that's not in a Roth IRA but if it's in

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a if it's in a regular Ira or a non IRA

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account there is an IRS penalty if you

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withdraw money pre 59 a half okay now

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there are a couple of rules around that

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and you can look it up 72t but I don't

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want to go down that rabbit hole and

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really unless it's just an ex uating

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circumstance you should not be planning

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on taking money out of an annuity a

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deferred annuity like an indexed annuity

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or a um a multi-year guarantee annuity

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before you turn age 59 and a half

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because you don't want to incur those

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10% penalties that the IRS there's no

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wiggle room with that okay so we just

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have to have that conversation when you

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book a call with us you know we're going

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to talk to you if you are one of those

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youngsters out there and you're 52 or

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you're 50 if you're pre- 50 I'm not sure

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we're going to ailan annuity unless you

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just tell us there's something that we

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don't know but we're going to make sure

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that you understand the rules that are

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in place that you need to follow so you

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can get the maximum contractual

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guarantee and no penalties no gotchas

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none of that stuff and we have been

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doing this for a very long time and we

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can certainly help you if withdrawing

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money from an annuity is important for

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you and it or if it's part of the plan

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or if it's just an emergency part of the

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plan regard L if you want it to be part

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of your plan tell us that we will we

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will pick the ones that we think are the

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best for you the highest rated the best

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claims paying ability and that meet your

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withdrawal goals so that you have this

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contractual guarantee in place but you

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know that you can get to the money if

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needed hey do me a favor if you want to

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contact us you know schedule call book a

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call with me or one of my team members

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yes there is a possibility randomly that

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I would get that call you know I'm doing

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a lot of traveling and talking and I do

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have a great team in play but there are

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times that I when I'm in the office I

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say I tell my CEO I put me in the pool I

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want to talk talk to people I love

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talking to people been doing that my

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whole life so you might get me so that

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would be fun I guess or scary one of the

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two get our books you know run run you

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know run uh numbers on our calculators

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it's free it's under no obligation no

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one bothers you and do me one last favor

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you know since you're watching this

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hopefully it's been informative we've

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done a bunch of them there's playlist

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and all kinds of stuff down there if you

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want to focus down on a product or an

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aidea but leave a leave a comment we

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will answer your comment don't be afraid

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to contact us and I'll see you on the

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next Stand The anity Man YouTube video

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