Are Annuities A Scam?

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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, founder of

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CGO, Contractual Guarantees Only. We

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only look at annuities for what they

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will do, not what they might do, which

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dovetales nicely into this very simple

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but yet

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tough question. Not really tough for me

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because I'm gonna hammer this one. Are

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annuities a scam? The fact that someone

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wants to know that and watching this

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video is pretty cool because there's a

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part of you that says maybe it is, maybe

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it isn't. I'm going to answer it in a

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very unique way as only I can as Stan

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the annuity man after this.

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[music]

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So, are annuities a scam? The answer is

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no. But the way they're pres presented

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in a lot of cases, the answer is yes.

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Okay. Annuitities are contracts that are

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issued by life insurance companies. So

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in essence, you're buying a contractual

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guarantee, which is the reason that we

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only look at um annuities for what they

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will do, not what they might do, not

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some hypothetical and theoretical. So

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when you say are annuities a scam,

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um the answer is no because they're

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contracts. So you just have to

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understand what the contractual

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guarantees are. If you're buying

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annuities for lifetime income, there's

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four products that do that. SPSDS, QAX,

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and income writers. You can go to my

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site at theanuityman.com and run quotes

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all day long for that. And we only ask

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two questions for every single client or

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potential client. What do you want the

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money to contractually do? When do you

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want those contractual guarantees to

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start? And then an acronym called PIL,

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which pretty much simplifies how you

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know what annuities solve for. P stands

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for principal protection. I stands for

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income for life. L L stands for legacy.

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The other L stands for long-term care.

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So, when we're recommending annuities

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and you get me on the phone or you email

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me stantheanuityman.com

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and I'm talking to you, um, I'm going to

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ask you those two questions. I'm going

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to find out what you're contractually

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going to solve for. Then I'm going to go

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quote all carriers and then we're going

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to look for the highest number, period,

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for your situation contractually. Then

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we're going to look at their rating.

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It's got to be A+ or better for lifetime

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income. and then you're going to look to

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me for the recommendation.

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That's the trifecta.

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So, in in my world, top agent out here,

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licensed in all 50 states in Puerto

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Rico, biggest staff out there,

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etc. We know what we're doing, been

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doing it a long time. We only look at

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the contractual guarantees. It's not a

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scam. The scam starts when you go to you

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get the invitation in in the mail and it

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says come to this really expensive state

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house and hear about this great product.

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And typically and unfortunately it's

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always the highest commission indexed

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annuity product. And that doesn't mean

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we don't we don't doesn't matter to us.

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We only look at contractual guarantees

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for us in index annuities are a simple

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delivery system for the income writers

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for lifetime income.

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But that's not where the sales pitch

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happens. And when you say, "Our

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annuities a scam," the sales pitch is

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the scam because too many local type

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agents and some national ones on on

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YouTube um will talk to you about

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upfront bonuses. Um there's no

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philanthropists at at annuity companies,

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okay? Upfront bonus is candy for the

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stupid. It's also part of the overall

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contractual guarantee. So when we're

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quoting, we're quoting everything. We

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just don't care about that. They're also

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that you also hear market upside with no

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downside, market participation with

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principal protection and they'll show

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backtested numbers that look too good to

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be true because they are. Okay. So, the

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scam comes from the presentation.

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The presentation should be the index

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annuity was put on the planet in 1995 to

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compete with CD returns. And since 1995,

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in the biggest raging bull market of all

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time, they produced CD returns. Okay,

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that's great. And they also can provide

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the highest um the highest income

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writer. They can provide the income

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writer quote. But then again, when

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you're looking at income writers, you've

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answered the questions. I want lifetime

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income and I want it in the future.

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Which wipes away the index annuity and

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we're only quoting the income writer.

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Whatever that's attached to, we don't

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care. But I always have people say, "I

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just want a reasonable rate of return

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like 79% 10% maybe 11%." Like, what are

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you talking about? What are you on

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crack? I mean, money managers would have

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statues built for them all along Wall

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Street beside the bull if they got that

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year after year after year. Well, I've

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seen it. I've seen We're in a raging

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bull market. Call me in a couple years

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when things adjust. Okay. But for you to

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believe that you're going to get market

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upside with no downside. Well, he showed

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me these numbers. He showed them on the

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screen. Great. He showed them on the

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screen. Who cares?

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Are annuities a scam? They can be if

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they're presented improperly. They can

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be if they're presented and overhyped

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fraudulently. They can be if the focus

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is on shiny things from bonuses, free

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longterm care

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back. If whoever you're talking to other

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than us, and it should be us, and it

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will be us eventually

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once you get through all of the sales

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pitch with your son-in-law.

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Listen, this guy called me the other

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day. We did all the work for him. We

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showed him the best um solution. It was

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not complicated, but we quoted all

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carriers and explained it and da da da.

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Did all the work. He he emailed me back.

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I'm going to buy it from my golfing

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buddy's son that just got in the

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business. Okay, that's fine. That's

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fine. You know why that's fine? A I

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don't need the money. I'm doing this to

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squash hopes and dreams of agents.

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That's all I'm doing. and and advisors

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and to get them in line with what I'm

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talking about. I'm okay with

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competition. I just need everybody

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talking the same just like me. Okay. But

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I'm okay with him buying it from golf

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and buddy's friend because golf golfing

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buddy probably has pictures of this guy

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in compromising positions as they say.

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But I'm happy because he bought the

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right thing.

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I'm unhappy and told him so that he used

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us for that. That's not right. You know

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that's not right. And you better not do

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that either. If you're going to let us

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compete and we come up with the highest

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thing, unless it's your blood son or

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daughter,

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you're being you're you're you're being

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a bad person. Okay. So, are annuities a

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scam? The answer is no. Annuities are

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contracts. Annuities are transfer of

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risk products that primarily solve for

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lifetime income, principal protection,

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legacy, and long-term care. you're

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transferring the risk to the life

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insurance company to solve for those

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things.

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Are annuities a scam? They're a scam if

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they're presented for for market growth

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in in replacement of actual stocks,

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mutual funds, ETFs. Yes, they are a

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scam.

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Are annuities a scam? If I'm buying it

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for the upfront bonus, yes, they're

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they're a scam because there's not a

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philanthropist at an annuity company

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that wakes up in the morning go,

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you know what?

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I really like humanity and in lie of me

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running for office. I'm going to give an

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upfront bonus to the people. Nobody says

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that. Okay, there's a 100 pennies in the

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dollar. They're taking something away.

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Okay, just our annuities a scam if you

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let them be. Are annuities a scam if you

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want them to be? Are annuities a scam if

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you believe what you're being pitched?

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That's not guaranteed.

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So, a lot of this falls on not only it

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falls on you. It falls on the agents to

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present it correctly. We do contractual

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guarantees only. You own it for what

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what you will what it will do, not what

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it might do.

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But is it a scam? It's a scam if you

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allow that sales presentation to

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infiltrate your brain and you believe

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it's too good to be true because it is.

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You bear that responsibility. You bear

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that responsibility with us, working

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with you, to look at the specimen

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policy, to do the research, to take your

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time, to ask questions, to go at your

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speed and on and make your decisions on

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your terms and your time frame. You are

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in control of it being a scam. You are

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in control of believing the too good to

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be true pitch. You are in control of

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only focusing on the contractual

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guarantees. The industry could solve it

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as well. If every single annuity type

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had the same built-in commission that's

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low,

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regardless of the type of annuity, then

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there would be no incentive

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for the agent to sell something just

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based on a commission. And unfortunately

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that still happens. The other thing the

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annuity industry could clean up.

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Security industry did this decade ago

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plus is they got rid of the incentive

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trips. They got rid of them. In other

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words, you sell enough mutual funds, you

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go to bora bore, right? Not the annuity

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industry. The annuity industry still is

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under that incentive trip nonsense. You

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sell enough of it, you go on the trip.

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We get we get the I mean obviously we're

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the top people out here so we qualify

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for everything right? We haven't been on

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a trip not going on a trip ever. I mean

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last thing I want to do is spend a spend

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time at a dinner table with annuity

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agents.

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Stab me in the eye first before that

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happens. Horrific.

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Okay. I don't want that. Nobody should

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want that. And the fact that agents want

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that is disgusting. So, are annuities a

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scam? They can be, but both you and I in

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combination

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can can combat that with brutal factual

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truths. Do me a favor, go to my site at

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theanuityman.com.

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Shoot me an email, which I will respond

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even if it's hateful.

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Stantheanuityman.com.

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Just hope and pray to the God above that

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you worship that I never see in an

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airport after you tell me that all these

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bad things about me. No, I'm kidding.

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I'll give you a hug and give you a hat.

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Um, also too, above my head, I did a

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video that the carriers hate, but they

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nod

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in a in a closed room. Yeah, he's right.

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That annuitities are commodities.

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Annuities are commodities. Here's how we

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do it for you. We shop all carriers for

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the highest contractual guarantees based

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on your specific situation. Then we look

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at the ratings and the financials, A+ or

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better for lifetime income. And then we

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look at me for my recommendation. That's

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the trifecta. That's how it works. Okay?

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It's that simple. So, our annuity is a

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scam.

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And Stan the Annuity Man's world, nope.

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In the world out there, yep, can be. But

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I'm squashing those bugs one at a time.

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My name is Stan the Annuity Man. See you

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next time.