Are Fixed Annuities Safe In A Recession?

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Hi there, Stan the Annuity Man, America's annuity agent, licensed in all 50 states and Puerto Rico,

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the founder of CGO, which is contractual guarantees only, which is the only way

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that we even look at annuities. So, the question of the day: are annuities safe in a recession?

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Stan the Annuity Man. Well, that's an interesting question because there's many types of annuities,

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but only I can put it into Stanglish, which is easy-to-understand English, after this.

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So, annuities, recession problems, black swan events, hyperinflation, inflation, all of that

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stuff that it's kind of sport to try to plan for, but there's no perfect plan. But let's talk

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about recession and when we're in a recession. In my opinion, annuities are perfect, a perfect

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antidote for recessionary trends. And the reason is you're locking in contractual guarantees. You

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own an annuity for what it will do, not what it might do. There's many types of annuities.

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My shirt, I Heart Lifetime Income. Annuities were put on the planet in the Roman times for

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lifetime income. That's where they first started. And that's been the primary reason for annuities

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ever since. They've been sold in this country over 200 years for lifetime income. And in a world

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where 9, not 90, 9% of the public, working public has a pension, the other 91% have to figure

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out how to create lifetime income. The number one most popular federal government agency of

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all time is Social Security. It's not the Department of War. It's Social Security.

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It was not put on the planet for people to get their primary lifetime income stream from,

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but that's where most of it comes from. I'd say 60 to 70% of all people receiving Social

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Security. It's also the best inflation annuity on the planet. In a recession,

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I'm not going to find many people that say Social Security is a bad thing. It's a good thing.

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It's lifetime income coming in. So, if you just extrapolate that annuities for lifetime

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income, in addition to Social Security, in addition to a pension if you're so fortunate, in

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addition to the RMDs you take from your IRA, and that's eerily similar to an annuity-type

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payment because it's coming every year whether you want it to or not. That's recession-proof.

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The more income, the better. If you just want to protect the principle and get an interest rate,

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that's where MYGAs come in. Multi-year guarantee annuities, the annuity industry version of a CD. In

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a recession, that works. Protect your principle, get a very good interest rate, and typically

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MYGA interest rates are higher than CD rates if you're past that three-year time point.

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I typically tell people one to two years, okay, CDs. We don't sell CDs, but I love CDs.

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Go to bankrate.com, and look for CD rates. Anything past three years,

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MYGAs are going to give you a higher guarantee because life insurance companies issue those,

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and they're pricing off of different things, not just the Fed. The Fed's about 20% of the pricing.

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So, the country is going to go through inflation and recession, all kinds of things. Someone

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asked me the other day, what are we doing hyperinflation? I don't know. I mean,

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anyone that says they know and have a plan, they're full of crap. Alright? Been doing this

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a long time, was at Dean Witter, Paine Webber, UBS, Morgan Stanley, been on that side of the ledger,

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worked on Wall Street, worked at World Trade 2 Center before it fell. I've been there.

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Envision this t-shirt, three-piece suit, Brooks Brothers. I was bringing it. Okay?

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But then I burned all that and then did this. But the point is, I know about that. And I know

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that recessionary times, to me, equate into contractual guarantees. Do you wait till the

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recession hits? You can. You can keep your powder dry and then buy lifetime income when you need it.

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But I actually think the time is now to look at lifetime income because artificial intelligence

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is going to change the life expectancy tables against you. Meaning you're going to live longer,

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meaning the payments will be lower. So you might want to look at locking it in right now.

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Someone called me the other day, said, "Well, I keep hearing you talking about

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AI and how it's going to change life. When's that going to happen?" Son, if I knew that,

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I wouldn't be on the video. Okay? I'd be trading futures on when all this is going to happen.

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But on a side note, didn't know I thought about it. I mean, life insurance companies

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will become more profitable. There's no doubt because they're going to pay out lower payments

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for a longer time, which means they get to hold on to your money for a longer time, which

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means they're going to make more money, which means they're going to have bigger buildings.

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There's a lot happening right now. You know, a lot of the people watching this tape, I was

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talking to someone the other day that, you know, I was around when cable television started,

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that MTV thing, and then I was around when laptop computers started, internet. I was around during

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the dot-com bubble. I was around when iPhones were first introduced, and now I'm around with GOP-1,

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the stab yourself and get skinny and announce a pill. And now I'm around for AI. Seen a lot. Okay.

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But I think of all the things that I've seen, I think artificial intelligence has the potential

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to really change things. Some people say for the better, some people say for the worse. I don't

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know. It's probably somewhere in between, right? I don't know what's going to happen. But all I know

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is we can't sit around and say, "Well, that's kind of crazy. I don't really understand

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it." Well, if you are if you have money, you need to start thinking about how is it going to affect

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my money, how's it going to affect my lifetime income, how is it going to affect things. It's

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going to— I'll give you an example. I think that if artificial intelligence can shorten the

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medical breakthroughs, which lengthens life expectancy tables, what's the government

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going to do? They're going to push when you can turn on Social Security.

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Duh. It's going to happen. Or they're going to means-test it at a minimum.

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You know what I want you to do is use your noggin. Don't get mad. Stop watching political

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television. By the way, on a side note, I just have to say this. I'm so tired of, like,

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cable television and they got a guy, that guy or lady or whatever, and they'll say something and

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they'll say what they believe and then they'll say, "Well, I'm going to bring in Bill

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over here and see what he thinks." I don't give a crap what Bill says. Who thought that was good

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television to give your opinion and then bring in opinions or, like, do like the Hollywood Squares

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version at one network? They'll bring in, like, six people and they'll all give their opinion.

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You've got to have something better to do than that. No, seriously.

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So, are they safe in a recession? Are annuities safe in a recession? Throw out recession. Throw

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out inflation. Throw out high. Are annuities safe? That's really the question. And the answer is yes.

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They're contractual guarantees. And if you buy quality companies, they are 100% safe.

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For us, lifetime income is A+ or better. Period. End of story. No discussion. That's safe.

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So, are annuities safe? Yes. Does your portfolio need to go more towards safe money? Yes. Do you

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need to take some risk off the table, whether temporary or permanently? Yes. You know that. Stop

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being greedy. I mean, do you have a stock market addiction? And I saw something the other day,

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big C behind the camera, about sports gambling and how that's taken over and all that stuff. And I'm

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thinking to myself, what's the difference between that and the stock market? Nothing. Nothing.

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The only difference now is with sports gambling, you can start at 400 and 300 and 200, whatever.

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The stock market's a little bit higher, but it's the same thing.

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How about getting addicted to lifestyle? How about getting addicted to safety of your money?

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How about getting addicted to the predictability of contractual guaranteed returns on your money,

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with your money? That's better. So, are annuities safe in a recession?

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Are annuities safe in an inflation? The answer is yes. But the real shorter version,

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are annuities safe? Yes. They're contracts. Contracts between you and the life insurance

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company that issues the annuities. So what do we do? We only look at the contractual guarantees.

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You own an annuity for what it will do, not what it might do. So think annuities, think safe.

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Think annuities, think lifetime income. Think lifetime income, think safety of lifetime income.

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As long as you're breathing. Chapter 2 is about you. Remember that.

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One last thing. So I'm getting ready to walk away, and you know I got

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handlers and lawyers. They're all back here, and they're doing their thing, right?

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And Big C behind the camera said, "Can you answer one last question?" And his question was,

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in a recession, is the company safe? And the answer is yes. Okay? The answer is yes.

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A+ or better company, safe. I don't care what's happening in the country. And if you say, what

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happens if they go out of business? It's a wrap. It's over. Okay? Now, with MYGAs, we might do a

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little bit less rating, but we're dating that company for that specific period of time. And

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I personally sign off on that, and I'm batting a thousand in a 30-year time period. It's a very

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good question that was probably on the minds of a lot of people, and I probably take it for granted

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because I've been doing this so long and I've seen such stability that yes, your company is safe,

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which means your contractual guarantees are safe, which means that your money is safe.

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Do me a favor. I talk about lifetime income, and this you're gonna see kind of a spinning clock,

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and I talk about lifetime income, how it's priced, some of the fallacies out there, like, well,

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the Fed it dictates lifetime income— no, it does not. Okay? Watch this video, I'm going to break it down

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as only I can in easy-to-understand Stanglish, so you'll understand it. Okay? Lifetime

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income is good. I love lifetime income. My wife and I, we have so much lifetime income set up.

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It's going to be fun. It's fun now. So, think about it. Are annuities safe? You bet they are.

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Go to my site at the annuity man, run quotes until

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your heart's content, schedule a free consultation at your heart's content.

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And you can even email me, [email protected], and I will respond. See you next time.