Are Indexed Annuities A Good 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. A good

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question today and controversial one.

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Are index annuities a good investment?

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Stan the annuity man. Huh, interesting.

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I'm going to have an interesting take on

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that. Be careful who you ask that

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question to because if you ask it to

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your local agent or pretty much any

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agent, they're going to have a different

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answer than what I'm going to tell you.

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And that's the reason you need to hang

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in there after this.

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[music]

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All right. So, are indexed annuities a

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good investment? First of all, they're

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not an investment. They're a contract.

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And I know you're saying, "Stan, you're

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playing word games. Don't be Dr.

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Semantics with me." No, I'm I'm being

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serious. Annuities, there's many types,

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are contracts. They're contracts issued

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by life insurance companies. And what we

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say is you own them for what they will

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do, not what they might do. You never

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buy hypothetical or theoretical non-g

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guaranteed returns. Never buy an annuity

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for growth. Period. End of story. Which

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blows out of the water 99% factually, by

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the way, 99% of all sales pitches that

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you're going to hear about index

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annuities. So, are index annuities a

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good investment? They're not investment.

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They're contract. An investment is if

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you want to go buy the market, S&P 500,

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ETF, Nvidia, Apple, whatever you want to

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do, mutual funds, that's that's an

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investment. Okay. Um, annuities are

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contracts and and those contracts solve

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for four things. Contractually, the

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acronym is pill. P stands for principal

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protection. I stands for income for

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life. L stands for legacy. The other L

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stands for long-term care. And I ask two

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questions every time to see if you even

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need an annuity. 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? with me using the word

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contractual index annuities just kind of

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get pushed aside

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because the guarant the the returns are

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not guaranteed. The returns are

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hypothetical. The returns are

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theoretical. The returns are potential.

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The returns are might do, not will do.

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That doesn't mean we don't like index

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annuities. We use them as an efficient

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delivery system for income writers. If

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you answered the question, I want income

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and I want income to start in the

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future. That's an index annuity with an

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income writer. But we completely ignore

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the index annuity. The accumulation

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value story for index annuities is

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flawed. For most index annuities,

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keyword most, you can only lock in the

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gains one day per year. The other 364,

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you're an annuity unit.

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for most keyword most index annuities

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the um

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the the gains and how they're calculated

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can be changed at the discretion of the

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annuity company. Give you an example.

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You might know exactly what the cap is

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first year on the index annuity years 2

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3 4 5 6 7 8 9 and 10 at the annuity

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company's discretion. Trust us, sir, we

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have good renewal rates. Really? You're

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gonna go 10 years into an investment

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with trust us, sir.

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Are annuities, our index annuities a

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good investment. If you're dumb enough

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to think an upfront bonus is real money.

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Upfront bonus is candy for the stupid.

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Upfront bonuses

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is garbage. It's part of the overall

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contractual guarantee. If there's a

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hundred pennies in the dollar, there's

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not 130 pennies in the dollar because

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this guy gave us an upfront bonus. Like

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I'm talking.

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Come on. Are index annuities a good

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investment? They're a contract. If you

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want CD returns, maybe. But if you want

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CD type returns, then you better off buy

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a MIGO, which is a multi-year guarantee

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annuity, which is the annuity industry

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version of a CD. Is what I call an

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annuity bond. Guaranteed interest rate

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for a specific period of time. Are fixed

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index annuities a good investment if you

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want market growth? No. Because they're

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not going to give you that.

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If you want market growth, never buy an

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annuity. If you want market growth,

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never buy an annuity. I was on the phone

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yesterday with the guy and I said that

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twice. Then I talked to him about my

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guess and you know what he did? Came

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right back. He goes, "But tell me about

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the best index annuity you have." I

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said, "Sir, you are the rube at the

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table." It didn't go well. I mean, he

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was mad and I don't blame him, but he

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was,

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if I know the facts and I know the truth

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about the product and you keep coming

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back to me and not believing me, what do

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you want me to do? I've written a book

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on it. If you say, "Stan, I don't

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believe you. Prove it. Prove it, you

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scoundrel." Okay. Go to my site,

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theanuityman.com, and download my fixed

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index annuity owners manual and read it.

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I still don't believe you. Okay? Go to

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my YouTube site, Stan the Annuity Man.

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In the search bar, type in fixed index

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annuities and watch hundreds of videos.

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And if you still don't believe it,

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promise me you'll never go to Las Vegas.

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Promise.

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Because you are a sucker. You want it to

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be true. You want that vitamin to work.

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You want that pill to work. I want the

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pill to work.

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Retirement in chapter 2 is not a game.

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This isn't a movie. You don't get

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mulligans and doovers. You make good

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decision on facts. And with annuities,

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you make them on contractual guarantees.

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You do not make them on non-contractual,

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guaranteed, hypothetical hope.

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If you buy the hopes and dreams, you're

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going to own the contractual realities.

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Are index annuities a good investment.

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They're not an investment. They're a

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contract. So, you better understand

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what's in the contract. So, Stan, if

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they're not an investment, they're a

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contract. What's the contractual

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guarantee? You're not going to lose any

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money.

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You know what else is a contractual

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guarantee that you won't lose any money?

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Hole in your backyard. But we like them

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when we use them to deliver the income

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writer. We have no problem with them at

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all. Love them. Love them. Hug and love

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them. Love them.

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But hopes and dreams of market returns.

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Come on.

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Come on. That's rookie stuff. That's

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local stuff. That's Johnny Apple Seed

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agent down the road stuff. That's

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golfing buddy bull. Be careful out

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there, okay? There's a reason on my site

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that you can quote all products except

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index annuities because there's nothing

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to quote. How do you quote a

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hypothetical?

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You don't because it's hypothetical. If

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you go to my site and you do annuity

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quotes in in index annuity there, it's

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just going to take you to schedule a

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call with me so I can just yank you over

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the phone and try to get you thinking

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straight and try to und deprogram you

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from the sales pitch that you received.

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Go to my site, download the book. I know

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you don't believe me, but you know what?

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If you buy an index annuity after this

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thing and not believe in me two years

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from now, have the guts to call me. Have

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the guts to call me and say, "Stan,

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you're right." And I'm gonna say,

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"You're right. I was right. And you're

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it's too late. You you got to stay there

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eight more years because of the

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surrender charge." That's how severe

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this is. This isn't a game. It's in the

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movie.

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This is your retirement.

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And with on that light note above me is

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a video that I shot on how annuities can

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protect your family, help your family.

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I've done that for my family and

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thousands of other clients families that

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we set things up so there's contractual

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guarantees in place whether you're alive

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or dead. I know a lot of you going, "You

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mean I can control it from the grave?"

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You're darn right you can, and I can

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show you how to do it. All right, thanks

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for hanging in there with me. My name is

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Stan the Annuity Man. See you next time.