Replay: Live Q&A What is the Best Annuity for You?

0:00Intro

00:02

welcome everybody my name is stan the annuity man welcome all of you out there for the first ever the annuity man live event my name is stan the annuity man as i said i'm america's annuity agent license in all 50 states i really appreciate you joining me on a really nice saturday

00:18

thank you so much today's topic is migas multi-year guarantee annuities now let me give a brief background on mygus

0:25About MYGAs

00:26

and then we're going to open it up for questions so if you have questions please type them in and i'm going to try to get to every single one of them hopefully that i can unless they're just like stan why does everyone hate you and even then i'll probably answer it

00:42

and that's okay if you don't like annuities i'm glad you're here multi-year guarantee annuities are the annuity industry version of a cd okay it pays a guaranteed interest rate of guaranteed yield for a specific period of time that you choose now on my site the annuityman.com

01:02

there's a live feed of the best migrates for your specific state now all that mygos multi-year guarantee annuities are fixed rate annuities they're regulated and issued at the state level so if you're in california the availability of mineca's in your

01:18

state's going to differ from if you're in texas or florida or new york or wherever okay now we are licensed in all 50 states so we can get we got you covered but when you go to my site the annuityman.com if you want to see the live rates as we're talking

01:31

on this or or later you can shop them 24 7 365 which is cool there's going to be a drop down box you're going to put in your state and then the duration you want to see you know three years or five years or seven and you can go back and forth and look

01:44

at all of them and then you're going to hit a box called see rates and then it's just going to pop up the highest yield to maturity from top to bottom now one of the things i encourage you to do is go to my site and schedule a call with me um no obligation no cost 30 minutes

02:01

just me and you brutally honest brutally factual just like this right here um because when you choose my goals we need to talk about the claims paying ability of the carrier and some specifics about mygas mygas they're all pretty much the same give or

02:16

take a few asterisks and those are the things that me and you need to talk about like how do you want the death benefit to work if you want to joint joint with the spouse can use ira roth ira or non-qualified accounts and which is the best you can use them all obviously but

02:30

the main difference between a multi-year guarantee annuity from a functionality standpoint and a cd is with a cd in a non-ira non-qualified account you're going to pay taxes on that interest with the cd with a multi-year guarantee annuity in a non-ira non-qualified account

02:47

that interest grows tax deferred that does not make it better than mine than a cd but mangas and cds can can be used in in combination and currently uh migra rates are beating cd rates if you've gone out there to say bankrate.com and shop cd rates i mean it is it's pretty tough

03:05

it's pretty low but multi-year guarantee annuities are are much much higher the reason is they're just a dynamic pricing model um life insurance companies issue multi-year guarantee annuities um so they're pricing not only current interest rates but also the bonds they have in

03:20

in inventory they're also looking at the life insurance policies they issue and the lifetime income policies they issue and they're and they're combining all of that to offer the guarantee and back up those claims one last thing before we open it up for questions

03:32

i have written a book on multi-year guarantee annuities it's called the myga owner's manual if you don't already have it go to my site sign up for it we will send it to you for free and under no obligation no one's gonna call you no one's gonna show up at your door

03:44

so um that's that's the 30 000 foot view elevator speech about mygas so let's open up the questions and let's get to it starting right now so the first question

3:54State Guarantee Funds

03:57

that i got in is um tell me about the state guarantee fund stand the annuity man and that's that's a very good question okay the um state guarantee funds back up multi-year guarantee annuities um but i think you should you should always look at the claims paying ability

04:16

of the carrier now a state guarantee fund is not as good as fdic which is which is backing the cds as you know state guarantee funds every state has a specific dollar amount that they will back your policy per policy per owner per company and all of the rules are

04:34

different for for each state and we can go over that but state guarantee funds are good to have it's a nice safety blanket but they've really never been tested and i guess that's a good thing that's a good thing for the annuity industry because i always tell people annuity companies

04:50

aren't smarter than banks they're just more regulated with that with a fixed annuity and there's many different fixed annuity types but multi-year guarantee annuities fall under fixed annuities that category the annuity company has to have on hand 100 of your initial premium day one

05:07

in investment grade bonds or those type of investments liquid so so they can pay you back if needed now that's that's a pretty stringent handcuff on the industry but i think it's good and it's pro consumer now we can go down the rabbit hole and you can say well

05:22

stan the annuity man let's talk about investment grade bonds but in the world that we live in as you know i mean that's as good as it gets

5:30Investment Grade Bonds

05:30

i mean it is what it is so that's um that's a good question another question that's and i'm getting by the way i'm getting questions not only people are texting me they're putting it on youtube live so i'm getting it from all places i'm holding my phone and

05:42

i'm reading some of the text uh messages right now the other one is um stan what's the longest duration mica that you currently are recommending that's a good question that came through through the text on my phone um currently just looking at basic yield

05:59

curve analysis and that's kind of what i do and in southern i'm from the south yield curve analysis means where's the sweet spot where where are they rewarding you for the for the hot with the highest yield and currently at the time of this taping at the time of this

06:14

the annuity man youtube live event it's about five years now can you lock in longer than that yes um do any does anyone know where interest rates are going to go no of course not um but i just tell people five years and if you go to if you run go to the miga feed and look

06:32

at you know the rates you'll see that that's really where the highest yield is and they really the companies are really not rewarding you for for you know holding or going out farther than that you can if you think rates are going to go lower but what i also tell people is

06:46

is not only to look at the yield curve analysis and i'll tell you know if i think you're going to if you're locking in too long but also also remember with mygos you can ladder the purchase i got a call the other day and the guy said you know i i want to put in 300 000

07:02

and my goals i don't want to pay taxes on the interest so i'm using non-ira funds which which carrier you know which duration and you know there's no good answers just bad sales pitches as you know and i don't sales i tell the brutal and factual truth i said why don't you consider

07:18

uh laddering doing a doing a hundred thousand in a three-year a hundred thousand in a four-year and a hundred thousand in a five-year um because none of us know where rates are going to go and then every year starting at year three will have money that's available to

07:31

hopefully attach and transfer a non-taxable event to another um you know another myga at that time so that's um you know that's a

7:40State Guarantee Fund

07:41

that's the answer to that another question coming in from uh from michael from i believe is in north carolina um and he's mentioning north carolina is the state guarantee fund is 300 000. is there a way around it so 600 000 for my wife and myself there

07:57

is a way around it's a very good question so so let me synopsize the question again michael has six hundred thousand dollars he the north carolina i believe he's from north carolina has a three hundred thousand dollar limit per policy per owner with

08:10

the state guarantee fund what i would tell him to do is is choose two carriers and if he can if it's non-qualified money or even if it's ira money and the wife has an ira and he has an ira then you can put in up to that amount and then be covered so let's just say michael has a

08:29

300 000 and an xyz annuity and his wife has a 300 000 an abc annuity then they're both covered under that state guarantee fund but once again i'm going to emphasize that don't make your decision on the state guarantee fund make your decision on the claims paying ability of the carrier

08:50

which leads me to a another question that kind of came in similar to that i always tell people i have a different analysis because when i look at these carriers and if it's on my site if it's gotten to my my feed then i've done the analysis to look at the bonds and all that stuff

09:07

then even if it's a b plus company b double plus a minus you know i have made the analysis that for that duration that carrier can back up the claim that that doesn't mean that we would buy the same carrier for a lifetime income guarantee transfer risk for

09:22

lifetime income this isn't a lifetime income product multi-year guarantee annuities are a principal protection product that pays an interest rate remember the pill if you don't know that i have an acronym acronym called pill p stands for principal protection i stands for income

09:35

for life l stands for legacy and the other l stands for long-term care those are the four things that annuities contractually solve for so mine is fall under the p of principal protection so um you just need to be aware of that and aware of the companies but we're not

09:50

marrying them for life we're marrying them for the duration so let's just say there's a b plus rated carrier that has a really high interest rate for a two-year miga in essence we're marrying them for the two years and your question to me is stan can they back up the claims for the

10:05

two years and i'm either going to say yes or no i'll be brutally honest because my rear ends on the line with that as well so um that's kind of the way that i look at at my gas and that i analyzed them as well remember i have a background with all the wire

10:20

house firms you know dean witter payne weber morgan stanley and ubs and i manage bonds at a pretty high level so i do understand how to look at these carriers how to look at their solvency ratios their bond holdings their financials and things like that and as i always say

10:34

i can kind of spot when the uh when the son-in-law is buying the bonds you know the ceo hired the son along the sonal don't know what the heck they're doing and if and if that's the case they will never show up

10:45Delay in reimbursement

10:45

on my my defeat so here's another question um that came in uh it's from lee worst case if the insurer goes under what is the delay for the reimbursement from the state backup well we don't have a lot of case history on that lee and and that's a good thing um there was

11:04

there was a case 30 years ago and yes i've been in the business a long time so i remember it that was kind of the the origination of the whole state guarantee funds and there was a company in california that went under and it took if my memory serves me correct

11:18

um it was about six months to get everybody whole from that specific um situation in 2008 there was one company that was absorbed very briefly by the state guaranty fund and then a carrier came in and bought them hook line and sinker and backed up the guarantees

11:35

which i think is another thing that you have to put in your back your mind remember annuities regardless of type you can't say i hate all annuities because that'd be something like you hate all restaurants and you hate your social security and you hate cds that's crazy

11:46

but um the annuity industry self polices in other words with ten thousand baby boomers reaching at age 65 every single day a lot of them you me are looking for contractual guarantees the industry knows that so the big carriers are not going to let some small company from

12:08

xyz state mess it up they're not going to allow them to gore the golden goose of contractual guarantee so i think i call it the annuity mafia i mean people laugh when i said that but it's kind of true and it was a it was proven out in 2008 when that

12:23

one company was absorbed by the state guarantee fund briefly and then another company came in and immediately swiped them up stronger company backed up the guarantees all as well etc etc and i i truly believe as you know we're in a demographic tidal wave as i said 10 000 baby boomers

12:40

reaching the age of 65 every day um yeah i think the industry is going to self-protect self-police and that is good for you as a consumer does that mean we go by a rated company no that doesn't mean that at all we're always going to make the decision on the claims paying ability

12:59

at the time when you make the purchase without regard to the state guarantee fund and without regard to the annuity mafia we're going to say can this company back up the claim for that specific duration or if you're about if you're laddering durations at that point in time that's

13:13

that's what i'm going to do um so that's the answer to that question here's another one goodwin christopher asked what happens to the annuity if the annuity buyer dies during the contract period very good question christopher let's talk about that um if the

13:30

if you're using ira assets christopher and let's just say your your spouse is the beneficiary the primary beneficiary of the policy and you die that spouse can take over the policy okay but let's talk about um she can take over the policy but let's just say it's

13:47

a non-qualified annuity a non-qualified miga non-ira is what i mean by non-qualified and um you have the your two children as the beneficiaries and you die in within the country early in the contract let's say you had a five year my goal you died year three okay then those two kids

14:07

50 if it's a 50 50 split can are going to get the lump sum plus the interest at the time of your death now i'm gonna throw a little asterisk in there and this is not some sales pitch but this is the reason that we need to talk at the end of the process when you make a decision

14:23

to purchase a mica about five percent of the companies out there and some of them with the highest yields will have a provision in there that if you die within that surrender charge period give you an example you have a five year miga and you die year three

14:38

then surrender charges will be applied you need to know that and i'm going to tell you that but the other 95 percent of my guests don't do that the other 95 percent of of migas when you die regardless of if you die you're going to get the policy value and the policy value is principal

14:56

uh plus whatever accrued interest has has has happened up until your death um so there's a lot of people say you know i don't i just want the highest yield i don't really care about my beneficiaries that's fine those are the conversations that you

15:09

need me and you need to have at the end of the process but um that's the answer to to death benefit and it gets a little bit more complex than that that's the reason that i need to talk with you one-on-one but just understand that it works like a cd you die and your

15:24

and your beneficiaries are going to get the money lump sum in the in the vast majority of my cases also understand this with beneficiary um beneficiaries on your policy you can change that at your discretion as many times as you want so if someone makes you mad

15:41

then then you can change it um change it up and you can have for example you could give an example you could have the wife as the primary beneficiary and then you could have the two kids as the secondary beneficiaries 50 50. so if the wife dies then they move up that to primary and

15:58

and split the proceeds 50 50. so very

16:00RMDs

16:00

good question here's another one that came in i'm not going to do last names i don't think you want me to but this is from john if i purchase an annuity with qualified funds does the money i am paid out count as rmds um well first of all with multi-year

16:18

guarantee annuities it's not a payout it's not like a single premium immediate annuity where it's a lifetime income stream you're going to be taking withdrawals from that whether it's interest and by the way i'm going to that segues into a into another question of john and let me

16:33

cover that as well with migas you could with some of them you can take out the interest with some of them you can take out up to uh ten percent annually without penalty some five percent some ten percent and some of them will not allow you to touch the money

16:47

without without penalty during the duration that another reason that we need to talk and then dig down and on our site we we list all of that you know which one allows you to take interest out and all of that but getting back to his question about requirement of distributions if

17:01

you're taking money out of that it would be considered required minimum distributions but remember with requirement distributions unless let's let's kind of look at that for a second when you had to take requirement distributions at the time of this taping

17:15

is 72 and they're talking about raising it to 75 but it's now 72 used to be 70 and a half um and you have a myriad of holdings in your ira you have stocks and your bonds etfs and migas whatever the irs doesn't care if you you know where the money is

17:31

coming from where that percentage that they're requiring you to take out comes you can take it from one source etfs or you could take it from the annuity but you don't have to take it in proportion but you can let's just say you you said stan you know this is this is where i want to

17:46

put the money um part of my ira in the uh in in this manga and i'm going to withdraw money to cover rmds once again we have to talk about these if the myga is rmd friendly most of them are not all of them are in the annuity industry it's like herding cats that's

18:05

kind of the reason you need me and my expertise at this as stan the annuity man to tell you that you know i'm going to ask that question tell me you're putting this myga in your ira tell me if you're planning to take requirementum distributions from that

18:18

and if you are then we're going to find that mica that is rmd friendly and so that withdrawal from the migo will count towards your required minimum distributions let's do another question they're they're flying in here i love that steve

18:30How do you make MYGAs like CDs

18:33

steve asked how do you make the my ga function exactly like like a cd if you pick a three year guarantee can you take the interest out monthly or annually and close out the annuity after three years without penalty the answer is yes steve so let's take that example let's let's

18:50

say steve bought a three-year maya and and the mica allows you to peel off the interest without penalty and let's just say that interest rate is 2.5 or whatever 2.25 whatever it is right now in the three year depending on your state um and you can see that if you go to my

19:05

feed at the site and you just peel off the interest you know every every month yeah we send you the interest we send it to the bank account that you tap not we the carrier sends it to the bank account that you tell us to all right and then at the end of the three year term

19:19

you've peeled off all the interest and all of the initial principle has has is still there and by the way micas have no annual fees no moving parts no market attachments so put a hundred thousand dollars in and you peeled off the interest for three years for those 36 months

19:33

and then at the end of the term guess what you have a hundred thousand dollars we can send you that in check form or we can transfer it to another myga so that is a very good question yes it does function in that fashion like a cd i want to be very clear though

19:47

cds and the fdic backing that cds offer is the best backing of all time because f stands for federal and f stands for we're going to get your freaking money by taxing it right state guarantee funds do not compare to to fdic and by the way it's illegal

20:04

it's actually illegal for an agent or advisor to mention state guarantee funds in a sales presentation the only reason i even brought it up is someone asked the question that's the only way that i can bring up state guarantee funds so that kind of tells you

20:18

a little bit more from an insight standpoint on why we need to focus on the claims pain ability of the carrier so i hope that i answered that question for you steve and by the way if you don't want to ask the question on this on this platform you can always email me

20:32

at stan at theannuityman.com you can always go to the site and schedule call with me i do answer my emails anyone out there that knows that i mean i'm i'm on it and i'm on i'm on top of that and i will interact with you via email if you just want to do that and not do

20:46

this youtube live uh you know and have your have your question read out loud by standing

20:50What percent of a portfolio should be in an annuity

20:52

annuity man so here's another one robert says what percent of a portfolio should be in an annuity very very good question and i'm glad that you asked that because this is a problem in my opinion stan the annuity man america's new agent about how annuities are sold the

21:08

annuity industry okay they do not like to see more than 50 percent of your investable assets non-home non-car not our investable assets not more than 50 and annuities of any type and remember there's all kinds of different annuities you can't just say i hate all annuities

21:28

there's mygas and immediate annuities deferred income annuities qualified longevity contracts indexed annuities variable annuities charitable government i mean there's there's a bunch okay but the annuity industry is very conscious of people placing too

21:42

much money or agents trying to convince you to place too much money into annuities of any type so if you said to me hey understand this market is making me making me wheezy and my in my stomach's hurting a little bit i want to take some risk off the table

21:59

because remember annuities are contracts they're transfer of risk strategies they're not investments they're contracts don't believe me you're going to get a contract in the mail and you said i got a million dollars how much should i put in i'm going to tell

22:10

you half a million i'm not saying you have to put a half a million i'm just saying that's the limit that me stan the annuity man america's annuity agent who follows the rules will feel comfortable with and the only way that and i see unfortunately i got a call the other day and so a

22:26

very nice lady from from indiana and she had 1.6 million dollars and somebody unfortunately sold her 1.3 million of that took 1.3 million to the 1.6 and sold her annuities plural the only way they got away with that is to doctor or or not fill out properly the application

22:48

and that's unfortunate she's way way too allocated in annuities and unfortunately the person that sold her the 1.3 obviously they're going back to the well again to try to sell that that last round and i said listen you don't need any more annuities

22:60

so 50 just put that in the back your head could we go to bat for with a carrier and if you wanted to go to 55 yeah i would i would use that bullet for you if you told me the reason why but just put 50 percent in the back of your head as as kind of a bogey um

23:15Qualified MYGAs

23:17

here's another question i love the title of this person the old ultra runner that tells me a lot about you which means that you're dedicated and you like pain you're running this ultra marathons i can barely walk on the treadmill so i'm a little into this um

23:32

for qualified mygos meaning when he says that that's that's my guess inside of an ira that's what qualified means um

23:40IRA custodian fees

23:41

will we be paying ira custodian fees for each mike a purchase the answer is no so i know with brokers firms and having worked with with you know dean witter payne weber morgan stanley ubs they just nickel and dime you with fees nothing against them love

23:55

those people my two partners are still there okay but you see a thirty dollar fee and forty five dollar fee and zig zlv you know accounting that doesn't happen in the annuity world okay when you transfer the money and let's just kind of go through that

24:09

with the old ultrarunner that was his name let's just say you had an ira at vanguard okay and you said i want to take a portion of that and i want to transfer it to to omega first of all you know my team takes care of all that from start to finish we do

24:25

all the paperwork and get in the weeds for you okay but that transfer from a vanguard to the to the multi-year guarantee annuity that you've chosen is a non-taxable event doesn't trigger any taxes whatsoever but the but the account and the question is does the account at

24:41

the annuity company they got a nickel and diamond fees the answer is no it's just not going to happen and i love that i love the fact and maybe it's because you know annuity companies which is life insurance companies who issue annuities they have the big buildings for a reason

24:54

right i mean they they know when we're going to die you know the you know they have the big logos on the planet as my my ceo says she says yeah and they're also starting to sponsor sports stadiums she's right um but they don't nickel and dime with free fees which is a very

25:08

very good question but you need to know that um here's another

25:10IRA to annuity

25:12

question from 85. hopefully you're 85 and you're an ex-heart doctor no i'm kidding you said that when a myga matures you can roll it tax-free to another annuity what about the interest is it tax of maturity so let's take this in stages can you roll it into another annuity

25:30

without taxes yes regardless of the account type whether it's a whether let's say a traditional ira or a non-ira at the end of the the duration the surrender charge time period you can transfer it without penalties it's a non-taxable event and yes both principal and interest transfer

25:48

without triggering any taxes so in an ira it's an ira to ira transfer so we go from the miga that has the ira set up for you to another myga that's going to have an ira set up again we'll take care of all that paperwork for you but if it's a non-ira miga

26:03

and you're using like checking account money that or savings account money you can still do a non-taxable vet transfer to another my guy at the end of the term if we determine that's in your best interest okay and that's called a 1035 exchange and you say spam 10 30 what the

26:20

heck is 10 35 well the irs code if you're so bored go to section 1035 and it says you can transfer annuity to annuity non-ira and it's a non-taxable event so the irs approves of the 1035 so with hockey analogy you can keep pushing the tax puck down the ice

26:37

which is fantastic now the cost basis transfers but both

26:40Tax of maturity

26:40

principal and interest transfer and then the next question is it tax of maturity no it's not again we can transfer it now when you finally decide to if you said hey stan we've done this a couple times just send me all the money then you're gonna pay taxes

26:56

last in first out gains first you know if it's non-ira if it's ira obviously anything coming out of an ira is tax ordinary income levels but here's another thing that you can do let's just say at the end of the maga term your goals have changed and i always ask

27:11

people two questions all the time i say what do you want the money to contractually do and when do you want those contractual guarantees to happen if you're buying a mica your answer is i want principal production and i want the yield to start now and i

27:21

want it for this duration okay great but let's just say at the end of the term you say you know me and the spouse me and the partner want lifetime income we can transfer that multi-year guarantee annuity once again non-taxable event transfer to an immediate annuity or deferred

27:38

income annuity if you want to income down the road so annuity annuity transfer ira to ira transfer you can do that within different product types so you can go to mygadispia immediate annuity my goddaddia deferred income annuity if it's if it's ira money you could go my go to

27:55

qlack qualifying longevity annuity contract you could do my go to income rider if you want to do that or my go to index annuity but it really comes down to what your what your contractual goals are remember these are contracts i do not sell hypothetical theoretical back tested

28:11

projected hopeful agent return scenarios and what i call unicorns chasing the butterflies i don't do that i only sell contractual guarantees so if if we get to the lat end of the term you say you know what we really need a lifetime income stream then we're going

28:25

to go shop all carriers for the highest contractual guarantee for your specific situation for lifetime income if that's the goal but if the goals hey stan let's just keep pushing the tax puck down the ice let's just keep locking in rates this is simple stuff

28:39

then we do that as well um here's

28:40Limitations on 1035

28:41

another one from jeffrey any limitations on 1035 of of of the type of annuity conversion from miga i think i just covered that but let's cover it once again thanks jeffrey for letting me and allowing me to uh to talk about that again yes mygas can be transferred to

28:59

other types of annuities whether that single premium immediate annuity and once again that's for lifetime income deferred income annuity lifetime income with income starting later qualified longevity annuity contracts if the myga is inside of an ira traditional array

29:12

that's for future income or you could say move it to a myga to a fixed index indexed annuity which is also a cd type product um you could do that with index annuity attached with a writer you could you could transfer to a variable annuity i you know i don't sell variable annuities

29:29

there's i don't have anything against them i just don't sell anything that has the potential to lose value and as you know uh variable annuities have mutual funds they call them separate accounts as the internal investments

29:40Inflation

29:40

let's get to another question tim asked with inflation in the headlines and our favorite person miss yellen he didn't say that i said that miss yellen revealed that there could be a rise in rates historically what will what will it take for the insurance company to raise their

29:54

migrates that's a really good question um and there's you know nobody knows where rates are going to go even miss yellen if you look at the 10-year treasury and this i'm going to geek out on you a little bit here because i'm kind of a math geek and from all the firms you

30:08

know where i was at um it morgan stanley dean woodrump wherever ubs the 10-year treasury right now in the united states seems low because we all remember jimmy carter rates but if you look at the 10-year treasury equivalent across the country i mean across the world excuse me

30:26

of the 10-year treasury equivalence across across the globe we still pretty much have the highest rate but yes we all would love to see rates move up so getting to the second part of your question which is you know how are the annuity companies there it's a competitive world if cd

30:42

rates start rising uh migrant rates are going to start rising you know they're trying remember mica companies annuity companies life insurance companies that issue annuities migas they're trying to attract your premium they're trying to attract your money and

30:56

make sure that they can back up the claims etc so i i kind of liken it to you know we all went to the junior high school dance and that was when all of us were afraid to talk to anybody and there were you know boys on one side and girls on the other and

31:09

and it all it took was one or two crazy ones at one point one girl to go out there and dance and everyone started dancing right the way i look at migrates is a lot of these companies are waiting well you know when rates do eventually start rising hopefully cross

31:24

my fingers cross your fingers um then they're going to react accordingly because it's a competitive world remember miners are commodity products i mean that's the reason you go to my site at the annuityman.com and pull up all the rates and it changes and

31:38

you know it's a 24 7 365 service that you don't have to sign up for you just go see it but the answer to his question is if rates start moving you'll see my grades start moving typically there's about a three to six month lag i've just looked at that historically i don't have any

31:54

any like studies that i've found the study i'm quoting is me being in the business forever and just seeing the hesitancy sometime of of insurance companies life insurance companies that issue migas to raise rates but it really comes down to if one

32:10

if one carry goes out there and raises the rate 50 basis points it makes the others stand up and look 50 basis points meaning one half of one percent it's going to make the other carriers go whoa wait a minute we might need to step in there so the

32:24

good news is the competitive world the good news is we represent pretty much all carriers which means that we are you know when you're checking my cipher rates you're gonna see the best and current rates at that point time but i'm crossing my fingers with you uh

32:38

uh tim on the fact that i hope rates go up um so you know another question that i just got in which is and and i tell you what we'll do this this could be the this will be the last question because i don't i don't want to keep you uh that long you know this has been

32:53

great by the way we've gone you know 30 plus minutes with all this um but here's the question and this is a really good one

33:00Which one should I buy

33:00

okay which one should i buy and this is from a guy named scott which one should i buy my gues or index annuities because i have been pitched indexed annuities with the promise that they're gonna get you know five to seven percent return okay that's a good question scott and

33:19

i'm going to tell you um this is the kind of the problem with the annuity industry you're going to have most of you out there if you have been talked to an agent or talked to advisor or gone to the bank or or gone on the internet everyone's trying to sell you an indexed annuity

33:34

in an indexed annuity a fixed indexed annuity if i and by the way i've written the owner's manual on that i'd be happy to send you that was designed in 1995 to compete with cd products mygas are on the planet to compete with cd products the difference between a

33:48

multi-year guarantee annuity and a fixed indexed annuity okay is the fact that the multi-year guarantee annuity yield is contractual is contractually guaranteed for the term that you chose so if you chose a three-year that interest rate is guaranteed for

34:02

that three years if you chose a five-year that interest rate is guaranteed for five years okay but with indexed annuities number one most of them are long longer term most of them have seven to ten year lock-in periods yes there are shorter ones

34:17

but we can talk about why those aren't as attractive from the standpoint of a potential return standpoint but index annuities are the returns are based on call options okay um and there's just there's no guarantee of the return so if you really want a guaranteed

34:33

interest rate you need to go with micas also too migas allow you to lock in money short term and i think in this current interest rate environment short term is good i mean short term is um is good in an interest rate world where we really don't know where interest rates are

34:50

are going or going are headed i'd rather you keep the maturity short that didn't mean that we don't sell we sell more index and movies probably well we saw a bunch and the re and the way we sell them is for people to understand their cd products and they're also an efficient and cost

35:04

effective delivery system for income riders but remember they were put on the lineup in 1995 to compete with cd returns regardless of what you're being pitched remember if it sounds too good to be true it is every single time one last question that just came in from from a

35:19

person named fred i'm gonna just you know one last question this is it because we all have to go and his question is what are my choices at the end of the my good term like he bought his thing at the end of a five year manga at the end of a five year miga

35:33

regardless whether it's an ira non-qualified non-ira or roth ira you can put him in ross if you want at the end of the term you have you have a couple decisions the first one is um hey stan send me all the money back with interest fine you know that we'll

35:48

contact the company we need you to sign the appropriate forms and that money will be sent sent to you or if it's an ira you can talk to your ira say vanguard and have them initiate the transfer for the money to come back to vanguard you can do that um or you can just cash it out hey

36:03

stan send me the check if it's non-ira we send you the check you pay taxes on the interest last in first out at ordinary income levels um the other choice as we talked about earlier um in in this in this event was that you can transfer it to another um carrier from the standpoint of

36:21

another multi-year guarantee annuity or you can transfer it to another product type an immediate annuity deferred income annuity one last point that i want to point out at the end of the term the carrier that you're currently with is going to make an offer for you to stay

36:35

what's called a renewal rate that renewal rate um we're going to get if it's if it's higher than anything that we can get for you on the street or that my my goat feed is showing then you stay with that carrier i mean you're going to win or if if they offer something very low

36:52

then we're going to transfer it to um to another carry with a higher rate just understand this it will never happen ever even if my legit hits the mountain no i don't have allergies but if i die it's never going to happen we have we have systems in place and

37:07

best practices in place and protocols in place so that we're going to be the our team's going to be in touch with you 60 to 90 days before the miga matures in order for you to make the decision on where you want the money to go or if you want the money to come back to you or to go to

37:23

another ira we are not going to allow an annuity company that current the micro company that has your money to lock you in at a low rate just not going to happen that's what they want to happen but it is not going to happen with us which is the reason you need to choose us for all

37:36

your money purchases so with that hey we're going to do these a lot it's not going to always be online it's going to be on different product types i appreciate you joining me on the inaugural the annuity man youtube live event is certainly not our last one

37:49

i so enjoyed it i encourage you to go to my site the annuityman.com for all things annuity and i'll see you next time on the annuity man live youtube you

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