Can I Borrow From My Annuity To Buy A House?

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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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founder of Contractual Guarantees Only. We only look at the contractual

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guarantees of the policy and what it will do, not what it might do.

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So, the question of the day is borderline intuitive and disturbing:

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Can I borrow from my annuity to buy a house?

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It's hard for me to even say it.

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So, you're going to get the real-deal answer after this.

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So, the question again, and I'm going to try to say it this time without

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stuttering and thinking about, you know, bad things, you know,

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killing puppies and things like that, you know, because that's where my head goes.

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Can I borrow from my annuity to buy a house?

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No! Okay? No. No. No. No. No. No. No. No. No. No. No.

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I guess we could end the video there, but I'm going to keep going.

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Because anybody that even suggests that as an agent or advisor has lost their minds. Okay?

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Now, I think the genesis from this. Genesis means beginning for you

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non-Biblers out there. The genesis of this is life insurance, like universal indexed life,

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indexed universal life, whatever you want to call it, all that crap.

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"Sir, you can buy this policy. It's going to grow, and you can get tax-free income."

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No. That's a loan. Okay? It's not tax-free income.

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So, you can take a loan from a life insurance policy, but you still shouldn't buy a house

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from it. Get a loan from a bank. Get a loan from a mortgage broker.

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Because if you're getting a loan from a life insurance policy,

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and no-go on the loan from an annuity policy,

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so let's just say life insurance policy, you're paying interest on the life insurance policy

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loan. Uh-huh. And you're paying interest on the mortgage, right? If you get a mortgage.

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Now, if you're just taking the cash out of the loan from the life insurance policy

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to buy the house, if that's just what you're doing, then my question is: Why?

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Don't get fancy. Don't think you're the smartest person in the world.

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"Well, I'm looking for the arbitrage moment where I can have the annuity

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and the life insurance policy and then purchase a house,

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and at the end I come out not only whole, my son, but bigger and better."

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No. Doesn't happen. Won't happen. Can't happen. Shouldn't happen.

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And if it happens, whoever advised that needs to lose their license and/or go to jail. My opinion.

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Okay? Life insurance and annuities should not be used to purchase a house.

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That's funny, man. I just scratched my face.

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Somebody: "Well, sometimes when you scratch your face, that means you're telling a lie."

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No. That means my face itches, you idiot. That's what that means.

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Okay? I had someone do that the other day. Said,

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"Well, you said this and then you scratched your face."

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I've got an old face. It itches. And I'm not doing subliminal.

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You want subliminal? I'll scratch my face with my middle finger. Then you'll know. When I do that,

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you'll know that it's not my face that's itching. I'm sending a message.

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But I scratched it like that. We're number one. Okay? We did that finger.

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I'm a little mad about this topic, as you can tell.

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I hate it when agents, advisors make it difficult. Or even my

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beloved consumers and video watchers make it difficult.

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"Well, I think I can figure this one out, son. I think I can take the loan

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and then arbitrage it, make the thing, and then flip and dip it here to this."

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No, you can't.

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If you're going to buy a house, get a mortgage. Don't do that.

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Listen, people always yell at me about indexed universal life, whole life, and all that stuff.

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I don't sell life insurance, but there's a big, huge policy on moi, that's me.

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And so, if I show up dead in a really weird fashion,

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the beneficiaries of that life insurance policy should be looked at very closely.

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Okay? That's all I'm going to say.

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But life insurance, in a perfect world that I live in, and

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you should too, is called term life insurance or level term.

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What does that mean, Stan?

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That means level term to age 95, which means that I pay the same

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premium every year until I'm age 95, which I'm not going to be because I'll be dead.

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That's buying the most death benefit for the least amount of money.

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I always tell people life insurance, of which I do not sell,

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is the best return on investment you'll never see because you're dead.

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But to use it for anything else is a joke. And people have found that out.

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By the way, this isn't subliminal. This is my head exploding.

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To go into an annuity purchase thinking that you can then

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leverage that annuity, get a loan off it, and buy a house.

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You know, every day I'm out here, and I've been doing this a long time, I get surprised

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by, I'm not going to say stupidity, but I'm going to say unfactual creativity.

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That means it is stupid.

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I don't know what to say.

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Buy the house. Get a mortgage.

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If you can't get a good mortgage, then you probably shouldn't buy the house.

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Duh.

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Could you buy an immediate annuity that creates payments to then buy the house,

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to make sure that you're making payments from the immediate

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annuity and have those payments go directly to the mortgage company?

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The answer is yes.

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Notice I didn't say loan.

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If you can help it in your life, in Chapter 2, don't take loans out.

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Now, I know all the masters of the universe out there are going, "Well,

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I'm leveraged, and, you know, I'm going to build a data center over here in

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Florida, you know what I'm saying? And I've got 20 million floating over..."

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That's a whole different thing.

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I'm talking about me and you. I'm talking about normal people.

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The best thing that you could ever do in your life, and the

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only thing I agree with Dave Ramsey on, is don't have debt.

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I had a person call the other day and say,

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"Should I buy an annuity from you, Stan The Annuity Man, or should I pay off my mortgage?"

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I said, "Pay off the mortgage."

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He goes, "Well, mathematically, I'm not flipping and dipping and flipping and flipping and flipping..."

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I went, "Pay it off. Go debt-free.

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Just tell me two months from now how that feels, to owe nothing,

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to go to your mailbox and the only thing in the mailbox is the crap junk-mail postcard nonsense.

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That's a good thing because you just go, 'No loans, please.'

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Unless you have to.

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And I understand a lot of you have to, but pay it off.

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But life insurance, issuing annuities, and life insurance, standalone, shouldn't be for loans.

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Are we clear?

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As they said in A Few Good Men, crystal, crystal clear.

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You better be.

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Chapter 2.

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And we're getting ready to go into some really, really tough times.

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I know what you're saying to me.

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"Stan, check the date. Man, raging bull market, you know,

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I'm just throwing darts and making money head over fist, son."

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I've been around a long time, and I've seen markets actually go down.

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And most advisors that are out there now have never seen a down market.

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I've got cowboy boots older than them.

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Don't take a loan.

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Don't take a loan on an annuity.

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Don't take a loan on a life insurance policy to buy a house.

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Get a loan from a mortgage company and a bank to buy the house, or pay cash for the house.

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"Well, that's not solid investing."

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I don't give a crap.

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I don't give a crap!

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I'm talking about lifestyle and stress. That's what I'm talking about. Alright?

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Hey, do me a favor. If you love the intensity of this little chat, you can get me one-on-one.

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You can schedule a call with me.

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You can email me at [email protected].

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You can go to my site and avoid me at all costs if you want to,

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run quotes to your heart's content on my site at theannuityman.com,

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you can download books and all that stuff and avoid me like the plague.

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But that would be a bad decision because when you get me, you get the truth, and it's unvarnished.

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And that's what you need because there's no mulligans in retirement.

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One last thing.

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And I'm not saying we're number one, but I am saying I'm number one.

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But I'm going to put another one, that's a video up there,

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and I just did it, and it's making people mad.

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It's making my friends at the carriers mad.

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They go, "Well, we're not going to invite you to any more of those incentive trips."

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And I go, "Oh, by the way, I don't go on those anyway. Who cares?"

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So, I want to go on a trip and be around a bunch of agents?

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No, thank you.

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I'll go to prison instead and meet with the inmates and feed them bread.

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It'd be more fun.

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Or cobbler. Peach cobbler.

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But seriously, above my head: Annuities as Commodities.

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Annuities are commodity products. There's not one better than the other.

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Please, please, please believe me on that.

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We look at the contractual guaranteed number and the rating, and then my recommendation.

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And then, as they say in the movie industry, Big C behind the camera: It's a wrap.

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That's how it works. Alright?

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Man, that was fun.

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You know what I'm going to do?

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You know what I'm going to do?

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I'm going to do another video after I take a little bit of a break.

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But that was fun. Okay?

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See you next time.