CDs vs Annuities

0:00
Hi there, Stan the annuity man.

0:01
America's annuity agent licensed in all

0:03
50 states in Puerto Rico. You own an

0:05
annuity for what it will do, not what it

0:07
might do. Today's topic kind of dubtales

0:09
into that. CDs versus annuities.

0:13
So CDs, great product, FDIC insured.

0:17
Annuities, are there annuity types that

0:19
compare to CDs? We're going to talk

0:22
about that after this.

0:31
Annuities solve for four things. The um

0:34
acronym is pill. P stands for principal

0:36
protection. I stands for income for

0:37
life. L stands for legacy. And the other

0:40
L stands for long-term care. So the P

0:42
part of that principal protection is

0:44
what CDs do. CDs you protects the

0:47
principal and gives you guaranteed

0:48
interest rate. There is one product in

0:52
the annuity world that does that and

0:54
it's called a multi-year guarantee

0:56
annuity. My YGA.

0:58
Now, if you go to my site at

0:59
theanuityman.com,

1:01
top right hand corner, you're going to

1:03
see a box that says C live rates with

1:06
some rates to the left. Those are

1:07
migrates. If you click that box, you can

1:09
go to your state, put in your state of

1:11
residence, the duration, the term that

1:13
you're looking for. Migos come in 1 2 3

1:15
4 5 6 7 8 9 and 10year terms. Um, and

1:20
you can see what the best ones are in

1:21
the country. We list them from top to

1:23
bottom. yield from the top top yield all

1:25
the way down. You'll see all ratings B+

1:29
all the way to a double plus. Okay?

1:32
Because we represent all carriers. Now,

1:34
CDs are are Let's kind of do a

1:36
comparison. CDs, great. I don't sell

1:39
them, but great. They're fantastic. FDIC

1:41
insured. F stands for federal. So,

1:44
really safe. Okay. You got backing of

1:46
the of the federal government. No

1:48
conspiraial conspiratorial things,

1:50
please. With multi-year guarantee

1:53
annuities, they're backed by the state

1:54
guarantee fund. If you want to see what

1:56
the state guarantee fund is for your

1:57
site, uh for your state, go to go to

2:00
this site, nolga.com,

2:03
nolga.com.

2:07
And there's a limitation for what they

2:08
back up. Okay? So, FDIC for CDs, state

2:13
guarantee fund for for MAS, multi-year

2:17
guarantee annuities. Now, there are some

2:19
people out there that'll say, "Well,

2:20
index annuities are are good, too, for

2:22
CD rates." No, they're not. Okay? Index

2:25
annuities were put on the planet in 1995

2:27
to compete with CD rates. But the

2:29
problem with an index annuity is that

2:31
the the the rate, what you get is not

2:35
guaranteed. Not okay. So, when you're

2:40
looking for CDs versus annuities, it's

2:42
CDs versus MAS, multi-year guarantee

2:44
annuities. Now, what I found in

2:46
[clears throat] my 30 years is that if

2:47
you're two years and in duration, CDs

2:50
are going to give you probably the best

2:51
rate, even though MAUS offer one one and

2:54
two-year rates. But once you get to that

2:56
three-year duration, multi-year

2:58
guarantee annuities historically have

3:00
the highest yield. They just do. Now,

3:03
you go, wait, why is that? Aren't they

3:05
all looking at the Fed? Well, the the

3:07
CD, the banks, and the and the brokerage

3:09
firms, credit unions, they're looking

3:11
straight at the Fed, straight at the

3:12
tenure. That's about 20% of the pricing

3:15
with multi-year guarantee annuities.

3:16
Remember, life insurance companies issue

3:18
Migas, multi-year guarantee annuities.

3:21
All right. So, they have many profit

3:23
centers to pull from. Life insurance,

3:26
lifetime income, legacy bond portfolios,

3:29
mortality risk pools, and then they look

3:31
at the Fed. So, it's kind of 20% of the

3:34
pricing,

3:35
but a lot of times not even that. I'll

3:37
give you an example. Um, at the

3:39
currently at the time of this taping,

3:41
there's a carrier that's A-rated that

3:42
has a very high interest rate guarantee

3:45
for the Migas. Somebody called me this

3:47
morning and said, "Hey, uh, stand the

3:49
annuity man. Um, are they just reacting

3:52
to the Fed?" No, they're raising money

3:54
once they raise the specific amount of

3:55
money they want to raise, they're going

3:56
to lower the rate. So, let's just say

3:59
their goal, and they don't tell us this,

4:01
their goal is to raise $3 billion of

4:03
this specific MA at this specific rate.

4:05
Once they hit that bogey, it's going to

4:07
go down regardless of what the Fed does.

4:09
So any of you out there go, I'm gonna

4:10
time it. I'm gonna time it, son. I I

4:12
know the Fed. I've been following the

4:13
Fed. It's different. CDs are are are Fed

4:16
sensitive where MA's not so much.

4:19
Sometimes, but sometimes not. We see it

4:21
both ways. Sometimes when the Fed

4:22
raises, you'll see some, not all, MIGA

4:25
rates go up. Same thing when the Fed

4:28
lowers, you see some, not all, MIGA

4:30
rates go up or down. depends on what

4:32
they're trying to do and the money that

4:34
they're trying to raise. Now, with CDs,

4:37
you can take out the interest. That's

4:38
fine. You can do that with most of the

4:41
MAS. You can see it on my site. It'll

4:43
show interest. Can you take it out? Yes.

4:44
Some allow you to take out up to 10%

4:46
penalty-free.

4:48
CDs can be used in IRA, Roth IAS,

4:50
noniras. Migas can be used in Roth IAS,

4:53
traditional IAS, noniras, same thing.

4:56
But here's the difference. Here's the

4:57
one that's the game changer for me.

5:01
With nonirra money, checking account

5:03
type money, savings account type money,

5:06
nonIRRA,

5:08
the interest grows and compounds tax

5:10
deferred with MUS. Whereas with CDs, you

5:12
got to pay the interest, pay taxes on

5:14
the interest. Let me say it again. with

5:17
non-t taxable with with savings account

5:20
type money, nonirra money, checking

5:23
account type money. With multi-year

5:25
guarantee annuities, the interest grows

5:27
and compounds tax deferred. If you take

5:30
money out, it's gains first. You have to

5:31
pay taxes at ordinary income levels at

5:34
that point in time, but you don't have

5:35
to. You can keep rolling them. The Queen

5:38
and I, that's what we do with our money.

5:40
Annuity Man, this company's a growth

5:42
stock. Best growth stock on the planet.

5:45
Period. You can't buy it because I own

5:46
it. But with the extra money, we buy

5:49
migas.

5:50
We live under the Warren Buffett rule.

5:52
Rule number one, never lose money. Rule

5:54
number two, don't forget rule number

5:55
one. That's my wife. That's the queen.

5:58
Grew up in rural Nebraska. She don't

5:59
want to lose a penny. So myas

6:02
principal protection, no annual fee, no

6:04
moving parts, guaranteed interest rate

6:05
compounds.

6:08
Our daughter's eventually going to have

6:09
a huge tax problem. I don't care. I'll

6:11
be dead. But that's that's the

6:13
uniqueness of a MIGA. If you have

6:15
checking account type money, it grows

6:17
and compounds tax deferred. And that's

6:20
that that alone is worth looking at. But

6:22
yes, it can be used in an IRA. Yes, it

6:24
can be used in a Roth IRA. Same with

6:25
CDs. Yes, it can be used in an IRA. Yes,

6:28
it can be used in a Roth IRA. Yes, it

6:29
can be used with non-qualified.

6:32
Just over here with the MA is the

6:34
nonIRRA side grows and compounds tax

6:36
deferred. Can you combine them and use

6:38
them and ladder them together? Yes. I

6:40
don't sell CDs, but you can go to

6:42
bankrate.com and find the best CD rates

6:44
on the planet.

6:46
Don't have any skin in the game with

6:47
them. That's just where I go to look at

6:49
them. I also call multi-year guarantee

6:51
annuities annuity bonds because in

6:52
essence, you are buying a guarantee from

6:55
a specific life insurance company and

6:56
they're guaranteeing it for that

6:58
duration. And you can ladder it. You can

7:00
buy threeear, 5 year, sevenyear, 10

7:02
year. I think right now at the time of

7:04
this taping, you it might not be a bad

7:06
idea to go longer on the yield curve

7:09
just because I think rates right now are

7:11
favorable.

7:13
Here's the cool part though. If you if

7:15
you go to my site, you pull up the MIGA

7:17
and you like it and you want to buy it

7:18
and you want to fill out the

7:19
application, you can do it online or you

7:22
can call us and we'll do it for you. We

7:25
give you that option, but you can do an

7:26
online application with multi-year

7:28
guarantee annuities. Submit it. Our

7:30
people will call you and say, "Hey, was

7:31
that you?" "Yeah, okay. validate and

7:33
great, we'll put it through. It's that

7:35
simple. Technology.

7:38
All right. So, annuities, CDs versus

7:40
annuities. There's a there's an annuity

7:43
CD out there. It's called a multi-year

7:45
guarantee annuity. Is it better than a

7:47
CD? No. Are CDs better than mine goes?

7:49
No. But they work the same. Guaranteed

7:52
interest rate for a specific period of

7:55
time that you choose. Okay. Hey, do me a

7:58
favor. There's a spinning clock above

8:00
me. is I did a video on just all the

8:03
technology stuff that we're doing. I'm

8:04
very proud of that guy from Google's now

8:06
running my company. Young young young

8:08
kid, very smart and doesn't I'm not sure

8:10
you can spell the word annuity, but boy,

8:12
he is changing the industry upside down.

8:14
The things that we're doing are

8:16
unbelievable. There's a Virtual Stanley

8:17
avatar on my screen. If you click it,

8:19
you're going to be able to ask Virtual

8:21
Stanley anything. What do we do? We've

8:22
fed Virtual Stanley all 2,000 of my

8:25
videos, plus everyone every single one I

8:27
do every day. you know, the 400

8:29
articles, the seven books, that's

8:30
Virtual Stanley, and he's getting

8:32
smarter and smarter and smarter. I'm

8:34
not, but he is somehow. Um, but 247, you

8:37
can ask him questions. Or if you say,

8:39
"Hey, I don't want to do that. I hate

8:40
that kind of stuff. I just want to talk

8:42
to you." Then book a call with me or

8:44
shoot me an email. There's a thing on my

8:45
site says email stand. Click that

8:47
button. Up it go up pops my email and

8:49
you can just shoot me an email and I'll

8:50
respond to it. With all that we're doing

8:52
on the site, I'm very proud of it. We've

8:53
given you the option to use artificial

8:55
super intelligence or us humans. We're

8:58
open 12 hours a day, Monday through

8:59
Friday, 8 hours on Saturday. That's 68

9:01
hours a week. But for the other hours,

9:04
virtual Stanley's there. You can run

9:06
anonymous quotes. You can do online

9:08
applications if you want to fill out the

9:09
application. We give you the choice.

9:12
We're the only ones doing that. Okay?

9:14
So, take a look, surf around. We're

9:17
available for business 247 and we're

9:19
open 12 hours a day. Hey, it doesn't get

9:22
any better than that. My name is Stan

9:24
the annuity man.

9:26
Doing a video every day till I drop

9:28
dead. So, guess I'll see you tomorrow.