Fixed Index Annuity Calculator

00:00

Hi there. Stan The Annuity  Man, America's annuity agent,   licensed in all 50 states and Puerto  Rico, founder of CGO: Contractual   Guarantees Only. You own annuities for  what they will do, not what they might do. Which leads us to the topic of today,  which is a fixed index annuity calculator.

00:19

Tell me about it, Stan. Show it  to me, Stan. Where is it, Stan? Notice I'm wearing the Kind of Calm  shirt with the Annuity Man. Actually,   it's good for this topic because I'm getting ready   to rock and roll a little bit on fixed  index annuity calculators after this.

00:50

Just come on back with me. Drinking.  I've got to take a drink. And this is,   by the way, this is seltzer water. It's  not like a vodka chaser. It should be,   but I'm 20 years sober in October. That rhymes,  but it's true. What a good ride that was.

1:10Fixed Index Annuity Calculators

01:11

Fixed index annuity calculators.  Good Lord. Oh my gosh. Now, there's a good friend of mine. I won't  mention the name of the company, but he's   the CEO of the company, and they're kind of an  information aggregator. They bring it all in,  

01:31

and he's actually had his chief engineers  and people that speak in fluent fax, F-A-X,   and they've come up with some index  annuity predictors and modeling. I had two very smart people come to my office one  time, about two or three years ago, and show me  

01:55

their fixed index annuity predictor. I'm like, "I  have no idea what you're doing. I really don't."

2:05Why Many Agents Sell Indexed Annuities

02:05

There are so many index annuities out there  pitched, which you've got to ask yourself   why. If you're dumb, then I'll tell you.  I mean, all annuity commissions are built   in. Index annuities typically are the  highest-commission product out there.

02:19

So that's the reason that you go see  your CPA, your bank, your brokerage firm,   your hairdresser. Multi-level marketing  even sells index annuities. Oh my God. But index annuities are nothing more than a   CD product put on the planet in  1995 to compete with CD returns.

02:37

And guess what they've done since 1995  from a return standpoint? Factual. In the biggest raging bull market of all  time, guess. No, I'll wait. Go ahead. Guess. Nope. Not that. Not that high. Keep going down. CD returns. Okay. CD returns, because that's  what they're designed for.

3:01Helpful Resources About Fixed Index Annuities

03:01

Now, index annuities have three levers  to pull from the standpoint of how they   calculate the hopeful gains: caps,  spreads, and participation rates. If you want to go down that rabbit  hole, go to my site, theannuityman.com,  

03:14

download my Fixed Index Annuity Owner's  Manual. Quick read. Factual. To the point.   Stanisms. Edutainment. Education.  The whole thing in about 80 pages. If you don't want to read, and I understand  that. Videos, you know, we do a few.

03:34

You can go to my YouTube channel, Stan The  Annuity Man, where I've done a few, and you   can type in the search bar inside my channel,  "fixed index annuities," and you'll see a ton   of videos on index annuities and some that I've  done on caps and spreads and participation rates.

03:53

Just for the record, until I die,   I'm going to do one video a day. I've  been doing one video a day for a while. I've told Big C behind the camera, and his  co-producer, Dr. V, that if I do pass away   and have a heart attack while I'm giving  this, his instructions are that they have  

04:14

to keep filming. It's marketing gold. I mean,  you only die once. Take advantage of it, right? So, yeah, we're going to keep filming. We're  going to keep filming every single day. You might see a lot of these topics on index  annuities because a lot of you are searching  

04:27

for it, because every jackwagon out  there is trying to sell you one. But a fixed index annuity calculator?  If anybody puts it on their site,  

4:33Why Fixed Index Annuity Calculators Can Be Misleading

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they're a joke. An absolute joke. I'll tell them if they ever have the guts  to walk up to me in an airport or come to   Vegas and go to my office, and we actually  decide to let them in. There's high security. Because the caps, spreads, and  participation rates change,  

04:58

wait for it, at the discretion  of the annuity company. You have nothing to say about it. The agent of record has nothing to say about it. So if you go into most index annuity  policies, it's probably a 7- or 10-year   surrender charge. Most change every  year, the way the gains are calculated.

05:24

So you know what you're going to get the first  year because you signed the paperwork for it,   because you're so excited and got an upfront  bonus, which is candy for the stupid. You did that. Guess what happens in year two? I don't know either. Guess what happens in year three? Scooby-Doo.

05:44

Why would you ever buy a product that you're  swinging in the breeze with in the future? Don't say "market upside with no downside." Don't say "principal protection  with market participation." You're just spewing back the  steak dinner seminar pitch. It's garbage. You can't be that stupid.

6:04Important Advice Before Buying Annuities

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Never. Listen to me. Never  buy annuities for growth. You've got the market for that. Go get it. Annuities are for contractual guarantees. Annuities are for four things:   principal protection, income for  life, legacy, and long-term care. That acronym is PILL.

06:26

To determine if you need an annuity  and which one would give you the   highest contractual guarantee, ask two questions: What do you want the money to contractually do? And when do you want those  contractual guarantees to start? But never, ever, ever, ever,  ever buy them for growth.

06:42

Why would you limit yourself? "Well, I just don't want to lose any  money, Stan. You know what I'm saying?" Yeah, I do know what you're saying. Then buy a MYGA, the annuity  industry version of a CD. The returns annually are contractually guaranteed.

06:57

With an index annuity, nothing  is contractually guaranteed.   Potential, hypothetical, theoreticals,  backtested, unicorns chasing the butterflies. If any agent says, "Well, this is  one my Mama, my Mom, and my Uncle." Just get up. Walk out. That's crap. Okay? You're done. Next.

07:21

I mean, that's nonsense. If you're spending any time using  a fixed index annuity calculator,  

7:24The Truth About Fixed Index Annuity Calculators

07:30

I'd rather be outside walking, fishing, riding a  bike, playing pickleball. Do whatever you want. But don't try to figure it out, player. This isn't Benjamin Graham's  Security Analysis book that we all   had when I was working at Dean Witter,  PaineWebber, UBS, and Morgan Stanley.

07:48

There's no analysis. Yes, I'm talking to my friend that owns  the company that developed it. But the reason he   developed it is because someone paid him, a big  company paid him, a lot of money to develop it so  

07:60

their clients could go down the rabbit hole  and think they're actually doing something. They're not. It's not like looking at a stock  or an ETF or a mutual fund. I know what I'm talking about. And investing for growth.

08:17

If you're looking at caps and spreads and  participation rates and all the combinations, oh,   by the way, there are over 800 indexed annuity  option choices at the time of this taping. So you're going to go to someone's stupid  index annuity calculator and analyze all 800,  

08:37

not knowing what the annuity  company is going to do in year two. You can't be that gullible and  that stupid and that hopeful. You just can't. So if you see a fixed index  annuity calculator, do what I do. Laugh. Because it's that stupid. It's a comedy show. It's a rabbit hole.

09:04

I'm talking to people out there that  spend all their darn time doing this   and analyzing. You do this, and you flip it to  the initiator, and you go to the cap and spread,   the combination of the cap and  the spread and the participation. Shut up. Just shut the heck up.

09:21

The evil fact is all 800-plus  of those index option choices  are designed to give you that CD-type return. Remember, you're slave to the day, player. Slave to the day. Do me a favor.

9:35Next Steps and Helpful Resources

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Go to my site, download my Fixed  Index Annuity Owner's Manual. If you don't, then you have no excuse.  You should get what you deserve. Better than that,   email me at [email protected] if  you want to have a real discussion. I'll respond. If you want to book a call, you can book a call.

09:53

We will go down whatever rabbit hole you want,   but it will be brutal, it will be  factual, and it will not be fluffy. I was there when they were introduced. I get it. I understand it. I think there are five people on the  planet that understand index annuities,   and I think I know the other four.

10:09

Last thing. Above my head is a spinning clock, there's a video I did on inflation and how annuities address inflation properly, factually, contractually. Watch that. That's the truth. Because index  annuities don't address inflation. Never have. Never will. Can't design them to.

10:26

It's a good sales pitch, though, right? Maybe. But it's not going to work. My name is Stan The Annuity Man. See you next time.