Fixed Index Annuity Explained

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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 an annuity for what it will do, not what it might do. And you never own them for growth. See the will do, not might do right there? See that?

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I guess I wear it on my sleeve, right? So, today we're going to talk about fixed index annuities, and I'm going to explain them factually, contractually, and how you've never heard them before. And I think that's important because right now it's the go-go product, it's

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the seminar product, it's the internet product that everyone's talking about. By the way, if someone's on the internet talking about one product, charlatan, man. That's crap. You can't do that. I mean, you From a fiduciary standpoint, you can't do that. You got to show all products. You got to

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look at the person's goal. But, this is a good topic. Do I enjoy talking about fixed index annuities? No. I'd rather talk about vomit. But, you know, I'm going to I'm going to help you so you don't make mistakes. I'm going to do that after this. >> [music]

1:18What Is A Fixed Index Annuity

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>> So, what is a fixed index annuity? First of all, it is a life insurance product. It's a life insurance product that's regulated at the state level. It is not a security. It was put on the planet in 1995 and designed to compete with CD returns. Let me say it again. CD returns, not the market.

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Not market upside with no downside. Not market participation with principal protection. All that crap that you hear at the seminars and on the internet. No, it's none of that. It's It's It doesn't make It doesn't happen. Fixed index annuities are a principal protection product. There are two in the

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fixed world. Fixed index annuities multi-year guarantee annuities, which is the annuity industry version of a CD. Here's the thing, which one should I buy

2:02Which Product To Buy For Principal Protection

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for principal protection? No No questions, Stan I got. Why? Because the the interest annually is guaranteed contractually. Index annuity, nothing no return guarantee, just hypotheticals and theoreticals, hopes and dreams, unicorns chasing the butterflies, back-tested

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numbers, and your agent promise. Don't buy potential. Don't buy growth. Buy guarantees. So, explaining a fixed index annuity is as simple as that. But, let's deconstruct the sales pitch

2:34The Truth About Upfront Bonuses & Long-Term Care

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that you typically hear. You get an upfront bonus. You get market upside with no downside, and you get free long-term care. Heard that one before? Okay. Let's destroy that. Upfront bonus candy for the stupid. It's a shiny thing. Oh, look at that. Oh, look at that. Oh, look at that. Oh, look at that.

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It's like going to the car dealership and buying a car for the stereo system. There's 100 pennies in the dollar. There's not 120. There's not 130. There's not 100. Come on, you recently did 50% bonus. And you're out there going, "Man, that sounds good." Come on, man. Don't be dumb.

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There's not 150 pennies in the dollar. It's part of the overall contractual guarantee. Who cares? The long-term care part, complete falsity. Complete. Long-term care is a health insurance product, not a life insurance product, and fixed index annuities are a life insurance product.

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So, real true long-term care is a life insurance product. Real true long-term care has tax advantages. Real true long-term care has some form of underwriting. Real true long-term care, I can point you to the best expert in the country. If you want to send me an email, [email protected].

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Been using him for 20 plus years. He is the best. So, we we've done away with the bonuses. We've done away with long-term care. That's That's crap. So, sustain No, wait. Sustain Sustain what is that That over there they talk about? It's called confinement care. But let me put

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it in easy-to-understand English and frame it for you. What that means is when you get sicker, you get your money back quicker. You're proving to the life insurance company that your life expectancy is less than what is projected. So, they just ramp up the payments.

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Typically, it's for 5 years. Who cares? Garbage sales pitch. So, let's go to the middle part, which is true garbage.

4:22The Truth About Market Claims

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Market upside with no downside, principal protection with market participation. The only parts of that that are true are principal protection, no downside. It's a fixed annuity. It's not going down. You get zero forever, but it's not going down. The upside part,

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that's when the games are played. What I tell you to do, if you really want to do some research, go to my site at theannuityman.com, and download my index annuity owner's manual. It's free. Go to my website and and do that. Also, go to my YouTube channel. My editors

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will show you how to do this. Stan The Annuity Man, and then type in the space bar fixed index annuities. Tons of videos. This one This will be included in it, I guess. But there's three levers that limit your potential upside. Caps, spreads, participation rates. They can be used in

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combination. Currently, there's over 800 index option choices with index annuities, and all are pretty much going to return the same thing, which are CD returns. Not a bad thing. If the industry as a whole were were saying,

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"CD product." Great. I mean, I'd be I'd have no problem with it, but that's not how they're sold. And people they buy the dream. They're sold the dream. They want to believe it's true. They want to believe it's too good to be true. It is too good to be true. Every single time without exception.

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Now, the way to properly use index annuities at the time of this taping, the way that we do, and we sell ton, we just don't talk about them. We use them as efficient and cost-effective delivery systems for the income rider guarantee. See, annuities solve for four things.

6:05How To Choose The Best Annuity Product For You

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The acronym is pill. P stands for principal protection. I stands for income life. L stands for legacy. The other L stands for long-term care. They're our long-term care annuities on the health side. And we ask two questions. What do you want the money to contractually do? When do you want those

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contractual guarantees to start? And from those two answers, we can determine A, if you needed annuity, and B, which one's going to provide the highest contractual guarantee. It's really, really that simple. Notice there's no G for growth, S for stock market, R for reasonable rate of return. I hate

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that when people go, "What are you looking for?" You know, the second You know, first question, "What do you want the money contractually do?" "Reasonable rate of return." Then I ask the follow-up cuz it's I know what's coming. What do you think that is? Oh, no, 8 10 11% every year. You are

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stupid if you think an annuity is going to do that. You need to just go buy a non-annuity. Never buy annuities for growth. You're going to be disappointed. Just you are. Could there be 1 year it works? Yeah. But it doesn't happen. So, we use index annuities to deliver the income rider

7:13How We Use Fixed Index Annuities

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guarantee for income later. We ignore the index annuity. We focus on the contractual guarantee. Contractual guarantee, non-guarantee. Contractual guarantee, non-guarantee. Non-guarantee delivering the contractual guarantee. That's where we focus. That's how index annuities should work

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for you. But as an accumulation product, no, no, no. No, no, no, no, no. All that's going to happen is your your person that sells it to you is going to accumulate a lot of commission. Do me a favor. Go to my site. It's It's the best consumer site on the planet.

7:49Next Steps and Helpful Resources

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You can schedule call. You can demand to get with me if you want to talk about index annuities. I'm the only one out of all the employees in my office that that talk about index annuities cuz I know about them. Of the five people on the

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planet that know index annuities backwards and forwards, I think I know the other four. I'm one of them. Wrote a book on it. Done videos on it. Know it. Understand it. So, you got to ask yourself, wait, why is the top agent in the country not just giddy about the hopeful and potential? Because they

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don't work like that. They're CD products. Nothing more, nothing less. Nothing wrong with that. They're just sold improperly. Over-pitched, over-hyped, over-promised garbage. The pitch is garbage. The product It's a principal protection product. That's it,

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explained. Do me one last favor. Above my head, I did a video on inflation. How annuities can solve for inflation. Factually, contractually, pragmatically, it's the only way. And I'll tell you this, there's one product that does not solve for inflation, it's index annuities.

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They do not. I don't care what anybody tells you. Be careful out there. People going to tell you what you want to hear to part you from your money. And once you buy it under the dream scenario, you're going to own the contractual

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guarantees, and you're going to regret it. All right? My name is Stan The Annuity Man. See you next time.