Golden Goose of Annuity Confidence: Fun With Annuities

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Welcome to Fun with Annuities. I'm your

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host, Stan the Annuity Man, America's

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annuity agent, licensed in all 50

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states. Today's topic is a good one.

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It's called the golden goose of annuity

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confidence. And you say, wait a minute,

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Stan? Golden goose? Yeah. Um, people

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always talk about, hey, how safe is that

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annuity? I mean, should I look at the

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state guarantee fund? Should I not buy

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above or below the state guarantee fund?

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Tell me about the state guarantee fund,

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Stan. State guarantee fund is the

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equivalent not as good but the

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equivalent to FDIC for for you know CDs

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or stuff like that. FDIC is much better

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but in the category of protection up to

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a certain point every single annuity at

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the state level fixed annuities are

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protected by what's called the state

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guarantee fund. You can go to nolhga.com

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nolga.com

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and pull up your uh state guarantee fund

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limitations and rules for each state.

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They're all different, of course, but um

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that's that's great. Uh but when I

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recommend annuitities, you know, either

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for lifetime income or principal

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protection, I'm looking under the hood.

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I'm looking at all the details and the

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financials, all that stuff. You know,

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I'm doing a pretty good job of

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recommendations because I do have that

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background from Morgan, Stanley, Dean,

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Wood, Payne, Weber, UBS. So, I do know

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how to look at financials, but I really

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don't take into account the state

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guarantee fund that much. And you say,

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"Wait a minute, Stan. Why why wouldn't

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you why wouldn't you wear that belt and

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suspenders like your uncle Ernie at that

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um family reunion? Well, you know, I've

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been doing this a long long time. Um I

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I've actually seen three three companies

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get absorbed by their state guarantee

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fund, but all three of those companies,

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every single person got every single

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penny back. Even people that had more

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than the state guarantee fund limit.

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I was on the phone call the other day

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with a guy and he was putting in there

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was a million dollars. He was lading

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annuities. U we were choosing A+ or

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better carriers and in that sense I mean

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A plus or better you don't need a

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sweater A+ or better you should be

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sleeping at night like a baby. Um but

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even then he wanted to come under the

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state guarantee fund. It's your money. I

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respect that. Um just you know you have

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the A+ carrier because people say what

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happens when the A+ carrier goes out of

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business. We're screwed. It's a wrap.

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It's over. You know hug your loved ones.

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listen to Crosby Seals Nash and Young

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and the song Love the One You're With Um

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but I'm just saying state guarantee fund

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is is a belt and suspenders when you're

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looking at really good companies. Yes,

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that's fine. So Stan, how does the

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golden goose of confidence kind of

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dovetail into all of that? Well, I

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always say the best protection in the

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annuity world in my opinion that nobody

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in the annuity business is going to

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agree with me upon because it's kind of

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a hidden secret is what I call the

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annuity mafia. And the annuity mafia are

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the big companies that's not going to

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allow some, you know, small company

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sinking sands of Texas. That's not a

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company. One of my consultants named

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that. It was kind of funny. Um, they're

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not going to let some company ruin it,

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ruin ruin the golden goose of confidence

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because

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annuities are transfer risk products

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that's that solve primarily for four

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things. the acronyms pill. P stands for

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principal protection. I stands for

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income for life. L stands for legacy.

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The other L stands for long-term care.

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Okay? And you contractually solve for

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that. So, you're transferring the risk

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and have confidence that the carrier

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that's backing those guarantees up can

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back those guarantees up.

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That's the golden goose of confidence.

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And with 15,000 people hitting um 65

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every single day, check the check the

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date. Those are the boomers that are

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getting that are going into retirement.

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People are looking for guarantees.

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The golden goose of confidence that

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nobody talks about in the industry

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except ma that's French for me is

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if the public ever lost faith in the

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annuity industry at all, if someone, you

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know, if there was confidence lost, the

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annuity industry is over for I mean it's

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it's done. And the annuity companies

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that are large, the big ones, which are

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most, they know that and they're going

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to protect that annuity golden goose of

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confidence, okay? They're not going to

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allow that to happen. Um, the most

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recent company that was absorbed was in

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2021 kind of during COVID. Um, and that

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was one that was a really lowrated

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company. They had a they had a owner,

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I'm not going to mention the name, but

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the the owner was less than moral in my

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opinion. That's my opinion. and

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currently in prison. But um that was the

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one I thought there could be it was so

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low rated that there could be issues

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with that that company. If you want to

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talk about it, I will. I just don't do

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it on on the video because I don't want

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the lawyers to come knocking at my door.

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But you can email me

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stantheanuityman.com

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and I'll send you my schedule. We can

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schedule a call. But that was the one

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that I'm like, you know what, this one

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might be an issue. I've been doing this

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a long time, but this one I was like, oh

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goodness, this might be a problem. Um,

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and but but you know what happened at

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the end was the golden goose of

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confidence was protected by the

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industry. And I'll give you an example.

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There was a gentleman that I knew that

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had

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$600 to $700,000

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with this carrier above and beyond the

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state guarantee fund limit.

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Okay.

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At the end when everyone was paid back,

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he got every single penny that he put

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in. above and beyond the state guarantee

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fund. Now, to me, that was a sign that

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the annuity industry understands where

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things are right now. And where things

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are right now in the industry is this, I

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call it a demographic title wave. So,

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you have the 15,000 people, you know,

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every 15,000 people every single day

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turning 65. That's a demographic title

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wave. Companies want to get in front of

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that because people are looking for

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guarantees. People want to have the same

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type of contractual guaranteed lifetime

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income stream that they have with social

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security, which is the best inflation

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annuity on the planet. People want to

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have the contractual guaranteed lifetime

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income stream like a pension, which is

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annuity. People want to have the

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guaranteed principal protection of a

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MIGA, which is like a CD.

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People want to have confidence in the

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product. They want to have confidence.

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They want to sleep well at night.

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These are contracts. You own them for

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what they will do, not what they might

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do.

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So there is an annuity golden goose of

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confidence that the industry protects.

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They don't talk about it. They protect

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the consumer. Not only do I believe, and

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the reason I left Wall Street for for

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here is I believe that the life

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insurance industry is pretty much the

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safest place you can have your money. My

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opinion. Okay. But I've been around the

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block player. I mean, I I work for the

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the the Wall Street firms. I've seen it

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all. And as I always say, life insurance

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companies have the big buildings for a

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reason because they know when we're

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going to die, and they price things

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accordingly. They sell a lot of products

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that are very, very, very profitable

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because they do know when we're going to

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die.

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But I'm going to tell you, they're going

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to protect this industry. And right now,

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last stat was right there's probably 400

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billionish per year of annuities sold.

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That number is getting ready to go to a

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trillion. And the first legitimate

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market hiccup that we have is going to

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send people running for the exits

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looking for contractual guarantees. I

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told someone the other day, the majority

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of financial advisors out there right

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now, registered investment advisors,

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masters of the universe, professional

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dartthrowers is what I call them because

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nobody knows what the market's going to

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do. Most of those youngsters have never

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seen a down market. Most of those

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youngster advisors, I have cowboy boots

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that are older than they are. I have

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seen it. I have seen the crashes. I have

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seen people throw up. I saw early in my

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career, another firm that was

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underneath, we were in a high-rise. They

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were underneath us. Client walks in and

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shoots the broker in the face with a gun

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and kills him. I was like, year one of

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my of my trek into the financial

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services business.

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Things don't always go up. And at the

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time of this taping, you know, things

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are being beefed up by all of the

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investment in artificial intelligence.

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The fact that artificial intelligence

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allows companies to not have as many

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employers employees, which means their

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profits are high. I don't know where

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that's all going to end up, but we're in

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we're in some interesting times in the

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markets,

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but we're also in interesting times in

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the country where people, you know, they

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they have won the game. As I say, I

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always tell people, if you won the game,

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why are you still playing? If you won

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the game, why don't you just get

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contractual guarantees and go go live

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your life?

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Take advantage of the golden goose of

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annuity confidence. Take advantage of

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the annuity mafia. Take advantage of the

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state guarantee fund. Take advantage of

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the annuity industry that looks out for

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themselves. Even though it's a

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competitive environment, it's a

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capitalistic environment.

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The big boys aren't going to let some

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idiot CEO at a small company ruin it.

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Now, recently there, check the time of

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the taping. There's been a lot of not a

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lot, but there's been a few articles

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about annuitities and private credit.

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You know, we've been following that.

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I've personally been following that with

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a good friend of mine, Carrie Pector of

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the Retirement Income Journal. You know,

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he's been on top of that. Give him full

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credit um since 2021. And private

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credits, in my opinion, not going to be

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a big issue. It's just an asset. It's

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just an alternative asset class that

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represents $2 trillion out of about $128

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trillion. um US um investment markets.

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So 2 million out of 128. Do we have our

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eyes on things? Yes. Are there two

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carriers that I've pinpointing and

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watching because they might have a a

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little bit more exposure than I'd like

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to private credit? Yes. But I also have

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my theories on that as well that I could

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share with you. Bottom line is

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I'm never going to recommend a carrier

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that I don't think can back up the

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claim. A plus or better for lifetime

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income. If we're doing Miggas, we're

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we're marrying lifetime income. We're

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dating the MAS for fixed rates. So, if

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I'm recommending I think a MIGA at a,

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you know, A minus or A-rated or

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whatever, I believe looking at their

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financials that they can back up the

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claim for that duration that you're

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choosing. All right? My license is on

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the line for that. So, it's my

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recommendation. But the golden goose of

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annuity confidence is going to be

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protected. The golden goose of annuity

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confidence is something that you need to

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put in the back of your head. That's a

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good thing because the industry is

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looking over the all of the industry to

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make sure that people don't lose

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confidence in the product. And what's

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happened in the past a lot of times we

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don't even know what's happening and big

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companies absorb small companies, medium

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uh companies get absorbed by big

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companies. There's a lot of

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consolidation. A lot of that

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consolidation,

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we'll never know, but my instincts are

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they're they're probably wiping some

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problems off the board and shoring up

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the golden goose of annuity confidence.

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So,

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I'm stand the annuity man. You know, I

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have confidence in these products as

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well. That's why I'm here. That's why

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I'm the leader. That's why I'm number

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one for a reason because we only look at

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the contractual guarantees of the

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policy. And when it comes to the golden

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goods of annuity confidence, my job is

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to make sure that you get the highest

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contractual guarantee for your specific

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situation and me signing off on that to

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eliminate any fears or worries or

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anything like that. I would encourage

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you to go to my site at

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theanuityman.com.

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You can reach me personally at stan so

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stantheanuityman.com.

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stantheanuityman.com.

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And I'm going to be crazy right now and

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just give out my cell phone number. If

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you want to do that, text me um

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904614201.

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Last time I did that, I got like 582

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calls in a row. But that's okay. I'm

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accessible. One last thing, if you're a

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client, you're watching this, you don't

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have a blue hat, please, please let us

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know. We'll send you one for free. If

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you're a prospect and you're nice to me,

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I'll probably send you one as well. We

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got a few left in the office. So, I just

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want to let you know that. That is fun

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with annuities. My name is Stan the

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Annuity Man, America's annuity agent,

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and I'll see you next