How Do Annuities Compare To Other Retirement Investment Options?

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So, Stan The Annuity Man, how do annuities compare to other

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retirement investment options that are out there and being presented?

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It's a good question. I'm America's annuity agent, if you haven't figured that out. I'm

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licensed in all 50 states and Puerto Rico and the founder of Contractual Guarantees Only,

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which we only look at what a policy will do, not what it might do.

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So, that's kind of a segue into how our annuity is different,

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but I'm going to go into detail so you have a pretty good foundation and

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can make some good decisions when you go into chapter 2 of your life after this.

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So, how do annuities compare to other retirement investment options? I'm going to make a bold

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statement here and say they don't compare because annuities are unique. They're transfer-of-risk

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products. You're transferring the risk to the life insurance company that issued the annuities.

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And annuities solve for four primary things. The acronym is PILL: principal protection,

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income for life, legacy, and long-term care. Okay?

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And I only ask two questions: What do you want the money to contractually do?

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And when do you want those contractual guarantees to start?

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That separates from all the other investment options.

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But let's look at the good and the bad of that.

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The good is that most annuity strategies, when compared to

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other strategies for lifetime income, there's no comparison.

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Annuities are the only product that can give you a lifetime income stream. And don't come

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at me with a 30-year bond because if you live 35 years, then you're screwed, okay?

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So, lifetime income, as long as you're breathing, or on a respirator,

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or in a coma. As long as you're breathing, it's going to pay. There's no ROI until you die.

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There are four types of annuity products that provide lifetime income: single premium immediate

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annuities, deferred income annuities, qualified longevity annuity contracts,

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and income riders. And you can quote all of those at my site, theannuityman.com.

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So, there's no comparison. None.

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Now, there are some principal protection products with annuities called MYGAs or

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indexed annuities. Both of those are CD products. MYGAs I prefer because they

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have a contractually guaranteed yield for a specific period of time that you choose.

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But those can compare nicely to money markets, CDs, and kind of

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bonds because they have a coupon on them that you're going to get.

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But where other retirement options beat annuities, yes, Stan The Annuity Man,

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top agent out here, is going to tell you the truth because I used to work

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for Dean Witter, PaineWebber, Morgan Stanley, and UBS, where other retirement

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options beat annuities is potential returns, potential upside, and bull market returns.

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Okay? Annuities are contractual. You should never buy an annuity

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for market returns. You should buy non-annuity products for market returns.

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So, if you want market returns in retirement, non-annuities.

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If you want contractual guarantees, annuities. Market upside, non-annuities.

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Contractual guarantees, annuities. Lifetime income, annuities.

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There's nothing else out here for lifetime income.

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Principal protection? MYGAs, indexed annuities, CD products, Treasuries,

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munis, CDs, money markets, preferred stock, there are some things over here, right?

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But what separates annuities from everything else is the lifetime

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income transfer-of-risk component. It's the only place on the planet to get that.

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You already own that with Social Security, the best

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inflation annuity on the planet. And if you have a pension,

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if you're so fortunate to have a pension, maybe you worked for the government, military,

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or one of the few 9% of companies out there, then you have a pension. That's an annuity as well.

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But what you need to do is remember, I guess you could

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take this whole thing down to two things, okay?

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Market returns should never involve annuities. Ever.

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Market returns: non-annuities.

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Lifetime income: only annuities.

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If you just remember those two things when you start comparing, it's a no-brainer.

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As they say in the movie industry, that's a wrap.

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But you're going to have Johnny-come-lately agents and advisors over here going, "Well,

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this annuity can get you market growth. It can get you market upside with no downside."

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Stop.

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Go get market growth without annuities. Use annuities for the income floor, Social

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Security, pension, dividend stocks, whatever is hitting your account,

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and that annuity lifetime income payment, so you can go invest and

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be a better investor and not disrupt anything when markets get volatile.

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That's the reason the 4% rule is crap.

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The 4% rule is your professional dart-thrower, fee-only person saying,

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"Well, I can manage it, and then we can just pull off gains for your income."

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Crap.

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It's been disproven by people with lots of degrees and by me, factually.

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Income floor. Invest.

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Income floor. Invest.

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Income floor. Protect the principal.

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You can do both, CDs, Treasuries, munis, MYGAs. Don't make it difficult, okay?

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Don't let the sales pitch get in the way of the facts.

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Don't let that local agent convince you.

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Or, I guess I'm hearing, someone told me the other day, there are

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people who go on the internet and talk about a specific product,

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like an indexed annuity from a specific carrier. I thought that was illegal. Who knew?

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I never mention a carrier's name. I never mention a product because it

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doesn't matter. We're only looking for the highest contractual guarantee. Then we're

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looking for rating. If it's lifetime income, it's A+ or better. And then I recommend it.

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Then you're looking for the recommendation.

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Most annuity agents could never pass a Series 7 test. They could never qualify

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to be working at Morgan Stanley, PaineWebber, Dean Witter, or UBS.

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Okay?

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Most could never do that.

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So, since I've been on that side of the ledger, that's where real market growth exists.

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I understand that.

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So, when I came out here to become Stan The Annuity Man,

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America's annuity agent, and I'm now the top guy, I'm still flabbergasted

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by the crap sales pitches I hear about market growth on the annuity side.

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I'm like, what are you talking about? What in the world are you even talking about?

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Because I know market growth.

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I know real market growth, and it exists over here on the non-annuity side.

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So, real market growth here. Lifetime income here.

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It's really that simple.

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Do me a favor. Go to my site, theannuityman.com. I've written owner's manuals on all of these

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products, okay? You can read them. I wrote them myself. They're 50 to 60 pages, quick reads.

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You can watch videos on whatever product you want to go down the rabbit hole and look at.

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You can email me at [email protected]. I will personally answer your email. I do that.

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And then you can schedule a call. You're probably going to get me. And if you want me,

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you can just demand me, and I'll get on the phone with you.

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I'm at a point in my life and this career where I love what I've done. I can't believe the company's

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this big. I can't believe where we're at. I can't believe the influence that I have.

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But I'm going to use that influence for good.

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I want to make sure that the people in the industry who are selling the crap

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dreams and fraudulent sales pitches are wiped clean. I want to get rid of that.

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Or else I want them to watch enough of my videos and have enough

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clients go to them and say, "Hey, that's not what Stan says."

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And that happens a lot.

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Do me a favor. Above me is a video that I did on the commoditization of annuities.

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Annuities are commodities.

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We shop for the highest contractual guarantee for your specific situation. If it's lifetime income,

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it's A+ or better. And then after that, it's about my recommendation.

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And I do make every recommendation.

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It's that simple. Okay?

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So when comparing, you know how to do it, right?

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Lifetime income: annuities.

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Real growth: non-annuities.

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My name is Stan The Annuity Man. See you next time.