How Do Annuities Work For Dummies?

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Hi there, Stan the Annuity Man,

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America's annuity agent licensed in all

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50 states in Puerto Rico. Today's

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question is a good one. How annuities

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work for dummies.

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That's good. You know, I always uh

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there's a great stat out there that

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people process news like local news on a

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sixth grade level regardless of of

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education level. People process

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financial information on a third grade

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level. That's a fact. So, there's a

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reason that I don't use industry terms.

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There's a reason that I speak plain

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stanglish to you about annuities. I'm

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not saying that you're dumb. You might

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be. I might be. I guess if you don't

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know if you're dumb, you're dumb, right?

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Anyway, um we're going to talk about all

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of that and how just to dumb this thing

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down so you can make a good decision.

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Strip away all the sales pitch. strip

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away all the shiny things after this.

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So, how do annuities work for dummies?

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Funny story here is there is an

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annuities for dummies book. It was

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written by a good friend of mine, Carrie

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Pector, and I did help a little bit with

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that book. He did the majority, but I

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did weigh in a little bit. So, I guess I

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do have some cred when it comes to dummy

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annuity

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research, [laughter]

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but I really have stripped everything

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down the way that I do annuitities,

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different from everyone else. I really

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make them easy to understand. Annuities

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solve for four things. The the acronym I

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came up with is is 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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principal protection, income for life,

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legacy, and long-term care. It's pretty

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dumb down, right? There's no G for

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growth. There's no M for market. Never

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buy an annuity for growth. Never buy an

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annuity for market growth. Never buy an

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annuity for potential. Never buy an

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annuity for non guaranteed return

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scenarios.

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Annuities for dummies gets even dumber

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in a good way because we ask two

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questions. What do you want the money to

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contractually do? And when do you want

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those contractual guarantees to start?

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The dumb down version is contractual.

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Underline that. Say, "Why'd you dumb it

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down like that? Why don't you talk about

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the hypotheticals? Because it doesn't

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work. Why don't you talk about upfront

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bonuses?" Because that's candy for the

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stupid. Life insurance companies issue

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annuities. Annuities are contracts. You

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buy annuities for the contractual

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guarantees. What they will do, not what

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they might do. I started an organization

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um that that people that people in the

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industry join and to be a part of called

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contractual guarantees only CGO. It's

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because that's what we do because I get

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calls all the time, hey Dan, I want to

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work for you. No, no, but you can be a

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part of contractual guarantees only and

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make the pledge to just look at

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contractual guarantees. Proud of that.

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But that's kind of a dumbed down

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version. We're not talking about

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hypotheticals and theoreticals and back

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tested numbers and caps and spreads and

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participation rates and all kinds of

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nonsense. We're not we're not looking at

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that. We're only looking at the

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contractual guarantees and we're

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shopping all carriers. That's the other

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dumb down version of of what I do. Stan

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the annuity man annuities for dummies

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probably because we shop all carriers

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for the highest contractual guarantee.

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We don't care about the name. We don't

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care about the brochure. We don't care

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about their logo. For lifetime income,

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it's A+ or better or the and the highest

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number. A+ or better or the highest

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number.

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That's pretty dumb down, right?

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Annuities for dummies means that you're

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stripping it down to

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what you understand.

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Warren Buffett's the best at this ever.

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Him and Charlie Munger, Charlie Mer, I

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think, just passed away. But Warren

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Buffett would say, "Well, why don't you

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invest in that?" He goes, "I don't

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understand it." When you're talking

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about the number one investor ever,

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arguably

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and him and Charlie, who kind of ran ran

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the company with him, we don't

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understand it. I mean, Charlie Munger,

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he he's funny. He said before he passed,

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someone asked him about Bitcoin, he

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goes, "I wouldn't give you $25 for all

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of it." That's what he said. And they

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go, "Why you say that?" He goes, "I

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don't understand it." If you do not

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understand what someone's trying to sell

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you in the annuity world, for goodness

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sake, don't buy it.

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I mean, you should be you should be

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working with us or giving us a shot at

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your business because we take a very

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simplistic approach. We don't sell

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dreams. We we sell contractual

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realities. We start at the contractual

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realities

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and end there. Remember, you own an

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annuity for what it will do, not what it

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might do. The fact that we just focus on

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the will do gets rid of all the

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nonsense. Gets rid of all the sales

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pitches. Gets rid of the expensive steak

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dinner seminar. Gets rid of the guy on

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on video that's just talking about one

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product.

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It's crazy. I've done over 2,000 videos.

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I've never mentioned a product. I've

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mentioned a strategy. I've mentioned a

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category. Because annuities are

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commodities. You shop them for the

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highest contractual guarantee.

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I said this a lot. I said my following

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statement I've said probably for 20 plus

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years. It hit me one time I was speaking

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to him. I said, "If you can't explain

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the annuity being pitched to you to a

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9-year-old, no offense to a

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nine-year-old, you shouldn't buy it."

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I should say six-year-old, but

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nine-year-old, that's like a second

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grader. If you can't explain it to a

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second grader, you shouldn't buy it. If

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you can't explain it to your spouse,

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definitely don't buy it. If you can't

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explain it to your beneficiaries, don't

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buy it. If you don't understand it,

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don't buy it.

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If you have to trust what the agent's

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telling you, don't buy it. Annuities for

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dummies means that the product is fully

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transparent. It means that you totally

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get it.

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You get the upside, you get the

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downside. With us, there is there's just

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contractual. There is no upside or

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downside. It's just this is what you're

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going to get. Period.

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I never get calls from people when

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markets are gyating saying, "Are we

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okay?" Yeah, we're okay. They're

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contractual. We don't have annual

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meetings. We don't need to have annual

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meetings. Why? We buy contractual

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guarantees. There's nothing to review

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unless you want to review the

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contractual guarantees. We can do that.

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All annuity decisions should be in the

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dummy category.

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There's no stengali out here that has

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this magical product.

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Okay?

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you own an annuity for what it will do,

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not what it might do. If you want to see

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what guarantees look like for your age,

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gender, where you live, your state, you

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can go to my site at theanuityman.com

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and run quotes, we have something called

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a quick, you can run a full quote, you

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can run a quick quote. Quick quote means

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that you don't have to put in any

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information except your date of birth,

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your gender, and your state, and you can

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get the top quotes in the country. Get

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we give it away. We're not here to we're

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I'm not in the business to build a

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database. I'm in the business to educate

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and get you as a client because you

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understand what you're buying.

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That's why we're number one. And with

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this change,

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it is a game changer.

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You can go to my site, you can download

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books, six owners managers. You can

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watch videos done 2,000 in counting, one

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per day. I do one per day, Monday

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through Monday through Sunday. You can

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email me stantheanuityman.com. You can

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schedule a call.

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Get educated. Get edutained. Keep it

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dumb. Dumb it down yourself. And if you

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don't understand it, then get on the

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phone with me and let me explain it to

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you.

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That's what I do. That's my talent

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is making you understand what you're

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getting ready to own contractually. All

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right, one last thing. Above my head's a

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spinning clock. I did a a video on

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attention all annuity haters. You

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already own an annuity. um you'll get a

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kick out of that because spoiler alert

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at social security bits you might own

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others by the way. So with that being

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said, my name is Stan the Annuity Man. I

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guess we'll see you tomorrow because

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tomorrow there's another