How Long Should Your MYGA Ladder Be?

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Welcome to Q&A Friday. I'm your host,

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Stan the Annuity Man, America's annuity

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agent licensed in all 50 beautiful

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states in this country. God bless

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America. Today's question is, how short

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or long should your MIGA ladder be? Now,

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let's talk about MAS. MAS are the

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annuity industries version of a CD. MA

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stands for multi-year

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guarantee annuity, but in essence, it's

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the annuity company, the life insurance

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company that issues annuities,

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um, giving you a guaranteed interest

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rate that is not callable for a specific

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period of time that you choose. You can

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go to my site at theanuityman.com and

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look at them till your heart's content

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live feed of the best rates in the

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country. But a lot of people like to

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ladder things. You ladder CDs, you

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ladder bonds, etc. But typically when

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we're lading, we're lading for the hope

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that we're going to catch rising

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interest rates. So at the time of this

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taping, there's been some interest rate

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raises. So look at the date of the tape

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here. And um I think, you know, the bell

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didn't ring at the top of the bottom,

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but you know, we're pretty darn close in

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my opinion with 32 trillion of debt that

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we have to service. So we can't continue

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to raise the mortgage. Do you hear me?

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Hallelujah.

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So typically when when we were in low

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interest rates environments, people say,

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"Stan, what are we doing with the

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ladder?" So we'll do like a threeyear,

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four year and a fiveyear or a twoyear,

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three year, four year, 5 year trying to

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have money coming available as interest

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rates hopefully rose. Well, we're now in

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a place where I think that the rates are

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fair. I mean, they really are. And if

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you're going to complain about them and

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try to time them, then you're missing

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the point. So I'm actually looking at

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reverse lading strategies meaning that

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instead of going shortterm to long-term

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going longer term to short term. So

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typically I look at yield curve analysis

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because yes I have that background

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educationally even though you say wait a

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minute you have a southern accent and

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people with southern accents don't have

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that type of education but I do and I

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walked on Wall Street. I talked like

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this when I was on Wall Street but I

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talked to you I was I was on Wall Street

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Morgan Stan UPS. But here's the point.

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You might want to consider going a

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little bit longer on the yield curve,

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meaning maybe locking in a 10-year or a

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9-year or a seven-year and then a

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5-year.

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Remember, and this is very important,

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Migas, multi-year guarantee annuities,

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CD annuities, okay? The annuity industry

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version of a CD, however you want to

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call it, fixed rate annuities. I'm going

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to say this very slow. They are not

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callable.

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So a lot of these high CD rates out

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there are callable. And what does that

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mean in English? Stan, good question.

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Because I speak fluent annuity English.

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It means that with with CDs, some of

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these higher rates, they look great, but

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if rates start going down, the banks

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will call them back in or the brokerage

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firms will call them back in and you got

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to find another piece of paper to to

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invest in. Okay? But with multi-year

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guarantee annuities, not callable. So if

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you go longer on that yield curve, if

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you lock in something at 10 years,

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you're locked in and you're going to be

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happy. When when rates go down

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eventually, and they will when there's

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some political cover for whoever's in

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office to lower them, they will lower

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them because we have 32 trillion in

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debt. Hello,

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common sense, right? So, should you go

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do a short-term ladder 2 three four five

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or should you do a reverse ladder 10

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987?

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my opinion, you should consider the

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longer reverse ladder, especially if you

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want to lock in higher rates. And

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remember, with MAS, multi-year guarantee

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annuities, you have the ability, and we

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will help you with this at

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theanuityman.com.

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Choose the ones that if you want to take

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out interest, you can. And never touch

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the principle. Hello. Sound good? Yeah,

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you can live off the interest. If you

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won the game, why are you still playing?

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All those videos I've done dovetail

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nicely into this Q&A Friday. So, should

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your MIGA ladder be short 2345 or or

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reverse 10 987 at current interest

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rates? Let's let's think a little bit

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longer about the 10987

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because we're going to lock in rates

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that you will be happy with. My name is

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Stan the Annuity Man. That's Q&A Friday

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and I will see you next