How to Shop the Field for the Best Contractual Yield

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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, including the one you're

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sitting in right now because you're in

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one of the 50 states. Today's topic is

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how to shop the field for the best

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contractual yield. I know what you're

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saying, Stan. These are catchy, man. Who

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comes up with this stuff? Is that me? I

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have no life.

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[snorts]

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um you know empty neester work you know

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got the company I'm always thinking

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about how how can I catch you to explain

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how this stuff really works so if you're

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looking for contractual yield and let's

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talk about yield for a second yield are

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you know CDs bonds money market you know

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those type of things guaranteed coupon

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as they say and in the annuity world

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there's also something called a

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multi-year guarantee annuity that's the

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annuity industry version of a CD That's

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yield. Okay. And you can go to my site

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at the annuity man and pull up your

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state. Pull up the duration. Like let's

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say if you're looking for a 5-year

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guaranteed yield and up pops the top

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contractual guarantees for that specific

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time frame for your state and it will

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show it in order of the best yield. One

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of the other things that I want to cover

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here because the annuity industry, some

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of the Johnny Apples Seed annuity agents

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have a tendency to push the truth a

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little bit about yield. You know, blur

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the lines a little bit about yield.

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There is no blurring of the lines. Yield

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means you're getting a guaranteed

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percentage that you can take and and go

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spend. Okay? But in the annuity world,

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there's something called an income

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writer. And an income writer is an

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attachment to a policy, typically an

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index annuity or variable annuity that

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provides a lifetime income stream at a

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future date. It rides on top of the

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policy, i.e. income writer. You can't

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call me up and go, "Hey, Stan, forget

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all that other stuff. I just want an

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income rider." No, it doesn't work like

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that. We we attach it on top of the

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policy and then we only look at the

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contractual guarantees because we don't

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care about the hypothetical theoretical

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unicorn session of the butterfly crap

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nonsense proposal. We're looking at the

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guarantee of the income writer. So, if

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you ran an income writer quote on our

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site, you're going to see that

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guaranteed income writer number. But the

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reason that I'm I'm bringing it up is,

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you know, how to shop the field for the

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best contractual yield. Income writers

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have a percentage that the income base

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grows by, but it's monopoly money. You

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can't cash it in. You can't transfer it.

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Period. Let me give you a visual. Draw a

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line down a blank sheet of paper. Okay?

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Visually, this side over here is the

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indexed annuity or variable annuity of

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which the income writer on this side is

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attached. So, you have draw a line here.

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Here's the here's the real money

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variable index and here's the income

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writer. Okay, two separate calculations.

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The income writer might have a 7% or 8%

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or 9%

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growth during the deferral time period

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during the time that you're waiting to

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turn on the income stream. Stop for a

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second because I know you just got up

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and go 7% 8% yield. Yeeha! [screaming]

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No, no, no, no, no, no, no. Stop. That's

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not yield. Those high percentages are

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not yield. You can't peel it off. You

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can't transfer it. You can't cash it in.

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Okay? It grows until the the income

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stream is turned on, then it stops. But

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a lot of agents blur the line

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so people think that that's yield. We'll

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get calls like this. I just bought it at

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an 8% annuity. I just bought I just

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bought a 9% annuity. No, you didn't. You

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bought an income writer. Boy, that wait

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a minute. That sounded really

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concerning. No, you didn't. You didn't.

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You bought a 9% income writer, which is

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monopoly money in a phantom account. And

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that's okay if you're only buying it for

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lifetime income in the future. But it is

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not yield.

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Again, if it sounds too good to be true,

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it is every single time. No exceptions

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with annuities. So, real yield will be a

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multi-year guarantee annuity, which is

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the annuity industry version of a CD.

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Yield on an income writer is not real

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yield. Do not let that insurance Johnny

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Apples Seed agent get away with that. Do

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not walk out of that bad chicken dinner

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expensive steak dinner seminar thinking

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you bought an 8%

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income annuity which you didn't. It's an

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income writer. And also don't fall for

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the bonus pitch. Well sir, you're going

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to get 20% upfront bonus and you're

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going to get a 8% yield. No, you're not.

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Okay. You're going to get 8% growth on

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an income account. That's monopoly

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money. And the 20% bonus is taken away

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on the payout. Nobody's giving away free

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money.

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All right. So there when you're looking

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for yield, you know where to get it in

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the non-anuity world. Municipal bonds,

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corporate bonds, dividend stocks, money

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markets, CDs, you know, I love AAA munis

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in my past life. That's what I did with

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Morg and Stanley. But understand that

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the income writer is not yield. If you

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walk away with one thing today when you

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get up from this video and you go

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outside to run those five miles you do

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every day,

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just understand that that's not yield.

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And and if and if the agent pounds the

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table and said, "Yes, it is yield," then

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say, "Great. Peel off that percentage

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and send it to me on a monthly basis and

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then be quiet and see what they say."

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No. So go to my site theanuityman.com.

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Go to the MGA feed, put in your state,

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put in the duration. Up it pops. And if

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you want to see another duration, put it

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in another duration. I mean, we've got a

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good site, man. I got really smart techy

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people running this thing. So, hope you

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enjoyed that. Hope that clarified things

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and it will make the the meal that you

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ate at the seminar go down even

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smoother. That filelet mnan filet minion

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that they're going to serve. My name is

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Stan the annuity man, America's annuity

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agent. I will see you next time.