Replay: Live Q&A - Income Planning Tools For Retirement May 2022

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[Music] so [Music] [Music] hi there i'm stan the annuity man welcome to the annuity man live man you're up you're drinking your coffee like me i've got my this i've got tea i did coffee first tea second but i'm glad you joined us today's topic's a good one do you even need

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an annuity i mean i mean to ask that the sales guys are saying stan stop it stop it the annuity industry is saying stop it let's take a look at a couple of things before we get started you know put those questions in there we'll hit them as fast as we can and and obviously they'll

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be brutally factual um let's show the site the producer put up the site if you haven't been to my site at the annuityman.com you can you can book a call most a lot of the times you give me not all the time but a lot of times you do get me we do have some other experts

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that i have deemed appropriate and they have passed the stan sniff test which is a big one um you can use our calculators go there you can run speed d omega qlik income rider quotes at your leisure 24 7 365 quoting all carriers we do have books that are hard copies

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are available just for a limited time um coming up soon those will be that they will be no more as they say we're gonna do some virtual stuff some pdf stuff and um i'm rewriting the book which is kind of cool um so let's get to the topic today um it's a it's a good one do you even

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need an annuity first of all you already have two and you're going wait a minute stand you've already told me about the one which is social security you always pound on the table social security is the the best inflation annuity on the planet you're

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right i'm glad you said that i say that all the time but the other annuity that you have is your ira when rmd's required minimum distributions happen at at the time of this taping age 72. say wait a minute stan that's not a that's not an annuity it's a forced annuity is what i call

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because at 72 what's the irs dude excuse me excuse me i know you don't need the money but you're going to have to take some out so we can tax you on it that's a forced annuity and they're going to do that for as long as you live and that ira's in place so you have two

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annuities in place the question then is do we need another one and i've made this very very simple in a complex world where there's sales pitches and bad chicken dinner seminars and steak seminars and and that this is the best too good to be true product you ask two

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questions what do you want the money to contractually do when do you want those contractual guarantees to start because you own an annuity for what it will do not what it might do and the will do is the contractual guarantees you never ever ever ever ever buy any type of

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annuity for hypothetical theoretical backtested mr jones if you'd owned it 10 years ago you'd have made this you know any of those unicorn chasing the butterfly nonsense proposals don't buy it if it sounds too good to be true without exceptions it is with

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annuities i mean it's just that simple and the other thing that's happening right now is the the to the two good to be true up front bonuses i got an email the other day from a company that would love for standing annuity man to sign off on their annuity with a 35 up front

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bonus now if anyone out out there just heard that and went oh that sounds good no no no no there's 100 pennies in the dollar and if you're buying the the annuity for the bonus it's like buying the car for the stereo system you're the root at the table you're the sucker at

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the table you have turned your iq off to believe that there's a philanthropist giving away money and there's no one-size-fits-all product out there if you're trying to solve for something and remember annuity solved for four primary things the acronym that i have come up

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with is pill p stands for principal protection i stands for income for life l stands for legacy the other l stands for long-term care confinement care notice there's no g for growth annuities are not and should not be purchased for market growth products

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market growth strategy market growth hopes and dreams it's pill and if you do not need to contractually solve for one or more of those items in the pill you do not need an annuity which is kind of what we're talking about here do you even need one most of

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the people that that contact us are either looking for two things primarily principal protection and there are there are products fixed products that protect the principal you're not annuitizing you're just protecting the principal getting an interest rate etc then most a

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lot of people call us for income because annuities were put on the pr on the planet in the roman times for a lifetime income and it's still the only strategy that provides income as long as you're breathing you can structure it so that the annuity company doesn't have to keep

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a penny but it's a pension product whether you want the pension to start now or you want to start in the future that's the reason i call uh social security the best inflation annuity on the planet it pays you for as long as you're breathing it's an annuity period

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so with that let's jump into the questions and let's get rolling um all right producer what do you think from peter can you change your beneficiary after you signed up for a spea now it depends on the answer is yes peter and it depends on how you structure the spea so let's just say

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there's 40 different ways 40 ish if you said life only what's life only stand that means if you you know step out in front of a bus day two and get killed money goes poof and not many people do that some do that don't want to list beneficiaries but if you

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have any type of life with cash refund life with period certain life with installment refund any type of of guarantee on the back end um then yes you can change your beneficiary and yes you need to list beneficiaries at the time of application of which my team

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takes care of but it really comes down to the structure most people have really worked hard for their money and they want a lifetime income stream but they want to make sure that some all part whatever your decision is and that's what you need to talk to us

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about um if that money is going to go back to their family when they pass away then beneficiaries are very important and you have to understand too peter that you can change beneficiaries so if you're if your son if your son makes you mad you can remove them okay

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um and then if they get in your good graces again you can put them back in our team handles that for you get you the right forms to change beneficiaries i would encourage you to always update look at your beneficiaries on your life insurance policies and your annuities

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etc okay next question okay we have a question that was emailed into us and if anybody has any questions please feel free to post them what has been your experience comparing fixed indexed annuities with income rider versus single premium immediate

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annuities for one that is looking for highest lifetime income that's part one of the question okay part one of the ques well it's income riders are for what i call income later an income later is when you want the income to start a year or more down

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the road okay so if you say stan i you know two questions what do you want the money to contractually do and when you want those contractual guarantees to start then if you say well i think maybe one year or three years or seven years or nine years we're going to quote income

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riders and deferred income annuities so that's where that lands income later with immediate annuities um it's it's a year in so if you said i want the income to start you know 30 days 60 days 90 days or you know two months from now whatever it is a year in

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then an immediate annuity is going to provide the highest contractual guarantee available because remember the reason for the two questions is to pinpoint the type of annuity product that's going to provide the highest contractual guarantee for your specific

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situation that's the reason i come back to there's no one-size-fits-all so to compare income riders that are typically attached to variable annuities or index annuities indexed annuities provide the higher contractual guaranteed income riders in most cases

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it's almost an apples and oranges comparison because income riders are a future pension plan in other words if you bought an income rider today we could tell you contractually to the penny what your lifetime income stream would be in five years seven years one

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year two years down the road for your planners out there that makes a lot of sense now let me go another direction with that and ask a question that's probably on some people's mind do you have to buy the income rider or should you wait to maybe buy the immediate annuity at the

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exact time you need lifetime income and that's what i call defer to spea meaning that you might not buy the annuity now you might buy it the immediate annuity at the time you need income give you an example i had a call the other day and the person said should i buy

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a deferred income annuity or income rider and the plan was to turn on the income stream in five years or should i wait the five years and buy the immediate annuity at that time say buy a five-year multi-year guarantee annuity get an interest rate and then transfer

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that to the highest paying immediate annuity at that time as i tell everybody there's no good there's no good answers um just bad sales pitches right there's no perfect answers to that but there's an argument in the environment that we're in right now and look at the date

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that this is being um recorded uh interest rates are allegedly supposedly planned to go up by the fed now at the time of this taping there's some intervention with russia and ukraine that might throw a wrench into that interest rate raising engine but if it does go up

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um even though lifetime income is a pr is primarily based on life expectancy interest rates do play a secondary role so it might make sense to buy a myga now five years get it at the time of the taping you get a little bit more than three percent uh annually on omiga and then at the

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time you need income five years from now we can transfer that and shop all immediate annuity carriers for the highest contractual guarantee now with that being said did the annuity companies know that i just said that do they know that's what you're thinking

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yes so what do they do they make they make it a tough choice meaning that if you bought a deferred income annuity today or an income rider today and turned it on in five years they're going to reward you for letting them hold on to the money they're going to enhance that

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payout at the five year point so it's it's a tough choice i really tell people go with your gut feel if you want to lock in those guarantees and no to the penny um in five years what it's going to be then great let's lock it let's quote deferred income annuities and

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income riders for the highest income later quote on the planet or you might say you know what i just i just don't want to do that i want to hopefully you know catch rising rates in combination with the life expectancy pricing and let's buy it five years from

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now so it's just a very very tough way to do it and as i always tell people because there's no perfect answers you might want us what's called split the baby as they say in the south and if you let's just say you had five hundred thousand dollars in mind to do that

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let's take two hundred fifty thousand dollars and buy an income later now lock that in take the other 250 buy the five year myga with the understanding that we're going to convert that to an immediate annuity after five years because again there's no way to pound

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the table which one is best i think there's a second part to that question miss producer there is with a with a fia there is the potential for future increase in one's income payout with the benefit base account growth due to the elected crediting index

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strategy above the fia's contractual guaranteed payout from your experience have you seen a future income increase from an fia with an income rider generating a greater lifetime payout versus from an immediate level payout from a spea the answer is no that and that's part of the bad

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chicken dinner sales pitch where people will say to you indexed annuity sales people will say i have this index annuity that increases with inflation that's going to increase every time the index increases are there such animals out there correct there are

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and just spoiler alert we love index annuities we sell index annuities we just don't pitch them and shine them up in and fraudulently misrepresent them we don't they are cd products period they're put on the planet in 1995 as a cd product that's exactly what they do

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that's exactly what their historical returns show but there are just look just think logically annuity companies don't give anything away i always say they have the big buildings for a reason so if anyone says that the income stream is going to increase with the index increase doesn't

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that sound too good to be true nod your head of course it does so what does the annuity company do if they offer this type of product of course we offer it too if you want to look at it they severely severely and significantly lower that initial payment by anywhere from 20 to

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30 percent we've seen it as high as 40 depending on the on the product etc meaning that if you bought an income writer okay without the increase it's going to be 30 20 to 40 percent higher than if you bought the one with the increase got it same thing with immediate annuity

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if you bought an immediate annuity with a cost of living increase they are going they the annuity incomes are going to significantly lower that payment to make up for that typically and we've looked at it there's no there's no tried and true rule it's a six to nine year break even point

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once again the way to filter this out if it sounds too good to be true it is every single time and if you're buying annuities for what they will do not what they might do then you're not going to buy that product which leads you to say wait a minute

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stan how about inflation this guy's talking about inflation and you're really not talking about inflation so let's talk about inflation because that's what this is all about you want to find that perfect product that increases and adjusts and floats with

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inflation it doesn't exist just in the sales pitch so how do you do it stan here's how you do it everyone has an income floor everyone has an amount of money that they need to hit that bank account every single month period everyone's different it could be five

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thousand three thousand seven thousand ten thousand whatever it is but let's so you solve for that use as little money as humanly possible to solve for that and on all of our calculators you can one run what's called a reverse engineered quote meaning well stan we need 2 225 a month

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right now just fill in the gap well then let's solve for that and use the least amount of money to do that but when inflation hits and inflation is customized and personalized to your situation so i know that the media thinks that there is an inflation inflation it hits

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all of us differently nod your head it's true so let's just say your situation is right now you need five thousand dollars a month and we solve for that two years ago but now with inflation you need an additional 250 a month for that income floor guess what we do we do a reverse

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engineer quote for an immediate annuity solving for the 250 a month joint life single life whatever you want to do and then if it happens again we do it again in other words we use the at least the least amount of money to solve for that specific inflation need for the

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income floor at that time to answer your question in a roundabout factual way the index annuities that are being pitched out there that increase with inflation with the income stream are too good to be true they're not bad products they're just too good to be true you're

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better off doing it the way that i told you to do it so don't fall for the sales pitch don't fall for the back tested numbers don't fall over well if you'd owned it 10 years ago don't fall for that period and by the way i'm pounding the table with the

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industry to to make that illegal it's never going to happen i think but i hope so so people don't show back-tested numbers that's crazy you should base your decision on the contractual guarantees and i understand well i've kind of got to know what the index now

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you don't look at the index that's being offered whatever it is look at the participation rates caps and spreads we'll help you with that and let's base the decision on today not 10 years ago you know better than that don't fall for that all right i think i answered that

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question what do you think any other questions david testing does it make sense to have an annuity inside of a roth ira that's a really good question and a loaded one so let's go through that in a perfect world that i live in where the unicorns do chase the butterflies

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if you have a roth ira and you have an ira and you have some non-qualified money you've already paid taxes on the on the roth ira amount in a perfect world that's where your non-annuities should go for market growth real market growth but i had a call the other day and the guy said

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you're saying you know 80 percent of my money is in roth iras we've converted most of it 80 under that scenario then it does make sense and if you put money inside of or if you put an annuity inside of a roth ira and you take money out whether it's a lifetime income stream or

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withdrawal or interest whatever type you're getting obviously that money taken out is tax free but if when we have the conversation whether it's with me or my team we're going to say okay tell us a little give us the 30 000 foot view how much money do you have in your ira how much

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money do you have non-qualified how much money do you have in roth if there is a way for us not to use the roth and for you to keep that in etfs and crypto and mutual funds whatever growth means to you then we're going to advise you to keep that roth for pure growth and any time i

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use the g word anytime you're looking for market growth means you should never ever ever ever buy an annuity of any type period i don't care what anyone says shows you videos whatever i don't care what their sales pitch is if they're saying market growth then

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then they should not be talking about annuities period and that's coming from someone who worked for dean witter and payne weber and morgan stanley and ubs i understand markets i understand growth i understand it i managed it at a very high level for a very long time so when

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i it's kind of funny when i came out to the annuity world and i heard indexed annuity sales pitches talking about market growth i'm going wait a minute first of all that's not a security so you really can't say that legally second of all that's not what it was designed

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to do in 1995 it was designed to to compete with cds indexed annuities are not bad products we primarily use them for the delivery system for income rider guarantees but what index annuities do on a standalone without the income rider it gives you a better better than average chance

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of getting a better than average return say like on a cd just remember that it's just you might get 100 basis points more than a cd one percent or two percent if the if the plan is aligned themselves but if you go into any indexed annuity thinking you're going to get market

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growth you're not and the people that own them out there on this call they're nodding their head they know that it's true all right i think i got that one all right youtube user good name uh don't have a ton of money looking at retiring shortly an agent recommend an

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annuity but it only has a b rating i'm concerned i can't afford to lose money good question really good question number one annuities are commodity products there's not if anyone says this is the best one it's not it's not it's not period they're commodity products so you have

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to shop all carriers for the highest contractual guarantees out there and you know it depends on the type of annuity there are some times that we'll sell a b double plus miga that's a three year or a five year a b double plus miga that's a two year why because we're only

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marrying for that two year time period but my opinion on the b rated is if you're buying a lifetime income stream product i would go with a higher rated company now on our site we we list comdex scores and you can pull that up if you scroll at the very very very bottom

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of the uh of the website you'll see comdex rank because maybe producer you can show that while i'm talking about this in comdex we like it it's not perfect it's 100 score but it shows um the a and best standard poor's moody's and fitch ratings so you know i think yeah show

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them where this is and we give this away for free updated every single month but if you go to the we don't have to go there producer just show them where it is see convex rankings right there if you click that it'll take you to a screen where you can download a pdf it's

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20 pages it lists all the the annuity carriers on the planet and you can look at the the ratings but getting back to your question i think you will find if you if you contact us we'll shop all carriers based on your customized situation we'll find an a rated or a plus rated carrier that

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i would probably predict is either better from a contractual guarantee standpoint or really close at their own if this agent's only showing you that then you need to walk away and you need to um you know you need to contact us and have a shop all cares here's another thing

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too and this is very important people always ask how much money should i put in the and there's no good answer that just bad sales pitches but the but the the bogey that i put on on this question is you should once you're at 50 of your portfolio and annuities that that kind

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of is enough and you need to convince me why you need to go further than that so i can make the case to the carriers but that's not just my rule the annuity industry as an industry leans on that 50 of your portfolio they don't want people putting all their money into an annuity

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does it happen do agents get away with that yes they do unfortunately whether they fill out the paperwork fictitiously i don't know how they're doing it but the bottom line is they shouldn't do it it's really at 50 you should be saying wait a minute what am i doing

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here what am i trying to solve for do we have clients more than that yes there's specific situations of what's been explained to me of which i have to go into the carrier and make a case in my opinion acting you know acting as every financial advisor should act as a

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fiduciary and saying i think this is in their best interest and that's and so keep that in mind too so if you have a hundred thousand dollars and someone's saying hey put all hundred thousand dollars that's no don't do that period okay next question if you move to another

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state or another country does that change the terms of espio no it doesn't change the contractual guarantees if you move to another state the only thing that changes is the state guarantee fund coverage of the amount that you put in we do have some clients that that

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expatriate i just got a one the other day and they were living in the state of washington and they're moving to vallarta mexico they had already purchased a house there and they have a a banking relationship with a with a a large bank that has you know branches

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all over the world and it's just gonna you know if they bought it here and they're gonna move there two years from now and it'll just be money going to the bank account and they can use it in mexico so yes you can't but you cannot buy an annuity from another country you

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have to be in the in the country a resident of a specific state with a social security number to buy an annuity period ronnie pugh why don't more couples choose the wife as a single nude instead of taking the lower paying joint life my wife is seven years younger there's

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almost no chance i survived that's a really good question ronnie because when you do joint life in this situation ronnie does it and his wife is seven years younger in his joint life let's just say they choose joint life what does the annuity company do they

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ignore ronnie they look straight at her and say we're going to base our life the payment on her so ronnie's got instincts pretty good if you're going to do a lifetime income stream and you're that much older than your spouse okay it probably would make sense for for us

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to structure it so that it's on your wife's life okay and you can have a cash refund or installment refund in case something happens to her because remember this this is common sense when an annuity company guarantees a lifetime income stream okay the payment is going to be

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higher for one single life than it would be on a joint life so ronnie's instinct's good here i'm glad you brought that question up because in this specific situation it should be just on her life i did one recently this week i believe and the dif the differential was 14 years and the

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gentleman had heard me say you know you need continuation of the income stream uninterrupted and unchanged for the spouse but what i told them i said hey player you're probably not going to outlive your wife you're 14 years older let's just put it on her life with cash

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refund making sure that you know 100 of any unused money goes to you if she dies early in the contract but most likely she's going to outlive you and she's going to get a higher payment that's obviously going to continue uninterrupted and unchanged when you die

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because it's on her so to answer your question ronnie in your specific situation it should be on your wife period jason jason was on the call early thanks jason i appreciate that um you're 44 and you're 41 okay here we go now you should not buy an annuity

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okay if you're less than 50 years old i had and now you can schedule call with me and put in that call i really want to speak to stan on this because i was on the call but um in most cases you're too young for an annuity because the the annuity company

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looks at you and your wife 44 and 41 and they say you know what you have 40 plus years of life expectancy and they're gonna they're gonna base that if you're buying a lifetime income product they're gonna base that payment and stretch it out over those 40 years

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my opinion you'd be better off by not buying an annuity of any type keeping your powder dry keeping the money in real growth products that means non-annuity and then calling me and or my team um you know once you pass that 50 threshold um you know i i think i know that was part

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of your second part of your question but i i wanted to just step in here because i get a lot of calls from people saying you know i'm 42 or i'm 39 or i'm 46 and someone's trying to sell me this annuity that's that's just inappropriate my opinion it's not suitable um but you know when

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you get 250 and you have a hundred thousand dollars each yes you can roll your ira over and buy an annuity um but there is an early withdrawal penalty as you pointed out on this question depending on the type of annuity let's let's look at say if you bought an index

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annuity or a multi-year guarantee annuity and you're taking or an income rider with that and you're taking money out okay um pre-59 and a half there's going to be a penalty if you buy an immediate annuity that's annuitized i know i'm getting the weeds here but hang in there with me

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before you're 59 and a half you circumvent those penalties but the question truly is why are you doing that and that's what i want to find out if you are you know 52 or 53 you need to tell me why that you're trying to buy an immediate annuity or something for

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something for lifetime income at that young age if you're buying a principal protected product like a multi-year guarantee annuity or an index annuity i'm going to remind you and say hey this is okay if it meets the qualifications of what you're trying to

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do solving for principal protection or income legacy long-term care but i need to remind you you can't withdraw money pre-59 and a half if it's one of those deferred type products so i think the bottom line with this question is the answer is yes you can do you can

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buy annuities you can roll your iras into annuities etc but the bigger and better question is why why are you doing it at such an at an old age i'm a young age you should kind of wait and if there's a reason for you to wait i'll tell you i had a call to um

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this week similar situation person was in their 50s have been sold annuities i said you know what you really don't need them right now wait till you're maybe 55 contact me because they told me their situation your situation jason might be totally different but at the end of the

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day you're very very young in the annuity company's eyes so you need to make sure that um you're doing the right thing and not locking up money because understand this annuities are transfer of risk products so you're transferring the risk for the annuity company to solve for

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lifetime income or principal protection at the age that you're at and even at age 50 the question is do you need to transfer risk risk which leads us back to the title of this of this um live event do you even need an annuity in your situation at your age the answer

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is yes but probably right not right now or yes but maybe later everyone eventually is going to need lifetime income everyone eventually is going to need principal protection the question is is it time for you to transfer risk something we need to talk about for sure next question

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alicia um is getting a long-term care component to your new is it seems that only for f okay what you're talking about and everyone's reading that on the screen see what she's talking about is an indexed annuity that has an income rider and it's been pitched as long-term

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care well you get this income rider and if you get sick you know it'll double for five years sounds good okay it's a guaranteed issue but that's not long-term care understand this and my friend jack linenberg who's the number one long-term care expert in

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the country and he's been on some of my podcasts by the way have a podcast every tuesday called fun with annuities check it out um but jack says if it's not tax-free benefits then it's not long-term care so the question to this agent who pitched it is oh that's great it's long-term

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care is it tax-free they're going to say no it's not tax-free then you say okay great it's not long-term care so what is this stay in the annuity man this is what's called in our business confinement care or an enhanced benefit let me give you the southern version of

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that when you get sicker you get your money back quicker that's all this is in other words when you can't do two to five daily functions as an example they all have different rules but let's just say that's the example and what are the five daily functions

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feed yourself clothe yourself paid yourself i mean if you can't do that life stinks anyway but the point is they double the income so let's say you bought the index annuity with the income rider you're getting 10 000 or 5 000 a month and you get sick and you qualify

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for this confinement care they're going to increase it to ten thousand dollars per month for that five years why five years because you're not once you qualify you're not going to live past that in most cases uh just just mathematically historically should you

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buy this if you're looking for real long-term care no you shouldn't buy this should you buy it should you cash in your long-term care and buy an index annuity with confirmer care uh heck no you should never do that you should always look at true long-term care and i will

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send you jacqueline birth you can go to my site he's got pages on there on the podcast where you can contact jack have him exhaust all long-term care possibilities this what you're talking about here alicia is the last resort after you talk to jack after he's

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shopped all carriers for real long-term care that's tax-free in the benefit side and he comes back to you and says i can't do anything you don't qualify then we come back and look at this product but this is nothing more this should never be used as primary coverage this

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is only supplemental coverage and shame on that agent if they use the word long-term care to describe it because it doesn't apply okay long-term care equals tax-free this is not tax-free you're getting your money back quicker when you get sicker they're enhancing it and increasing it

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during that five-year time period and if you live past the five years then the income stream goes back to the original amount that it started before you got sick i don't think this is a great benefit but for the person out there that's drinking a bottle of jack daniels every

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single day and smoking new ports the menthol version every day you know two packs a day and they can't qualify then this is your only option but this isn't and shouldn't be your first option does that make sense kent for iras with rmds required our

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annuities appropriate vehicle in the ira to fund the yearly rmds with the allowable withdrawal percentage the answer is yes kent you can do that there's you know most annuity types are rmd friendly and and qualified longevity annuity contracts are actually designed for use

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in iras um and can and can possibly and potentially redu reduce the taxes on your rmds but let's take a specific example examples let's just say okay stan i want to protect the principal i just want an interest rate kind of like a cd listen let's buy my multi-year guarantee

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annuity keep the duration short and then choose the multi-year guarantee annuities that are r d friendly we know which ones those are which means that you're going to get the interest rate but then you can pull out the rmds that's needed and um not disrupt the

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policy but the other way to do it is if you said stan i want to we need lifetime income me and the wife need lifetime income um then we would buy a let's say a immediate annuity let's just say you had a million dollar ira and the 300 you took 300 000 and bought an

32:58

immediate annuity inside of your ira and you're getting income from that 300 000 spia inside of your ir that income coming from that immediate annuity is is fully satisfies the rmds for that immediate annuity amount that 300 000 then you'd have to take rmds on that

33:16

additional 700 000 in this one million dollar ira example so yes it can you can use them it's something that we need to talk about one-on-one just because it is customizable and i want to hear what you're trying to do what you're trying to solve for make sure you're not

33:31

putting too much too much money into an annuities getting back to the title of this this uh this event is do you even need an annuity under this premise if you said stan i kind of want to turn key some of my ira from an rmd standpoint then we can do that and provide lifetime

33:47

income stream you can set up for your life or your life with a spouse so it is doable but it is customizable okay we have two questions about the 50 rule so i'll put those up on the screen here we go does the 50 rule apply to each or a combination combination

34:08

combination i'm looking at it as a household so here's the bottom line richard and everyone out there listening and viewing this you don't want to put too much money in annuities and that's coming from the top annuity sales person in the country i

34:23

mean and i'm the first one to say you can't go all in you know we're going to reverse engineer quotes to softer income if you say stan i want principal protection i just want to do migas or index annuities that's fine but we just need to make sure that you keep enough

34:37

money a in cash and be in real growth um uh investments so that you can your portfolio is going to grow but it does apply to a household okay not just an individual um chuck does the 50 ratio of your total portfolio also apply to the money i may want to put into my goods yes it does

34:58

it does um and i'm one of the few people out here i i get angry letters and calls and emails from agents that are mad because they were trying to sell someone 80 of their portfolio annuities i don't think a lot of agents even know this the annuity industry has not done a great job

35:15

of kind of promoting this and i think the reason is because it's not a tried and true rule it's a suggestion it's a recommendation from the um annuity industry that they don't want to put you to put too much money into annuities because there was a time you know a

35:30

decade or so ago that that that suggestion recommendation was not in place and um and there were people selling 100 of everybody's money now there are times when we had a time that i think was two weeks ago and a gentleman said he he had some annuities

35:45

he wanted to put more in in others he wanted to cross the rubicon of 50 and maybe go to 60 or 65 or whatever it was and we went to bat with the carry we said hey this guy's qualified this is the reason that he wants to do it the reasons made sense it was in his best

36:01

interest and they turned him down why because he they their comment they the annuity company was he had in their eyes he had too much or enough in annuities at this point in time and they didn't feel comfortable accepting more money based upon the

36:15

annuities he already owned so the people that are looking at the paperwork at these annuity companies are going to look at obviously the agent can you know we're going to be obviously honest and truthful on the application my team is fantastic that does that but there are

36:29

some agents that know that rule that are going to get around it and not and kind of beef up the number so that doesn't exceed that 50 rule that's the reason some of that stuff comes in and people call me and say you know stan i got 80 annuities i'm trying to figure out how

36:42

and that's how is i'm not accusing anybody of anything but that's the only way it gets across in a lot of cases because companies uh carriers do not want you to have too much money into annuities and they will turn down the business and not accept your money if they look at it

36:58

from a compliance standpoint and deem the fact that hey he's already got too much in our opinion as the carrier and we're not going to accept it we saw it happen just recently with one of our very very good clients um teresa do my guess have a death benefit

37:14

or does each charge a fee to to include beneficiaries very good question teresa hi virtual high five when you go to my myga feed and maybe producer kind of show people where they can look and like everything on my site you can you can look at this stuff 24 7 365. um

37:32

and just yeah just show them the my feed if you go to that front there's the micro feed but if you go to the go to the main page if you if you would so here's the main page and if you say i'm i'm going to check my see that see live rates where she is if you click that it takes you

37:46

to you know the live maga feed and then all you have to put in is your state of residence and then and then what years let's go through that real quick just to show people we pulled up alabama that's three years okay so that's that and again choose your own status to drop

37:59

down but go back okay stan what's a five years show them how to do that producer is you click the change the state years and then you put in the you know you put in the five year and then it pops up so that's how it works live feed etc but to answer your question teresa which is

38:15

phenomenal and i'm glad you brought it up some some mica carriers when you die there's no penalty et cetera your your benefit list of beneficiaries get 100 of the money penalty free but some do charge a surrender charge to your beneficiaries when you pass away and we'll tell you

38:33

that we'll say okay this one has a high rate but if you die in you know during that surrender charge time period there's a surrender charge for your beneficiaries most do not do that but some do that so you have to be very clear with us on your intentions do you

38:47

want to make sure that your beneficiaries don't have that surrender charge or do you want to just you know in some cases some of the higher yielding migas will have the highest yield but yet they'll have that surrender charge for beneficiaries so you just need to be very clear with us

39:02

we're certainly going to ask that question of you um at the time of application okay what do you want to do with beneficiaries are you okay with this etc but there's no oh there's i mean there's nothing uniform in the in the annuity industry even though it's a commodity type

39:16

industry you know carriers put out products like migas and some of them have the death benefit that's penalty free and some do not good question peter so if you move to another country there's no guarantee in case the annuity company you have um i don't think so i don't really know

39:32

that answer i'm not going to bluff um we've never i've never been to that rodeo before i've never had i've had a bunch of clients move to costa rica and nicaragua and panama and now mexico we've never seen that happen to where there's been a default situation with an annuity company

39:49

and did they pay i'm going to guess no okay just because you're no longer a citizen of the united states but but to give you some solace there the annuity industry is not smarter than banks they're just more regulated than banks in my opinion that's the reason you

40:04

haven't seen issues with them because they can't go crazy with your money and they can't do stupid things they have to do you know put your money with the fixed annuities and investment grade bonds i know we can go down the conspiratorial rabbit hole with that one

40:17

but the point is uh we really haven't seen any hiccups in the annuity industry but if you move to let's just let me put it like this if peter if you are thinking about moving to panama and you want to buy an immediate annuity here first then i would buy it with one of the biggest

40:33

companies on the planet i'm not going to mention their names they get enough publicity as it is but i represent every single one but an a double plus carrier a hundred out of 100 on a comdex score and then you can go overseas and live your life without

40:47

worry so oh by the way and if you say well what happens if the big ones go to be then it's anarchy and i'm fighting you in the in the grocery store for white bread you know that bunny bread that really nasty bunny then me and you are having a fist fight over that it's

40:60

anarchy if these big companies go out of business it's not going to happen i know there's some people out there going well it could happen no it's not gonna happen period so next question we have no children so really don't need to leave anything on the table any

41:12

suggestions if you're buying a lifetime income stream annuity then then i would buy it joint life only you know i have to look at your ages you know once again we had that question earlier about somebody who's younger uh than you much younger but if if you're in the you know

41:26

within five years of each other from a spousal relationship type thing then let's do joint life only let me explain joint life only joint life only means that when the one spouse dies the income continues uninterrupted and unchanged for the surviving spouse when the

41:42

surviving spouse dies money goes poof and joint life only would provide the highest contractual guarantee payout on the planet because you're shouldering some of that risk they're going to pay you as long as you're breathing but once both of you stop breathing then the

41:56

money's gone so in your situation the structure if you're looking for lifetime income would be joint life only okay anything this is our last question coming up so if anyone has any questions please post them now great okay alicia if a spouse gets an annuity and

42:17

in it they pass and they pass away and then it goes to the spouse does that mean that the kids cannot get it after spouse dies okay let's talk about that alicia let me let me see if i i'm i'm gonna filter what you're saying here you get a joint life payment with your

42:31

spouse and your kids are beneficiaries and you know the husband passes away which means the money continues under uninterrupted and unchanged for your life but when you pass away if you if you structure it joint life only then the kids get nothing there's no

42:46

beneficiaries if you structure joint life with cash refund then they're going to get the lump sum of whatever's left in the account because remember lifetime income with annuities is a combination return of principal plus interest you're drawing down on the asset and even if the

42:59

account goes to zero the annuity company's on the hook to pay but let's get to the question here if you set it up joint life with installment refund or joint life with a period certain and the second spouse passed away then whatever's left in the account would be paid in payment form

43:15

to those kids until the money's exhausted but a beneficiary let's be real clear about this a beneficiary is not going to get a lifetime income continuation so in other words if your joint life with your spouse and your kids are beneficiaries we can set it up so that they can get

43:33

the money either lump sum or in payment form of any money that's left over okay but they're not going to get a continuation of the lifetime income stream when the second spouse dies i hope that cleared that up all right next question good one what do

43:50

you feel is the lowest convex score we should feel comfortable with you know that really depends on the type of annuity in my world because let's let's give let me give you an example if you're saying to me hey stan i need a lifetime income stream okay i

44:03

need a lifetime income stream that i i'm going to feel comfortable with et cetera i just have a and this is just me and i'm sure people will disagree with it but if you're talking about lifetime income we got to go 80 and above on the conduct score just for me that's just me

44:16

that's the way i roll but if we're talking about mygas multi-year guarantee annuities we're doing five years in n or two year migrate or three year might remember mangas are the annuity industries version of a cd okay if we're buying that then i'm not looking at the

44:30

condex scores as much i'm looking at the carrier to see if they can back up the claim for that specific time period so no there might be a b double plus company that we like that has a three year guaranteed miga we're only going to be there for three years so i'm making my

44:46

decision and recommendation on can they back up the claim for three years because after that we're gone then condex scores don't apply as much as they do with a lifetime income stream because lifetime income stream we're transferring the risk as long as you're

45:00

breathing so at that point in time we're 80 and above and here's the thing on the condex score here's the thing though comdex is not perfect um those the 100 score is great but if if companies don't retain all four am best moody standard poor's and fitch to

45:15

rate them and it's a pay for play by the way then they get dinged a little bit on the score in a lot of cases so it's not perfect but it's the best that's out there and it's the only service that shows all four rating services i know people out there go why don't you list weiss my

45:30

friend martin and then and we just don't because you know he's been a curmudgeon all this stuff he's been wrong on a lot of the stuff he's very very anti all annuity industry i think i think am best standard poor's moody's and fitch is a great um way to look at it and then comdex

45:46

scores easy to understand one to a hundred but if you're buying speas dias different income annuities qlik qualified longevity annuity contracts or we're buying um income riders i'd like for it to be 80 or above are there exceptions sure there are exceptions but

46:01

most of the time it's 80 or above p can a beneficiary of a my goal with a surrender charge on death benefit wait to take the proceeds until the maturity the no well no the um the only beneficiary that can is the wife the wife can continue the policy but the they'll say your son is the

46:22

beneficiary the answer is no okay anything else sean can you purchase an annuity in a solo 401k it depends on who the provider that solo 401k is the answer is yes in most cases but my question to you is why 401ks are accumulation products they should be for growth okay they should be

46:44

for market growth so under that premise of it should be for market growth and that eliminates all annuities i know that my annuity brethren and brother annette's out there yelling at the stream but you know i'm right if you're wanting true market growth you

46:56

don't need annuities but yes you can purchase these inside of a solo 401k i would just have no have to know a little bit more about you your age your goals and what you're doing most solo 401ks are entrepreneurs most solo 401ks are business owners most

47:12

solo 401ks have are for people that are that are working are going to continue to work and that need growth okay alicia my my question really was if you got okay there's a follow-up to the other one if you've got an individual annuity the spouse and the spouse is the beneficiary

47:30

can it go to the kids once yes yes it can um so let's look at this alicia i think i understand your question now um if the spouse is the beneficiary and the kids are bit let's just say the spouse is the primary beneficiary 100 is going to go to the spouse if something happens

47:45

to you and then the kids let's say you have two kids and their secondary beneficiaries 50 50 each and your spouse dies okay and you're still alive then the kids move up to be primary beneficiaries 50 50. that's how that works okay chuck i like that name chuck bracey

48:07

if you have a indexed annuity with an income rider inside of a roth ira are the payments taxable after the account value is up i don't think so producer ceo i don't think so weigh in on that because i don't believe so either i would have to research it to make sure but

48:22

again we're not tax experts we're just going off of what we know exactly we're in been doing this a long long time but have not the roth iras are so new from the standpoint of them implementing it and income riders are relatively new as well do do some of our clients have income

48:40

riders with with uh in with inside of a roth because they they wanted it there yes but we haven't gotten to the point where the accounts at zero yet so i don't have a real case real world example now the cpas that i use and have on retainer the tax lawyers i've had on

48:53

retainer and i've asked them this question they have unanimously said no it is not after the value is used up they have said that i'm not hedging but again i'm not a tax expert that lovely voice you said you heard on the on the uh on on this was was was leah she's the

49:10

director of operation ceo of the company and she's been in the business a long long time as well but i think the answer is no that is it for questions hey i appreciate you joining me that was a lot of fun we do this every single month i encourage you to go to my site run

49:27

quotes get the books schedule call and also too remember my fun with annuities podcast it's not about annuities if you've listened to it we have some really good guests on every single tuesday hey thanks for joining us on a saturday i really appreciate you being

49:41

here and we will see you next time [Music] you

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