Mr. FIA-X: The Truth About Current Fixed Index Annuities

0:04
welcome to fun with annuities with your

0:06
host me stan the annuity man america's

0:09
annuity agent can annuities be fun can

0:12
contractual guarantees be fun

0:14
absolutely they can find out the brutal

0:17
facts about annuities with no sales

0:20
pitches or high pressure nonsense just

0:23
the brutal and factual annuity truth

0:25
which is all you need to hear

0:27
let's have some fun with annuities and

0:29
let's have that fun start right now

0:33
[Music]

0:39
welcome to fun with annuities i'm your

0:41
host stan

0:42
the annuity man america's annuity agent

0:44
license in all 50 states

0:47
a repeat guest today we are so happy to

0:51
have him back he really needs no

0:52
introduction other than he is the

0:54
smartest person in the room when it

0:55
comes to fixed indexed annuities also

0:58
called index annuities formerly called

1:00
equity indexed annuities he is unmatched

1:02
he's forgotten more than anyone's ever

1:06
known ever

1:07
about indexed annuities but he has to

1:08
wear a mask because this is a very very

1:11
touchy subject with the carriers out

1:13
there and with clients and with agents

1:15
and you know the hate mail is going to

1:17
come in and that's okay and without

1:18
further ado

1:20
let me welcome to the program mr

1:22
f

1:23
i a x welcome mr x

1:27
well that was quite an introduction

1:29
you know that's what i do that's how i

1:30
read everybody

1:33
tip your waitresses two shows nightly

1:36
all right we're gonna start this off in

1:37
a different manner mr x um because

1:40
people always say well

1:42
stan do you hate induction now i

1:44
probably sell more than anyone on the

1:45
planet but we sell them properly not the

1:48
hype and not for the bonuses and for ups

1:50
and market upside with no downside no we

1:53
don't we we sell them for what they are

1:56
what they will do not what they might do

1:58
so mr x let's talk about some of the

2:01
positives

2:02
of indexed annuities so people can kind

2:04
of strip through the bad chicken dinner

2:06
cinema in our pitches and the online

2:08
stuff that they're seeing

2:10
tell the people why these things do work

2:12
and do and possibly have a fit in their

2:15
portfolio

2:16
well first and foremost it's easy safety

2:20
your principal your principal may be

2:23
safe depending on

2:25
riders or do they have a fee structure

2:28
or a cap structure they can be a little

2:30
complicated but the premise overall is

2:33
guarantee a principle

2:35
number one in a principal protection

2:38
world of annuities and and i live in

2:39
that will do world

2:41
that's multi-year guarantee annuities

2:43
which is the rich just the purest and

2:46
simplest version of a cd product because

2:47
that gives you a guaranteed interest

2:49
rate for a specific period of time and

2:51
then the other principal protection cd

2:54
product

2:55
are indexed annuities and that's when

2:56
the

2:57
the

2:58
the tops of agents heads pop off because

3:00
that's not the sales pitch

3:02
that they're pitching out there which is

3:04
which is really

3:06
unfortunate mr x do you when you talk to

3:09
your internal people at the carriers

3:12
are they frustrated with the messaging

3:14
that's out there with indexed annuities

3:17
well i think the carriers and them all

3:19
are frustrated they want to make sure

3:21
everyone's acting in the best interest i

3:23
don't

3:24
want anyone to think the insurance

3:26
companies saying haha do it this way

3:28
agree i do think there's bad actors i do

3:31
think there's and it's not so much the

3:33
bad actor as much as it is

3:35
just not understanding lack of education

3:37
lack of training right um

3:40
more of a salesman mentality than a

3:42
planner or professional mentality

3:45
professionals always make more than lay

3:47
people

3:49
it's just how it works planners make

3:51
more than sales people okay but the

3:54
problem is that those people that are

3:56
the sales people sell a lot of that

3:58
sizzle but there isn't any steak there

4:00
when they get done

4:02
partially because they don't understand

4:04
but also partially because some of them

4:06
like you say might be sociopathic they

4:09
do understand but they do it anyways

4:11
there's bad people in all sales

4:13
industries it's not just the annuity

4:14
industry one of the things that that we

4:16
talk about all the time off air of

4:18
course i want to talk about it now is

4:20
you just you wish you know you wish for

4:23
a lot of things you wish for six-pack

4:24
abs you wish to be taller you know you

4:27
wish to be more attractive i understand

4:28
all of those mr x but you also wish for

4:32
indexed annuities to be more simple can

4:34
you explain your wish list for that

4:38
well first of all i just believe that

4:41
obviously safety

4:43
care about

4:44
but the clients need to understand what

4:48
they've purchased

4:50
and what i find is if the agent doesn't

4:52
understand it how is the client going to

4:55
understand it

4:56
because they're the conduit of the

4:58
explanation they may come in and say

5:00
look at this xyz wizard index yeah i've

5:03
never heard of that one oh yeah but it

5:05
returned 25 over the last 10 years oh i

5:08
like that one and then

5:10
the expectation is

5:12
here but the reality is over there and

5:15
that's where that disconnect and that's

5:17
where buyer's remorse and black eyes and

5:20
all the negative things that we hear

5:22
come about i cannot tell you how many

5:25
people say annuities are bad stan i say

5:27
well explain the annuity to me and it's

5:29
not even the product they explain

5:30
doesn't even exist

5:33
and they already own one which is social

5:35
security and a lot of people get mad

5:36
when i say you can you can somewhat

5:39
classify rmds as an annuity even though

5:41
it's not but it it's a it's a lifetime

5:43
payment as long as there's money yeah i

5:45
mean

5:46
yeah i get a lot of a lot of emails from

5:48
planetary you need to stop with the rmds

5:50
as a forced annuity i'm like okay but

5:53
the definition is pretty pretty clear

5:57
getting back to the simplicity and i do

5:59
think that

6:00
me and you are both waiting on a carrier

6:03
to make it so simple that a

6:04
nine-year-old could understand a new

6:06
offense to nine-year-olds and we have

6:07
actually thought about pooling our

6:09
hundreds of millions of dollars

6:11
that we fictitiously have into and just

6:14
our own annuity company and coming out

6:16
with it i do think the first carrier

6:18
that calls a stan the annuity man or

6:20
america's annuity agent said i have

6:21
something so simple that i think

6:24
anyone can understand on an index

6:25
annuity chassis

6:27
i think they're going to dominate the

6:29
industry don't you

6:30
i

6:31
i agree i i i totally agree the problem

6:35
where some of that comes is obviously

6:36
pricing profitability you know insurance

6:39
companies are not benevolent societies

6:40
and they're not you know

6:42
you know charity based they they are you

6:45
know in it to first some of them are in

6:46
it for shareholders some of our in it

6:48
for members depending on the company if

6:49
you have a stock company or a neutral

6:51
company it's very different or a hedge

6:53
fund

6:54
excuse me

6:55
somebody's getting into the business too

6:57
yeah but i stopped because they they

6:58
have stock in those companies sure so

7:01
it's very important that that with that

7:03
but i agree i

7:04
i think simple is better

7:07
i also think they need to be careful

7:09
when they explain all these wonderful

7:12
things the annuity can do just because

7:14
it does all these wonderful things

7:16
doesn't mean there's not a cost for it

7:18
correct

7:19
you're paying for it somewhere if it

7:21
does this wonderful thing it means you

7:22
got something less wonderful somewhere

7:24
else for them to afford that one

7:26
wonderful thing

7:29
and i agree with you stan the day that

7:31
they can make this

7:32
simple

7:33
like a

7:34
one or two sentence explanation

7:37
to describe the whole thing

7:39
that guy's gonna be the winner

7:40
somebody's gonna do that and and i

7:44
believe you and i've been approached by

7:45
carriers before about their index

7:47
annuities and i every single one of my

7:49
go first of all i don't i don't promote

7:52
specific products or carriers but if i

7:53
did that's not the product because we

7:55
can't explain it to the nine-year-old

7:57
and i always say to people

7:59
and rich people out there take this the

8:01
right way please iq does not net worth

8:04
does not equate into iq just because you

8:06
have lots of money

8:08
doesn't mean you're smart just because

8:10
you have i mean and i think you can say

8:12
the same thing because we've both been

8:13
in the business for a long long time

8:14
decades some of the dumbest people i've

8:16
ever talked to have so much money they

8:19
don't know what to do with it whether

8:20
they've earned it found a niche

8:22
you know it is what it is but you know

8:24
nothing against then and no slight the

8:26
annuity industry can be convoluted i

8:28
blame the industry for that and

8:30
especially in the indexed annuity side

8:32
um

8:33
i you know so to to to explain a lot of

8:37
the indexed annuities that are out there

8:39
it's it's like i say it's like showing

8:40
paintings to blind people

8:42
and you're in it's and it's in a it's

8:44
more of a relationship so i think the

8:46
index annuity

8:48
space

8:49
the second it goes away from being a

8:51
relationship cell to a just a straight

8:54
up making a decision on the fax cell

8:57
that's when you're gonna see

8:59
real numbers hit because at this point

9:01
in time people that buy index annuities

9:03
that that call me and say hey stan i

9:05
bought this and i really don't know what

9:07
i bought and i'm like well why'd you buy

9:08
it well i really like my advisor that's

9:10
not a good reason to buy it but that's i

9:12
think a lot of the sales happen

9:14
that way don't you agree

9:16
well there's one misstatement in that is

9:18
that the advisor probably doesn't know

9:20
what he sold either stamina you need to

9:21
put that in there too okay

9:23
because if you ask them to explain the

9:26
index explain how it's weighted explain

9:28
what's in it explain that they can't all

9:31
they can say is oh it's this thing

9:33
comprised of this it's been managed if

9:34
you look back historically here's what

9:36
he did

9:37
and and

9:39
be careful there's a very famous saying

9:41
in the brokerage where all that past

9:43
performance is not indicative of current

9:44
results yes well i've got a new one i'm

9:47
trademarking it okay

9:49
the insurance results are not indicative

9:52
hypothetical made-up results are not

9:54
indicative of a current performance

9:56
right

9:57
if the indexes didn't exist how do they

9:59
come up with these returns

10:02
and you know what i call them i call it

10:04
i called all that back tested well if

10:06
you owned it 10 years ago that's

10:07
unicorns chasing the butterflies and the

10:09
unicorns never catch the butterflies

10:11
because the butterflies are flying way

10:12
above them meaning that it's all ten

10:15
years you're ten years too late if that

10:17
impresses you you're 10 years too late

10:20
by the way mr x i you know as i always

10:22
do

10:23
i put you on a pedestal because you need

10:25
to be there

10:26
for a lot of reasons

10:28
but one of the things one of the things

10:29
that one of the things that you nailed

10:32
in one of the past um

10:34
podcasts we did was

10:36
the prediction of bonuses the upfront

10:39
bonus season get your bonus get your

10:40
bonus right here get you up front

10:42
bonuses free money get your body and and

10:44
right now at the time of this taping and

10:46
you know we're typically a couple weeks

10:47
out on these you know markets have been

10:49
a tad bit volatile mr x and

10:51
you know now the pitch is well you've

10:53
lost all this money mr jones this

10:56
upfront bonus will make up for it

10:58
i swear to you if i hear that one more

11:01
time from a client going is that real

11:03
i'm like no you dummy it's not

11:06
what i mean

11:09
can can you help me with that i feel

11:10
like a i feel like a cable news um you

11:13
know you watch cable news and they they

11:15
talk about something and then they bring

11:16
somebody on they go you know i just said

11:18
this can you echo what i just said it's

11:20
like that's that's not an interview but

11:22
i need your compassion here because it's

11:25
driving me crazy mr x well i'm gonna

11:28
steal your line you always said bonuses

11:30
are candy for the stupid it is

11:32
okay well

11:34
i go back to

11:36
you have to understand how the bonus

11:38
works

11:40
is the bonus a real bonus in your cash

11:43
account or is it a bonus that goes into

11:46
your

11:47
income account which is all fake money

11:49
and we know that

11:51
and most of the time

11:54
it'll go into the income side and if it

11:57
doesn't it's vested meaning that yes

12:00
here's your upfront bonus but oh by the

12:02
way chester you got to stay the full 10

12:04
years to get it

12:06
or something like some type of rule

12:08
there's not a it's always say there's

12:09
not a philanthropist an annuity company

12:11
ceo that wakes up in the morning and

12:13
goes you know regardless of what stan

12:15
annuity man and mr fia said i want to

12:17
give money away to the people no one's

12:19
saying that

12:21
period well the other side is this stand

12:22
they may give it all up front to where

12:24
it goes in your cash account but then

12:25
look at what your surrender charges are

12:27
because your surrender charge instead of

12:29
10 maybe 17 or 20 percent because if you

12:32
leave guess what they just recaptured

12:35
the money they gave you

12:38
there's no free lunch by the way this is

12:40
something that people don't really

12:41
realize you may have a higher fee

12:43
structure if you have a bonus you may

12:45
have lower participation rates if you

12:47
have bonus you may have a lower cap if

12:49
you have the bonus they're going to chip

12:51
away at you little by little in

12:54
different ways

12:56
to recoup those dollars right

12:59
and i'm going to tell you this they

13:00
haven't been around for hundreds of

13:02
years because they gave all this great

13:03
money away

13:05
right is that how it works

13:07
it's actually penciled out

13:10
when this when you're going to pass away

13:12
and what they're going to pay out and

13:13
how many people take it and how many

13:15
people quit and how many people live

13:16
long and they know literally to the

13:19
penny how this stuff is going to work

13:21
i promise you they're not giving you

13:23
free money and when the agents come to

13:25
you and say oh get out of the market and

13:28
we're going to give you a bonus and it's

13:30
going to offset your losses

13:32
it sounds great

13:34
sure i get to recover my money sure

13:38
sure i also developed a uh a pill

13:42
mr x that if you take it

13:44
six pack abs in a week you only have to

13:46
work out well because mine worked in

13:48
four days so i've got to eat it's like

13:50
the six-pack abs and what was it

13:52
eight-minute absolutely i guess no i

13:53
wanted seven

13:54
i got seven no problem i want to go

13:56
backwards

13:57
i when we did our last call i think it

13:59
was maybe six months ago yes i warned

14:01
everybody come come first of the year

14:04
end of the year the annuity bonus season

14:06
would come yes i also said interest

14:08
rates were going to rise they did right

14:10
yes i also said get prepared for the

14:12
wild west because here it comes

14:15
stan is a man of the people and you take

14:18
these calls from clients every day yes

14:20
has the wild west begun it's in full

14:23
effect

14:26
fearing greed selling right now is at

14:28
its zenith point it is it is apex

14:31
without question believable unbelievable

14:34
the market's the market's not doing too

14:36
great it's been

14:38
well it's been crashing and then it's

14:40
got a little choppy and we have a little

14:41
wind streak and now we're gonna you know

14:44
you know i don't know i don't you know

14:46
what i know three things about the stock

14:47
market it's going to go up down or stay

14:49
the same that's it like you're beautiful

14:51
yeah you like that yes beautiful that is

14:54
30 years of doing this and that's what i

14:55
got so there you go it's going to go up

14:57
down or stay the same and that's just

14:59
the way it is and

15:01
we don't know where it's going to go

15:03
that's why you know like stan says i

15:05
like safety and guarantees buying for

15:07
what they will do not what they can do

15:09
read the contract understand what the

15:10
guarantee is here it is that's it it's

15:13
really a pretty basic game it is i

15:15
wanted to go backwards a little bit we

15:17
had test on this in the previous podcast

15:19
but i get a lot of people saying can you

15:21
explain that again to me and one of the

15:22
things i get a lot of times is

15:24
these options calls and call out you

15:26
know call options with spreads caps and

15:28
participation rates we you know i've

15:29
written a book on that and done videos

15:31
on that so we're not going to go down

15:32
that rabbit hole

15:33
but can you explain just that from a 30

15:36
thousand foot view

15:37
that it's not typically typically the

15:40
annuity carrier themselves buying the

15:42
call options they're farming that out to

15:44
the goldman sachs and the jp morgans and

15:46
the credit suisse people can you explain

15:48
that little

15:49
that little volleyball action that's

15:51
going on the insurance company will go

15:54
to an investment bank now some of the

15:55
insurance companies have their own

15:57
options yeah

15:59
i don't want to mention anybody no no

16:01
we're not going to options they do their

16:02
own stuff they keep it all internal but

16:04
others don't have that capacity so

16:05
they'll go down to say like a jp morgan

16:07
or a goldman sachs or whatever and say i

16:10
want to buy options in the s p 500 right

16:13
and they say okay here's the cost of the

16:16
option they go great they buy them they

16:18
take about 95 you know percent of the

16:21
money they buy a bond to guarantee they

16:23
take the other five percent they go by

16:25
the option if the option hits we get the

16:27
winnings if the option loses

16:29
whatever

16:30
so the annuity company is not keeping

16:32
the overage i think people like well

16:33
that's not fair that's a huge

16:36
misconception they they don't i was

16:38
funny as i just literally had this

16:40
conversation two days ago with a very

16:42
large annuity carrier and i was talking

16:45
to him about how they do their options

16:47
and we were having a conversation and

16:49
and they said that they just buy the

16:51
call option up to the percentage of

16:52
whatever their cap might be i said okay

16:54
some companies that it's unlimited or

16:57
however they structure it and they just

16:58
sell back the upside to the investment

17:00
bank because they're only on the hook if

17:02
it's capped at five well i don't need

17:04
the unlimited so why pay for it right my

17:07
exposure is only to a certain level so

17:09
this is a great way to find if you're

17:10
working with a competent advisor

17:13
ask him what how they buy the option and

17:16
how it's priced if he can't if he says

17:19
that they do this and they keep the

17:20
profit and you're out you just

17:23
disqualified

17:24
right

17:25
the next one that i always do is like a

17:27
fee or a spread i don't know if you're

17:28
gonna go here but we're here so let's

17:30
talk about it let's do it fees come out

17:33
up or down

17:35
so if you buy an in when the clock when

17:38
the agent says oh your principal's

17:40
guaranteed here's an income rider

17:42
stan if they buy an income rider is

17:44
their principal guaranteed uh there's

17:46
going to be a fee taken from the

17:47
principal if you get zero that would be

17:49
a minus from the principal

17:51
so that is not a guarantee that is

17:53
absolutely correct so if i put a hundred

17:55
thousand dollars in and i think we're

17:56
all gonna see negatives this year if you

17:58
own an indexed annuity be prepared for a

18:00
zero i'll your agent might never call

18:03
you again and break the news to you but

18:05
i'll be more than happy to because guess

18:07
what you didn't lose any money you got

18:09
zero but if you bought an income rider

18:11
and you make a zero you are going to see

18:13
a deduction from your real money account

18:16
and so if it's your first year and you

18:18
put 100 grand in you might see 99 next

18:21
year or whatever the writer charges if

18:23
you had 150 000 because you had some

18:25
profit well you're gonna have about 148

18:28
five when it's all said and done

18:30
depending on what the writer charges it

18:32
is going to go down so when they say

18:34
guarantee a principal and writer in the

18:36
same sentence that disqualifies them

18:39
they are not they are not capable or

18:41
qualified

18:43
agreed and i always tell people

18:46
the writer fee is for the life of the

18:48
policy even when you turn on the writer

18:52
the fee continues and and one of the

18:54
great explanations that i saw mr fiax

18:57
give to a large crowd half the half the

19:00
agents fainted the other half vomited

19:02
and then i stood up and clapped that's

19:04
how it all came down but what he was

19:06
talking about

19:07
mind you i did

19:10
here's what he said he said oh by the

19:12
way

19:13
um that eight percent income writer

19:15
that's growing by eight percent every

19:17
single year that you just love and you

19:18
think jimmy carter's in office again

19:20
it's actually increasing

19:23
your income writer fee by that

19:25
percentage so the longer that you hold

19:27
on to it the more your fee is going to

19:29
be once you lock it in once you turn on

19:31
the income stream can you explain that

19:34
little anomaly mr f i a x well you know

19:39
as you know the rule of 72 if you don't

19:41
know the rule 72 is money doubles you

19:43
know

19:45
um if you had eight percent return

19:48
then times that by nine eight times on

19:50
to 72 it will take you nine years for

19:51
your money to double right

19:53
rule 72 right

19:55
okay so if i have a one percent spread

19:58
or i'm sorry one percent fee for my

20:00
income rider

20:02
and it's a say an eight percent rider

20:05
just for easy math yep

20:08
at the end of nine years that one

20:09
hundred thousand dollar deposit on a one

20:11
percent fee is now two hundred thousand

20:13
dollars

20:14
guaranteed just ballpark math correct

20:17
guaranteed and i'm gonna pay one percent

20:21
on two hundred thousand dollars so isn't

20:23
that really like paying two percent on

20:25
100 000 correct

20:28
so

20:29
if you want to talk about the ultimate

20:31
annuity this is it but it's not for you

20:34
the buyer it's for the cons the

20:35
insurance company they have the ultimate

20:37
annuity they are guaranteed to get an 8

20:40
cost adjustment every year on that fee

20:43
for as long as there is money in that

20:45
account now magically i know the

20:48
advisors that listen to this show well

20:50
skin when the movie runs out uh they

20:53
still keep getting the check

20:56
that is correct that is correct so let's

20:58
do just a little pie in the sky math

21:01
real quick if i had an eight percent

21:02
roll up for 10 years i let it roll up if

21:05
i'm 65 now i'm 75. right

21:08
i turned the rider on

21:10
i'm still making some return from the

21:12
index correct stan correct three four

21:15
five six percent whatever wow wow that's

21:18
aggressive yeah try try two to four five

21:21
okay but well i want to sell it how

21:22
they're selling it okay great okay seven

21:24
percent whatever it is okay there's some

21:27
stuff out there that will do okay

21:28
there's some yeah i agree i agree but

21:30
let's just say five all right let's call

21:33
split hairs here

21:34
so you're taking out

21:37
say your income withdrawal six percent

21:39
you got one percent in fee of the amount

21:41
now you're taking out seven percent

21:44
you're getting five back

21:46
well that's gonna probably last you

21:48
about 22 to 25 years

21:51
so now i'm 65 to 75 plus another 25 i'm

21:54
at 100

21:56
ballpark 95 to 100 i'm doing this math

21:59
in my head folks i'm not it's beautiful

22:01
with the mask on as well which is

22:03
incredibly impressive so basically let's

22:06
say you make it to 95 and you've all

22:08
your cash is emptied and you're still

22:10
alive yes you will get a check

22:12
but what did the insurance company

22:15
capture for 30 years

22:17
a lot

22:19
they captured that fee structure for 30

22:22
years

22:24
now let's go backwards a little bit

22:25
unless you're just getting your money

22:27
back i know i'm stepping out of the

22:28
corner got my boxing gloves on i'm

22:30
defending the index annuity space with

22:32
income riders because

22:33
you know that it is a transfer of risk

22:35
you're transferring the risk for income

22:36
riders are not a bad thing but what i

22:38
want people to understand is the index

22:40
and new with income rider is not a

22:42
one-size-fits-all solution when you want

22:43
income in the future there are two other

22:45
ones that you need to consider well i'll

22:46
give you one better i'll give you the

22:48
better you're not even gonna let me

22:49
finish okay go ahead

22:51
go ahead

22:52
go ahead income rider is not return it

22:56
is not yield correct i cannot emphasize

23:01
that enough and i can't tell you how

23:02
many phone calls i take and stan i know

23:04
you take way more than me that go i'm

23:06
getting seven eight percent guaranteed

23:08
absolutely

23:09
absolutely and i go no you're not um but

23:12
getting but getting back to my

23:15
my really cogent point here salient as

23:17
they say

23:19
you know income writers do work i mean

23:21
from a standpoint of transfer risk

23:22
lifetime income as long as you're

23:23
breathing you can get it but when you

23:25
say to me standing new demand america's

23:27
annuity agent i want to income later

23:29
because i asked two questions what do

23:30
you want the money to contractually do

23:31
and when you want those contractual

23:32
guarantees to start if the second answer

23:35
is you know more than one year we're

23:37
going to quote deferred income annuities

23:40
income riders in my newest sensation

23:42
sweeping the nation of which i've

23:44
trademarked my ga to spea which we're

23:47
buying

23:48
short-term multi-year guarantee annuity

23:50
fixed rate annuities and then at the

23:51
duration

23:53
then rolling those to the highest paying

23:55
immediate annuity at the time what have

23:56
i done very good question i have

23:58
stripped out all of the fees the fees

24:01
that mr fix just talked about no more

24:03
fees

24:04
and i'm i'm

24:06
giving you flexibility of choice at the

24:08
end of the duration of the myga and then

24:10
we're shopping all carriers at that time

24:12
for the highest paying immediate annuity

24:14
well there's a couple more things you're

24:15
giving if it's non-qualified money like

24:18
an ira if it's not an ira 401k that kind

24:21
of stuff you're giving them a tax

24:22
exclusion ratio correct that tax

24:24
exclusion ratio that will make what it

24:26
means is you don't get taxed on all the

24:27
money you're only getting taxed on the

24:29
interest portion that means more money

24:31
in your pocket versus doing it the

24:33
income rider way okay agreed that don't

24:36
make income writers about it but you

24:38
have to look at it and you have to ask

24:39
yourself and me and mr fix

24:43
why is anyone else showing me this stand

24:45
the annuity man america's new agent

24:47
because the commissions are low low low

24:48
low as compared to an income rider

24:50
attached to index in the east it make

24:52
them bad but i'm just saying there is a

24:54
way to efficiently do this and with

24:56
current interest rates at the time of

24:58
this taping check the date please they

25:00
are at a level that are

25:02
seriously competitive with the potential

25:05
hypothetical theoretical unicorn station

25:07
the butterflies return scenarios of

25:09
indexed annuities meaning that you can

25:11
get four four and a half and if the fed

25:13
raises again you're going to get five i

25:15
know if two years from now you might

25:16
laugh but look at the date when this was

25:18
was done

25:19
that seriously competes head to head

25:22
with indexed annuities

25:25
all indexed annuity people if you want

25:26
to send me your hypothetical so i could

25:28
throw them away as before i shred them

25:30
you can go ahead and do that we're

25:32
talking about contractual guarantees so

25:34
i can say to a person

25:35
it at the time of this taping if your

25:38
goal is to turn on income in seven years

25:40
you can buy a seven year my guy at four

25:41
and a half or percent or more

25:43
contractual and knowing that that's

25:46
going to happen every single year and

25:47
then at the end of the seven years

25:49
transfer that non-taxable event whether

25:51
it's ira non-ira roth ira to the highest

25:54
paying speed of which we quote for you

25:56
and then here's the best part if it's

25:59
non-ira money then the gains that you

26:01
have accumulated in your mica are

26:03
stretched out over your life expectancy

26:05
of the immediate annuity hello mr fiax

26:09
i'm not saying that this is better

26:11
than index annuities with writers

26:12
because i do sell them when they are

26:14
appropriate and suitable and they win

26:17
the contractual game but

26:19
the my god of spia is sweeping the

26:21
country i'm telling you i'll take it a

26:23
step further to stand that i think a lot

26:25
of um

26:27
people miss

26:29
and i i i think that you know looking at

26:32
this big number outweighs

26:34
their judgment sometimes

26:36
so let's say hypothetically you did a

26:39
master of the universe income rider and

26:41
it paid 25 000 a year in income

26:44
what if i only needed 10 000 a year of

26:46
income

26:49
you're paying taxes on the rest that you

26:51
don't need mr fiax

26:53
well that sounds kind of foolish now

26:54
doesn't it it does but you're stuck

26:56
because

26:57
you got to turn it on right so if i want

27:00
the income so that way because i can't

27:02
take the withdrawals because it'll

27:03
prorate my recount and kill my income

27:06
benefit

27:07
another little caveat in the deal

27:09
doesn't make it bad just makes it read

27:11
the contract and the agent should know

27:14
this but they most likely don't usually

27:16
right so now

27:18
what if i need 10 000 of income in your

27:21
magazia

27:22
concept couldn't i just put enough in

27:25
there until it does what it meets my

27:27
income need for now let the rest

27:29
accumulate and then absolutely if i need

27:32
more we'll just do another bucket

27:35
absolutely you're totally flexible on

27:37
what you can do i totally

27:40
i'm so into this my goodness be a thing

27:43
i'm pounding the table so much i think i

27:44
broke my hand the other day but the

27:46
point is it's such a no-brainer

27:49
especially with rates where they are and

27:50
they're rising um because remember

27:53
nothing wrong with index annuities but

27:55
but the return on the calls

27:57
options the spreads caps participation

27:59
rates which can be changed at the

28:01
carrier's discretion

28:02
um without talking to me or you

28:04
those aren't guarant there's no

28:06
guarantee return you know one carrier or

28:08
a couple carriers out there i see

28:10
telling their army to use the phrase

28:12
zero is your hero if anyone says that to

28:15
you look at them and say you're a zero

28:17
and you're not my hero that's garbage

28:20
because you can get a guaranteed

28:22
interest rate with a miga and zero

28:24
doesn't have to be your hero you know

28:26
what else is zero is your hero mr x your

28:28
mattress a hole in the backyard the

28:30
trunk of your car that is garbage and if

28:33
someone says well

28:35
zero's your hero

28:36
that person is a schmuck

28:38
that agent doesn't know what they're

28:40
doing and they're just spewing the line

28:42
they're like cable news when you turn on

28:44
cable news and whatever channel you're

28:46
watching they're all saying the same

28:47
thing and they all got the talking

28:48
points

28:49
zero is your hero is an annuity talking

28:52
point that needs to go away just like uh

28:54
me and you have destroyed the word

28:57
hybrid to describe we we have

28:59
single-handedly destroyed that word to

29:02
be used in the industry there's no such

29:03
thing as a hybrid it's it's it's a plant

29:06
it's a car it's a mattress but it's not

29:08
an annuity remember back in the day when

29:10
we started hammering that with well this

29:12
is a hybrid annuity

29:14
what what are you talking about

29:16
every annuity is a hybrid if you're

29:18
going to do that that's nuts

29:20
but there's just a lot of you got to be

29:22
careful with some of the talking points

29:23
out there on the index annuities space i

29:26
really wish they would just be honest

29:28
with people hey it's a seven year

29:30
contract it's a one year call option

29:32
which means that call option can change

29:34
every single year

29:35
at the carrier's discretion what we've

29:36
done is looked at the renewal rates to

29:38
make sure that they're fair to the

29:39
consumer but you have to understand that

29:41
we're going to make that choice every

29:42
year what's so hard about that statement

29:45
i just made mr x yeah or whether it's a

29:47
two year three year there's different

29:48
kinds of calls whatever it is you know

29:50
if you go a little longer on the option

29:52
you get a better opportunity for upside

29:54
because you'll have more participation

29:55
because the company pays less they're

29:57
like well how could they do that i'm

29:58
like well if you bought a one-year

30:00
subscription to a newspaper or you

30:02
bought the two-year subscription to the

30:03
newspaper which is cheaper that's a

30:05
great that's a great correlation i'm

30:07
gonna buy the two-year subscription the

30:08
newspaper and i just saved x amount of

30:10
dollars well when i get that x amount of

30:12
savings i can go buy more leverage in

30:15
whatever the indices but why we're

30:17
talking about industry standard things

30:19
is a great transition right here by the

30:21
way that's index indexes plural for the

30:23
people that grew up where i grew up

30:25
and so yeah exactly me too but the

30:27
reality of this is so

30:29
be careful with these

30:32
so-called participation rates

30:35
and you're going to get 200 300

30:38
participating because they can do that

30:40
because the interest rates have really

30:42
really jumped in our marketplace which

30:44
is great for annuities it's bad if you

30:46
want to buy a house or a car but for

30:48
annuities it's fantastic right

30:50
what am i participating in should be the

30:52
question

30:54
which will go to my number three of how

30:56
to check your advisor

30:58
if they can't explain the index don't

31:00
buy it

31:02
that's a great one you get 200 percent

31:04
participation rate i have a question sir

31:07
what am i participating in

31:11
what i'm participating in

31:13
oh this index has you know rusty beer

31:15
cans and fish hooks oh but i get 300 of

31:18
that fantastic

31:22
i did a podcast with someone a lot more

31:23
famous and smarter than you the other

31:25
day mr x his name was moshe moleski and

31:27
most said moshe said he said always ask

31:30
awkward questions i think i think that

31:33
is so true and he said i'm like you're

31:35
right you're right ask your annuity

31:38
person awkward questions i know people

31:40
ask me that all the time like are you

31:41
really that tall stan yes is your hair

31:44
really that large and standing straight

31:46
up yes without the baseball cap those

31:48
are awkward questions

31:50
um but yes

31:52
ask your annuity person what are you

31:53
participating in yeah but this is the

31:55
greatest no you're going to love this

31:56
one because this was a real scenario and

31:58
this gentleman called me and he goes i

31:59
have a client and and they sent me this

32:02
this

32:03
uh illustration over and i go okay so

32:05
you're getting 125 here 115 let's see

32:08
what we're getting that up

32:09
well the index has been out for less

32:12
than two years

32:14
but they said the 10-year return was x

32:16
but the index had been around a little

32:18
over 18 months first of all i'm confused

32:20
how you're getting a 10-year return

32:22
exactly and for all the agents that

32:24
listen to you yes hypotheticals are bs

32:27
it's hypothetical for a reason exactly

32:30
they broke it into the keyword keyword

32:32
hype hockey word they broke it into four

32:35
different investments right so i said

32:37
well let's look up each index and see

32:40
what's inside the index because they

32:43
want you to be diversified

32:46
so you're telling me if i go buy a house

32:48
to actually go inside the house well you

32:50
do get an inspection don't you yeah okay

32:52
go ahead i want you to read the

32:54
inspection report is what i want you to

32:56
do you don't have to go in just read the

32:57
report

33:00
when i pull the part what's inside the

33:02
index

33:05
it's all the same crack

33:07
two-year notes five-year notes 10 year

33:10
notes and the indices might have been a

33:13
hair different

33:14
but some of them had s p some of them

33:16
had

33:17
12 sectors of the s p some of them had

33:19
stuff i don't never even heard of them

33:21
is that what you call fish what you call

33:23
fish hooks and shoelaces

33:25
and fish hooks yeah so

33:27
i can make you an index right now my

33:30
index would be apple stock gold and oil

33:32
and i'm going to do a 10-year run on

33:34
that how much would that return

33:36
it would be okay it would be

33:38
astronomical that i'll show it to you

33:40
and then go here you go hahaha the only

33:43
difference with my index is that stuff

33:44
actually was around for ten years

33:48
and the reason that they do that mr x

33:51
is answer the question is it because

33:53
they can buy these

33:54
made up out of thin air indices indexes

33:57
plural um cheaper than the s p is that

34:00
why they do it that's a hundred percent

34:02
why they do this happened about six

34:04
seven years ago and it takes probably a

34:07
good year to 18 months to get something

34:10
to the marketplace they can hurry it up

34:11
if they have to but they have to have

34:13
product slots and times right you have

34:15
to have space on the conveyor belt to

34:17
put it in right okay right they get it

34:20
together when the market went bad at

34:23
0.70809 as we all recall right yes yes

34:27
well the the participation rates the

34:29
caps everything got clobbered because

34:32
the option cost was so expensive

34:35
ridiculously expensive in the s p so

34:37
they had to come up with other ways

34:40
to create stuff to generate business

34:42
that i got we'll build these crazy

34:45
indices indexes if you want of whatever

34:47
you want to call it we're going to build

34:48
an index with this this this this and

34:51
this and we'll backcast it to show how

34:53
wonderful it would be if it existed

34:56
wouldn't you love to been in that first

34:57
meeting when the guy came up with that

35:00
it's kind of like the guy when he when

35:01
he is pitching we're going to do a a

35:03
network just on food it's going to be

35:06
called the food channel and they're like

35:07
yeah whatever

35:10
but that's what happens but then but

35:12
then they run these scenarios and they

35:13
say look at all this great stuff look

35:15
how great this would have done but if

35:17
you do your homework you will

35:20
you will uncover

35:23
it doesn't do quite as great as this and

35:25
some of those people get to change

35:27
what's inside of that index

35:30
at their discretion you got to look at

35:32
that i mean i personally believe that

35:35
the back testing of indices indexes

35:38
plural

35:40
that have not been around for the back

35:42
tested time period 10 years should not

35:44
be back tested so if something's been

35:45
around two years then you do a two year

35:48
back test

35:49
if it's been around six months you do a

35:51
six month back test that should be law

35:53
there's a lot of things that should be

35:54
law the

35:56
men over 50 should not wear cut off

35:58
t-shirts should be a law there's a lot

35:59
of laws that i want out there mr x

36:02
but i think i think one of your laws is

36:04
definitely fair i think that you should

36:06
only be able to publish for the time

36:08
that it's been evolved i i don't think

36:11
that's common sense i i think it is you

36:14
think it is but the reality is there's

36:16
companies out there and software

36:17
companies and people making a fortune

36:19
publishing these these

36:22
lack of reality illustrations or about

36:26
whatever you want to call it and they

36:28
make a living out of saying this would

36:30
have done this and now i go see my 75

36:32
year old retiree client saying this

36:34
would have done this they go well that

36:35
sounds great then they put it in there

36:37
and then this doesn't do that and now i

36:40
i think i think there's nothing wrong

36:42
with a a in index made up of thin air i

36:45
got nothing against these but but what

36:46
here's what you say

36:48
it was just created so we really don't

36:50
have any past performance numbers but i

36:52
think mr jones that this basket index

36:55
whatever

36:56
looks pretty good don't you agree what's

36:58
wrong with that as a sales pitch

37:01
why can't we do that

37:04
because greed outweighs common sense

37:08
i know

37:09
i'm gonna i know i know i i before we

37:12
let this hour get away from us because

37:15
it's always fun with you mr fix i just

37:18
have one thing i want all those uh

37:20
agents to send your back casting in the

37:21
stand and then stan will send them to me

37:23
and then let's have a phone call stand

37:25
and i'll shred them into a hundred

37:26
thousand pieces

37:27
yeah either with reality with reality

37:30
not with hypothetical real the last

37:33
thing an agent wants in their lifetime

37:36
is number one a physical okay but number

37:39
two

37:40
is mr fiax and myself looking over their

37:43
shoulder at what they're selling and

37:45
what they're pitching because that's

37:47
that's a train wreck i always i always

37:49
laugh when people say well this is what

37:50
he said and they're they're like and i

37:52
said tell tell that person that stan the

37:54
annuity man said this and typically that

37:58
ends that one i want to pivot

38:01
as i always do mr x yes sir do something

38:05
new

38:06
something perceived wonderful that a lot

38:08
of people are commenting on they have no

38:10
clue what they're doing and a lot of

38:11
people that are selling it that have

38:12
absolutely no clue what they're selling

38:15
the beloved what i call copay annuities

38:18
also called aka buffer and or shield

38:21
annuities i need you to weigh in x i

38:24
need it

38:28
i think you hit on the head i mean if

38:30
you're willing to take a 10 15 25 loss

38:33
because you get to pick your target of

38:35
how much you're acceptable to lose what

38:38
i mean by that is you can participate in

38:41
there but the first x amount of loss you

38:43
absorb

38:45
you absorb that so if you say my

38:47
threshold is 10

38:49
you put 100 grand in when it hits 90

38:51
then you don't lose anymore

38:53
but you you

38:55
sheltered the first 10

38:57
grand which means you got to make 11 and

38:59
a half percent to get square

39:02
it's a margin call without the call

39:04
yeah with that it's the market call

39:06
without someone calling you and say hey

39:07
you owe us money they just take it out

39:09
of your account i know some of the guys

39:11
out there they they're like you know i

39:14
sell it here's what they do every year

39:16
i'll go in and as i get to reset

39:18
annually and i'll go flip them into this

39:20
and then we'll catch it back another

39:21
time and it's like

39:24
you know

39:25
me personally yeah if you look at the

39:27
their sales literature if you're willing

39:29
to shelter that risk

39:33
then you know maybe

39:35
do the whole thing because only maybe

39:36
three four five percent of the time it

39:38
hits that actual number so you got a 95

39:42
chance of never getting there why

39:43
wouldn't why would you

39:45
co-pay it when you could have all of it

39:48
as i always tell people if you want real

39:50
market returns consistent market returns

39:53
do not buy annuities now if you want to

39:56
protect principal and get you know the

39:57
three or four or five percent that maybe

39:59
an index i knew we would do or maybe a

40:01
buffer new would do then that's fine but

40:03
don't go into it

40:04
being an idiot thinking you're going to

40:06
have your cake and eat it too

40:08
because you're

40:18
i i hope this doesn't happen

40:22
but that those products and i don't sell

40:24
them disclaimer i don't sell buffer

40:26
annuities

40:27
um again i i really like selling things

40:30
that you can explain to nine-year-olds

40:32
no offense to nine-year-olds i do

40:33
simplify it i am the annuity whisperer

40:35
out here as you know mr mr x but i do

40:38
see

40:39
these buffer annuities being a target

40:41
for um

40:44
aggressive lawyers as they might say i

40:46
mean

40:48
the in a in a arbitration or court of

40:50
law and that agent advisor master of the

40:54
universe wealth architect

40:56
i'm going to tell you i would bet at all

40:58
that less than five percent of those

41:00
people could explain that product

41:02
well i i don't disagree with you i also

41:06
you know they can explain the finer

41:07
points of it not the detail points and

41:10
the detail points are if you really dig

41:11
into their literature and you really

41:13
start looking at what it is the number

41:15
is actually quite small that it ever

41:18
hits those deep levels why are you

41:20
giving up so much then

41:22
if that is your game plan and that is

41:24
your fury and stan here's the biggest

41:26
thing i want all the clients out there

41:28
that listen to this how much are you

41:30
willing to give up in return to never

41:32
risk your money right that's it when you

41:35
can hit that number that you make our

41:37
job so easy well and it's it's like i

41:39
did a video that's gone viral that says

41:41
you've won the game why are you still

41:42
playing if you can get four and a half

41:44
percent contractual then why are you

41:46
putting your money at risk to get seven

41:49
if four and a half can can give you the

41:51
interest

41:52
needed without touching your principal

41:54
why are you putting your money at risk

41:55
to get seven because

41:58
exactly or why are you going into a

42:00
product that is so convoluted and so

42:03
complex

42:05
and i know the people that put it

42:06
together are smart smart people i get it

42:08
but they're not thinking through it from

42:10
a consumer standpoint exposure

42:12
standpoint and yes i know there's all

42:14
kinds of disclaimers but you and i both

42:15
know lawyers don't read disclaimers when

42:17
they want to go out a company i just

42:19
think that

42:21
this is this is a reflection of what

42:23
happens in low interest rate

42:25
environments they create these products

42:27
to sell that sound good that are looks

42:29
like it's it's taken advantage or

42:31
leveraging and it's really really not

42:34
you're going to see these products

42:36
go away as interest rates continue to

42:38
rise because as interest rates continue

42:40
to rise then people will go wait a

42:42
minute i can get four and a half or five

42:44
or whatever right raises to contractual

42:46
guarantee without all this nonsense and

42:48
that's what people will do

42:51
and they won't have to have formulas and

42:53
algorithms and and inverted

42:55
um

42:56
you know formulas from harvard that it

42:59
kills me all the time i see these in the

43:01
in the uh index and news and buffer

43:03
annuities like prospectuses whatever

43:05
they call them specimen policies and

43:07
some of the mathematical formulas that i

43:09
have to legally list in there i have no

43:11
clue what that is i'm not selling it if

43:13
i don't know the mathematical formula

43:14
and me and you both didn't pass that

43:16
math class

43:17
i didn't know there were so many letters

43:18
in math

43:19
yeah yeah i thought i thought

43:22
that's good that's a good one if you

43:24
think math involves numbers then you

43:27
might want to reconsider

43:29
index options and buffer annuities

43:31
because they have letters in them as

43:33
well and parentheses i didn't know what

43:34
they were seven e s with the squiggly

43:37
what is this i don't i don't know but

43:39
exactly

43:40
exactly

43:41
about you all the way to our beginning

43:42
20. if you can't understand it don't buy

43:44
it right

43:45
if you can't and if he can't understand

43:48
it definitely don't buy it so where do

43:49
you where do you see our industry going

43:51
with these indexed annuities and

43:53
buffered annuities and all these these

43:55
really complicated things do you think

43:57
they're

43:57
they're realizing they need to go more

43:59
simplistic or do you think they just

44:01
keep going down the rabbit hole i don't

44:03
think they do realize that i think you

44:05
know the that almost sounds like a

44:07
loaded question no it's not i it

44:09
actually is a dumb southerner question

44:11
because i'm a dumpster i really think

44:13
you know i really think

44:16
where they're gonna go is because

44:18
they're gonna have a lot of extra money

44:19
now because bond rates are so high

44:20
mm-hmm when i say so high you know four

44:22
or five six percent or yeah at the time

44:24
of this type of relative yes but when

44:26
they were doing it one and a half

44:27
percent four or five sounds astronomical

44:30
yeah exactly

44:31
so they're going to have a lot of

44:32
leftover money because remember they

44:34
were buying 95 of it basically at a one

44:38
and a half percent interest rate well

44:39
now

44:40
it's four and a half percent so they

44:42
don't have to spend as much money to get

44:44
the same 95 does that make sense

44:47
totally

44:48
so i have all this leftover cash so what

44:50
am i going to do i am telling you this

44:52
is the beginning of the arms race

44:56
you are going to see the wildest stuff

44:59
happen you know like what

45:01
like what i think they're going to try

45:03
to make this stuff look

45:07
so market-esque

45:10
with safety

45:11
i think you're going to see ridiculous

45:13
participation rates got ridiculous

45:16
leverage inside these indices

45:18
you know 100 200 300 400 500 leverage

45:23
you know

45:24
i think you're going to see all that i

45:26
think you're going to see

45:27
features on the products like we've

45:29
never seen before but i don't

45:30
necessarily know if that feature will do

45:32
any kind of benefit

45:34
for the client

45:35
right but it'll sound good

45:38
so the arms race of marketing is going

45:40
to ramp up because of the demographics

45:42
last but not least

45:44
you're going to love this one stan i

45:45
hear you let's hear it you are gonna see

45:48
an arms race of income

45:50
they are gonna make this income rider

45:53
story look so

45:55
flippin amazing

45:57
it'll make your head

45:59
give me give me more what do you what

46:01
are you thinking

46:02
i am i'm just getting into the rabbit

46:04
hole a little bit on that one but

46:05
because i just started with this with a

46:07
call that i had okay i just think what

46:10
they're gonna do is

46:12
more of um

46:14
of a participating income not like you

46:16
know like some of them have a flat you

46:18
get a six seven eight percent roll up

46:20
right i think they're gonna have a

46:21
higher guarantee maybe a five and a half

46:23
six percent guarantee or

46:25
the the income or the i'm sorry the the

46:28
interest return

46:30
so you can see a bigger roll-up

46:32
of of money so it'll be compounded from

46:35
what the return is

46:37
so i think you're going to see more of

46:38
that to where you see these really

46:42
insane income numbers like you're gonna

46:43
get seventy thousand dollars a year in

46:45
income

46:47
i agree but it's still gonna all work

46:48
the same it's the numbers are gonna be

46:50
bigger but the function is the same

46:52
motion moleski had a similar thought on

46:54
it too he was you know he's big on these

46:56
tauntings which is just a shared risk

46:58
pool been done for hundreds and hundreds

47:01
of years but he sees that being

47:03
somehow packaged over here

47:05
in the united states so that

47:08
in essence last man standing gets more

47:10
income

47:12
and you know as people drop off the

47:13
people get more income as people drop

47:15
off

47:16
he's telling he's predicting that that's

47:19
going to be

47:20
um how they're going to do income riders

47:22
in the future the other thing i thought

47:23
was fascinating too mr x i'm i'm

47:25
disappointed you didn't listen to the

47:26
motion moleski podcast but i'm assuming

47:28
you will right after this but he also

47:30
said this

47:31
he said that he sees income

47:33
products in the future

47:35
that will also target specific

47:39
health issues like you'll have an income

47:41
rider for diabetics

47:43
and an income

47:46
he's thinking that income is going to be

47:47
attached to health somehow

47:50
or health issues or underlying

47:51
conditions which i you know what's fun

47:53
that's funny man i was not funny but

47:55
that was fascinating and i the more i

47:58
thought about like now there's

48:00
the way to do it if you're going to be

48:02
able to do it that's the way to do it

48:04
let's go back 20 years real quick do you

48:05
remember rated spears

48:08
well

48:09
yes and we still sell some rated speeds

48:11
and what that is for the people

48:12
listening out there

48:13
an immediate annuity you can go through

48:15
the underwriting process medical testing

48:18
to prove to the annuity company that

48:20
your life expectancy

48:22
expectancy is actually less

48:24
than what is projected based on your age

48:26
and because you can you can show them

48:28
that medically then the payments will be

48:30
higher so in essence you're proving your

48:32
life expectancy to be less but you have

48:34
to go through underwriting

48:36
go forward with that that's what that is

48:38
rated so that's really what what moshe

48:40
is talking about it's almost like uh

48:42
they're going to do like a rated income

48:43
riders basically what it's going to be

48:45
diabetes it probably shaves a few years

48:47
unfortunately off my life so you should

48:50
pay me more than mr healthy that's going

48:52
to live way past life expectancy so

48:54
there so he was talking about my income

48:56
rider calculator and and uh you know i'm

48:58
the only one in the world with an income

49:00
rider carefully a calculator that's real

49:02
at the time of this taping you say in

49:04
the future you're going to be able to

49:04
drop it down and go defer for seven

49:07
diabetes

49:08
defer for seven pre-cancer

49:11
think about that

49:13
that's pretty interesting and i do think

49:15
that's coming

49:16
in some form or fashion the first people

49:18
to get there

49:19
is going to win because why if you're

49:21
pre-diabetic like i am your clock's

49:23
ticking you better take care of yourself

49:25
but that income rider guarantee that the

49:27
annuity company is going to provide

49:30
could pay higher because i'm a

49:31
pre-diabetic it makes total sense if you

49:34
think about it x it doesn't they and and

49:37
with having all this extra money left

49:39
over because the rates are so much

49:41
higher they can do like i said they can

49:43
do more of these features once there's a

49:45
cost for everything

49:47
when you build the annuity if i want 10

49:49
free withdrawal in the first 30 days

49:52
there's a cost for that why because the

49:54
insurance companies have to reserve for

49:56
it like everybody's gonna take it

49:58
so they they there's that cost them

50:00
money to keep on the sideline so if i

50:03
have more money well i can put more

50:05
things in and that's how it works it's

50:08
pretty simple format mr x do you see the

50:11
index annuity space

50:14
do you see it being more positive for

50:16
the consumer going forward into 20 late

50:19
2022 2023 2024 or do you see it becoming

50:24
even more complicated

50:26
i think it's going to be more positive

50:28
but more complicated how's that because

50:30
i do think

50:31
i do think guarantees are important i i

50:34
i do i don't think that um

50:38
i don't think everyone this is gonna

50:41
shock a lot of people i don't think

50:42
every single person needs to be in the

50:44
stock market and i don't think every

50:46
single person needs to own an annuity

50:48
thank goodness for that statement i

50:49
think every single person needs to sit

50:51
down with a competent person and have

50:54
their financial conversation and spend

50:56
more time on your financial plan than

50:59
planning for your vacation and your and

51:01
your advisor should never be your friend

51:03
your advisor should never be your friend

51:05
you should never go golfing with them

51:07
you should never know about their kids

51:08
you should never talk about the game on

51:10
saturday

51:12
you

51:13
i just did a video on this it's going to

51:14
release pretty soon

51:16
you need an annuity cancer doctor you

51:18
need someone you don't want your

51:20
oncologist to walk in and start talking

51:22
about the game

51:23
because the game is you the game is your

51:25
money the game is your life the game is

51:27
chapter two of your life the game is

51:30
fulfilling your lifestyle that you've

51:32
worked so hard to fulfill you don't need

51:34
a friend

51:36
and so one of the reasons that i think

51:39
my my uh organization's so popular is

51:42
we're straightforward we're not your

51:43
friend you know my site is where

51:45
annuities are bought not sold yes we do

51:47
sell them but you're going to buy them

51:48
on your terms in your time frame

51:50
um

51:51
just be careful out there if someone's

51:53
trying to be chummy

51:54
and you know

51:55
that's just that's a red flag if someone

51:58
shows you well my mom bought it my dad

52:00
bought it and i bought it and they show

52:01
you this statement get them walk out

52:03
that's the most ludicrous thing in i've

52:06
ever heard and and that needs to stop in

52:08
the industry as well

52:10
um i could i'm going on a rant here x i

52:12
apologize for that

52:14
well don't fall off your soapbox keep

52:15
going

52:17
you know we got to wrap it up and as i

52:18
always do mr x is always it's always

52:21
fantastic and i hope that our learjets

52:22
cross paths again you know when you know

52:24
we land in aspen and there are times we

52:27
land in aspen and i get off my learjet i

52:29
see you down the tarmac but i don't want

52:31
to give the effort to walk down there

52:33
but i wave is that enough for you mr x

52:35
you just give the app not the effort i

52:37
mean yeah i mean it is

52:39
obviously all of that's not true we you

52:41
know

52:42
i'll give you my prediction because i'm

52:44
i'm about like a thousand on these

52:45
predictions you're incredible

52:47
okay migrant rates are gonna go up yes

52:50
that's not a big one that's easy because

52:51
we know that the fed's gonna raise rates

52:53
again yes and they're gonna go up yes

52:55
market's gonna stay choppy at least

52:56
until november then november we'll see

52:58
what happens okay

53:00
okay and then my last one is watch out

53:03
in the indexed annuity market

53:05
of what's going to happen it is going to

53:08
be

53:09
bananas what you're going to see it's

53:12
going to be more bananas of what you're

53:13
going to hear and what they're going to

53:15
tell you so i will leave you with one

53:17
piece of advice

53:19
if you can't read it and understand it

53:22
don't buy it

53:25
and that is your mic drop moment from

53:28
the infamous

53:29
and anonymous

53:31
mr

53:32
fiax a personal friend and confidant

53:36
my little brother both figuratively and

53:39
literally

53:40
in the annuity space i have to talk

53:42
about your height sometimes because i'm

53:43
six six i mean i can see that annuity

53:45
markets better than you just

53:48
but here's the thing mr x i always

53:50
appreciate you

53:51
joining us i appreciate every single

53:54
person out there that's joining us on

53:55
all major podcast platforms and on the

53:57
fun with annuities youtube channel

53:59
i'll see you next week

54:05
thanks for listening to fun with

54:06
annuities please hit the subscribe

54:08
button and make sure to go to my site at

54:11
the annuityman.com where you can run

54:13
your own spea dia and culat quotes and

54:16
see a live feed of the best mica fix

54:19
rates in the country and even get

54:21
indexed and income writer quotes as well

54:24
you can also sign up for my six annuity

54:26
owner's manual books and i'll ship them

54:28
for free and under no obligation i also

54:32
encourage you to schedule a one-on-one

54:34
call with me stan the annuity man so we

54:36
can have a full discussion of your

54:39
specific situation it will be the best

54:41
brutally factual and truthful advice

54:44
you will ever get and that's one

54:46
guarantee you should definitely take

54:48
advantage of so join me next time for

54:50
the number one annuity podcast on the

54:53
planet

54:54
fun

54:54
with annuities

54:58
[Music]

55:09
you