Munis vs Annuities

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Hi there, Stan the Annuity Man.

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America's annuity agent, licensed in all

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50 states in Puerto Rico, founder of

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CGO. Contractual guarantees only, which

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means that you own an annuity for what

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it will do, not what it might do, not

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the hypotheticals and theoreticals, all

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the too good to be true sales pitches

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that are out there that are too good to

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be true. Period. Today's topic is a good

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one, and I have some foundational

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knowledge here to weigh in. Munis versus

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annuities. So, municipal bonds versus

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annuities. Stan, is there a correlation

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to that? We'll talk about that after

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this.

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[music]

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All right. So, I know what you're

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saying, Stan the Annuity Man. You're

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talking about municipal bonds. Well, I

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did have a previous life before coming

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the incredible mythical figure Stan the

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Annuity Man. I used to work for Dean

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Witter, Payne Weber, UBS, and Morgan

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Stanley. And um [clears throat]

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one of my specialties was municipal

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bonds and I manage those at a very high

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level. I do understand them backwards

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and forwards. I'm old enough to remember

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when municipal bonds were offered in the

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paper. Remember that you'd get your

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paper, they'd have [clears throat] an

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offering for the, you know, the city

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water and sewer bond paying X

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percentage, etc. The cool thing about

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munis is they're taxfree. So tax-free

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yield on those bonds. I was working with

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Morgan Stanley. This is still in my

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brain because every single year I have

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at least one old Morgan Stanley customer

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send me a thank you note. And the thank

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you note is for the municipal bonds that

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I was selling back then during the.com

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error era error era erra. Um

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[clears throat] that were 6% tax-free

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AAA insured municipal bonds. I know for

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you bond buyers out there, you're like,

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"What?" I could barely give them away

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because everybody wanted to do the com

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stocks, but 6% taxfree for a redneck

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like me was like, "That sounds pretty

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good." Because the taxable equivalent

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yields like over 9%.

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It's pretty good. To this day, people

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that bought them a while back um and

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still because they weren't callable are

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still getting 6% tax-free income yield

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off of that. Okay. Is there anything in

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the annuity industry that does that

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stand the annuity man? And the answer is

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no with an asterisk. Okay. Now, a

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municipal bond is a guaranteed yield and

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the underlying value is guaranteed if

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you hold it to maturity. Okay. In the

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annuity world, there's a product called

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a multi-year guarantee annuity. It's the

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annuity industry version of a CD. I call

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it an annuity bond, which is the reason

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we're talking today. It's annuity bond

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because the underlying value is

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protected similar to munis. Okay. The

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yield is guaranteed similar to munis but

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it's not tax-free unless you use the

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MIGA inside of a WTH and then it would

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be.

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Now am I telling you to do that? Put

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your put MAS inside of a Roth. No. But

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I'm saying you could. And then the um if

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you took out the interest, that interest

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would be taxfree because you've already

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paid the taxes to make it a Roth IRA.

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Now, the interesting part, my my two

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partners are still from the old days at

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Morgan Stanley. They're still slogging

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away at at the big firm, you know, they

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got the big 401k. Um I had, you know,

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I'm entrepreneur. I had to come out here

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and do this because I saw the

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opportunity and it worked out worked out

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for all of us. Um and I'm still good

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friends with them. But they're telling

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me now right now the the munis are hard

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to get. back in the day, we could get

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them for people. Um, I think all of the

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institutions, private equity, family

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offices are buying up most of the the

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good municipal bonds out there. Um, so

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you're really kind of stuck. You can't I

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guess you could buy bond funds. Um, but

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that that's a whole another story. And

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by the way, I used to have a securities

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license for decades. I don't have that

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anymore. So I don't even do munis. Um, I

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don't do anything uh in the security

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side because I don't have to. I sell

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contractual guarantees on the life

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insurance side that life insurance

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companies issue annuities. Can munis and

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and mas work together? Yes. Are there

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any other type of annuities that could

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be equated into or compared with

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logically or rationally with immunity?

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The answer is no. But there's going to

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be people out there that are going to

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tell you an index annuity is like a

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bond. They're wrong. And there's some

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smart people that said that and they're

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wrong. Both munis and mas have

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guaranteed yields. Index annuities do

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not have guarantees. I heard a guy the

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other day, well, I'm going to buy a RIA

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registered index linked annuity, which

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is a security instead of munis. I'm

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like, it's not guaranteed. Munis are

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guaranteed. That's apples and oranges.

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Well, this guy said I could get this

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could said you could or you will.

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Remember, you own an annuity for what it

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will do, not what it might do. Not the

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hypothetical,

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not the theoretical, not the back test

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of Mr. Jones, if you'd owned it 10 years

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ago, you'd gotten this. That's garbage.

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So when you go munis versus annuities,

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it's really munis in one product called

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a multi-year guarantee annuity. That's

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the only thing that's even in the

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category. Everything else is a force.

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Everything else is a commission play.

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Everything else is a square peg into a

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round hole. Period. I know I used to

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manage munis and I'm now out here in the

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annuity space and I know annuities

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backwards and forwards. I've forgotten

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more than 99% of most agents

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and there's nothing but migas that can

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compare to munis and even then

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migas and a wroth taxfree munis taxfree

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and I love munis

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you know if I you know one of the

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reasons that uh I decided to leave you

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know the big firms for to become stand

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the annuity man is I love the

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contractual guarantees out here but also

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too it was kind of a moment in time

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where mun companies were not more as

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accessible to us as the brokers and for

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the for our clients. And that was

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upsetting to me because I really

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believed in the in the MUN story and the

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tax-free yield that you could get. I

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mean, it's fantastic.

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But in this world over here, multi-year

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guarantee annuities have very good

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yields. They're contractual. The

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underlying value of a MIGA does not

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fluctuate. Sometimes the in the MUN

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world that does fluctuate but if you

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hold it to term you're going to get you

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know what you put in is I mean that's

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it's principal protected but it does

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fluctuate some during the duration with

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MAS it does not that didn't make them

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better. I'm just telling munis versus

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annuities. It's really munis versus

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migas and both of them you can take you

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know the yield off the top and never

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touch the principal if you want to do

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that for in for income but they can work

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together you know if if you have a good

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advisor that can find those for you and

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I'm not talking about mun mun funds I'm

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talking about mun standalones there used

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to be firms that just sold that I don't

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know if they're even in business anymore

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but you know multi-year guarantee

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annuities you can buy durations 1 2 3 4

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5 6 7 8 9 10. You know, obviously

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durations on the MUN side can vary as

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well and go out as far as 30 and 40

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years. Do me a favor, go to my site at

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theanuityman.com. Top right hand corner,

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you're going to see see live rates.

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You're going to see all the you can

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click that, put in your state, put in

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the duration, see the live mafs. Just

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take a look at those. Those are very,

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very good CD like annuity bond is what I

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call them products. You can also

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schedule a call with me. You can also

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send me an email. You can download books

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that I've written, owners manuals on

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MAS. I have one on MAS that you can do

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as well. Do me one last favor. Above my

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above my head's a spinning clock and um

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I did a video on just a lot of the

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technology that we're doing. Talked

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about virtual Stanley and Virtual

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Stanley is an avatar we have on the site

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that you can ask questions to 247365 and

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you get my answers because we fed all my

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videos, books, and articles into Virtual

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Stanley. So he talks like me. So 247365

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you can talk to him or you can schedule

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call with me so you get the real Stanley

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or virtual virtual Stanley if you want

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to do an application and purchase

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something become a client you can use us

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for the application or you can do the

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application online you also can go to my

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site and run quotes anonymously without

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putting in your name, email or phone

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number and get real quotes. These aren't

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estimates. These are real quotes coming

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from the carriers fed into my site.

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We're the only ones that do that and

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don't require you to sign up. I'm not

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building a database. I want you as a

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client. You're smart enough to make your

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own decision. I just want to give you as

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much information as possible on your

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terms and on your time frame. Okay? So,

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munis versus versus annuities. It's

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really munis versus migas. Multi-year

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guarantee annuities. Both are very good.

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Both I love. One I recommend, which are

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migas. All right. My name is Stan the

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annuity man. We'll see you next time.