MYGA Ladder Cash Out Strategy

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hi there Stan the annuity man America's

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annuity agent licens in all 50 states so

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glad you joined me today because this

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topic actually

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originated from a client that you know

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when he first explained it to me I'm

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like I did a Scooby-Doo I'm

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like I'm like what but the more I listen

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I'm like well okay that kind of makes

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sense and ever since then there's been a

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more than a handful of people that's

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utilized the strategy after I told them

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about it and there's been a couple

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that's proactively talk to me about it

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as well it's called the MGA ladder Cash

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Out strategy we're going to talk about

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that after

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this okay so let's break down migga

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ladder Cash Out strategy so migga is the

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annuity industry version of ACD

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multi-year guarantee annuity if you go

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to my site at the annuity man.com we

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have a live feed you can put your state

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and duration and you can see what those

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guarantees are okay for that specific

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duration do not make it any more complex

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than a CD it's the annuity Industries

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version of a CD so that's that's a MAA

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MGA ladder means that you're buying

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different durations give you an example

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let's just say you had $300,000 you say

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I want a I want a migga ladder we might

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do a three-year Miga 100,000 in a

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three-year MGA 100,000 in a 5-year MGA

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100,000 in a 7year MGA

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that's that's the lading so you're

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having money coming to it different

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durations Etc the cash out part of it is

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very interesting so you got Miga you got

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ladder we all understand migas we all

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understand ladders what's the cash out

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the cash out is this there's a lot of

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you out there that has specific needs at

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specific periods of times that you need

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lump sums everyone's Situation's

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different annuities either fit they

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don't fit but they are contractually

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guaranteed so if you need the

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contractual guarantee pce then we can do

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these type of unicorn strategies to see

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if it fits for you but this is what this

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gentleman wanted to do he had specific

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things in his life that he needed lump

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sums for you know and and it was like a

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three year a five year a seveny year and

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a 10e duration so what we did is we

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bought those four durations 357 and 10

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and we split the money evenly and what

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he did at the end was instead of either

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you know taking the money and moving it

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back to wherever it came from Ira non

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Ira Roth IRA or rolling it to another

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Miga you can do that in Ira non Ira Roth

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IRA non taxable vent and all of them

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what he said which was interesting is no

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no no stand the annuity man and he

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talked like that no he really didn't but

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he should have I want to cash it out

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send me the cash send have the annuity

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company send me the proceeds so at the

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end of year three he didn't touch the

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interest you can you can get some that

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you can take the interest out or 10%

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annually but but what he said I want the

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money to compound I want the interest to

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compound but at the end I want to cash

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it out check sent to me I've got a

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specific place that needs to go and then

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at the fiveyear time same thing grows

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for five years cash it out sending the

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money seven years grows for seven years

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tax deferred compounding cash it out and

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the same thing for the 10 MGA Cash Out

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lading strategy pretty interesting and

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you might have a situation where that

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makes sense now let me give you some

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background to that now at the time of

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this taping check the date MGA rates are

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very competitive they're at 20year plus

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highs and when compared to CDs and we

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love CDs we just don't sell them if your

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duration is less than three years that

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you need to lock in then go buy CDs okay

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go buy them at the banks or the large

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firms online Etc but if if your duration

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that you want to lock in the guarantee

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is more than three years three years

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five years seven years 10 then

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multi-year guarantee annuities migas are

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typically going to provide the highest

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contractual guaranteed yield actual

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yield for those durations so if you have

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a specific goal that's three years and

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out like this gentleman did and a lot of

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other people since then that have used

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the MGA Cash Out strategy then this

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might work for you because let's just

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let's just look at a couple of scenarios

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if you use Ira money you know you're not

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getting double tax deferral it's tax

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deferred anyway but in a lot of cases

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people are using the MGA Cash Out

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strategy for non-qualified non Ira money

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why is that important that's a very good

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question I'm glad you asked that with

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CDs in a non IRA account you had to pay

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taxes on the interest earn every single

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year with mga's multi-year guarantee

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annuities the interest grows tax

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deferred it does not make them better

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than CDs let's be very clear but in a

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non-qualified account you're pushing the

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tax Puck down the ice for all you hockey

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people out there or kicking the tax can

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down the road all you North Carolinians

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down out there Carolinians where I'm

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from you're deferring the taxes it's

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growing and compounding tax deferred so

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when you get to the end of the duration

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and you need to cash it out then you can

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and at that point in time you're paying

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taxes if it's non qualify you're paying

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taxes on the interest that you earn

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here's the other good part about the MGA

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Cash Out strategy let's just say you go

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into a four year a four a four-prong

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ladder 357 10 year doesn't have to be

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that so don't hang hang on that give you

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the example 357 and 10e MGA ladder and

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you're going to cash it in at each of

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those durations when you get to the end

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of the duration my team's going to be in

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touch with you 60 days prior to the to

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the U the money coming due and say what

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do you want to do the great part about

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this is you're not locked into cashing

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it out you might get to that threeyear

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duration and say yeah let's cash this

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one out send me the money as planned

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then we might get to the five year two

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years later we call you up and say hey

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what do you want to do do you still want

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to cash it out you you might have come

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to a fork in the road moment you say no

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I really don't want to cash it in let's

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let let's roll it to another higher uh

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yielding MAA if we can find that non-

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taxable event transfer and just keep

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going and building the ladder so in

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other words you're not locked into the

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strategy of cashing it out but you can

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go into the strategy of cashing it out

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knowing exactly what you're going to

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have at the end of the duration so you

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learn something new today which is my

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job stand the anity man the edutainment

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Zar of the annuity industry Education

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Plus entertainment

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edutainment to put things in your head

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on how these products can contractually

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work for your specific situation because

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there's no one size fits all and when

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you go to my site at theanu man.com and

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book a call you're going to most likely

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get someone else you might get me doubt

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it but you might if you do I guess

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you've either won the lottery or lost it

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we'll find that out but what we're going

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to do is listen to you we're going to

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use our ears and mouth in proportion

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two: one we're going to try to figure

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out the best solution for you so I

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encourage you go to my site the annuity

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man.com

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run run quotes using our calculators

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read watch all that stuff it is for you

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the consumer it is not for agents and

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advisers the book of call is for you the

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consumer it is not for agents and

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advisers okay we are direct to you the

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consumer we work with pretty much every

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carrier out there to get the highest

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contractual Guaranteed quotes because

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these are Commodities and you own

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annuities for what they will do not what

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they might do and the will do is the

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contractual guarantees so that's the mea

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Cash Out lading strategy pretty unique

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pretty cool kudos to the people out

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there that actually told sty nyman about

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that I'm always thinking and there's a

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lot of smart people out there and once

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they understand where I'm headed which

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is contractual guarantees only I'm open

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to ideas now typically I've thought of

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most of them but in this case kudos to

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my clients they came up was something

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that I thought was unique I thought

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through it it does make sense and it

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might make sense for you my name is

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stand the annuity man thanks for joining

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us and I'll see you on the next stand

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the annuity Man YouTube video