MYGAs Are Annuity Bonds: Shootin’ It Straight With Stan

0:00
Welcome to Shooting it Straight with

0:01
Stan. I'm your host Stan the Annuity

0:03
Man, America's annuity agent, licensed

0:04
in all 50 states in Puerto Rico, founder

0:07
of CGO Contractual Guarantees Only,

0:09
which means that we only look at

0:11
annuities for what they will do, not

0:12
what they might do. You you never ever

0:15
buy them for growth. You never ever buy

0:17
them for potential, hypothetical,

0:19
theoretical, back tested, etc. Just

0:22
don't fall for that. Today's topic is a

0:24
good one.

0:26
It's called Migas are annuity bonds.

0:28
Multi-year guarantee annuities are

0:30
annuity bonds. I I recently did a um a

0:33
newsletter on that. And if you're on my

0:35
list, you got the newsletter and phone

0:37
rang off the hook. Emails off the hook.

0:39
I'm like, well, I got to do a video on

0:40
this to kind of go over it because a lot

0:43
of people disagreed. A lot of people

0:44
most people agreed. But let me explain

0:46
the context for me even saying that.

0:48
Number one, I know what I'm talking

0:50
about when it comes to bonds. I managed

0:53
them at Morgan Stanley, Dean Wedder,

0:54
Payne Weber, and UBS at a very very high

0:57
level. I do understand them. Whether

0:58
they're munis or corporates, doesn't

1:00
matter. I I know them. Okay. So, when I

1:04
left the Wall Street to become the

1:07
annuity man and to dominate out here, we

1:09
are the be biggest and baddest and best

1:10
out here, and I'm the hardest working

1:12
man in the annuity business. I'm telling

1:14
you that right now. I came out here and

1:16
I saw these migas, which are they're

1:18
called multi-year guarantee annuities.

1:19
In essence, they're the annuity industry

1:21
version of a CD. Nothing more fancy than

1:24
that. I mean, you get a guaranteed

1:25
interest rate for a specific period of

1:27
time. And I looked at them, I go, "Okay,

1:30
that looks similar to a bond." Um, and

1:33
as you know, you can buy corporate

1:35
bonds. You can buy corporations that

1:37
issue bonds, but to me, MAS are kind of

1:40
like bonds. Now, here's the difference

1:43
for all you like out there. Well,

1:45
they're not bond. Hang in there with me,

1:47
Flare. Okay? Okay, I know what I'm

1:49
talking about. When you buy a bond, if

1:51
you ever bought a municipal bond, etc.,

1:54
you know that once you buy the bond, the

1:56
underlying value fluctuates, even though

1:58
if you hold it to term, it's going to be

2:00
fine, but it fluctuates. With MAS,

2:04
the underlying value never fluctuates.

2:07
It's static

2:09
like a CD, like a traditional CD. You

2:13
get a guaranteed interest rate for a

2:15
specific period of time that you choose.

2:16
And they come in increments of 1 2 3 4 5

2:19
6 7 8 nine and 10 years. Longer ones

2:22
with some, but 10 years is typically

2:24
where most of most of the carriers

2:26
offer.

2:27
But what I like about them is that the

2:30
underlying value does not fluctuate. I

2:33
also like them if you really want to go

2:35
high quality and say, "You know what,

2:37
Stan? I see things on your site that are

2:40
B+, A minus, A, whatever. But what if I

2:44
buy an A+

2:46
MA? To me, you're buying A+ paper. To

2:50
me, you're buying A+ guarantees with an

2:53
A+ company.

2:56
To me, you're buying a bond.

2:58
And that's what it feels like. That's

3:01
what it acts like. And that's what it

3:03
is.

3:06
For whatever reason, I'm getting a ton

3:07
of questions now like, "Well, Stan, you

3:09
know, what do you do with your money,

3:11
Stan, the annuity man? What do you and

3:14
the lovely Christine of 38 years of

3:16
marriage? God bless her. What do you

3:18
guys do with the money?" Well, first of

3:21
all, I'm not in the markets at all. And

3:23
you go, "Wait a minute. You're not in

3:25
the markets at all?" No. My company, The

3:27
Annuity Man, is a growth stock that you

3:30
could never buy because I own it. It

3:32
makes Nvidia look like a CD.

3:36
We're growing by leaps and bounds. Okay.

3:39
So, the best growth stock on the planet,

3:41
the best ROI on the planet is the

3:44
annuity man that I own, me, my wife and

3:48
I. So, what do you do with the rest?

3:50
What do you do with the profits? We buy

3:51
mas.

3:53
We buy longterm

3:56
mas typically A+ a whatever I feel

3:59
comfortable with on the financials. I

4:01
look at them. We buy mas

4:04
with nonirra, non-qualified,

4:07
non-checking money. I'm buying annuity

4:08
bonds.

4:10
That's what I'm buying. I'm buying my

4:12
I'm buying annuity bonds. I told my wife

4:14
that because I've been in the financial

4:16
services business our whole life. You I

4:18
started with Dean Witter when we first

4:20
were married. And I said, "These are

4:23
bonds. I mean, guaranteed coupons. If I

4:25
die, you get the coupon." Um it's

4:28
beautiful. and and the interest grows

4:31
and compounds tax deferred and there's

4:33
not a darn thing the IRS can do about

4:36
it. They can't do one thing. They unless

4:39
they change the darn law and that's not

4:41
going to happen because the life

4:43
insurance lobby life insurance companies

4:45
issue annuities. They aren't going to

4:47
allow that to happen because they give

4:48
all the money to the politicians and

4:50
they make the NRA look like a bunch of

4:52
pikers.

4:56
So yeah, we we have that and it's

4:58
growing and compounding and growing and

5:00
compounding and when it reaches

5:01
maturity, we roll it into another one.

5:04
Non-T taxable event transfer doesn't

5:06
trigger any taxes and we keep

5:08
compounding and compounding and

5:09
compounding. Now a lot of you out there

5:11
are going, "But wait a minute, Stan,

5:12
somebody's got to eventually pay the

5:14
taxes." Yeah, it's probably going to be

5:16
my two daughters and they can get over

5:17
themselves. They've been living under

5:19
the umbrella of capitalism that I so

5:22
provided to them their whole life. They

5:24
can pay the taxes on a quadrillion

5:26
dollars of MAS.

5:32
MAS are annuity bonds.

5:35
That's what they are.

5:37
Now, if you say, "Well, Stan, I'm

5:39
interested in this this high yielding B+

5:45
MA that I see on your site." Okay? You

5:48
know, B+ is investment grade in the bond

5:51
world, right?

5:53
So, what I do with those, I look

5:55
underneath the hood. I look at their

5:56
financials and I make the determination

5:58
and recommendation. Can they back up the

6:00
claim for the term that you're looking

6:01
at? And then if they I think that they

6:03
can or I know that they can, then I

6:05
recommend them. You're buying annuity

6:07
bonds.

6:11
You have to look at them like that.

6:15
That's funny. [snorts]

6:17
always have these consultants that come

6:18
in and out of my life and they tell me

6:20
they're wonderful and they tell me they

6:21
can help and all that stuff and I

6:22
typically give some of them a shot. One

6:24
of them said, "Well, you you really

6:26
shouldn't say that they're annuity

6:27
bonds. You really shouldn't say that

6:29
they're CDs because they're my go and I

6:31
said, "Shut the heck up, little man. You

6:34
have no clue what you're talking about.

6:36
Get out of my way. You're fired."

6:39
When you've managed bonds for a living

6:41
at a high level on Wall Street, which I

6:44
did with my part, I got to give my

6:45
partner some credit. They were

6:46
fantastic.

6:48
They're still in it. They're still

6:50
there. You know, I mean, you understand

6:52
it. And I get out here and there's A+

6:54
paper

6:56
at really high rates with really good

6:58
companies. That's a bond.

7:03
There's five places on the planet to put

7:05
your money that's safe that you get a

7:07
guaranteed interest rate, CDs, money

7:08
markets, treasuries,

7:10
AAA municipal bonds, and migas, which

7:14
are annuity bonds.

7:17
When you're going into chapter two of

7:19
your life, which people call retirement,

7:22
chapter 2 is about you. There is

7:25
absolutely no reason you shouldn't have

7:27
some migas in the portfolio whether it's

7:29
Roth IRA, traditional IRA or nonirra,

7:33
but especially if it's nonirra

7:36
like me. I'm just letting it grow and

7:37
compound and there's not a thing the IRS

7:40
can do about it because it's legal. This

7:43
is growing and compounding. Well,

7:44
there's still going to be a tax bomb

7:46
down the road. It's not going to be my

7:47
tax bomb player. It's going to be my two

7:49
daughter's tax bomb.

7:52
They'll get over themselves. pay the

7:54
taxes. Player players playeretses.

7:59
What I want to get through to you is

8:01
this whole thing about boy I hate

8:03
annuities. I you know I've never really

8:05
considered buying an annuity stand. Stop

8:08
with that stupidity.

8:11
That's just nonsense. You shouldn't even

8:13
you shouldn't even feel comfortable

8:15
saying that to me. And I every day

8:17
people say, "Well, I've never really

8:18
considered an annuity." Shut up. That's

8:21
because you don't know anything about

8:22
them. If I told you you could get A+

8:24
paper at a high rate, would you take it?

8:27
Annuity or not annuity? You're darn

8:29
right you'd take it. So stop

8:38
stop with obsessing over the category.

8:40
Obsess over the guarantees.

8:43
Right

8:47
now, some people say, "Well, how about

8:49
index annuities? Those are kind of

8:50
bonds." They're not. You know why is

8:53
because the the return

8:56
isn't guaranteed.

8:59
Remember CDs, money markets, treasuries,

9:01
munis, mas index annuity returns aren't

9:03
guaranteed. Those aren't bonds.

9:06
Those are hypothetical theoretical

9:08
projected hopeful agent unicorn chasing

9:11
the butterfly nonsense that you might

9:13
hope works out. There's no hope. Hope

9:16
doesn't pay the bills. Potential doesn't

9:18
pay the bills. Guarantees pay the bills.

9:22
So MAS are annuity bonds. Index

9:23
annuities are not annuity bonds. Riers

9:25
are not annuity bonds. Variable

9:27
annuities aren't annuity bonds. MAS are

9:29
annuity bonds. Principal protected, no

9:32
moving parts, no market attachments, no

9:34
fees, guaranteed interest rate.

9:38
Got it.

9:40
Good.

9:42
What did we learn today? You're right.

9:45
Annuity bonds, they're called MAS.

9:48
My name is Stan the Annuity Man. That's

9:50
shooting it straight with Stan. Yeah,

9:52
I'm intense. I'm intense, but I'm

9:54
telling the truth.