Replay: Annuity Essentials In 2023: Stan The Annuity Man® Live Q&A - January 2023

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[Music] thank you foreign [Music] hi there Stan the annuity man the annuity Man live from Los Vegas Nevada which is where our main office is located yes we had to have an office in Florida we have a marketing office in Denver but um welcome everybody get those

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questions ready and then we'll take them one at a time and then this thing is over once the question's in so you know that's fine it could go long it could go short last one was like over an hour and I'll go as long as you guys want to ask questions so it's it's all good let's

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talk about a couple things um if I cough today I really apologize I'm just getting over round four of covid I am very obsessive compulsive and thorough I've gotten every variant and looking forward to the fifth one coming over from uh overseas so um now I'm

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doing well but I have been through the ringer here so I might cough a little bit my apologies the other thing I think you need to understand with the annuity industry right now is the word capacity now I've talked about that a while about you know the the when the FED does

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something you know it's not linear like well chairman Bell raise rate so annuity guarantees have to go up no they don't and we've seen that and what we're seeing in the annuity industry is some companies are getting in so much money they can't even process the paperwork

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and if you're one of my clients and we're going through that with you you're kind of probably in that frustration time period because we're yelling at them every day they're doing the best they can we're doing the best we can and actually you know we're probably if not

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the biggest sellers of fixed annuities on the planet there's you know six seven different types of fixed annuities um and I have huge staff that does paperwork where we we're weak out if you want to book an appointment um for an application obviously you got

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to go through me but I mean we're weak out on that and talk about booking an appointment with me just to give kind of a Taylor Swift um correlation anyone knows who Taylor Swift is she plays guitar and country pop singer and really popular but she started selling tickets opened

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it up and you know sold out immediately I'm not Taylor Swift I do have guitars in the back guitars in the background that way that way yeah um and those are Gibson guitars flying bees by the way um but what's happened with my schedule if you've tried to book a call with me

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January is completely booked um February looks like it's booking out and I apologize but I'm doing the best I can I do 26 calls a day they start at eight in the morning they end at nine at night and there's 30 minute calls there's no breaks in between I know you

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say Stan that's insane but that's what we're trying to do to get to everybody so if you go to my uh site at the annuityman.com and do book a call and you see don't see a lot of days there it's not that I'm you know on the boat it's we're totally books so you might

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want to shoot me an email and maybe I can call you in between calls or if I have a break or if someone cancels um and that email is Stan at the annuityman.com my apologies but I'm only one person we can only do 26 calls I can only do 26 calls a day and I've

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been doing 26 calls a day since probably October um so it's insane it's good though and I do want to talk to you but you know we're we're running full steam I'm hiring people as fast as we can in this Las Vegas office which is the main Hub where all the paperwork is processed

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but the other thing before we get to the questions is you know we I'm very proud of what we build here because it's we we only sell contractual guarantees and the whole business models we tell the truth and you know so I don't have to remember anything that's what my grandfather

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always said but you know I'm going to do some things this year with a company that are pro-consumer and they're going to UPS up in the industry and really be proactive they call it blue water or the Pioneers take all the arrows but you know the industry a lot of people say

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well why would you change something that's working so well and you know I'm always trying to make the process you know you being able to shop and get information easier as the consumer so that's the driving force and I've hired some of the smartest people

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in the business Community not the annuity industry the business Community to create a lot of new things you know we'll have a new website soon um you'll just one day go to the website you've already always gone to and it's like wow that's different but I think

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you'll like it and the application process and all that we're we're certainly trying to streamline just to keep up with the volume of our clients and the the demand by people for contractual guarantee so with that I you know go to my site the annuityman.com

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and you can run quotes uh we have our proprietary calculators obviously you know about my videos I have a YouTube channel I have a fun with annuities podcast that comes out every other Tuesday with some of the best guests on the planet you know we had I do a shoot

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in a straight series and a q a Friday series videos as well a lot of people like the cute the shooting is straight stuff because it's kind of like this it's just me raw you know but I'm never scripted as you probably already know so let's start with the questions I'm going

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to take a sip of one and then we're rolling um first um question is from Teresa would you recommend an A minus insurance company for a five seven or ten year annuity the answer is yes without hesitation um remember when we are buying migas which is the annuity industry's version

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of a CD um we're dating the company not marrying the company I was just quoted in a Baron's Arco if you get Barons you'll see you'll see that quote they just they just put it out today I think but it was about annuities and they they interviewed me and I we were talking

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about my guys because we're probably the top seller of those and um yeah I mean if we're buying lifetime income I'm taking a look at from the standpoint if it's going to be for your life as long as you're breathing for a 5 7 and 10 we're only going to be there for five seven or ten

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and a minus companies have the capabilities of backing up that claim for that duration Now understand if I believe and looked at the uh the financials and the analysis and did my analysis on their financials and solvency ratios and all that stuff and

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say hey I don't think they can back up the claim you better believe I'm going to tell you that okay um I've been doing this a long time blessed and we we've done well I don't yes we get paid a commission commissions are built in but do I need commission no

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I do this because I want annuities to be sold properly I want people actually to just buy annuities you know people people just don't wake up in the morning but annuities yeah they do if you work with us I mean you you found out we're the least there is no high pressure we

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don't have time to chase you if you want to to uh work with us we certainly want that but it's on your terms in your time frame next question Jack says that I was born in 1952 when do I need to take my first rmd according to according to the secure act 2.0 which by

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the way I'm gonna I'm gonna do some videos on that because there have been some changes um I think it's right now at 73. I think eventually it'll go to 75 is when the IRS Taps you on the shoulder and says hey um you need to take your rmds just as a disclaimer

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um if you don't mind everyone out there please no tax questions I know I look like a CPA and a tax lawyer and I always kid my daughter I was pre-law a long time ago which is not true but I like saying it I cannot legally give tax advice the the closest I can get is this

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type of question which is an rmd question but um I think they moved they moved it to 73. the other big thing on the the 2.0 secureac 2.0 Q lags which used to have all these rules and limitations and 25 percent of your Total IRA assets and or the lesser of no it's

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not just two up to 200 000 period and which I think is fantastic because culax are a lifetime income product that's used with Ira assets and you Ira qualified assets and you can attach your spouse for joint lifetime income it's a good way to hedge inflation in the with having income

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start in the future but you know it used to be just convoluted start at 125 on 135 then went to 145 and finally someone said actually I'll tell you who did it is Michael finka and his group he's been on my podcast a very smart guy you know Ivory Tower guy you know smoking jacket

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type guy just very smart they pushed to get it up to 200 000 without any rules and now you can do that so you know go to my site run a culac quote if you want to next question foreign after the contract expires um let me ask that answer that two ways

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the answer is yes if you let's just say you bought a three year manga and at the end of the three years you know we're going to be in touch with you and say hey 60 days prior to to the date of it maturing and say hey what do you want to do you know he wants to send the

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money back or do you want to roll it to another one if it's in an IRA the then the question would be do you want where it came from let's just say it's a Fidelity Ira do you want to go back to the Fidelity Ira that would be a non-taxable event transfer so the answer

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is yes you're going to get all your money back with interest the second part of the question is different I have to address it differently or do you need to wait 59 and a half that migas are treated from a tax standpoint like an IRA if you're say 55 and you buy a five-year Miga and you

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take out money pre 59 and a half and it's in a non-ira account there's a 10 IRS penalty on what you take out so that's the reason I always tell people you know be careful you know 50 and above let's let's talk about annuities and maybe you don't need them

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even then you're so young but 50 and Below you know it's got to be a really different interesting unique circumstance for me to say yes by an annuity of any type just because you're so young in the insurance company's eyes so the other so if you're young out

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there you're in your 50s it's okay to buy a myga any type of annuity but just understand that if you take out a different money from a deferred annuity like indexed annuity variable annuity myga there's a 10 IRS penalty you can circumvent that not to

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get the weeds here but I got to go there because I am the annuity man um if you buy an immediate annuity for Lifetime income you circumvent those those IRS penalties but then the question is why are you doing that when you're so young because remember

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lifetime income products are based the pricing primarily based on your life expectancy at the time you take the payment all right so that's the way that works next question I've sent in two applications um yeah yeah definitely we'll work on it do me a favor Jeff just shoot me an

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email stand at the annuityman.com obviously this is a we're swamped question but I'll personally take care of it next question are there age recommendations when a client should consider an annuity or not consider annuity yeah I just kind of covered that I think that um

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50 and above we can talk 15 below please don't call me I mean really it's that simple now yes do I have of the thousands and thousands of clients that I have to do um you know are there a handful of people that are that are young that have them yeah but

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they're I mean they're such weird circumstances but the rule is 50 above let's talk 50 and Below way to your 50. I mean I mean once you're older I mean I got a call the other day from a guy like 45 years old and had been pitched everything indexed annuities today I'm like what

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are you doing no don't buy anything nice guy from Louisiana and he I think he appreciated my honesty obviously I'm going to shoot it straight out I'm not going to sell something just to sell something and he did not know about the 10 penalty taking money out pre

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um 59 and a half the sales people that were trying to get him locally did not tell him that next question what is your current view of qlex I mean my view of qlex since they were introduced in 2014 and I wrote the first book on Q lags um ever and it's still available by the

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way just on a side note you know I've been shipping these books hard copy for years and years and years that's getting ready to end in about a month so if you if you want a hard copy book you better sign up for them now because from here on in We're not gonna be able to do it because

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we're getting thousands and thousands of requests every month to send them we've been sending them but it's just not financially feasible for for us to send 3 000 book packages every single month um so but qlex my current view I mean q likes are fantastic qlax are um

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the reason that the IRS and the department of the treasury even put them out and that's who designed them by the way and introduced them is social security was never supposed to be the primary uh lifetime income component of your life I mean it's just supposed to

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be a supplement I know that the majority of the people use it as primary I would say I would say most of you out there are using it as a supplement but culax are a supplement to that additional income floor that you need when you look at retirement now a lot of people under

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the false assumption that with a cue like you have to wait to turn it on until Age 5 85 that's not true that's the that's that's when the IRS makes you turn it on but you could turn it on at 75 or 77 or 80 whatever I like it because you can add a spouse using

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your IRA for joint lifetime income meaning that when your legit hits the mountain you die your spouse gets that income continuation uninterrupted and unchanged for the rest of their life so I mean I've been the biggest component uh proponent component proponent of

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culac since they came out and I I will I mean I've said this then I'll say this now if all annuities of commissions are built into the product okay and there's a reason that you know some products are shown at the bad chicken dinner seminars and some products are not

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but if all the commissions on all different types of annuities were the same qlex would probably be the number one selling product on the planet because everybody has an IRA pretty much and I I actually think if you have an IRA you should be quoting a q lack to look at

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those assets as part of your income floor next question retirement income cap the real DLS um I think that was a either a blog or a video whatever the income gap is funded all is good but what about sub subsequent years let's talk about inflation I mean I did

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a I did a video that made a lot of people happy like made a lot of people mad it was called stop complaining about inflation the original title stopped bitching about inflation by PR people stepped in and said don't do that but I'm gonna do it stop bitching about

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inflation okay the way to solve for inflation with annuities is when you need whatever that and inflation is personal to everyone the media doesn't treat it like that but I'm talking about I'm talking to you you know let's just say you had a two years from now you need an additional

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250 dollars in income we can either buy an immediate annuity reverse engineering for that amount or buy a mica and peel off the interest to achieve it but there's not an annuity on the planet that addresses inflation even though every sales pitch you hear locally in

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your area will tell you they have it they don't annuity companies don't give anything away whether it's an indexed annuity that allegedly supposedly hypothetically increases or whether it's a cola attached to an immediate annuity cost of living adjustment the annuity

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companies don't give that away they just simply lower drastically the initial payment to make up for it typically it's a seven to nine year break-even point my opinion is you already have the best inflation annuity on the planet it's called Social Security

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and if you need additional money to fill in an income gap then let's go do it but I'm begging most of you out there to please stop obsessing about inflation I'll give you a story I had a guy multiple millions of dollars investable and he was he was losing sleep over over

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inflation I'm like you got to be kidding me there's 60 of the adults out there in the country that have less than 400 in their checking account those are the people that got to stress about inflation but if you're out there with hundreds of thousand dollars you need to

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get real and if you call me and we get on the phone and you start going down that rabbit hole and you've told me how much money you have and it's significant I'm gonna be brutal with you I'm gonna say hey come on come on now seriously it's it's gonna be okay

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and you know like for instance for me my daughters are out of the house we don't buy milk or drive them to dance anymore so we don't have milk and egg and gas prices affecting us stop watching television you know this is Click bait stuff for the news people next

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what is the percentage one would pay for investing I'm assuming you're talking about commissions um if not put another question in but let's talk about commissions all commissions are built in now you don't see it as paid from the annuity company reserves but just just

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think of it like this the more simple the product the lower the commission the the shorter the surrender charge the lower the commission the more complex the product the higher the commission the more whistles and bells and sounds too good to be true nonsense the higher the commission

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so if it's got a 10 if you're if you're looking at a three-year Mica versus a 10-year indexed annuity that would be like a one percent on the myga commission or less than that compared to an indexed annuity at you know six seven eight nine percent commission

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so like I said unfortunately the commission's structuring for the agents drives a lot of recommendations out there they're doing square peg into round hole selling um too good to be true type selling looking for stupid people but the the point is commissions are built in the

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more simplistic the product the lower the commission and in my opinion the more pro-consumer product next question spear options event spia single premium immediate annuity by the way um you can structure this is an interesting question because you can structure

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immediate annuities any way you want to structure them for instance you can have it be life only meaning when your legit hits the money it hits the mountain money goes poof you could have life with cash refund meaning that when you're allergic hits the mountain whatever's

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left in the account goes to list the beneficiaries of the policy lump sum you could have periods certain like a life with 20 meaning it's going to pay as long as you're breathing but if you die in year 13 there's seven more years of payments um you know answering question number one

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depends on how we structure it um the insurance company does not have to keep a penny if you don't want them to even though they would be contractually on the hook to pay for life or if it's joint life for as long as one of you is breathing so the question is how much more of um

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what's the differential in like say life only which would be the highest usually the highest payment because you're shouldering some of the risks because when you die money goes poof versus a life with cash refund whereas it's still a lifetime income stream but 100 of that

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initial premium is never going to be kept by not one penny by the annuity company your family's going to get it if you die early we just have to quote both and on our site at the on the calculators the spea calculator that you can use and quote you'll see both sometimes it's pretty

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close if it's pretty close contractually then obviously you choose life of cash refund if you hate your kids and family then do life only or if you have a lot of life insurance Etc you want to maximize things so it's it's a conversation we need to have there's no

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perfect answer I love I love agents out there well you need to do life in 20. that's what you need to do that's garbage that's nonsense I mean it it comes down to the conversation that we have and what we're trying what you're trying to achieve and the kind of what I

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call backstop you know remember Little League you had the backstop baseball what kind of backstop you want to put on that policy contractually just remember there's over 40 ways to at least to structure an immediate annuity that's the customization part of a commoditized

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product which is very interesting next question okay if if a Phil buy an immediate annuity now and want to start it next year do you get interest on that no uh but let me tell you what they do annuity companies there's no trackable interest rates for espias culax and deferred income

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annuities Diaz those are all kind of the same structures just just when when you're going to turn on the income stream now I will say this the longer you allow the annuity company to hold on the money they enhance the payment but there's no trackable interest rate in

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other words you put a hundred thousand in and you wait till a year you're not going to see 102 000 or 104 000 if you go to the annuity company site to track your spear right before you turn it on um but understand that they know they have to make it worth your while to wait

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so the company is going to enhance that payment I.E increase in English the longer you allow them to hold on to it the question is do you want to do that or do you just want to wait until the time you want to pull the trigger and lock in those those um

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that lifetime income guarantee let me let me stop here and just just remind people that interest rates play a secondary pricing role with lifetime income is primarily based on your life expectancy okay don't want to beat that up too much but I will if you keep asking me go next

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question I do not understand the details of buying a joint annuity of qualified money how and how it would affect if you die let's just say you bought a culac with your IRA money okay or an immediate annuity without already money you could do that as well

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and you your joint life with your spouse okay using your IRA money and you die the spouse is going to get the lifetime income stream let's just say that you're alive when you turn it on and you're getting joint lifetime income and then you die and the

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money's the income is going to continue uninterrupted and unchanged so qlax allow you an immediate annuities inside of an IRA allow you to attach your spouse for joint lifetime income so that there's a continuation of that income guarantee when you pass away I mean it's really

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that basic next principle required in a traditional IRA for 20 or certain for a married couple to cover the Irish reduction I mean again Theo um this is a blanket this is a an answer looking for a blanket question a blank this is a question look for a blanket

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answer there's no blanket answers I mean this is this would have to this would come down to your ages this would come down to rmd rmd tables you know I can't just carte blanche answer this um you might have already run the numbers we do not allow people at this point

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um to run period certain quotes because I need to speak with you about that before you pull that trigger and make sure you understand the limitations of that quote in the future we might we're having that discussion now but it's a rabbit hole that you can go down and

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make a really bad mistake if you don't know how this works but the bottom line is you can do a period certain within an IRA but we have to just make sure that you're dotting all the eyes and Crossing all the t's and getting your CPA involved to make sure that everything you're doing

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is compliant so that you know the money you know you're addressing the IRS and the r D's next question can a migrate be locked into the time application most carriers yes not all most um paperwork delays and everything and we have run into that um and we'll take the blame but a lot of

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it's the carriers you know I'm envisioning like their receiving department their mail room with like 9 000 FedEx packages a day or if it's electronic you know just like 9 000 in thing inboxes to electronic apps but yes most of the time most carriers and I

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wish I could say all but most will lock in the um the the rate once they have a policy number and the application is in their hands most and um we have run in some situations we had to go to bat and fight this is a weird time in the annuity industry and I told

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them once we hit over five percent on the guarantees uh for migas and that happened October the first part of October it's been game on ever since it's been it's been chaos with the carriers and the um you know there's so much money flowing in so to say just

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bottom line we've been doing this a long time we we've been to the rodeo we're fighting like heck but at the end of the day the carriers do control the rules but most of them are very honorable and will allow you to lock it in as we're getting the money transferred from

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wherever so next question what do you think fixed annuity rates will go if I knew that I wouldn't be on this pod I wouldn't be on this um live event I'd be on my Learjet trading interest rate Futures but since you asked Joanne um here's the way I look at it I'm sure I'm wrong

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the government as you all know has 31 trillion in debt that we know of every time they raise rates they're raising the servicing of that debt okay that's just common sense now Common Sense has not really applied recently and depending on how they are

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um look they the FED is looking at that inflation Etc you know we'll I don't know what's going to happen here there might be a couple more raises who knows I think we're getting close to the top and you can by just watching news and CNBC and Fox Business and

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reading the papers and all that stuff you can tell that the FED is looking for some glimmer of light and it's just so that they can start lowering rates um what we're seeing a lot of people do is lock in migrates you know the fixed rate annuity rates um longer term than normal because

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they're under the um assumption that rates will be less than five a few years down from from now I don't know that answer but um I think the FED is motivated to lower rates more than they are to raise rates but they've surprised me this past year on how much they have razor rates

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so we'll see what Powell does but once again and I want to be very very clear annuity companies Mica companies life insurance companies that issue migas glance at the FED it's not a linear thing okay if they're bringing in enough money they will lower their guarantees

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we saw that at the last Fed rate raise we had a bunch of carriers lower their guarantees before they knew I mean before he even announced raising it and they knew he was going to raise it why because of capacity issues okay so if they're getting in enough money and they

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they're having a hard time processing all that those applications coming in there's no incentive for them to raise rates now to combat that we represent pretty much every carrier out there so there's always some carrier that's kind of breaking out and raising race we had

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some this week that all of a sudden broke out and and raised rates on the three in the five year so there's always some company that's trying to raise rates but as soon as they hit whatever bogey they have in place that they want to um you know that rate they want to

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hit then they'll lower the guarantee so please stop fixating on the FED all right next what's the best day to buy an annuity no good answer to that just bad sales pitches um because it all comes down to two questions with me the question instead

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of that question is what do you want the money to contractually do and when do you want those contractual guarantees to start from there I can determine a if you need an annuity and B what annuity type will provide the highest contractual guarantee

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why annuities have such a bad reputation it's because the Schmucks out there selling it improperly and no offense to the to the wives of the Schmucks or the husbands of the schmuckets but every industry in the sales world has bad people Car Sales real estate sales

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you know brokerage where I came from um and annuities but I think the problem in the annuity industry is you've had a lot of advertisements I hate annuities all this stuff which is a joke because if you if you want to go with that then go cancel your Social Security payments

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because that's the best annuity on the planet but the industry's aren't as bad reputation they you know the I've told the the grand pubas number one I should be running the annuity industry we all know that but thank you annuities are the only product on the

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planet that provide a lifetime income strength why we don't pound that into the table I don't know but no most of the products that are out there that are prop more profitable to the life insurance company issuing the annuities are these complex products um

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you're thinking about using part of your IRA to buy an annuity it again to the two questions what do you want the money to contractually do and when you want the contractual guarantees to start I've got an easy to remember acronym pill P stands for principal protection I stands

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for income for Life the um L stands for Legacy and the other L stands for long-term care if you don't need to solve for principal protection income for Life Lexi or long-term care you don't need an annuity and that um flies in the face of these growth

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hypothetical theoreticals if you'd owned it 10 years ago upfront bonus nonsense crap that's being pitched out there please never buy any type of annuity for market growth please don't you're limited and when you're doing market growth in my opinion having worked for

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Morgan Stanley World Trade 2 Center and I've done that you don't need limitations end of story next can a cue like have a beneficiary of both you and your wife die yes you can set it up say joint life with cash refund and so if you and your wife die in a

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fiery Learjet crash into the mountain um then whatever's left in that account would go lump sum to the list of beneficiary of that policy yes next Peter we're working on buddy give me a call on Monday comparing uh and by let me and you don't have to put that question back but but

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we're having a couple clients on here and if in in producer you can put them up if you want you don't have to um we are pushing like heck heck these these companies to get these um to get these these policies through period but we're doing the best we can

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but they're overwhelmed and we're having to stay on hold with them for two hours at a time to get you know get an answer Etc so that's the answer to that question um two seconds one two seconds all right next question comparing deferred income annuity versus indexed

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annuity with an income Rider um let's talk about that um the way to look at that that goes back to two questions uh what do you want the money to contractually do when do you want those contract contractual guarantees to start in this case it's down the road okay um excuse me

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the only two way there's three ways to do it actually there's four let's go over the four deferred income annuity which is an immediate annuity that you defer an income Rider attached to an indexed annuity you can buy a myga for the duration and then transfer that to

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an immediate annuity or you can wait and then buy an immediate annuity those are the four types the difference here with deferred income annuities and index annuities is deferred income annuities okay are irrevocable and not flexible whereas an income Rider with an index

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annuity have some flexibility but at the end of the day we're going to quote both of them we're going to look at who has the highest contractual guarantee right now at the time of this taping income writers seem to be higher that I mean they're better but we're going to look

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at both and see which one you like the best foreign next I'm assuming that's vacations um I I think that's what should I do if I want to use an annuity for yearly vacations start in five years last for 10 years about seven thousand dollars a year what

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you're really describing is a period certain annuity meaning that I'm gonna buy it now and then in five years I'm going to get seven thousand dollars a year for ten years we can quote that just send me an email at stand at the annuityman.com since the income Rider adds a it doesn't

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add large fees Market adds about well unless you want to consider one percent large um does does that negate the potential upside if I offers absolutely draw a line down in the middle of a blank sheet of paper visually left hand side is the index accumulation side the index option

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side right hand side is the income Rider side two different calculations the income writer side is the Monopoly money and then the uh and the fees from that income writer come out of the accumulation so in essence every single year you start the indexed annuity

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income you know that index option side at minus one or minus one and a half whatever the income Rider is just remember this indexed annuities are not market products okay they were designed to be compete with CD returns I don't care what any Agent shows you I don't care you're not

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going to get those returns period and remember the annuity companies can change the way the index option strategies are calculated and this is real real key right here three words at their discretion so if you have a one-year call option on an index annuity and you buy a 10-year

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surrender charge product you're actually buying a one-year um guarantee with a 10-year surrender charge I'm not saying that's bad I'm just saying do not think you're going to get market returns with index annuities do not it's a mistake I know that's the

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sales pitch just remember if it sounds too good to be true it is every single time next is the free withdrawal period with a myga what does that stand for why are some August not rated well there's only one or two that aren't rated um that are on my site now I won't let

36:16

you buy them we just right now we just show all carriers I mean I'm I mean these are commodity products the free withdrawal period for Omega means that um some allow you to take out just the interest penalty free some allow you to take out five percent penalty free

36:31

annually some allow you to take out 10 penalty free annually you can go to my site at the annuityman.com and pull up the live Miga feed in the middle column show you the liquidity features some some have no liquidity during the duration some some have liquidity during

36:46

the duration that's part of the conversation I'll ask you is do you plan on taking interest out or do you want the ability to if needed and if that's the that's the quest that's the and you say yes then we're going to choose those that provide that

36:59

but that's what free withdrawal means is you can take out x amount whether it's interest only five percent or ten percent penalty free typically those are the choices um within specific mangas not all of them have it next question this is good is there a specific

37:19

coefficient or factor that you're aware of that's how the fed's rate hikes affect annuity yields again stop being in a new an interest rate an analyst with annuities life insurance companies price their products differently got to remember life insurance companies have life insurance

37:36

they know when you're going to die it's a profitable product they have lifetime income stream products they know when you're going to die it's a profitable product they have um Legacy Bond portfolios that Jimmy Carter bonds Barack Obama bonds and bonds that aren't callable that are

37:50

getting high yields Etc then there's capacity issues where they're looking at how much money they need to bring in and if they hit that capacity they're lower the guarantees and then that final thing that they look at is the Fed so if you're looking for that type of

38:05

analysis or a type of um study if it's out there the person that did it completely wasted their time um there is no such thing and like I said it's not a linear thing when chairman Powell raises race doesn't mean that your favorite annuity company is

38:21

going to raise rates either because they have capacity issues and they're looking at different things and maybe they're not even in that space now what we have seen because it's competitive and commodity commoditized world is since October since the fed's been raising we

38:36

have seen all annuity types get a little bit of a bump in the guarantees but remember with lifetime income the primary pricing mechanism is your life expectancy or expectancies at the time you take the payment interest rates play a I'm gonna say it slowly secondary roll

38:53

so stop focusing on it next hmm curious how lifetime income annuities are calculated into your net worth calculations I don't know that's a good question I guess you could look at the total that you put in your net worth and and say this is part of it

39:10

um I don't know I don't I think that's it's up to you and your CPA and your family and your ego on how you want to put that in there to me when you buy an immediate into your lifetime income annuity you're stacking income so I think it's a different thought I think

39:27

you're looking at okay Social Security brings in this my dividend stocks bring in this my rental properties bring in this and now my annuity is bringing this and all combine is this so my opinion next how do you know if you're using part of your traditional array for annuity is a

39:48

smart choice annuity guarantees are the same regardless what type of account you have non-ira bank account brokerage account Ira Roth IRA the difference is the taxation of the of the money when you take it out or if you take it out okay so I love stupid advisors as I never put an

40:15

annuity sort of an IRA could be the dumbest statement of all time and they need to stop talking um you you can when you're buying an annuity contractual guarantee inside of an IRA you're just buying the contractual guarantee period and the majority of annuities that are

40:33

purchased are purchased with Ira assets hello I mean it's just a fact um are you going to get double tax deferral no you're not but you're buying like for instance if you bought a multi-year guarantee annuity inside of an IRA that's fine you're buying the

40:47

coupon you're buying the guarantee okay next did you say it is not a good time no I did not say that I'm sorry um once again your buying contractual guarantees if if you want to buy contractual guarantees in your IRA that's fine there's nothing let me repeat there's

41:13

nothing wrong with using annuities in your IRA and any advisor or agent that says there is or master of the universe or or person on CNBC then I need to introduce them to the qualified longevity annuity contract culac that was introduced by the IRS and the treasury for you solely

41:34

in an IRA so I love people said never been a nudity you mean a culac you mean qualified longevity annuity contract so that alone will tell you that it is acceptable and suitable and appropriate for money in an IRA to purchase an annuity type period next

41:56

which annuity has the least moving parts and lowest commission fees an immediate annuity if you want lifetime income and a single premium immediate annuity has the lowest commission there's no there's no fees the commission's built in and you never

42:11

see it the for accumulation the lowest commission product is a myga multi-year guarantee annuity as compared to variable or indexed annuities not even close so you know commissions range differently between carriers Etc Mica commissions can be anywhere from one to

42:29

two percent on average immediate annuity commissions can be anywhere from one to three percent on average and once again paid out of the annuity companies reserves it's a net transaction to you and it's one time next Dia with return of Premium an increase for inflation

42:48

monthly okay Ben's asking about a deferred income annuity that has a cola because he wants the income to increase the inflation and and the annuity company loves that because they're just going to lower significantly the the income amount to make up for that

43:03

increase yes it would start lower if you die early would that leave more money for the heirs yes but I'm going to encourage everybody out there to void from your head right now annuities with inflation increases because all you're doing is building a wing in your honor at the

43:23

annuity company they're lowering the guarantee period you're already on the best inflation annuity on the planet I think in the next five years they'll be really good new different inflation type um annuities available but they're not available now and these companies all

43:39

they do in most cases you know what we've seen in the past is an immediate annuity with a cola they're going to lower that initial payment say around 30 percent to make up for that increase so my comment to you is if if you're if you're doing a legacy strategy then

43:54

let's do a legacy strategy if you're doing an income strategy then let's do an income strategy all right next question if you purchase a spear with a company will the company provide a monthly annual statement reflect and balance yes yeah I mean and you'll have online

44:11

access to the account as well next question that's all the questions we have that's all the questions we have I'll give a couple if if you want to put them up there right now I'll give you a one minute and other than that then I'm going to say something very riveting and

44:25

then we'll close this thing out so um huge huge attendance I really appreciate it so I guess that's that's the end of the questions I want to thank everybody you can give me a a call best thing actually is to email me stand at the annuityman.com my apologies my schedule

44:41

is completely booked I think there's three or four days in February that's open nothing in January so if you want to catch me stand at the annuityman.com have a great weekend see you next month [Music] foreign

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