Should You Buy Annuities for Your Kids?

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Welcome to Q&A Friday. I am Stan the

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Annuity Man, America's annuity agent,

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licensed in all 50 states. Today's

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question is a good one. Should I buy

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annuities

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for my children? Should I buy annuities

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for my children? We get this question a

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lot at theanuityman.com

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and you can book a call there if you go

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to that site and you can run quotes on

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our proprietary calculators. I have

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thousands of videos as you know, but the

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answer to this question is probably not.

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You probably should not buy annuities

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for your children, especially if your

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children are young, you know, less than

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40 years old. Um, I would say no. You

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know, you'd be better off, you know,

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putting them in some index fund and

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letting it ride because they're going to

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get a better return. Um, also too with

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deferred annuities, some types of

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annuities, there are penalties for

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taking money out depending on how you

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take it out pre-59 and a half. But in my

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opinion, when you're young, you know,

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less than 40 years old, you need market

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growth. You need significant market

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growth long-term. And annuities as a

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category do not provide that regardless

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of what anybody tells you or tries to

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convince you about whatever product

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they're pitching. Now, should you buy

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annuities for your children? If your

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children are in their 50s or 60s, maybe

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under that scenario, when they're older,

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anything above 50 years old, I would

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say, "Yeah, let's talk about it." And

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and then I'd ask why. Why? What are you

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trying to do? Are you trying to create a

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lifetime income stream for them? What

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are you trying to provide? And in most

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cases, I would want you to consult with

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your estate planning lawyer and your CPA

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and your tax lawyer because what you can

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do if you want to structure lifetime

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income for your older children or even

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your younger for that matter, but the

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older primarily is what we're talking

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about here. You can establish a trust

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and the trust can say upon my death I

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would like an immediate annuity a

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lifetime income stream payment purchased

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for my children at the time of my death

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to provide them a lifetime income stream

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that's a way to do it. But as a broad

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answer should you buy annuities for your

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children

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if they're young? Heck no. Please don't

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please don't try to thread that needle

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and please don't have anyone out there

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try to thread that needle for you.

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They're just trying to create a

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commission in most cases and they have

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no good argument against a pure market

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growth non-anuity strategy. But if it's

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if it's older children, let's just say

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you're in your 70s and you have a couple

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50 year olds or you're in your 80s, you

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have, you know, 50s and 60 year olds,

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then you could accomplish it. control

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the money up until your death and then

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at the time of your death have them have

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the trust dictate a purchase of a

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lifetime income stream for your kids at

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that time. So don't get fancy. Don't try

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to be an annuity spend goaly out there

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because I'm that person. And I'm telling

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you, you really probably in most cases

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should not buy annuities for your

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children. There's always an asterisk or

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a one out of a thousand moment. We'd be

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more than happy to talk with you about

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that at theannuityman.com if you want to

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book a call. But that's Q&A Friday. Go

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seize the weekend.