Stan The Annuity Man: Simple Explanations of Every Annuity Type

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[Music]

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foreign

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with annuities where every single week I

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welcome a celebrity guest expert that

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can help you maximize chapter two of

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your life listen learn laugh and love

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every minute of the most unique

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Financial podcast on the planet let's

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get to it

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[Music]

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welcome to fun with annuities I'm your

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host Stan the annuity man America's

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annuity agent license and all 50 states

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coming to you from Florida rainy

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thundery lightning flooding Coastal

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Florida with bugs and roaches and all

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kinds of stuff

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I know what you're saying Stan aren't

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you just in Vegas yeah we have an office

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in Vegas and one of the reasons I'm

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wearing

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glasses and if you listen to this on

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podcast platforms Etc I'm sporting the

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glasses not because I want to look smart

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but it's because I'm getting old and my

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eyes are getting crusty when I go out to

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Las Vegas to my main office out there

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and I put in contacts it's like the

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corneas are getting sliced like a like a

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piece of capicola

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and a very good Italian deli it's like

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my eyes are getting old I'm getting old

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for goodness sake been doing this for

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decades but I'm glad you're here fun

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with annuities is an unbelievable format

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typically I have on guests

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um that

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spew their knowledge for lack of a

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better phrase and I I love having them

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on but occasionally I do what's called

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off the annuity cuff because I have an

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idea of a deer what am I from Virginia

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no offense idea and um or someone gives

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me an idea

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for me to just talk about things I've

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done one of these before and it was

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extremely popular because by this time

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if you watched any of my YouTube videos

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or listen to any of my podcasts you know

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that it's going to be brutally factual

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I'm not going to mince any words so

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today's topic on fun with annuities

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is simple explanations for every annuity

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type

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now I've written books on all these

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products and all these categories and

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all these specific strategies I've

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written hundreds of articles on all of

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them I've done thousands of videos go to

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my YouTube channel stay in the annuity

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Man YouTube channel thousands of videos

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you can pull them up by category I know

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I know what you're saying you're saying

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Stan

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how in the world are you doing all that

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don't you have a life now I'm going to

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answer that a couple ways kind of not as

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an entrepreneur and

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this week at the time of this taping I'm

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celebrating my 35th Anniversary with the

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lovely Christine who's getting present

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after present after present

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because she's put it with me for this

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long but the bottom line is I'm a little

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um obsessive compulsive I do nothing in

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moderation so when I do content I do

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content but as I was looking back at

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everything that I've done all the books

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and all the Articles and all the

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podcasts and all the videos

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there really wasn't one that synopsized

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all products where you could watch it

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one time one video and kind of get the

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the gist of annuities

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there's not just one annuity Hood all

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nudity really you do

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let's not go over that again I mean I

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beat that to death because I keep

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hearing it I hate all annuities you hate

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all Social Security you hate all

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pensions come on give me a break player

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so let's talk about the annuity types

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and then we're going to talk about

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current events and what to watch out for

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and all the stuff

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well let's go through them okay now this

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or the purest out there they might call

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me up and say well Stan you didn't

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mention tauntines and and uh those

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things now I'm I'm mentioning no offense

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to mushroom waleski because he'd written

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a book on time times but those are

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annuity type products that were in

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Europe Etc we can do that at another

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time where I could have Moshe on well

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let's start with single premium

4:10
immediate annuity Spears they were

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introduced in the Roman times

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Latin annual means payment I believe I

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didn't go to that class but that's what

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I've been told and immediate annuities

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were a lifetime income stream set up for

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the dutiful Roman soldiers and their

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families because they were landed on the

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line for the empire

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now in this country immediate annuities

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have been sold for a long time hundreds

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and hundreds of years now the problem

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with immediate annuities from a

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misconception standpoint a lot of people

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out there say well I never bought one of

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those things when I got money goes poof

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and the annuity company keeps the money

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well that's one of about 40 to 50 ways

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to structure it most people structure it

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so that there is a lifetime income

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stream that you're never going to live

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as long as you're brave dang or if you

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set it up live joint life as long as one

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of you is breathing

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but 100 of the money uh goes to the

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beneficiary if you die early in the

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contract so the evil annuity company

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doesn't keep a penny hold on two seconds

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that was a very slick way to turn off

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the computer for making a sound actually

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it's a printer so Spears probably all of

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you all of you people on the podcast

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you're like huh

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that's the beauty of video so spear

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single premium immediate annuities

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pension annuities they can be structured

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in Myriad of ways

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on one life joint life they can be

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structured for a period certain where it

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pays for a specific period of time you

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could do combinations of those you could

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do life with cash refund joint life with

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cash refund joint life with installment

5:44
refund bottom line is

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however you want that pension payment to

5:48
function while you're alive and whatever

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you want the money to do when you're

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dead we can structure it that way it's

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an immediate annuity no moving Parts no

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annual fees no Market attachments

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here it's a straight transfer of risk

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primarily priced on your life expectancy

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at the time you take the payments or

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life expectancies if it's joined

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interest rates play secondary role in

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the pricing interest rates play a

6:12
secondary role in the pricing interest

6:14
rates play a secondary role in the

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pricing I say that three times

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repetitively

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because there was a well I'm waiting on

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right stand I'm waiting on the rights

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and boom Powell at the FED big Palestine

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Baltimore oil first baseman so I called

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chairman Powell blue Powell give me a

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break okay annuity companies they look

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at boob pal but they don't care I mean

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they do use interest rates as part of

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the pricing but they look at your life

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expectancy how long it's going to take

6:42
until you die the reason life insurance

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companies have the big buildings they

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know when we're going to die that's the

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reason Property and Casualty companies

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don't have the big buildings and they

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come and go like the wind because they

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don't know when the wind's going to blow

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it's pretty good analogy right there now

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that single premium immediate annuities

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let's go to deferred income annuities a

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deferred income annuity stay with me

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here I'm going to go fast

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is an immediate annuity that you defer

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let me go slow

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single premium immediate annuity income

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can start as soon as 30 days from when

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the policy is issued up to a year once

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you pass the year time point it

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magically turns into a deferred income

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annuity same structure no moving Parts

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no Market attachments no annual fees

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same as an immediate annuity it's a

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straight pension product

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transfer risk going to pay you as long

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as you live same type of structuring as

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immediate annuities life only joint life

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only life with cash reef and life with

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installment or even life with period

7:42
certain periods certain you can defer a

7:45
deferred income annuity

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as far as 40 years 40 plus years or as

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short as 13 months it's your call so

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when I asked my questions always is what

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do you want the money to contractually

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do and when do you want those

8:00
contractual guarantees to start if you

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said

8:05
me and the misses need lifetime income

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starting in 14 months then a deferred

8:10
income annuity is going to be part of

8:11
that quote

8:13
that we send you okay if you said well

8:16
it's going to be two years okay we're

8:18
going to turn on two years okay then

8:20
we're probably gonna

8:21
um we're we're gonna quote a couple of

8:24
things there's a couple of ways to get

8:26
to what's called income later we can

8:28
talk about that at another time because

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I want to go through the products so

8:31
that's a deferred income annuity so

8:33
single premium immediate annuity

8:36
past 13 months magically turns into a

8:38
deferred income annuity now the new one

8:41
of the newer products

8:42
in the annuity World category is what's

8:45
called a qualified longevity annuity

8:47
contract a culac guess what it is it's a

8:50
Dia which is a spear but it's a Dia that

8:53
you can use with qualified money what

8:56
does that mean stand qualified it means

8:57
Ira not Roth IRA traditional IRA and

9:01
some 401ks are now offering Q likes

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what's Q like stand well at the time of

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this taping please check the date

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because our politicians in DC changed

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the rules on qlex why because the

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department of the treasury and the IRS

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both are friends of course they

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introduced this product in 2014 for use

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in Ira so that you could start planning

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for future income and not solely depend

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upon Social Security which is never put

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on the planet

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to be the sole income Source

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unfortunately it is for a lot of people

9:34
but it is what it is but qlax the good

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news at the time of this taping you can

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you can place two hundred thousand

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dollars of your IRA and if you if it's

9:44
spouses you can each do that with each

9:46
of your IRAs and you can attach your

9:49
spouse as a joint lifetime income

9:50
participant in the business we call them

9:52
annuitants so joint annuitants on your

9:56
IRA here's the other thing you can do

9:59
you can defer it as far out as age 85

10:02
you don't have to go that far listen to

10:04
me again because I'll be well I don't

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know about you like because I don't want

10:07
to wait till age 85. you don't have to

10:09
Chester you can but you can turn it on

10:12
sooner than that

10:14
but you can wait to 85. you can buy

10:17
multiple let's just say you wanted to

10:19
split it up you can do a hundred

10:20
thousand and uh and defer it to age 80

10:24
and 100 000 defer to age 85 that's 200

10:27
000 in a q like now the the government

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at the time of this taping has promised

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that they're going to increase that 200

10:32
000 limit with inflation whatever

10:35
calculation that is that boob pal and

10:37
the Dutch boy haircut person Miss Yellen

10:40
um decides to do or the treasury

10:43
whatever IRS it's it's really treasury

10:45
in IRS that makes that call but culax

10:47
are Great products they're future

10:48
pension products that you can use with

10:50
Ira assets here's the other thing

10:52
that 200 000 you don't have to use 200

10:55
but that's the maximum at this point in

10:57
time is not used as part of your

11:00
required minimum distribution

11:01
calculations

11:02
so if you have a million dollar IRA and

11:05
you buy a 200 000 Q lock and you're 873

11:09
at the time that's taping that's when

11:10
rmds hit

11:11
instead of calculating your rmds on a

11:14
hundred thousand you're calculating them

11:16
on

11:16
on a million you're calculating on 800

11:19
000. so you have a million dollar Ira

11:20
you buy a 200 000 culac instead of

11:23
calculating the rmds on a million you

11:24
calculate it on 800 000.

11:27
so culax are great

11:29
now let's let's look at the DIA in culac

11:32
from the standpoint of good and bad okay

11:35
and really immediate annuities as well

11:37
all three of these products immediate

11:39
annuities deferred income annuities and

11:41
qlax are annuitized products you're

11:43
ripping the knob off the water faucet

11:45
incomes coming instead of instead of

11:47
liquid water

11:49
but it's irrevocable that's okay if it's

11:52
allocated and proportioned and you

11:54
haven't put too much money into it but

11:56
with these you have to know you're

11:58
locking and loading as I said in the

12:00
South so these are lifetime income

12:02
products they're not accumulation

12:03
products there's nothing accumulating

12:05
now the longer you allow the annuity

12:07
company to hold on to the money they're

12:09
going to enhance the payment and reward

12:10
you for the allowing them to hold on to

12:12
the money but it's still primarily based

12:14
on your life expectancy with interest

12:16
rates playing to secondary pricing role

12:18
now can you attach

12:20
inflation index Riders to them not

12:24
indexes because in the past you could do

12:26
cpiu

12:28
CPI compute Consumer Price Index

12:31
increases cpiu is consumer price index

12:35
of urban consumers I don't know what the

12:37
heck all that means other than a

12:39
doctoring the numbers but those don't no

12:40
longer exist you can attach colas to

12:43
these choose a percentage that it's

12:45
going to increase by but just understand

12:46
this that sounds great but I'm getting

12:48
ready to slap you into reality annuity

12:50
companies don't give that away they're

12:52
just severely lower the payment to make

12:56
up for that increase so if any agent

12:58
says to you well I've got the one that

13:00
increases with inflation sir they either

13:03
don't know math or they're not telling

13:04
you the truth because the annuity

13:06
companies don't give that away they're

13:07
just severely lower that initial payment

13:09
I I think you should buy Spears Diaz and

13:13
culax for a flat type payment that's

13:16
never going to change go up or down

13:18
because you already own the best

13:19
inflation annuity on the planet yes you

13:21
do it's called Social Security okay so

13:24
we cover Spears Diaz and qlex now the

13:27
other one I want to talk about is not

13:28
really an annuity but it's an attachment

13:31
to an annuity but it falls underneath

13:33
the other three for Lifetime income and

13:35
that's called an income Rider so there's

13:38
really four ways to do lifetime income

13:40
with an annuity Spears if your income

13:42
stream needs to start within 30 days to

13:44
a year deferred income annuities

13:45
qualifying longevity annuity contracts

13:48
and then

13:49
and and then income Riders now income

13:53
Riders are attachments to a policy you

13:56
cannot just buy an income writer

13:58
it's not an annuity it's an attachment

14:00
to an annuity typically an indexed or

14:03
variable annuity but that income Rider

14:05
is the guarantee that income Rider is

14:07
the will do of the policy I always say

14:09
you own an annuity for what it will do

14:11
not what it might do and the will do is

14:13
the income Rider so if you're attaching

14:15
it to the variable annuity who cares

14:17
about the variable part you're buying

14:18
the rider if you're attaching to the

14:20
index annuity who cares about the index

14:22
annuity you're buying the rider why do I

14:24
say that because the writer is always

14:26
going to be higher

14:27
period why good question is because the

14:30
annuity company gets to keep the money

14:31
because the rider attached to that

14:34
policy is Monopoly money and what do I

14:36
mean by that I mean that you can't

14:38
transfer it you can't cash that amount

14:40
in and you can't peel off money from

14:43
that income right or amount that seems

14:44
to be much higher than that accumulation

14:47
value I.E real money from the indexed or

14:50
variable annuity accumulation value

14:53
so we're not huge fans of indexed

14:56
annuities from the standpoint

14:57
accumulation value at the time of this

14:58
taping but we love them as efficient and

15:01
cost effective Delivery Systems for the

15:03
income writer guarantee when you answer

15:06
the question hey Stan I need income and

15:07
I need to need it to start down the road

15:09
three four five seven ten years from now

15:12
did one today 20-year deferral with an

15:15
income Rider okay so an income Rider is

15:17
an attachment now it comes with a fee

15:19
the income writer has a fee for the life

15:21
of the policy that comes out of the

15:23
accumulation value that fee does not

15:25
disrupt the lifetime income amount so if

15:27
you go to my site at the annuityman.com

15:29
and run income writer quotes that dollar

15:31
amount you see lifetime income that's it

15:34
okay that's a net transaction to you

15:37
that's going to happen as long as you're

15:38
breathing if even if you're on a

15:40
ventilator and if your joint life okay

15:42
that's going to continue for your

15:44
spouse's life as long as they're

15:45
breathing and because it's attached to a

15:47
variable or indexed annuity okay when

15:51
you die whatever's left in that variable

15:53
or index annuity accumulation value

15:55
serves as the death benefit with 99 of

15:58
these income Riders okay there's some

16:00
income riders that will do a Duo as a

16:03
death benefit but there's there's just

16:05
not that many Okay so we've gone through

16:07
Spears DS Q lacks and income Riders

16:09
let's talk about migas multi-year

16:13
guarantee annuities which is the new

16:14
Duty version of a CD see if you say I

16:16
hate all annuities Stan and I come back

16:18
to you and say do you hate CDs you go

16:19
well heck no me and the misses have

16:21
millions in CDs well then you're a

16:23
hypocrite because migas are the annuity

16:26
industry version of a CD you go to the

16:27
bank and The Brokerage front to buy a CD

16:29
the life insurance company that issues

16:32
all annuity types also issues migas

16:34
multi-year guarantee annuity I had a guy

16:36
said the day say is am I going to

16:38
annuity yes multi-year guarantee annuity

16:41
that's what it is but you can buy them

16:44
as short term as one year two year three

16:46
year four year five year six year seven

16:47
year eight year nine year ten year if

16:50
you go to my site at the annuityman.com

16:52
you can see a live feed of the best

16:53
migrates for your state now fixed

16:57
annuities are approved at the state

16:58
level so each state has a different

17:00
offering so you're gonna have to go and

17:02
put in your state drop down put in your

17:03
state and put in the duration that

17:05
you're looking at whether it's three

17:06
year five year one year ten year

17:08
whatever and those are contractually

17:10
guaranteed numbers now the difference

17:12
between a CD and a mica doesn't make is

17:14
better or worse is that in a non-ira

17:17
account non-qualified non-ira the

17:20
interest grows tax deferred income

17:22
pounds tax deferred

17:24
now with the CDs in a non-ira you have

17:26
to pay taxes on the interest does not

17:28
make it better than CDs please in fact I

17:31
have a little rule about CDs and migas

17:34
and I love CDs treasuries my because I

17:36
don't sell CDs and treasuries but go buy

17:38
the I bonds do all that

17:40
and if your time duration is like one

17:43
year or two year two and a half years by

17:45
CDs please I don't sell them but buy

17:47
them go to Vanguard they they have great

17:49
rates go to fideli whoever they have

17:51
great rates for CDs in that short time

17:53
period but if your time Horizon is three

17:55
years or more historically multi-year

17:58
guarantee annuities give you a higher

18:01
contractual annual yield now migas are

18:05
they all come in different forms the

18:06
contractual guarantees are what they are

18:08
but some allow you to take out interest

18:10
some allow you not to take out interest

18:12
some allow you to take out 10 annual

18:14
you'll just have to tell us what you

18:16
want and on my feed it shows the

18:18
liquidity Provisions or lack thereof of

18:21
each Mega so myga it's a CD it's a

18:24
principal protection product now there's

18:27
another CD type product in the annuity

18:29
world and I know you're going to flip

18:31
out when I tell you what it is because

18:32
it's not what you've heard it's a fixed

18:34
index annuity it's indexed annuities in

18:37
1995 they were put on the planet to

18:39
compete with CD returns give you the

18:41
potential potential to earn a little bit

18:45
more than C D returns

18:48
and that's exactly what they've done

18:50
historically now I know that's not what

18:51
you hear at the bad chicken dinner

18:52
seminar or the expensive steak dinner

18:54
seminar at the place you never would go

18:56
unless they're giving away the meal and

18:58
they talk about double digit returns if

19:00
you'd owned it 10 years ago and all this

19:02
nonsense bottom line just to understand

19:04
this that's all garbage and in fact

19:07
right now at the time of this taping

19:09
there are class action lawsuits brewing

19:11
and Brewing big about these back tested

19:15
numbers because a lot of people went

19:16
into these index annuities thinking that

19:17
they were going to get Market upside

19:19
with no downside or principal protection

19:21
with Market participation first of all

19:24
agents and advisors cannot use the word

19:27
market or stock market or market returns

19:31
with index annuities why because there

19:33
are fixed annuities they're life

19:35
insurance products they are not

19:36
Securities they are they're not

19:38
regulated Securities they're regulated

19:40
as a fixed annuity because that's what

19:42
they are now the good news is if you do

19:45
get a gain it's locked in permanently

19:48
um and there is principal protection but

19:50
the bad news with a lot of index

19:52
annuities at the time of this typing the

19:54
annuity companies can change the rules

19:55
at their discretion every single year

19:58
when the index option matures okay and

20:01
that can be a problem and that is a

20:04
problem now the back tested issue is

20:07
it's gonna unfortunately the annuity

20:10
industry could get way ahead of

20:11
themselves here and fix it and just say

20:13
we're not doing that anymore but

20:15
unfortunately I think the consumers and

20:16
the lawyers are going to have the last

20:18
laugh and the last say and dictate

20:20
what's actually going to happen I think

20:21
in the future

20:23
um there will be no back test in numbers

20:24
because it's it never comes true ever

20:28
you can say well if you'd have owned it

20:31
10 years ago Mr Johnson this is what you

20:33
would have made well that's crazy I mean

20:36
nobody I mean that's crazy look at any

20:38
investment like that you know there is a

20:40
new company called the index standard

20:42
and I just did a podcast with one of

20:44
their Partners that's they're doing uh

20:46
forecasting of index strategies that

20:49
gives you a little bit more of a

20:51
rational basis but if you're going into

20:54
an index annuity thinking you're going

20:55
to get double digit returns every single

20:57
year think about this if it sounds too

20:59
good to be true it is every single time

21:01
nod your head please and if it was that

21:03
good if there was Market upside with no

21:05
downside product a product out there

21:07
with Market upside with no downside okay

21:10
then that's all the FED would buy that's

21:12
all Goldman Sachs would buy that's all

21:13
JP Morgan would buy that's all credit

21:15
Swiss will buy give me a break you're

21:17
smarter than that don't be the room at

21:19
the table don't be the sucker at the

21:21
table and the other thing you need to

21:23
watch out is the agents and advisors

21:25
will then throw the shiny thing at you

21:26
and say well if you sign the paperwork

21:28
today sir you're going to get a 25

21:30
upfront bonus or 20 or 30 whatever it is

21:33
100 pennies in the dollar okay they're

21:36
not giving money away they're taking it

21:38
from somewhere else all right now when

21:40
we quote income writers we quote all

21:42
indexed annuities with um with bonuses

21:45
without bonuses we don't care we just

21:47
want to see who has the highest number

21:48
all those shiny things don't matter it's

21:50
the number at the end it's the

21:51
contractual number that you're making

21:53
the decision on so that's index

21:55
annuities and just be careful

21:57
every single agent most will lead with

22:02
that because it is a high commission

22:04
product doesn't make it a bad product

22:05
because we sell them to when they're

22:07
appropriate for the income Rider as an

22:08
attachment for future income needs we

22:11
fully explain that but if so if you go

22:13
to the advisor and say you know what I

22:14
got kind of a sore throat and my my

22:16
ankle hurts and they say you need an

22:18
indexed annuity in other words they're

22:19
not hearing a word you say

22:21
or they say I found the products an

22:23
index annuity Market upside with no

22:24
downside I mean you just have to be

22:27
smarter than that you just you just

22:29
can't fall for that so that's index

22:30
annuities we're fans of them we're not

22:32
fans of how they're currently being sold

22:33
but that's gonna that's gonna kind of

22:35
work itself out and and it's going to

22:38
fix fix itself through the court system

22:40
unfortunately now the next one is

22:43
variable annuities I don't sell variable

22:44
annuities I have nothing against

22:45
variable annuities sold some variable

22:47
annuities when I was with you know Dean

22:49
Witter Dean wetter Payne Weber UBS and

22:51
Morgan Stanley

22:53
but variable annuities in my opinion

22:56
most of them are not needed because the

23:00
fees are high the average fee for for a

23:02
variable annuity average annual fee for

23:04
a variable annuity for the life of the

23:06
policy is three percent now yes there's

23:07
some that are higher and lower but

23:09
that's average

23:10
okay

23:11
you have mutual funds in essence wrapped

23:13
with a with a life insurance package and

23:16
you can attach a writer to it but when

23:18
we talked about Riders attest to index

23:19
annuities those are historically higher

23:22
from a contractually guaranteed

23:23
standpoint than variable annuities okay

23:26
variable annuities are a security why

23:29
you're buying mutual funds they call

23:30
them separate accounts for some reason

23:31
but me and you call them mutual funds

23:33
inside that policy for potential growth

23:36
now

23:37
here's the good news about variable

23:39
annuities and here's the way they should

23:40
be used if you want to use them and the

23:42
reason that they were put on the planet

23:43
in the 1950s I think was 54 or 55 by

23:46
TIAA back then it was called Tia CREF

23:50
for tax deferred growth so in other

23:52
words you'd buy a mutual bunch of mutual

23:55
funds right with a life insurance rapper

23:56
which means it would grow tax deferred

23:58
and you could have tax deferred mutual

24:01
fund type growth now there are still a

24:03
handful less than five

24:06
um no load no load variable annuities

24:10
and um I would look into them if tax

24:12
deferred growth is what you want to do

24:14
and you know how to pick mutual funds

24:15
the problem is with a lot of them is the

24:17
mutual fund choices are a little bit

24:19
sketchy and limited and there are a

24:21
couple out there that are no low but now

24:24
they're requiring someone to manage it

24:25
for you and charge an annual fee like a

24:27
wrap fee for one percent not sure that's

24:29
worth it but that's variable annuities I

24:32
have nothing against them used to sell

24:34
them a long time ago in a previous life

24:35
when I worked you know for those firms

24:38
um because back then you know there

24:39
really wasn't the index annuity stuff

24:41
available that migas really weren't

24:43
available and we were using for tax

24:45
deferred growth so tax deferred growth

24:48
is why they're on the planet they become

24:50
fee monsters but if you're looking for

24:52
annuities like you should be which is

24:54
for the contractual guarantees only you

24:56
own an annuity for what it will do not

24:58
what it might do variable annuities all

25:00
big one they're just a might do

25:03
um the mutual funds inside of them and

25:05
the and the writers that you attach

25:07
historically cannot compete with the

25:10
same type of writers that you can attach

25:12
to a say an indexed annuity okay so

25:15
that's variable annuities let's talk

25:17
about one that you're not going to

25:18
probably know about it's called

25:19
traditional fixed it's kind of like a

25:21
mica but the company can change either

25:25
either raise or lower the guaranteed

25:27
interest rate so it's a guaranteed

25:29
interest rate product that's kind of

25:30
floating and you say wait a minute that

25:32
sounds pretty good Stan especially in

25:35
these environments now where boo pow and

25:38
the Dutch boy haircut Lady they're

25:40
raising rates I understand that but

25:42
there's just not many out there and they

25:44
it's not as linear as you would want

25:46
them to be traditional fix and a perfect

25:48
world would work perfectly you buy it at

25:50
a low rate early and then rates go up

25:52
then they're going to give you higher

25:53
rates as as the years go on we just

25:56
haven't seen that happen and there's not

25:57
a lot of them out there in it current

25:59
currently and I represent pretty much

26:00
every carrier out there licensed in all

26:02
50 states there's not a traditional fix

26:04
that I'm recommending so that should

26:06
tell you all you need to know

26:07
another one you need to know about and I

26:10
don't sell this one is is a charitable

26:13
gift annuity now charitable gift

26:15
annuities are offered by non-profits

26:18
501c3s like Salvation Army Cancer

26:20
Society you know Good Old State

26:22
University does the hospital that those

26:25
type of people and a charitable gift

26:27
annuity is a lifetime income stream

26:30
typically either starting immediately or

26:32
down the road

26:34
but when you die the charity keeps the

26:38
money that's left in the account and

26:39
they get to hold it while they're paying

26:41
you back the money based upon your life

26:43
expectancy now that's a pretty good deal

26:46
in addition to that there's some really

26:49
good upfront tax savings that are legal

26:52
that when you give the money to the

26:54
charity and you agree to this this

26:56
lifetime income stream or joint lifetime

26:58
income stream or whatever you however

26:59
you structure with your charity

27:02
um there there is a there's a big tax

27:06
savings uh coming your way that doesn't

27:09
mean you need to do it but it's

27:10
something that you need to think about

27:12
if you went to Good Old State you Good

27:14
Old State you probably has a charitable

27:17
gift arm or charitable giving

27:19
um uh division at that University that

27:21
you could talk to at least get a quote

27:23
and then we'll run

27:24
well immediate annuity or deferred

27:26
income annuity quotes against it and

27:28
have a conversation which one's

27:30
mathematically in your favor also to

27:32
understand that there's a it's a

27:35
charitable gift annuities actually are

27:37
overseen by very very sharp group called

27:39
The American Council gift annuities I

27:41
think it's

27:42
acga.com or you can just Google it and

27:45
so it's not the Wild Wild West there are

27:47
some parameters and oversight on how

27:49
these things are issued but for the

27:52
people out there that have um that need

27:54
lifetime income but you know really

27:56
don't want to leave it to family or just

27:58
think that the charitable gift is kind

28:00
of cool and they can leave it to the

28:01
charity upon your death whatever's left

28:03
in the account

28:04
then a charitable gift annuity is

28:06
probably something you need to look at

28:09
um you know I don't sell that I don't

28:11
sell variable annuities I don't sell

28:13
um charitable gift annuities but I I

28:14
like them I talked to a gentleman

28:16
recently this week and it was between

28:18
immediate annuity and a charitable gift

28:20
annuity of which I he didn't know about

28:21
until I told him so he went to his the

28:24
local hospital I think cancer place that

28:26
he he had had some work done and they

28:28
saved his life and they had a charitable

28:30
gift program it was pretty good so he's

28:32
making a decision now should he do that

28:34
and leave the money to the charity that

28:36
way when he dies or should he structure

28:39
something else

28:40
um but it's something to think about in

28:42
in a lot of Agents advisors who don't

28:44
even talk about it because obviously we

28:45
don't get paid on that that didn't mean

28:46
anything I mean listen

28:48
um the word fiduciary is an interesting

28:50
word

28:51
um it's also a plaque on the wall forget

28:53
qualifications and all that stuff if

28:55
you're in the financial business you

28:57
should be putting the client's best

28:58
interests ahead of yours period

29:00
shouldn't be a plaque on the wall

29:01
shouldn't be a test it should be morals

29:03
and ethics period the next one I want to

29:06
talk about is relatively new you've seen

29:08
ads on TV from they're called buffer or

29:10
Shield annuities but typically buffer

29:12
annuities in essence what they are

29:15
are index annuities with you get but you

29:18
get to participate a little bit more on

29:20
on the potential upside but you also

29:22
participate on the downside a little bit

29:24
I call them copay annuities in my

29:27
opinion

29:29
I know that I'm going to get a lot of

29:31
flack from this from the people that

29:32
sell them but I don't see the value

29:34
there right now with the ones that are

29:36
currently out there you can look at them

29:38
and the back tested numbers look

29:40
fantastic but again companies can change

29:44
the rules be very very careful it is not

29:47
Market upside with no downside in fact

29:49
you can kind of Ratchet how much upside

29:52
you can get by how much downside you

29:55
want to share in that's the reason I

29:57
call them copay annuities sends the

29:59
annuity industry into a frenzy when I

30:00
talk about that because copay what is

30:02
all about copay it's like it means that

30:05
if the market took a dump past the

30:07
percentage that you agreed upon that

30:10
that you agreed to share in then you

30:11
gotta they're gonna take money out of

30:13
your account based upon that

30:15
don't make it bad to make it good but

30:18
just remember this

30:19
if you can't if you're looking at an

30:22
annuity type and you can't walk into a

30:25
group of nine-year-olds in the second

30:27
grade and explain it to the class and

30:30
the class totally get it

30:32
if you can't do that don't buy it

30:35
I'm not saying that Warren Buffett's

30:36
saying that Warren Buffett said that

30:38
forever what's his portfolio Coke

30:41
chocolate

30:42
Affleck things that are just no brainer

30:46
stuff things that you I mean a lot of

30:49
these annuities is like showing

30:50
paintings to blind people no offense to

30:52
blind people but it's like that I mean

30:55
even the agents can't explain it I've

30:57
written books on it but most agents have

30:59
no clue what they're talking about when

31:01
they're like spewing an indexed annuity

31:03
pitch I mean I challenge you to say

31:05
explain the option strategy put it on a

31:07
whiteboard and and let's do some

31:09
scenarios and you do the math by the way

31:12
you do the calculus show me the calculus

31:14
on that Mr agent again

31:17
fancy doesn't mean it's good simple is

31:20
good simple as Steve Jobs says simple

31:22
can't believe can be complex

31:24
but but when you're buying annuities you

31:28
literally should be able to explain it

31:29
to a nine-year-old no offense to

31:31
nine-year-olds and that going back to

31:33
Spears Diaz culax multi-year guarantee

31:37
annuities and you know conceptually

31:39
income Riders those are very very basic

31:41
you're buying the income guarantee

31:44
attached to a policy and you're ignoring

31:46
the policy and looking at the income

31:48
guarantee which is why you're buying it

31:50
in the first place okay now we've gone

31:53
over a lot single premium immediate

31:55
annuities deferred income annuities

31:56
qualified longevity annuity contracts

31:58
income Riders multi-year guarantee

32:00
annuities traditional fixed annuities

32:03
variable annuities indexed annuities

32:06
charitable gift annuities buffer Shield

32:08
annuities and then there's one more that

32:10
I really don't sell but I can refer you

32:12
to people that do this they're

32:14
underwritten immediate annuities what

32:16
does that mean stand the annuity man

32:17
well annuities as a whole except for

32:21
this one we're talking about right now

32:22
are guaranteed issue meaning if you're

32:24
smoking 12 packs of you know Paul malls

32:27
with no filter and drinking a bottle of

32:28
Jack first of all high five to you

32:30
because you're a player second of all

32:31
you're going to get any annuities

32:33
guaranteed issue there's no health or

32:35
underwriting

32:36
um medical tests or anything like that

32:39
but there is one that you can get a

32:40
medical test on and that's an

32:42
underwritten immediate annuity why would

32:43
you do that good question when remember

32:46
lifetime income products are based on

32:49
your life expectancy at the time you

32:50
take the payment interest rates player

32:51
secondary role so with underwritten

32:53
Spears those are for people that have

32:56
serious health challenges have been

32:58
diagnosed with something that's very

33:00
serious and they can easily prove to the

33:02
annuity company that their life

33:04
expectancy is actually less than their

33:06
projected life expectancy based upon

33:08
their age

33:10
that's an underwritten spear it takes a

33:11
while to get done but in essence you're

33:13
showing and proving to the annuity

33:15
company that your life expectancy is

33:17
less and they're going to give you a

33:18
higher payment before that it's a very

33:20
very small part of the market but it's

33:22
something that I wanted to talk about

33:24
because it is part of the market

33:26
all right so one of the things you're

33:29
going to walk away from this one is hey

33:30
Stan boy there's a lot of annuity

33:32
products out there yes there are not all

33:35
of them are great not all of them are

33:37
perfect but all of them are contractual

33:39
so you have to look at the contractual

33:41
guarantees of the policy I always tell

33:43
people don't buy the dream because

33:46
you're going to own the contractual

33:47
realities you're going to get a policy

33:49
in the mail

33:50
and if you read that policy that's

33:51
probably what's going to happen uh with

33:54
you know the Dr the dream scenario

33:55
products you might buy

33:57
read the policy that's what's really

33:58
going to happen now with Spears Diaz

34:00
culax migas income Riders

34:04
um that's guaranteed there's no I mean

34:07
it's what you see is what you get and

34:10
that's what we do at the annuity man and

34:12
we do it very well will do not mind you

34:14
you own a newly what it will do not what

34:15
it might do we only sell contractual

34:17
guarantees we never talk about

34:19
hypotheticals and theoreticals that

34:21
tested numbers unicorns chasing the

34:23
butterflies is what I call it so let's

34:25
talk about

34:27
a couple more things and then I'll close

34:29
it all up but I wanted to I mean you've

34:31
gotten the the fire hose of information

34:33
on the types of annuities out there and

34:37
if you want to replay this do and if you

34:39
want to get dig in even further go to my

34:41
my website look at all my stuff sign up

34:44
for my books I've written owner's

34:46
manuals on six of these strategies be as

34:48
D is qlex income writers indexed

34:51
annuities and migas and they're easy

34:53
reads quick reads we ran out of hard

34:55
copies we're doing I think online

34:56
downloads or something now something

34:59
techy that I don't even understand but

35:01
but look at annuities like this I have

35:04
an acronym I call pill P stands for

35:06
principal protection I stands for income

35:08
for Life L stands for legacy other L

35:10
stands for long-term care

35:12
okay if you do not need to solve for one

35:15
or more of those items in the pill then

35:17
you do not need an annuity which leads

35:19
me into the long-term term care part

35:22
long-term care annuities are actually a

35:25
health insurance product all of these

35:27
annuities I was talking about previously

35:28
issued by life insurance companies are a

35:30
life insurance product long-term care

35:32
annuities are health insurance products

35:35
now we work with some of the top

35:37
Long-Term Care Specialists in the

35:39
country I don't sell long-term care but

35:40
I know the people that are going to

35:41
shoot it straight and tell you the truth

35:42
and be honorable and we can refer you to

35:44
those people for long-term care but

35:47
long-term care annuities

35:49
our health insurance product there's one

35:51
type that's attached to an income rider

35:54
that's not long-term care it's actually

35:55
confinement care enhanced benefit in

35:58
case you cannot qualify for True

36:00
long-term care that would be your last

36:02
resort because it's guaranteed issue

36:04
it's attached to an income Rider but if

36:06
you currently have long-term care do not

36:09
replace that long-term care with this

36:11
income right or guaranteed issue thing

36:12
okay the other thing I want to talk to

36:15
you about and I think this is very

36:16
important is just some of this the scams

36:19
and the pitches that are out there

36:20
you've got to be very very careful we

36:23
talked about the back tested numbers

36:25
those that's a serious issue in the

36:28
industry right now the fact that the

36:30
indexed annuity space has positioned

36:32
itself unfortunately by many agents as a

36:35
market product is not is a CD product

36:37
it's a principal protection product and

36:40
it's a product that can provide a

36:42
lifetime income guarantee when you

36:44
attach an income Rider now once you do

36:46
that if you said Stan I want income

36:48
later okay I I want there's two

36:52
questions always asked what do you want

36:53
the money to contractually do and when

36:55
you want those contractual guarantees to

36:56
start let's just say your answer was me

36:59
and the misses or me and the husband

37:00
need

37:01
uh lifetime income to start in five

37:03
years so you need lifetime income so

37:05
when you want the money what what do you

37:06
want the money contracts to do lifetime

37:08
income when do you want those

37:09
contractual guarantees to start five

37:11
years now with that comes down to the

37:14
customization strategies there's not a

37:16
one size fits-on there's not one product

37:17
that's best people always say Stan

37:19
what's the best annuity out there and my

37:21
comment is the one that provides the

37:22
highest contractual guarantee for your

37:24
specific goal now with that being said

37:26
I'm never going to put something in

37:28
front of you I don't think can back up

37:29
the claim and we represent all carriers

37:31
top to bottom so it is what it is but

37:33
let's go back to the example if you said

37:35
yeah we need income we need income in

37:37
five in five years there's four ways to

37:39
solve that with annuities the first way

37:41
is don't do a thing stay the course and

37:44
that right before year five you buy an

37:47
immediate annuity okay the second way to

37:50
solve it is to buy a five-year Miga

37:52
remember that's a fixed rate annuity the

37:54
annuity industry version of a CD and at

37:57
the end of year five we can do a

37:58
non-taxable event doesn't trigger any

38:00
taxes transfer to an immediate annuity

38:03
after we shop all carriers that's number

38:06
two number three is a deferred income

38:08
annuity remember we had immediate

38:10
annuities

38:11
and then the sister product deferred

38:13
income annuities once you pass 13 months

38:15
of deferral deferred income annuities

38:17
we'll defer it for five years we'll

38:19
share what this contractual guarantees

38:20
will be and then the fourth way to do it

38:22
is that income Rider attached to a

38:25
deferred policy like an indexed annuity

38:28
completely ignoring the indexed

38:31
annuities uh

38:33
sales pitch of of caps and spreads and

38:36
participation rates all that nonsense

38:38
we're ignoring that and we're only

38:41
focusing on the income Rider which means

38:43
that we shop all income riders for

38:45
highest contractual guarantee and use

38:47
that index annuity as an efficient and

38:49
cost effective delivery system for that

38:51
income Rider pension payout

38:54
so those are the four ways for income

38:56
later

38:57
the reason I use that as an example

39:00
is there's no one-size-fits all if

39:03
somebody says to you I I've looked at

39:04
all these and this is the best product

39:05
wrong they're either lazy or they're

39:07
going to go a trip to Italy with their

39:09
boyfriend girlfriend wife or husband or

39:12
all of the above

39:13
if they sell enough of that specific

39:15
product there is no one product

39:17
there is no one product that adjusts for

39:19
inflation if someone says they have the

39:21
product that adjusts for inflation

39:22
they're lying because remember what I

39:24
said annuity companies don't give that

39:26
away if there's an inflation increase

39:27
potentially all they're going to do is

39:30
significantly lower that initial payment

39:33
to make up for that potential increase

39:36
for inflation so don't look for the

39:38
perfect product if you look long enough

39:40
someone will tell you the habit and

39:41
they'll convince you to buy it Okay so

39:44
how about that wasn't that fun I'm gonna

39:47
I'm gonna I mean this hasn't been a long

39:49
one this has been very informative and I

39:52
hope you're getting used to the glasses

39:53
because I think at age 59 as my wife

39:56
said she goes you know you're getting

39:57
hotter you get your hair is getting a

40:00
little bit gray I'm like yeah some 59

40:01
I've been through the ringer I got a

40:04
Daughters of 26 and 24 who I love but

40:08
you know they're out of the house you

40:09
know what I'm saying they're out of the

40:10
house and the wife's been with 35 years

40:12
that's fantastic been doing this

40:14
financial stuff for a long long time the

40:16
annuity man company is growing by Leaps

40:18
and Bounds I grow between Florida and

40:20
Vegas what

40:22
desert to Jungle jungle to desert desert

40:25
to beach beach to Desert I mean it's

40:27
like you know American Airlines and

40:29
whoever I'm flying they're loving me I'm

40:30
like concierge service or whatever that

40:33
that thing they called and you get on

40:34
the plane first that's me because I fly

40:36
all the time but I do encourage you to

40:38
go to my site at the annuityman.com you

40:42
can use our calculators you can for for

40:45
free and you can get all the quotes you

40:47
want

40:48
um there's no limit 24 7 365 same thing

40:52
with their live McAfee you can look at

40:53
the live rates for your state check them

40:55
all the time Etc we also will give you a

40:59
second opinion

41:00
on what you've been pitched or what

41:02
you've unfortunately purchased you know

41:04
if you've bought something you really

41:06
don't know what it is you just need

41:07
someone to shoot it straight with you we

41:08
will and by the way spoiler alert with a

41:11
lot of these annuities an annuity

41:12
companies are smart when they sell you

41:15
an annuity like a deferred annuity most

41:18
cases it's hard to get out of it

41:21
so we have to tell you how to make

41:22
lemonade how to maximize that contract

41:24
because in most cases legally you can't

41:27
move it

41:29
um so someone says well you can just

41:30
take this upfront bonus and we can move

41:32
and take the surrender charges from The

41:34
Upfront bonus to cover it that's illegal

41:36
okay that's called twisting and churning

41:38
in the business that's illegal to do in

41:41
most cases most companies won't even

41:42
accept that potential transfer attempt

41:45
by an agent but a lot of them try to do

41:47
that so you know we'll give you a second

41:49
opinion we'll shoot it straight you know

41:52
when you schedule a call with us you

41:53
might get me you might get my team if

41:54
you get my team you got somebody smarter

41:56
if you get me you got the brutal walking

41:58
middle finger the nudity truth himself

42:01
Stan the annuity man and I would enjoy

42:04
that conversation and I'll tell you if

42:05
you don't need an annuity I'll tell you

42:07
if you're trying to put too much money

42:08
in annuity and oh by the way on that's

42:10
on that stance the annuity industry

42:12
found frowns on you putting more than 50

42:14
percent of your investable assets and

42:16
annuities total

42:18
total in other words if you have a

42:20
million dollars nudity industry is like

42:22
yeah I think we probably sign off on

42:24
around 50 percent of that you might get

42:26
a little bit more if we go to bat for

42:28
you not much more but just look at 50 of

42:31
your investable assets in annuities of

42:32
all types com combined total

42:35
and that's a good thing that's

42:36
protecting the consumer and that's also

42:39
um just making sure you're not over

42:41
funding annuities do I run into cases

42:43
where somehow the agents you know

42:45
doctored the application to get that

42:47
through yeah it does happen now one of

42:50
the good things about annuities in the

42:52
category and the industry itself in my

42:54
opinion they've done a great job with

42:56
the free look time period when you buy

42:58
an annuity you have the opportunity to

42:59
get your money back without question

43:00
during that time period for your state

43:02
you can test drive it it's in it's in uh

43:05
it's in force and you can get your money

43:06
back if you don't want to own it or

43:08
something changes Etc

43:10
in closing let me leave you with this

43:13
I love what I do I'm very serious about

43:16
what I do but I don't take myself too

43:18
seriously I'm an I'm an edutainer i

43:20
educate I entertain I have fun I tell

43:23
you about all my crazy story and

43:25
families and Uncle Chester and my mom

43:27
and you hear all those stories but the

43:29
annuity industry as a whole is a good

43:31
industry it's a contractual industry

43:33
they are it's a highly regulated

43:35
industry from the standpoint of of

43:37
carriers and them having to follow a lot

43:40
of rules to make sure that the

43:42
contractual guarantees are in place for

43:44
the people there's the the the NAIC the

43:47
National Association of insurance

43:49
Commissioners there's a commissioner for

43:50
every state they do a great job of

43:53
making sure that the carriers are

43:55
following the rules and that um you know

43:57
they they do they do a good job I'm a

43:59
big fan of the naac

44:02
um they're every single year it seems

44:03
like they're ramping up even more

44:05
enforcement or even more oversight which

44:08
is good and the reason for that is with

44:10
eleven thousand Baby Boomers hitting 65

44:12
every single year there's a demand for

44:15
contractual guarantees there's a demand

44:16
for Lifetime income guarantees there's a

44:18
demand for principal protection okay

44:21
with over 91 percent of companies don't

44:24
offer pensions

44:26
when you retire get close to retirement

44:28
and you need a pension in addition to

44:30
the one you already own with Social

44:32
Security

44:33
annuities are the only category that

44:36
will provide a lifetime income stream as

44:38
long as you're breathing remember the

44:39
four types single premium immediate

44:41
annuities deferred income annuities

44:42
qualified longevity annuity contracts

44:45
and income Riders and now with interest

44:47
rates where they are with the multi-year

44:49
guarantee annuities some people are

44:50
choosing just to protect the principal

44:52
and peel off the interest for income

44:55
needs as well that's not a lifetime

44:57
income stream but that's an income

44:59
strategy so in essence you have five

45:01
income strategies that are legit and

45:03
contractual out there what I don't want

45:06
you to do is listen to the media or your

45:07
neighbor or someone at the party that

45:09
says I hate all annuities because that's

45:11
a stupid statement it's like saying I

45:12
hate old trucks or I hate old

45:13
restaurants I had all shoes that's dumb

45:17
um they already uh the fact that they're

45:18
saying they had annuities they already

45:20
own at least one with with Social

45:22
Security they need to be reminded of

45:24
that I'm doing a good job of that every

45:26
single week with all of my content

45:28
reminding people that I already own

45:29
annuities don't be hypocrite you know

45:31
the people that are on TV saying I hate

45:32
all annuities then they better not be

45:34
given advice about social security

45:36
because they're being a hypocrite

45:38
annuities are good annuities can be good

45:40
but not everybody needs one

45:43
let me say that again not everyone needs

45:45
an annuity type and you found out today

45:48
there are many different types

45:51
that is fun with annuities my name is

45:54
Stan the annuity man

45:56
and I look forward to speaking with you

45:58
interacting with you go to my website

46:01
let me know what you're thinking let me

46:03
know if you have an idea for a video or

46:04
a podcast and I will certainly take into

46:06
consideration and I will see you

46:09
next time

46:14
[Music]