Replay: Live Q&A What To Know Before You Buy - August 2022

0:00Intro

00:03

[Music] so [Music] hi there stan the annuity man live from las vegas nevada yes we do have an office in las vegas it's our kind of our hub and i'm out here so greetings to everyone on east coast central time mountain time hawaii time pacific time

01:04

i'm glad you're here um a couple shout outs real quick before we get started um the leader of this mary band of the annuity man uh leah is uh at our minnesota location but she's suffering from kova but she's on this call so thank you leah for that and also shout

01:21

out to doc and denver who's uh are one of our marketing leading our marketing team and she's there as well so a couple things before we get started the las vegas office is fantastic obviously but a little bit internet issues we had this this past week we haven't had it before

01:38

so if i freeze up it's not like i'm doing the robot dance just hang in there with us it's not your computer so that is what it is um but it's been kind of a crazy month or so and the world of annuities as you can only imagine i'm looking forward to today's

01:53

topic which is what to know before you buy an annuity we're going to cover all of that get all your questions i'll answer everything anything you want but i mean that's the topic so let's kind of talk about that a little bit when you go through the process with us let's just say

02:10

you know you've gotten the books you've run the quotes you've looked at the miga feed etc and you schedule a call with me or one of my team people that the solutions team and you talk to us um you know and we've determined that annuities appropriate for you what

02:24

happens is then the person you're on the phone with let's just say it's me i will schedule a call with our team and then they are going to call right on the dot right at the time you tell us to call and it's going to be a zoom call and the reason it's going to be a zoom

02:36

call is we're going to show you the application on the screen as we're asking the confidential non-shared non we don't sell or keep or any of that information it's the information that the carriers require us to ask and we're going to fill in that application we're going to lock in the

02:51

guarantee you're going to get a virtual um encrypted link to review it and sign it and then we are going to take care of the transfer if it's an ira to ira or roth ira to roth ira if it's non-ira like a non-qualified savings are checking we're going to facilitate the

03:07

transfer of that money to the annuity company never touches our hands understand that if it's an ira 401k tsp those type of qualified accounts that's a non-taxable event it does not trigger any taxes it's going to go from where it's located let's just say it's fidelity or vanguard ira 2

03:24

or wherever it's at it can be anywhere 401k to the ira established for you at the annuity company but just understand you can buy contractual guarantees and hold them in any and any account type yes iras roth iras non-iras you can use that now the time frame to get all of this done

03:42

varies depending on what you're doing it can be anywhere from two to four weeks and the people on the phone will tell you what the time frame is going to be but a lot of it's dependent upon where the money's coming even if they're dragging their feet there is a possibility that

03:55

we have to get you involved in a call with us on there to kind of nudge them but we'll let you know that um at the end of the process you're going to get a physical policy in the mail that you can hold in your hands you're going to get access to the account without a care

04:10

with that carrier you're going to get a an annual hard copy statement in the mail and if you've bought something like a multi-year guarantee annuity that has a uh expiration not expiration date but a duration date in other words you buy a three year myga multi-year guarantee

04:25

annuity with a fixed rate we're going to be in touch with you about 90 days prior to the the the duration date ending and ask you what you want to do so you don't even have to track that we're going to do that for you i guess the bottom line is we are not going to plop paperwork

04:40

down in front of you and you have to figure it out we're going to do all of that for you it's a concierge service high-level first-class annuity service that we handle for our clients so that all you have to do is get on a confidential 30-minute phone call it

04:55

typically doesn't take that long unless it's a multiple application call but it's a 30-minute call it's a zoom call and um that's how it works um so that's about it now i'd like to go to our site real quick lee is that right yeah quickly and the way this whole

05:12

process starts is you can you know at the top and and um leah you don't have to go and scroll down you don't have to do it but you use the cal you can run calculator quotes we have speed speed qlac income writer quotes you can run those at your heart's content you

05:26

can get the books we ship those still at the time of this taping even though our consultants are are yelling at us to why are we shipping it you know hard copy ups because i like it i want you to get it i want you to hold the book eventually i guess they'll

05:39

take that away from us but for now if you haven't gotten the books we'll ship it for free and under an obligation no one's going to call you and then the top left-hand corner of that book a call that's where you can go ahead and click that one that's where you get me or one

05:50

of my associates who actually smarter than i am uh but they talk just like me um not southern not all of them southern and and you book a call you you choose the date you choose the date now interestingly enough in the times that we're in and you look at here yes there

06:04

are some sundays that are open because we are so inundated by people wanting to talk about current interest rates and the products available that yes we are working some sundays i've opened up my schedule so i can get to you um very early in the morning or

06:19

very late at night we're doing that i don't know how long that's going to last but we are doing that so with um i guess that's my intro so let's jump into the questions i'll read the questions and then we'll go so

6:30Any Downside To Using 10 Fee Free Withdrawal

06:31

this from bob uh any downside to using the ten percent fee free withdrawal allowed by migus to buy new annuities if interest rates are rising um the answer is in in leah my ceo is having a coronary right now that just is really not allowed in the business um

06:51

and if it is it's it's a gray area that we don't like to go into in other words taking from one into what he paying taxes on the ten percent and buying another one i was on a recent uh podcast if you don't listen my podcast i have a podcast called fun with annuities it comes out

07:04

on all platforms every tuesday i just did one with a guy named john lennon who i call the annuity architect he really understands the stuff there are some mygas out there that that are called pivot migas and i'm working with two carriers right now to

07:20

to allow it to work the way i want it to work and the way that i i think it'll be available in the next couple months according to john i was just on a call with him yesterday but a pivot my guy and i and i coined that phrase once you told me about it

07:31

it's a manga that allows you to buy in it by you know let's just say it's at four percent and you buy the four percent myga it allows you to get out penalty free with your original premium to buy a higher higher uh paying miga um and i'm working on that time frame to

07:49

be longer than they want it to be so just hang in there with me you're going to hear about pivot mygas but i do have a solution for that next greetings from the west coast what are the unique challenges for california

8:00Unique Challenges For California Residents

08:02

residents and insurance carriers doing business here compared to new york um you know and and maybe leah can weigh in on this if you want to get on the mic leah about california it's just that california new york oregon new jersey those type of states are very very restrictive a lot

08:18

of the products that they allow in um and there you know california does have that that premium tax they pull out and they work directly with the carriers to do that so if you ran a an immediate annuity quote in um tennessee and then one in california same carrier the one

08:34

in tennessee is probably going to be higher because of the the taxes aren't going to be removed leah do you have any comments in on that uh just that california has a requirement certain requirements for the annuity companies uh they don't allow certain things that are allowed in other

08:50

states so you usually get lower rates on the mygas and you do have the premium tax issue with the immediate annuities um so those are the two things to keep in mind if you're in california yeah beautiful state though i mean seriously can we all not our head there um next question

9:10Annuity Withdrawal Amount Guarantee

09:11

and by the way once the questions run out we're gone so keep them coming i'll be here as long as you want me to is the annuity withdrawal amount guaranteed if you purchase the annuity five years prior to when you want to start receiving the payments so in other words is that is the

09:27

contractual guarantee a real contractual guarantee if you're having the income start in five years the answer is yes um it's not going to change either up or down unless you attach a cost of living adjustment increase to that and you know my opinion i'm not sure that's a good

09:42

idea because the annuity companies don't give that away but i think this is what the question is and if it's not it teams us back or send it send us a message back um hey stan i wanna income to start in five years um you said this is the contractual guarantee this is what you

09:57

sent me the contractual guarantees this is what was in the policy is that really a contractual guarantee the answer is yes because when we do what's called income later we're either going to quote a deferred income annuity or a qualified longevity annuity

10:10

contract if it's an ira asset or an ira asset that you want to pinpoint qlac type rules and then an income rider and so depending on who finishes highest and the one that fits your situation the best that guarantee will be locked in whether you're deferring for two years

10:27

three years seven years five years ten years whatever but i think that's the answer question yes it is contractual that number and you can um i mean you can go to the bank with it it's going to happen with income writers when you run quotes on our system um you

10:43

know you're going to see you can do reverse engineer quotes and you can do um you know lump sum quotes whatever it is uh however you want to run it but we also when you get us on the phone and we go through the the quote again with you we'll send you

10:57

another quote that shows you what that income stream with an income rider would be if you turn it on a year earlier or two years later etc so um it is contractual um and you need to know and need to make the decision on that contractual guarantee i hope that's the answer to

11:12

the question i think it is go ahead

11:15Laddering

11:17

woods parker great name i viewed an earlier video where you stated annuities were like a gallon of milk yeah that's going on southern savings with this in mind would you would it be watched by our smaller dollar amounts but set up ladders to take rate changes into account maybe

11:30

you know there's no perfect answers to this what i'm referring to what and what woods is talking about i always say annuities are like a gallon of milk they change every seven to ten days or they spoil every seven to ten days and what i'm primarily talking about is looking

11:42

at lifetime income quotes or speed dia q lak income rider type quotes and and my goals right now the fixed rate annuities are also pretty fluid and changing when you go through the application process we're going to lock in that guarantee you just can't lock any

11:56

guarantee and you know think about it for four months but to answer what's bigger question which is laddering it's never a bad idea to ladder you can ladder a couple of ways you can ladder with income starting at future dates like you could defer for three years you

12:10

could buy three three annuities today and defer for three years one deferred for three years one would defer for four years one for five years i was on a call before this um before this live event with someone and they were talking about deferring to 65 and they were a little

12:25

bit younger you know than than i would have liked but they still wanted to move forward and they said what would you recommend i said because of your age let's do a hundred thousand a year for the next five years but have the same income start date so we can you know your ladder start

12:40

dates you can ladder purchase dates and you can ladder both it really comes down to the customized quote and the solution that we deems appropriate for your specific situation but laddering anything is not a bad idea because what it does it takes that master of the universe

12:54

uh thing a gordon gekko thing off your shoulders that you're trying to time things no you're just going into it with a pragmatic approach whether you're laddering migas you know a two three four five year myga fixed rate knowing that interest rates

13:08

might move and if they do you have money coming due on an annual basis starting year two to attach to that or having income start at a future day so laddering is a great great strategy next

13:20Buying a 3year myga

13:22

hello stan does it make more sense to purchase a three-year myga and then convert it to spea for a lifetime income or just purchase it through your dia up out or possibly allocate a portion both and i'm so glad you asked that you know i'm i'm kind of setting the

13:34

industry's hair on fire a little bit because i did a video called my god aspia it's on our site and uh we'll be you know you can go to the podcast or blogs or i think somewhere and you can find it but anyway uh and it's on my youtube channel as well um but my gospel

13:49

means that you know we buy a multi-year guarantee annuity let's say in this case you know with bern he has uh a goal in three years to turn on lifetime income you could buy three-year myga know exactly what the interest rate is going to be for those three years and

14:01

at the end of that duration we go shop the highest contractually guaranteed single premium immediate annuity payouts choose the highest carrier and we can do a non-taxable event transfer from the maida to the spea now getting the other way to do it is to buy

14:15

a deferred income annuity or income rider but he he mentioned deferred income annuity a deferred income annuity is the cousin of espia an immediate annuity it's a very very simplistic irrevocable transfer of risk uh pension guarantee so would it be better to buy a

14:30

dnl knowing what the three-year guarantee would be or would it be better to buy a miga now and then buy an immediate annuity after the three years no good answers just best sales pitches you know this but the reason the magadispia might be a something that you

14:44

might like it gives you the opportunity to make a hard pivot at year three and get all your money back with interest and move on to something else or or or transfer it non-taxable event to the immediate annuity is there a possibility that the payout for the

14:58

immediate annuity three years from now would be higher than if you bought a dia right now with a three-year um income starting in three years yes but what i would what i would suggest i think bern even mentioned this why not do half and half why not do if you had 300 000 in

15:12

mind for income in three years why not do 150 000 and a deferred income annuity started in three years we know exactly what you're going to get then you buy a three year myga and then we'll convert it to an immediate annuity after three years but at least you have half of that

15:26

that you fully control the asset and that you you can pivot with a deferred income annuity and an immediate annuity my southern analogy is you're ripping the knob off a water faucet meaning that once you buy those you're going to get your money back you're just going to get

15:39

it in payment for them you can't pivot and call me and say hey he's done i won't do it anymore show me the money but you can with my gaspia and that's the reason that is very very popular especially at these rates right now if you go to the site and pull up the

15:51

migrates the live maga feed you're going to see really good rates now don't be everyone's turned into a interest rate analyst all of a sudden overnight well what do you think stan what do you think i don't know i'll tell you this right now and and i want to talk about this real quickly

16:05Why do carriers lower rates

16:06

um people say well stan um when when powell raised race the other day we had a couple carriers lower their rates why what's going on there how is that even possible isn't it linear isn't when powell and janet yellen raise the rates why don't they

16:21

just automatically go up and i'll tell you why with life insurance companies there's really five legs to the pricing stool and and this is how they look at it the first leg is they sell life insurance products so they know when we're gonna die right they also sell lifetime income

16:35

products again they know when we're going to die so those are profitable they also have legacy bond portfolios jimmy carter bonds and barack obama bonds and george bush bonds and they have those in place that are getting specific yields etc and then they look

16:49

at interest rates from pal and everybody but the fifth one is the one that no one knows about but everyone needs to know about and the fifth leg is capacity when they put out a myga or an immediate or something like whatever the product is typically not all the time but typically

17:05

they have a specific dollar amount that they're looking to raise let's just say they put out a five-year my ga and they're saying internally they don't tell stan the annuity man that they want to raise five billion dollars for that five once they do that once they hit

17:18

that bogey they're going to lower rates we had two a plus rated carriers recently that lowered their guarantees on their mind because why because they raised so much money capacity drives the train as well so you know i know that at the time of this taping that we have potential future

17:34

interest rate hikes will that move the needle i don't know with some yes i also make a great analogy and everyone's gonna laugh at this remember when you went to the junior high school dance there were boys on one side girls on the other and we're

17:45

just waiting for two maniacs to dance so we all could dance and not look stupid or just get with the trend in a lot of cases with the annuity companies they're waiting for companies to move some do some don't and when some do then carriers have to make the decision

17:59

do we want to compete with that to get in the way of these all of these baby boomers looking for guarantees but just remember it's not linear and automatic that annuity companies are going to raise rates when the fed raises rates because money's flowing in so much so heavily right here

18:16

a lot of times they're not going to do it so don't be surprised even if the next fed raise they raise it and there's no movement at all but there might be and then and the fact that there might be is the reason that the annuityman.com is the leader out here in direct consumer

18:32

sales and we represent pretty much every single carrier out here because annuities are commodity products so we have to shop all carriers and if someone's looking to dance right someone's trying to break out and have a higher contractual guarantee we're going to have that

18:45

available to you all right next question is from peter if you plan on purchasing

18:50Benefits of immediate annuities

18:51

an immediate annuity at the beginning of next year what are the benefits of doing it now there's no good answer that peter i mean the benefit of doing it now and starting to get interest pay i mean get get those guaranteed income payments now is you're getting them now so if you're

19:06

going to wait you have to factor in the payments that you're missing from now till january and nobody knows if that's a good idea or not what i tell people all the time there's no good answers to any of this there's just bad sales pitches and if you've been if you talk to anyone but us

19:20

you understand that people are just going to say what they have to say to sell you something that's not that's not good annuities are commodity products annuities or contracts i always tell people this listen to your instincts listen to your gut feel will i weigh in as a non-friend

19:34

advisor yes the best advice you ever had we're not going to talk about the game we're going to talk about you okay i always thought i'm not going to be your friend i'll be the best advisor you've ever had but with that being said i do respect the fact that your money and i do

19:46

respect the fact that this is a big decision and you have a gut instinct typically your gut instinct and and what you're feeling um is right your gut feel is right so i would tell you if your gut peter's telling you to hold till till january then hold till january if you

20:03

miss it fine you know what's the risk of that risk of interest rates uh and life expectancy tables going against you because remember immediate annuities the primary pricing mechanism is life expectancy at the time you take the payment interest rates play a secondary role

20:18

but you know they could the annuity companies could change life expectancy tables to say that you're going to live longer which means the payments would be lower or interest rates would go down even though it's part of the uh the secondary part of the pricing mechanism

20:31

it is part of it and so if interest rates go down and speaking of interest rates right now it's just really cavalier for everyone to say well they have to go up well in a perfect world where the fed would would um you know act independently and autonomously of

20:44

whoever's in office yes you're right but also remember this when they re when they the the government raises interest rates they're also raising the debt you know the interest payments on the debt that they created similar uh correlated thought is if if

21:00

you have a mortgage a lot of you don't but if you have one it'd be like just voluntarily raising your mortgage rate that makes no sense now i understand it's a little bit more dynamic than that but think about it from that standpoint are they really motivated to really raise these rates

21:13

i don't know and some of the tea leaves that are being shown right now some of the things are being said and leaked out strategically points to the fact that they're not going to be as aggressive with rate hikes as they once announced i remember when

21:25

they came out early last year we're going to raise it seven to eight times and i told everybody i said put your money down i'll bet all i have that that's not true now i hope i'm wrong because if rates go up it's good for you and it's good for us because we're

21:38

selling higher contractual guarantees to you right but i just don't know you're thinking rationally and logically i just don't know what's going to happen here and i don't know if it's going to affect the pricing of annuity companies and all of the products involved remember there's

21:53

more than one just annuity you can't say oh at all annuities you know there's spsd as q-lex income riders um index news variable annuities there's all kinds of annuities okay so i'm not sure how much it's really going to affect uh them and their pricing so next next question

22:08First year rate base rate yield or surrender

22:09

your calculator three or maybe show first year rate base rate yield or surrender with all the same interest rate will this first year interest rate be locked in yes it will the reason that there's a first-year rate and a base rate if you go to like the five-year

22:21

tranche you'll see that some carriers will have a higher interest rate year one and then the the years two through four it'll be lower but the blue the yield to surrender is really what you need to look at okay that's what you're going to get on an

22:34

annual basis um these migas typically um credit interest on a daily basis but the but the number you need to look at is yield of surrender that is the annual yield that you should you should be looking at and that is going to be for the duration so you can look at the

22:49

first year or the second year etc but really the focus is that that column that shows the blue in fact leah can you pull that up just so that we can show that so let's go let's go to the migrates and there's there's my friends in alabama and you can pull your state i mean but

23:06

if you look at what he's talking about is the first year rate 4.65 and base rate all of that but the yield to surrender that's the that's the law that's where you need to focus that's all that matters that's what you're going to get on an annual basis for and so for these five years

23:22

you know what's the best five-year annual yield guarantee it's 4.65 okay thank you lou next question

23:30Immediate annuities

23:32

mike i'm new to annuities and interested in learning more about immediate annuities yes i can talk more about these um couple things if you don't mind go to my site at the annuityman.com sign up for the books there's a book in there called the spea owner's manual single

23:45

premium immediate annuity owner's manual it's the go-to source in the country for immediate annuity information because it's not salesy it's just information it's about 60 65 pages also too if you go to my youtube channel stand the annuity man just type it in the

23:58

space bar and the search bar on youtube and then you'll see playlist i've done 50 60 videos on immediate annuities that would be very very helpful but here's the elevator 30 000 foot immediate annuity pitch okay it's not a pitch it's just facts this is the granddaddy of all annuities

24:17

this is a pension annuity it's a transfer of risk to the annuity companies and by the way it's a commodity we got to shop all carriers for the highest contractual guarantee that's going to pay you as long as you're breathing you also can set it up for a specific period of time or

24:30

combination of the two just to understand this you can structure it so that it will pay for the rest of your life or joint joint lies the rest of both your lives as long as one of you is breathing and we can structure it so that 100 of any unused money goes to the listed

24:44

beneficiary of the policy in the evil annuity company never keeps a penny you're buying a pension it's primarily based on your life expectancy at the time you take the payment or life expectancies interest rates play a secondary pricing role interest rates

24:56

player secondary pricing roll but in essence it's a pension and in a pensionless world where i think less than nine percent of private companies offer pensions and if you don't work for the government or very good labor union you don't have one most people if they want a lifetime

25:10

income stream that they can just bank on then they're buying immediate annuities so that's my that's my elevator speech on that but i would encourage you to get the book and then and then watch the videos on it as well because i've i've dug in and done so many of these things

25:25

so or you could schedule call with me and me and you could talk about one one of the three how about that next

25:30Are annuities subject to a 10 penalty

25:31

are the paths from speas and diaz and an ira subject to a 10 penalty if the ira owner is younger than 59 and a half do they satisfy um i'm gonna i'm gonna punt this one a little bit to the cpas but let's just talk about this for a second and leah i

25:45

need you to weigh in as well because you have 30 years of experience when we're talking about iras you're pre-59 and a half there are some rules within the irs you can look them up 72t is one of them but typically when you annuitize something create

25:59

payments for life it does circumvent the ten percent penalty leah i need you to weigh in as well yeah so if you choose a lifetime income option it will meet those satisfy those 72 t rules and here's the other advantage the uh insurance companies also check for that

26:18

so if for whatever reason if you're choosing like a life in 30 years certain and it doesn't meet the 72t rules they will not run the quote so if you're choosing a lifetime option yes it meets those rules that's good thank you lee i mean the reason i bring leon in here and she is um

26:39

she's fantastic she's she's got three decades of experience in this she's seen it all forgot more than most people ever know and she has a really good take from administrative side and she by the way she oversees our administrative team so you're in very good hands if you decide

26:51

to do become a client because she's overseeing everyone that's that's working on your application okay next question

26:58Should you wait for interest rates to rise

26:59

with interest rates rising does it make sense to wait maybe um wait to get an immediate annuity maybe but let me answer it again remember when you wait let's just say okay stan i don't want to buy it now because i think interest rates are going to go up a year from now okay great you

27:13

might be right but let's just say you you make that decision then you you have to factor in those 12 months of payments that you missed in order to wait and how long is it going to take you to make up for those 12 uh payments a break even point it's a tough it's a tough thing to time

27:30

and as i tell people annuity companies have the big buildings for a reason you're not going to beat them there's no sweet spot or arbitrage or pound the table moment where it's time to buy i firmly believe that when you look at annuity guarantees like an immediate

27:44

annuity and you're quoting that if the guarantees fit your contractual goal then put it in place implement it or if you're thinking that interest rates are going to rise then do what a previous person put in their question ladder the purchase do half now and then half later okay

28:02

next question

28:02Do you view mygas as fixed rate annuities

28:04

do you view mygas those are by the way fixed-rate annuities the annuities industry or version of a cd as a replacement for bond allocations in an ira due to due to the stability of principle and bond like interest rates for the time frame selected this is kind of a powder keg question

28:21

now my background i used to work for dean wood or payne webber morgan stanley and ubs i worked in the world trade 2 center managed bonds i understand bonds okay backwards and forwards and and it's hard for me to correlate bonds to mygas and or definitely index and nuisance i

28:37

know even my friend wade fowles say index annuities kind of like a bond no it's not i mean he's incorrect about that and i love him but you know it's just not um bonds can fluctuate the underlying value can fluctuate up and down with interest rate movements as we're finding out if you

28:51

own bonds what i would tell you is put the migas in that fixed rate part of the category so you have bonds you have munis and treasuries and cds and corporates et cetera and then add mygas to that my guests function more like cds than they do bonds just because they're

29:07

principal protected and the interest rate is guaranteed for that duration and are explaining the five legs of the pricing stool why why the interest rates are higher than typically cds but we love i don't sell cds but cd and my good combinations are really good because you

29:24

can buy cds at the shorter duration six months up to two years and then migus after that and really put in a good a good fixed rate ladder but my opinion for what it's worth and take it for what it's worth is that we are in some volatile bond um you know markets

29:41

right here my good friend owen shrum at shrum wealth management who's on my podcast all the time he's a very good friend of mine he thinks that we're in some really tough times for the bond market he might be right he might be wrong but i do think when you can get

29:53

the yields that you can get on mygas it's kind of a no-brainer to look at it from a guaranteed interest rate for a duration and you can keep those durations short five five years in the end uh also remember that you know with mygos it's you're looking at the claims

30:09

paying ability of the carrier there are there are state guarantee funds but we really look at the claims paying ability and let me let me add one more thing people ask me this all the time hey stan why are you recommending either a b plus or b double plus or a minus company for

30:24

mygas why wouldn't it be a plus or better well first of all it's your money you can do what you want and whatever you feel comfortable with but when i'm looking at multi-year guarantee annuities for that duration here's my southernism we're dating them

30:36

we're not marrying them we're dating them for that duration now if you come to me and say okay we need a lifetime income stream you know immediate annuity deferred income annuity income writer qlac we're a plus or better typically all of the time not all

30:49

not 100 time but typically a plus are better because we're marrying them for your life but with my guess we're dating them we're not going to be there after after the duration 99 of the time we're going to move it to somewhere else or we're going to move it back to the

31:03

account it came from when you initially transferred it to the annuity company or we're going to send you the money you know with interest because remember mike is you can you're not you're not annuitizing you're just locking in a guarantee and you have full control over the asset so

31:16

i hope that answers the question but if it's made it to my feed on my site then i've looked underneath the hood from a financial standpoint solvency ratio all that stuff to make sure that they can back up the claim for that duration now when you get us on the phone

31:33

and you say okay is this one good and i and we say yes that means we've looked at it we've signed off on it we've looked at their financial uh capabilities to back that up and we will without hesitation tell you no on certain carriers if things change okay

31:48My renewal for my fixed index annuity was 47

31:49

my renewal for my fixed index annuity was 4.7 um first of all in in leah you can weigh in this i don't think what what you're seeing is real from the standpoint of you're thinking it's a guaranteed interest rate i don't think that's the case if it's an

32:06

indexed annuity fixed index annuity the the returns are primarily based on in the index call options i think what they're saying there is the cap the limitation could be 4.7 that mean you're going to get that but that means if the if the option that you chose went

32:22

up six percent you get 4.7 leah weigh in and see if i'm reading something into that that i'm maybe not supposed i completely agree with you i think that's what the person is asking so it's not 4.7 guaranteed it's a 4.7 cap which doesn't mean you're going to

32:38

make any money at all that just means if it goes up past if if it goes to three you get three if it goes to five you get four point seven but none of that's guaranteed index annuities and mangas are two different cd products notice i said cd products okay they're not market products

32:54

mygas multi-year guarantee annuity is is like a cd it has a guaranteed interest rate indexed annuities do not have a guaranteed interest rate attached to those cap spreads and participation rates that's all hypotheticals and theoreticals my opinion at the time of this taping i

33:10

think that megas outperform indexed annuities because you know what you're going to get and it falls in line with my you own an annuity for what it will do not what it might do so that's the answer to the question by the way if you want to schedule call with me i can go through

33:25

you know send me the statement i'll look at it and i'll tell you exactly what that means okay because i'm guessing is the florida is florida attached friendly state with a spea i'll have leah answer this i i think so leah there aren't any special tax concerns that i know of in florida

33:43

yeah that's a cpa equation ordinary ordinary income levels just like it is everywhere else well and the other thing too i mean between leonardo there's 60 years of experience but we're smart enough to know that we're not tax lawyers and cpas and um we're just not legally uh we

33:58

can't legally give tax advice even though we probably know more about annuity taxation than most cpas so sorry about that next

34:05How did you make it through

34:06

insurance agent here don't know how you made it through man you must be a really good sales person or i have to talk to my person i've been binge watching your videos i'm sorry hopefully you're drinking too let me say you have provided more information about annuities than my

34:19

insurance class teaching me now i know how you made it through i appreciate that i mean i really wish the annuity industry would adopt our contractual guarantees only approach it'd be a better world and a lot of them are and we're kind of moving the needle there

34:36

but i appreciate that you know we put out the videos if you haven't gone to my my um youtube channel we've done over 600 videos and we shoot pretty much every month and then we have um you know the phone with annuities podcast that comes out weekly and we

34:49

have shooting it straight with stan with just me ranting and we have a new one coming out soon doc from denver she's running this show bless her heart and it's going to be called q a friday which we're going to have a question probably starting in

35:02

september then i'm going to every friday i'm going to answer one question it's going to be on my youtube channel it's going to be like this but on crack so it's good but i appreciate that because i get a lot of hate from the industry and agents for some

35:16

reason i think it's because that i'm stripping these things down these annuity types down into the basic contractual guarantees of where you need to make your decision and i'm making it simple and i think that simple is good remember do not buy it unless you can explain it to a

35:33

nine-year-old no offense to nine-year-olds go ahead next question the current two-year migrate is pretty good relative to cds and treasuries for the same duration do you recommend adding yes i do i i recommend adding a two-year myga for a ladder um if it makes sense um i

35:49

got an email today or yesterday i think one of my my uh team members that was taking applications and someone found a really high-paying cd and they said well we're thinking about doing the cd and my comment was well if it's ira that makes sense if it's

36:03

non-ira remember with cds you have to pay taxes on the interest every single year with my has done making better this is just a difference with the interest it grows tax deferred but yeah i love the the shorter duration people always ask me hey stan which one

36:16

do you want should i do the three year of the two year typically i'm going to defer to the shorter duration unless you convince me otherwise just because i think it's good to have money coming due i don't like locking in long long term and i'm not a you know

36:30

i'm not against index annuities we probably sell more than most people in the country we use them primarily as a as a delivery system for the income rider guarantees but but one of the downsides right now with index annuities most not all um are seven to ten year surrender

36:44

charge time periods i'm not sure that makes sense from a accumulation value standpoint especially when when the returns are not guaranteed um but it does make sense if you're looking for a lifetime income writer and you're buying it for that reason so

36:57

people always get why do you hate index news i don't i hate the way they're sold i hate the way they're hyped i hate the way on saturday morning radio in some cities that you know it sounds too good to be true which by the way if it sounds too good to be true it is

37:10

every single time i hate the way that they are promoting the upfront bonuses which i call candy for the stupid um i just i really wish they would clean it up index annuities they're not too good to be true they can be pretty darn good if you understand it

37:23

and buy it correctly and understand how it actually works which we explain to you and and by the way one of my books that we send out for free is an indexed annuity owner's manual which i'm telling you that should win an award it is the most transparent

37:39

explanation of that product that's out there so we'd be more than happy to send it to you for free next question

37:44Current interest rates

37:45

what percent of speeds pay are currently are based current on current interest rates for example if the 10-year rate increased by one no no perfect answer to that and nobody has that that flow chart the other thing too is depends on how you structure it

37:59

if you said stan i want a 10-year period certain or a 20-year period certain meaning you only want to pay for that period of time then interest rates are 100 driving the train but most people are buying a lifetime income stream so it might be life with

38:14

20 years certain life with 10 years certain or life with cash refund or life with the installment refund the life part drives the train lea i'll let you weigh in on this you might have a better inclination on the percentage but just you know i always just tell

38:28

people it's about life expectancy what's your take well the other piece is how much uh premium does an insurance company want in those types of products goes back to your five legs of annuity pricing same thing yeah let me add to that thank you lee for reminding me when when annuity

38:43

companies i want you to think about your portfolio like your your your investment portfolio you have small cap mid cap value international et cetera right with life insurance companies they're issuing lifetime income products they have tranches of age ranges okay so they

38:59

might want they might be very aggressively quoting 74 year olds or 77 year olds or 52 year olds right now but once they fill up that tranche then those guarantees will go down and then somebody else will come in and quote and come after those same age ranges that's the reason it's very

39:15

important to quote for and that's what we do here the annuity means quote all carriers for the highest contractual guarantee so it's a capacity issue as well thank you leah for bringing that up just it's not as linear and static as you want it to be which means that's why we quote all

39:32

carriers

39:33Is it true that the income from the Qlik counts towards satisfying RMD

39:33

next question is it true that the income from the qlik counts towards satisfying the rmd on the remaining taxpayer assets let me explain qualified longevity annuity contracts being used in traditional iras and some qualified accounts right now the current um rule is you can use 25

39:51

the lesser of 25 of all of your qualified assets or 145 000 at the time of this taping okay per ira now that one let's just say you qualify for the 145 and you buy the 145 and you're going to defer income and turn it on at age 80 or 81 or whatever you decide

40:09

when you go to take your requirement of distribution that 145 000 is not used to calculate your rmds so let's just say you have a million dollars in your iras total and you buy 145 000 qlik so you qualified to do that then that one that one million minus the

40:28

145 that amount is going to be what you base your requirement distributions let me say something very very clearly culax really in my opinion should not be purchased for the tax benefits or the lessening of the potential tax liability of your rmds because mathematically just it's not a

40:46

pound-the-table reason the reason q-lak should be used is a is a hedge against inflation for future income starting at a future date and also to add your spouse as a lifetime income recipient with your personal ira to me that's the better reason but yes

41:02

it can it does have the potential to lower your your taxes on your requirement distributions next

41:09If I put all my money retirement money in annuity how does it affect RMD

41:11

if i put all my money retirement money in annuity first of all we wouldn't let you how does it affect rmd at age 72. let's let's talk about the first part of that sentence the annuity industry and and we are a leader if not the leader out here thought leader in the annuity industry

41:28

we do not like to see you put more than 50 of your investable assets in annuities can we push that and use a bullet to maybe get it to 60 maybe and every time that happens leah walks in my office and goes now why are we doing this again and i i love her for that because she's

41:44

she's looking after you this the annuity industry there were some problems decades ago within you know annuity agents taking the little ladies money you know in florida and putting it all in annuity you cannot put it all into an annuity and if and if you have

42:00

all i can guess is that the application was not filled out properly by the writing agent because if you're honest um we have situations all the time where we try to maybe push a little bit over that 50 limit and the carrier turns it down because it's like no they have too

42:17

much money or they don't need it in their opinion i know you're saying wait a minute huh yes annuities as a category it's the only financial product that you have are limited on what you can buy i did a video on it recently people couldn't believe it i'm like uh-huh i know the

42:32

annuity entry gets a bad rap i know that but two of the things that stand out that just sets us apart number one is that you can't put all your money there and number two once you even get a policy in your hand there's a free look period meaning you could get your money

42:46

back you don't have to give a reason you just might might get the policy and don't lie don't like the folder it's in you can get your money back it's the only financial product that lets you test drive that product while it's in force contractually and get your money

42:59

back now every state has a specific time period that for their free look time period but think about that i mean your things might have changed you might want to get your money back and without hesitation you know we will facilitate that for you but

43:13

the industry also will not allow you to put too much money in so talking about your question which is what if i put you're not going to put all your money into into annuities with us or with any honorable organization out there that sells annuities

43:28

so i hope that answers the questions but let's talk about rmds when you get to that if you're planning for requirement of distributions you just need to schedule call with us and say here's what i'm thinking and we'll explain the specific annuity type that fits and

43:42

how that would would affect your rmds there's not a blanket answer unfortunately next question

43:47Do we deal with the issuing company going forward

43:49

after we purchase an annuity through you do we deal with the issuing company going forward the answer is no with questions or issues no um one of the things that sets us apart and and i i like to say concierge service because i grew up in rural north

44:01

carolina and we i never knew what concierge service was okay but now i do fortunately because uh you know of what we've done and we've worked real hard but it's important for me to be you to be treated first class now do we get paid by the annuity company yes we get a

44:15

one-time commission that's built in to the administrative cost you never see it from the annuity company but with that you becoming a client you have access to us you have access to my team you have access to my administrative people you have access to me

44:29

forever whether you buy anything else or not i mean that's what separates us we do not farm that out every single person that you talk to with us is an employee of mine period they work for me i'm not farming this stuff out so i'm very adamant about that we've grown from

44:48

when it first started it was me and my wife and bless her heart that she's still with me but anyway now it's big and we're and we're growing and you know leah's been with me really pretty much from the start as well and we were talking tomorrow before the

45:01

before the broadcast that we just can't believe the growth of it and people ask me all the time this isn't just some me just bloviating but you know our business models to tell the truth are also the other things that we pride ourselves on is we call on time and we

45:14

do exactly what we say we're going to do i guess one more thing would be we take care of our clients forever so don't deal with the annuity company you can you're welcome to do that but if you need to change beneficiaries or you need a question on the policy you need to

45:29

change addresses or you need to change bank accounts where the money's hitting work with us because of who we are the annuity man and our stature is the top seller out here you know companies work with us in a different manner and we do get people assigned to us to get things done

45:44

on your behalf so please use us that's what we're here for next

45:48Can they take out taxes if its not an IRA

45:50

if you cash in your mind at the end of the term can they take out taxes if it's not an ira lee i'll have you answer this i'm assuming yes so in other words the answer is you buy a myga and a non-ira account at the end you say okay um send me all the money back stand

46:06

we're going to go buy a boat i'm assuming that the annuity company can do that i've never crossed that bridge here in the last couple years so it escapes me what's the answer leo uh yes the form that you fill out to get your money back asks if you want them to

46:19

withhold taxes or not it's up to you and that's the unbelievable leah who is uh running the show you often mentioned pill principal protection income for life legacy and long-term care that's the acronym i came up with for if you do need an annuity if

46:36

you don't need to contractually solve for one or more of those items in the pill you do not need an annuity notice there's no g for growth if you need market growth don't buy nudity please i get the first three but what do you mean by long-term care okay long-term care um there is a

46:55

annuity type an income writer that provides for what we call in enhanced benefit or confinement care benefit but when we talk about long-term care if we're talking about pure long-term care that is a tax-free benefit okay and there's three different types of pure long-term

47:12

care one of them being annuity but that's not a life insurance product that's a health insurance product if you're very interested in long-term care i will um refer you to the number one long-term care expert in the country he is a good friend of the annuity man

47:26

his name is jack lindenberg we've done podcasts with him if you want to go to my site you can pull up podcasts i'm done with jack he is fantastic he's like me he's a straight shooter he's not going to sell you anything he's going to tell you the truth but he does represent all carriers

47:39

and if you do want to buy it is concierge service just like us but um there is an index annuities have income riders which with what's called enhanced benefit confinement care benefit in my opinion that's your last resort if jack cannot get you coverage real long-term care

47:56

tax-free coverage then the index annuity the income rider is your last resort i always tell people if you're the person that's smoking 12 packs of cigarettes a day and drinking a bottle of jack daniels then the income rider is going to be your play because

48:09

no one's going to underwrite you but true long-term care coverage is either simplified issue or full underwriting to get real coverage okay

48:20How protected is your payment stream

48:21

when you invest in an immediate annuity how protected is your payment stream should the underlying company default um as i mentioned earlier in the program when we're looking at single premium immediate annuities for lifetime income or deferred income annuities qualified

48:37

longevity annuity contracts et cetera for lifetime income we're typically looking at a plus or better carriers offering that and all these people i said well stan what happens with the a plus rated companies go out of business me and you are in the

48:49

grocery store fighting for really cheap white bread that loaf bread that bunny bread remember that there's anarchy so don't come to me and say well what happens if this april is really going to go it's not going to happen annuity companies aren't smarter

49:03

than banks they're just more handcuffed in banks they're more regulated in the banks they can't do stupid things with your money and please don't throw up aig to me because i'll come back to you and said and say the life insurance arm of aig saved the 25 year old derivative

49:16

traders from running that into the ground so life insurance companies are solid and if we're looking at a plus rated or carriers are better for lifetime income in my opinion there should be no worries now if you want to go down the rabbit hole you can but not with me okay so

49:36

remember i'm doing quality stuff with lifetime income uh we're we're looking at the a plus a plus plus carriers those people aren't going out of business and let's just say they do it's anarchy we got bigger issues as a country

49:50Can you change beneficiaries

49:51

can you change beneficiaries on a spee at the time after the answer is yes let's just say you buy an immediate annuity with cash refund installment refund period certain attached to that life contingency and you put down your your daughter and your son uh 50 50 beneficiaries

50:10

and then your son you know walks up to you and says i hate you capitalist dad and future the middle finger you can call us the next day and take take him off and make your daughter 100 so the answer i like that example now the answer is yes you can change the

50:23

beneficiaries that's something our team can help you do all the time or something somebody passes away we can do that right

50:29Yield to surrender

50:30

with mike interest compounded annually quarterly it's uh leah you can weigh in on this as well it's a daily compounded interest but that yield of surrender is annual number you want to add to that correct uh some companies do it differently some do daily compounding some do monthly

50:47

compounding some do daily crediting some do monthly crediting what it comes down to is that annual yield to surrender you see yep that is that number is the compounded annual number smart people surround them smell cells with smarter people that's all i have to say go

51:06Review all assets

51:08

all right we have our last question last question you better get them up or i'm getting ready to roll all right here we go when we schedule a call do you or your staff review all assets to determine the best annuity options do we need to have in mind the products

51:21

we we are not um financial planners um i do not hold any more the series seven and all that stuff those licenses we don't look at your mutual funds and tell you what mutual funds are stocks or anything to buy what we are going to do is say tell us the total investable assets you don't

51:39

have to break it down to us just tell us that and then tell us your goal what are the two questions i always ask what do you want the money to contractually do and when do you want those contractual guarantees to start from there we can determine a if you need an annuity you might not

51:52

and b um if you do need annuity which one is going to provide the highest contractual guarantee and meet the goals that you laid out for us so we're also going to ask that question to make sure you're not over funding annuities putting too much money in

52:07

so we're just going to need that 30 000 foot view from you during the call and you know obviously we don't keep any of that information share or sell it and then from there that 30 000 foot view we'll take the plane down and get to the details of what type of annuity might

52:21

fit you best or i might say as i did this morning previous call somebody called me and they were very very young they were in their 40s i said it's been great talking to you but you do not need an annuity so tell whoever's trying to sell you one stop typically

52:33

you got to be 50 or above for us to really focus in on you because i think you don't need one there as a lot of people in the industry disagree with me on that but i'm right um because at 50 you know you're kind of in the corner lap four lap of the four laps

52:48

of life right the mile four laps of life you're in lap three right and you're starting to think about chapter two of your life and lifetime income and guarantees and things like that so if you're below 50 see you when you're 50 right so any other questions here we go was

53:04

recommended a 10-year index annuity a surprise surprise you wonder why if the time frame is 10 years why not purchase a tenure dia um and i think your answer will be what it will do what not what it might do absolutely correct here's another way to skin that cat if you think about it

53:22

it comes down to the goal so my question on the tenured indexed annuity recommendation other than the agent's going to make a lot of commission on it that means bad he could have a writer attached but once again what do you want the money to contractually do when you

53:35

want the contractual guarantees to start if you said to me i'm buying the index annuity just for accumulation stand then i would tell you to just buy my guess buy a five-year my gun let's roll the five-year mag again to another five-year miga i think you're going to

53:48

do better from a return standpoint and that return is going to be contractual guaranteed what the index annuity is not that make it bad just that's just reality and that's the way the product works or if you said stan yeah i need income in 10 years i really do

54:02

then what there are four ways to solve that let's go through them index new with income writer the income writer is going to tell you exactly to the penny what that lifetime income stream is going to be in 10 years second way to do it is a deferred income annuity deferring

54:14

for 10 years you're going to know exactly to the penny what that income stream's going to be third way is going to be my gaspia you could do a five year myga and then do another five year myga and then buy an immediate annuity at the back end to solve for that 10-year lifetime income

54:27

guarantee and then the fourth one that the industry hates but it's real don't buy an annuity at all and then 10 years from now buy an immediate annuity so those are the four ways to do it but if you're buying it for pure accumulation then i would say no you'd be better off buying

54:42

two five-year my goals you know five buying a five-year migrant that role in a five-year my opinion if you purchase the might with your ira can you roll that money from your mica back to your traditional ira um after the time frame is completed from your might yes let's give an

54:56

example thank you peter you buy you say okay stan i want this five year myga i love this five year migrate and the money's gonna transfer from vanguard i'm using that as an example because i love bogle and and what he stood for okay in fact i consider us kind of the boba place of

55:12

annuities because it's just straightforward true so we try to strip out all the fees um so you transfer from the vanguard ira to the ira at xyz annuity company that's a non-taxable event transfer doesn't trigger any taxes but at the end of the duration

55:26

if you said stan i want that money to go back to vanguard no problem contact vanguard they do the same thing they pull it back non-taxable events will transfer from the ira at the annuity company back to the original ira or some other ira wherever you want it to go

55:40

and that's a non-taxable event the answer is yes that can happen we will facilitate that absolutely are you limited to 50 percent of your net worth with micas um annuities in general forget migas i mean you have to look at the annuity category so if you have a million dollars

55:58

and you already own a variable annuity and you already own an index annuity and that represents 25 percent of your portfolio then you have about 25 to go if you want to do mica so it has nothing to do with mygus the 50 rule that the industry really really encourages in quotation marks

56:15

um it's all annuity types all okay anything else that is it listen thank you so much this has been fantastic we do this every month there will be a replay up if you want to re-watch it my team doc and her team is going to put that together thank you for

56:34

joining us we'll see you next time you

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