Replay: Live Q&A Maximizing Your Retirement With Annuities June 2022

0:00Intro

00:04

[Music] so [Music] hi there i'm stan the annuity man welcome live in the morning i've got my cup of coffee you know so i'm going to be sipping that that's coffee cup number two but it's a very large cup so i'm ready to roll and i'm looking forward to answering all

01:05

the questions if you've been on these before it's an absolute free for all i read the questions out i answer them factually the only thing i'm going to ask up front is no tax questions i know that i look like a cpa and a tax lawyer but i am not so please don't ask any tax questions

01:20

because i will defer it to the cpas and the tax lawyers because they're the only ones legally that can answer that the other thing too is if you are an agent or an advisor or a master of the universe out there that's on this program please do not waste our time with your

01:34

questions you can contact me one-on-one if you would like love you mean it but this is for consumers only please be respectful of that and with that being said let's go let's kind of jump in a little bit i'm very pleased and honored to have my ceo on this uh in the background on the

01:52

call and also my marketing director both dynamic ladies that run the annuity man um on a day-to-day basis from our main offices in las vegas nevada our operations center and i'm coming to you this morning from sunny humid florida the beaches of florida but um you so put

02:12

in the questions i'm going to go through a couple things let's pull up the site one of my favorite sites of all time and i hope it is yours as well um if you could do that producer

2:20The Annuity Man Website

02:22

um let's see what we got there there you go there's the site and if you haven't been there as the annuityman.com it is pro consumer you can book a call with me typically well it's not always with me but it can be with me but um you know we have annuity experts as well but hopefully

02:40

you can get me and one-on-one if not you're going to have someone else smarter than me so you can book a call it's a 30-minute call um you know we're going to listen it's not some close close close hammer hammer hammer we're going to listen put together a customized plan for you we're

02:53

actually going to tell you if you don't need an annuity um you can also use our calculators if you go to that we have we have all kinds of calculators unique immediate annuities deferred income annuities tweak culax index annuity quotients you can get income writer quotes you can also

03:08

uh go to our live miga feed and take a look at that and then also too yeah here's the live mug maybe just put in put in just click there's alabama we like alabama but you click down your state your your years and you're going to see the the best rates

03:23

in the country and migrates have been rising etc and also too just for if you haven't gotten the books you might want to consider it because the consultants are now whispering in my ear that we don't need to be giving these things away anymore right now if you sign up for the books

03:39

we're going to send hard copies to you in a willy wonka gold foil mailer and for the people out there that's received it they're like yeah it actually is gold foil um but there will come a day that they're going to convince me somehow that i shouldn't be spending all this

03:51

money sending books out but i don't know maybe we'll see um but you might want to sign up for because eventually i think they're going to win out a lot happening as you well

4:00Annuities

04:00

know um markets crypto war midterms hearings uh interest rates inflation hello gas prices there's a lot happening out there and um i appreciate you taking the time to look at annuities uh in general as you know if you've followed me at all and gone to my standing nudity and youtube

04:23

channel or listened to my podcast fund with annuities podcast if you haven't heard that every tuesday comes out on all major podcast platforms and we have we have some phenomenal guests we don't really talk about annuities it's primarily about what the

04:36

expert has in mind a lot of it's market driven a lot of it's medicare or or social security and things like that um so you know i encourage you to do that and we put out a lot of content and the reason i do that is i want to educate everyone out there on annuities so you can make a good

04:52

informed decision on your terms and on your time frame one thing i want to point out that is kind of new and if you got the newsletter this morning on your in your email box i talked about interest rates and lifetime income in the future now currently when i and please put your

05:10

questions i will get to the questions but currently when i talk about lifetime income and you say okay stan i asked two questions what do you want the money to contractually do and when you want those contractual guarantees to start and if your answer the first

05:24

question is i want lifetime income and the answer the second question is i need to start in the future there are two packaged products that do that one's a deferred income annuity which is an immediate annuity that you defer and the other is an income writer

05:39

attached at the time of application to typically a variable or indexed annuity the contractual guarantees historically on the index annuity or higher so that's what we look at and i don't sell variable annuities nothing against them i just don't sell anything that goes

05:50

down so those are the two income later type products that are out there but i have a third one that we're using and i'm i'm promoting just because it's pro consumer it strips out all fees it's very very very very very low commission which is the reason you'll never see it

06:07

at the bad chicken dinner seminar expensive steak dinner seminar or whatever being promoted locally on the radio show but i like it it's a my god aspia strategy meaning you're buying a multi-year guarantee annuity with a guaranteed interest rate for a specific period of time and then

06:23

at the time you need income or at the end of the duration of that um multi-year guarantee annuity we have that carrier quote an immediate annuity payout and then we go shop all immediate annuity carries for lifetime income stream payout and we choose the highest contractual guarantee

06:37

typically it's an outside vendor or an outside carrier we do a direct transfer non-taxable event from the myga to the spia and it's a way to i in my opinion kind of get the best of both worlds you have control of the asset you you don't have to turn on the income stream at the

06:55

end of the duration but if you do then we go shop for the highest contractual guarantees at that time and you're also getting the interest rate levels at that time you can also walk away and say hey i don't want to do that anymore but miga to spea so give me an example let's just

07:10

say you said stan i need income in five years my what we quote income riders we would quote deferred income annuities and i'd also say you might want to consider buying a multi-year guarantee annuity and in a lot of states right now you can get over four percent a lot of states

07:25

you can again go to my my ga feed and you can pull up state and and the guarantee it's not all the same because fixed annuities are are approved at the state level so each state's different but at the end of the five years we know what you're going to get because you're

07:38

going to get that that percentage for that five-year time period and then we can go shop immediate annuities at that time people are always asking me hey stan what do we do with rising interest rates how do we combat that first of all we can ladder my guess and hopefully catch

07:53

rising interest rates um but my get a speed is a good strategy but let me get specific and there's some questions that are coming up that i'm going to get to but one more thing and i think this is very important because people are asking me all the time hey stan um should i wait

08:09

to to for the fed meeting coming up what should i do i think at a minimum and you know the sales gods are going to look down upon me and say step and what are you doing i'm telling the truth okay but if i'm you and i have to put myself in your situation as a acting as a

08:25

fiduciary which means putting your best interests at first which my opinion all advisors should do automatically and voluntarily but for whatever reason they don't but i do i would wait until the june fed meeting for sure and maybe the july fed meeting so you're saying

08:41

wait a minute what i want to buy now i want to do it now stand well let's do it now that's fine and we can talk about it but if you had the patience to wait to at least the june fed meeting because i read something just just recently overnight that they're talking about not

08:55

just 50 basis points but 75 basis points three quarters of one percent raised in june let's hope right or um even more in july they're going to have to do something powell is going to have to do something the fed is going to have to do something

09:13

now the markets are going to get hit by that a little bit as we as we all know crypto's going to get hit by that this is going to be an interesting time period but my job is to find the highest contractual guarantee for you shopping all carriers for that highest

09:26

contractual guarantee and if i can as they say in the south squeeze oil out of a brick and squeeze as much yield as humanly possible and we have to wait one week two weeks or three weeks or four weeks to do that then that's what we are going to do

09:41

because i want you as a long-term client i want you here for a long time and i want you to understand that i am making these recommendations these calls based on 30 years of experience and trying to figure out the best way to put you in a contractual guarantee

09:57

so that's kind of what's happened right now it's it's a very interesting time to be in my business uh carriers are coming out with very very high interest rates to attract premium that's fine if it i think that's out of whack we're gonna go get it um i think right now if you said stan

10:15

what's the sweet spot duration for say my gues um in my opinion it's three years right now it's a three year time period doesn't mean you can't buy a five year or six year but three years is kind of the sweet spot and remember also if we're quoting lifetime income

10:30

spea's d is q q-lax those type of things income riders all lifetime income from annuities is a combination of return of principal plus interest now interest rates do play a secondary pricing role but the primary pricing role that drives the train is your life expectancy at the time you

10:46

take the payments or life expectancies of doing joints so you know the older you are the higher the payment like social security so i'm going to take a sip of coffee very large step and then we're going to jump into the questions i'm going to read them out so go ahead

10:57

and put them up director

11:00Annuities vs CDs

11:02

and here we go from roy's place which i'm assuming is a very happy place roy i have 178 000 from a 401k he's 57 i'm interested in an annuity versus a cd right there we're talking about multi-year guarantee annuities not indexed annuities i'm not down on index

11:18

news we probably sell more than anybody out there we just use them as a delivery system for for um the income rider guarantees the reason that we default to the migas is we can do them short term and i think in this environment it's it's very important to

11:32

lock in money short term index annuities typically are seven to ten year lock in they do have shorter term durations but they're not good products in my opinion so annuities are the thing now do now do in the market so i want to invest until i'm 60 with this amount so in

11:48

essence i mean we're buying you're on a three-year miga and so you're doing a three-year my ga and at the end of the three years you can do it ira non-ira roth ira any account but at the end of the three years um you can take your money we can transfer it back to the account it came

12:03

from if it was an ira or something like that or we can convert it to a lifetime income stream just remember at age 57 if you're using non-ira assets like a non-qualified asset you have to hold that asset until 59 and a half in order to and not take any money out before that

12:21

59.5 in order to not incur irs penalties so that's something we certainly will cover but i think yours is a pretty simple solution is we will do a direct transfer from the 401k to the annuity company non-taxable event the three-year duration is probably the best for you in my opinion

12:39

and that way you're going to protect the principal you're not going to pay any fees whatsoever and then you're going to have full control of the asset the the interest is going to compound and at the end of the term you have the full control of what's going to happen

12:54

now obviously our team is going to take care of all the paperwork from start to finish and we will be in touch uh 60 to 90 days before that duration to find out what you want to do and then we will take care of that as well we have the best administrative team on the

13:07

planet people that are already clients on here they're nodding their heads if you can hear that they're fantastic so the experience of you doing this paperwork we get in the weeds for you we just keep you up to speed on the process and at the end of the process you're

13:23

going to get a policy in the mail hard copy you can hold your hands you're going to have online access uh with the with the carrier and you're going to get an annual hard copy statement from the carrier as well so next question just a little comment here because i

13:37

have oh that's the the voice the voice of the guy god um if you're talking 401k money please keep in mind most 401ks restrict it to being separated from service so whether you are 57 62 whatever it is you can know most companies you no longer are working there in order to move it if

13:60

you're still working there most of the time they won't let you very good point that voice from on high is leah brandt she is the ceo and director opera of operations um of the annuity men llc one of the best moves i've ever made she's very smart she has almost 30 years in the

14:16

business she's seen it all done at all and forgotten more than most people will ever know so administratively she oversees the team of people that um that do the paperwork and there are times we're so swamped that she even has to get back in the in the game and do

14:30

the paperwork too so that's it next question it's from mark campbell approximately 130 000 from selling a second home 55 want to retire and kind of work part time in three to four years would a michael latter be a good idea to fund health insurance

14:46

and i don't know about that i think it's a good way to protect principal um you know and get a guaranteed interest rate to fund health insurance and maybe from 59 to 65 because you could peel off the interest not to touch the principle there most migas allow you

15:02

to do that not all but most we could find those ones for you and then you could just peel off the interest not touch the principal and fund the health insurance ongoing and then just keep rolling that miga ladder hopefully to attach yourself to higher rates still peeling off the

15:17

interest to pay that that health insurance spring i think that's a good idea mark it's something obviously we need to talk about a little bit more in detail but once again my team would take care of all of that if you said stan i want to do this and i want to peel off interest to pay

15:31

the help we would coordinate all of that so that interest would be coming to you once again you can use any account type for that next question ted s i've noticed many mygas and fias are labeled not available in new york in the fine print at the end of the carrier shirts

15:47

yes let's talk about that real quick um and is this a warning sign that a particular annuity is a good chance of being sketchy no it's not ted actually it's a warning sign that the in my opinion that the the new york department of financial services just

16:04

they're just very restrictive on who they allow in and and it does it makes no sense it just absolutely makes no sense to me because they're supposed to be pro-consumers so i think you're reading into it wrong in my opinion um you know the new yorks and new jerseys and oregon's

16:22

those type of states are blue states i'm not political so don't read anything into that but the blue states a lot of them not all of them are very very restrictive on what carriers are allowed in what types of products are allowed in for give you a good example

16:38

their income riders attached index and news are very very popular some great carriers that are offering them etc but new york pretty much doesn't let me they barely allow any of those in which makes absolutely no sense because people need income in the future and income riders

16:53

are contractually guaranteed way to do that um same thing kind of goes with money because they just are very restrictive like for instance if you pull up if you're you want to go to my site and do a really interesting test do the miga feed and then put in three year duration

17:06

and then put do do new york and then do three year duration do texas or florida it's night and day and you see a plus carriers and a rated carriers that are in texas that aren't in new york makes no sense i mean i have been you know from from a distance kind of encouraging

17:23

new york to be a little bit more pro consumer but i don't think they're listening to me yet but it's kind of sad for because they're such limited offerings in the state of new york next question i'll just i'll just add something in here please being in the industry um for

17:39

you know working in insurance companies an insurance company has to have a location in new york in order to offer products that's a good point i i was going to mention that but i didn't want to get in the weeds i think you're right so let's just look at that example thank you um

17:56

if if an a-rated carrier or a plus rate of carrier who's solid they have to make a decision do we open an office a physical office in the in the state of new york because that's what it takes it's a big barrier that's a big hurdle and a lot of these companies just punt

18:09

and say no forget it

18:10Surrender Charges

18:12

next what's the typical surrender charge fee for canceling three year migrant or five it's predatory time creator love that i love that name um let's just give an example and it's all it's different with each carrier in each product but let's just take a three year

18:26

a lot of times the surrender charge year one is nine percent surrender charge year two is eight so under charge year three is seven me and that means if you pivot and say send me all the money back stand i wanna do this anymore it's predatory uh for in my opinion those

18:39

those surrender charge penalties however if liquidity is an issue then we're always going to say let's choose one that you can either peel off interest or get out 10 annually you know on the site on the miga feed you'll see those provisions listed that they'll allow you to take

18:54

money out etc but that's the reason that when you buy annuities period any type including migas they need to be in proportion and allocated properly obviously me and my team of annuity experts know that we also know that you you need to be very careful not to put too much

19:13

money in annuities the annuity industry kind of frowns upon you putting more than 50 of your investable assets and annuities can we put a little bit more if you give me the case and we use that bullet to go to the carrier yes but in a perfect world you should not be

19:27

putting more than that but they are predatory so when you go into a multi-year guarantee annuity contract whether it's a two year three year four year five year six year um you need to go into it knowing that you're most likely not going to to liquidate it in full

19:44

but you are just going to access the liquidity provisions that you know about going in

19:48Interest Rates

19:50

david c with a nice uh i think that's a three wheel motorcycle very nice hey stan will interest rates go up affect my index annuity possibly typically yes you'll see with indexed annuities and and i if you follow me a little bit i really hate how indexed annuities are

20:07

promoted i hate that agents talk about market upside with no downside and market participation is garbage these are cd products and they typically get that two to four percent return historically over the life of the annuity can you get more one year than the other yes

20:23

but the blended return is is that two to four percent but with that being said you're going to see caps and spreads and participation rates go up which means there is more potential for you to lock in more um you know the gains on that contract anniversary date but i want you to just

20:41

get your get your expectations in line with the contractual realities of indexed annuities um they're not market return products i hope you get that on some of the years that you have but they're just not and you just i in my opinion you should

20:56

be buying multi-year guarantee annuities for accumulation instead of indexed annuities and keeping them shorter term instead of locking something in for seven to ten years there are times that that makes sense but those are specific customized times that we need to talk about so next

21:11

question

21:12Minimum and Maximum

21:14

time creator what's the minimum and maximum for three year mica it depends on the if you go to my site um in fact producer can we do that can we go to the site and let's just let's just pull it up let's show this real quick since we're getting a lot of my good questions um

21:31

and just you know pull whatever pull pull taxes because i'm not in texas but i like austin because it has good music venues and that you know that's a reason so let's just do three okay so let's let's go to the three here okay scroll it down and that's how you pull it on my site

21:49

and you have to sign up you can just look but if you look at the fourth column a minimum premium okay some some allow as little as 20 go but down sum is 250 sums 100 right minimums and then if you look to the columns to the right free withdrawal year one free

22:06

withdrawal year two plus you see that some don't allow it some do on second year some do just take interest out go to the fifth one down american national they allow you to take 10 out day one so it's all different and these and that's the reason that

22:24

i represent pretty much every carrier out there these are commodity type products none is better than the other it just comes down to the liquidity provisions that you need a lot of people say hey stan i don't plan on taking any of this money out during the duration let's just get the

22:39

highest contractual guarantee i don't need the liquidity a lot of people say well i just you know what if i need the liquidity then we'll choose that so we're going to match you up to the contractual guarantee that fits your situation if it's what you want to happen

22:52

in addition to the contractual guarantees that you're going to receive so thank you for that producer

22:57Annuities for Couples

22:58

all right um i'm 59 wife is 57 mainly want to make sure she has something simple if i'm not here but would consider something for both is there an annuity for two people together the first question i would ask you is what do you want the money to

23:11

contractually do if you're talking about lifetime income certainly we can do an immediate annuity or deferred income annuity if you're talking about just protecting the principle hey stan we just don't want to touch the principal we it to always be there we don't want

23:22

pay fees and just peel off interest and that's a multi-year guarantee annuity is the best choice for you so it really comes down to what you're trying to achieve but yes we can set it up so that you know the spouse can continue the policy whether it's ira or non-ira we

23:38

can do that we can have that discussion um but i i got a call today maybe this is what you're asking if not hang in there with me the person said i you know i want to set something up for my wife so that when i die it's going to replace an income stream that we have but when i

23:55

die that income stream is kind of going away in other words the same stan can we buy something now that will have an income stream in the future that we can turn on when i die yes you can do that that's either a deferred income annuity or that's um

24:10

an indexed annuity with an income rider but what i told him to do is also consider and talk with your tax lawyer state planning lawyer to put something in the trust that says upon my demise um please uh by joyce his wife an immediate annuity to solve for this lifetime

24:29

income amount gap that's going to happen when i die and at that time we'll go shop all immediate annuity companies for the highest contractual guarantee so you could do it preemptively and know exactly what to depending what it's going to be now in the future or you

24:43

could keep your powder dry and then have the trust dictate that immediate annuity purchase at the time of your demise and we could do a reverse engineer quote to solve for the contractual guarantee uh producer can you pull up the the site and show like let's go to the immediate

24:59

annuity calculator and i want to show um i want to show what a reverse like when i talk about reverse engineering engineer quotes so on our quotes and we have there's 40 different ways to structure lifetime income and we show to life life only and life with cash

25:16

refund because that's primarily what people buy if you want to get down in the weeds we can go there as well but see when right here when you put in your name and in you know joe smith i like joe smith that's good um i just want to show them just you can

25:32

just go down to choose your calculation so you you could either do i know how much money monthly income i want to get which is reversing your engineer quote which means hey we need two thousand dollars a month or i or you go to the other one i know the dollar amount we have two

25:47

hundred thousand dollars what would that create you can do it either way i always tell people use as little amount of money as possible with annuities to solve for the contractual guarantee which brings thank you producer we can go back to the main screen which means

26:00

brings us back to the main point well what about inflation stand you know if any annuity agent or advisor says that they have an annuity that addresses inflation they are flat out lying or they're stupid one of the two they're the sociopath or they just believe that

26:13

you know whatever they're spewing out the truth annuity companies have the big buildings for a reason when you attach any type of increase to a policy the annuity company severely and drastically lowers that initial payment to make up for that and i don't think

26:26

it's worth it i just do not you already own the best inflation annuity on the planet which is social security so you know if you've purchased an annuity i hope not for someone else but if you did and that person says it's going to adjust for inflation you're going to

26:37

find out that was a flat out lie and you shouldn't talk to that person anymore because that was a flat-out lie but don't look for it don't go down the rabbit hole looking for that product that adjusts for inflation it doesn't exist can we put a cost-of-living

26:50

adjustment increase on a product like an immediate annuity deferring company that type of thing that increases um by three percent every or whatever you choose yes but they're going to lower the payment and anybody's pitching an indexed annuity saying that the index

27:02

is going to increase their income with inflation that might be true but that the the income amount to start is lowered so much it's not worth getting so just hey if it sounds too good to be true what it is every single time no exceptions with annuities next question

27:16

thank you stan you're welcome

27:18Secondary Market Annuities

27:19

next question do you have any videos on structured setting annuities let's talk about that for a second and what simon is talking about are secondary market annuities smas we do not sell them because they're very very complex and let me tell you why

27:35

when you buy a secondary market annuity you're buying the rights to a payment currently with the state attorney's general that's attorney general's plural there's a there's a class-action lawsuit from some of the beneficiaries that are claiming that the people that

27:50

have bought the rights of policy don't own the rights of the policy it's kind of messy um but if you you know if you want to get in the weeds of that and talk about it please schedule call with me and we will discuss secondary market annuities which are structured

28:04

settlement annuities but in essence what happens if the person gets a structured settlement and the judge says here's the annuity payment what's happened the reason that you can go by the rights to that is that person goes back to the judge and says i want to sell a portion of that

28:18

those payments to to the pub to to raise money and that's what happens and then you get to buy the rights to that payment that's where the problem lies i know you're going to hear that hear from other people it's not a problem it is a problem and the paperwork on that is huge

28:33

if you said to someone that's trying to sell you a secondary market send secondary market annuity to send you the paperwork to review on you would never buy it it's like 90 pages i remember when um leah and i leah my ceo and i looked at that that space and we

28:48

got the policies and got the they're not policies or rights to the payments and we read it we're just like no there's too many issues going forward has it worked for a lot of people yes to buy secondary market annuities but i just don't see the reason to try to

29:03

chase that extra yield for a potential problem in the future okay

29:09Traditional Annuities

29:10

next question i'm wondering generally what you think of the ti traditional annuity okay payout rates seem high and happily for tiaa is kind of the granddaddy of annuities it's it's um you know it's been around for a long time used to be called t-i-a-a cref

29:27

their annuities internally are good from claims paying ability standpoint fantastic company they can certainly back up the claim um what i would always tell people to do though if you're getting a quote from say tiaa or whatever other annuity company and just you and you have the

29:44

contractual guarantee that they're quoting life with cash refund or life only or life with 20 years certain whatever it is just shoot us that pdf and have us do a comparison quote now the only caveat tiaa is what we have found is moving the money from tiaa is somewhat

30:03

limiting at times depending on the type of account you have and the structure of that account and etc there are times that we can't move it and that's fine but if we can you should be doing always be doing a comparison quote for the highest contractual guarantees out there okay

30:19Transferring Annuities

30:21

victor what do you think if i if i transfer my current two variable index annuities to nationwide well that's a loaded question and it to a fixed index annuity with a 1.2 total fee in order to get 500 more income per month is this a good annuity there's no

30:41

annuity we we represent nationwide so nothing against them we love them and every other company but when you are looking to transfer an annuity you cannot just make a decision on one annuity you have to shop all carriers for the highest contractual guarantee for that specific situation

30:58

and it might be nationwide it might not be also never ever ever ever be convinced to transfer an annuity to another annuity because you're getting an upfront bonus never that's stupid um i would want you to give us the opportunity to quote all carriers

31:17

including nationwide to show you who has the highest contractual guarantee out there what if we could get you six hundred fifty dollars a month per month or five hundred and twenty five dollars per month more same ratings annuities are commodity products do not

31:33

become fixated on a specific carrier or a specific company or product that some agent or advisor says well this is the best one no there is no best one so the other thing i want to point out this is very important so let's just say you have two annuities currently

31:51

when you transfer an annuity to another annuity you have to go we do this for you but during the application process we have to prove that the annuity that you're coming from and the annuity that you're going to the one that you're going to is mathematically in your favor in other

32:09

words the contractual guarantees are higher not with hypotheticals and theoreticals not with back test or return scenarios or unicorns chasing the butterflies we have to show that worst case scenario from the old annuity to the annuity new annuity the new annuity

32:24

is better now let me why why am i pounding the table a little bit on that if you have income riders attached to those previous annuities you're not going to be able to transfer those valuations up from the income rider to the new annuity why is that important

32:38

because typically 98 point whatever percent of the time the the income rider value is higher than the accumulation value and that higher value does not transfer the only way for an agent to get that through is to doctor the application which is at least at a minimum a

32:56

misdemeanor but what we can do is look at what you have and look at the goals that you're trying to achieve like when you want the income to start run those quotes with all carriers including nationwide and then prove to you that it's either mathematically in your

33:13

favor to do that to make that move or not spoiler alert most of the time it's not because annuity companies have the big buildings for a reason when they design these products they make it difficult to transfer to another annuity to get a better contractual guarantee i

33:31

hope i'm being very clear about this because these are some of the shenanigans that go on in the annuity industry that gives the industry a bad reputation transfer from here to here and get an upfront bonus transfer from here to here the potential returns are

33:43

going to be better no no no buy an annuity for what it will do not what it might do please do not sign that paperwork until we run a comparison quote with all carriers okay

33:53State Guarantee Funds

33:55

dominguez have fdic no fdic insurance is for cds and banks migas all annuities are backed up first and foremost by the full faith and credit by the issuing annuity company but there is a state guarantee fund with each state that backs annuities up to a

34:14

certain point each state is different um if you go to my site you know we can give you that that link if you want to write it down is n-o-l-h-g-a-dot-com if you want to pull that up um producer we can just kind of show them that can we do that are we that fancy maybe we

34:31How to find State Guarantee Funds

34:31

are i don't know we can just give me one second oh you're oh you're typing good i get to drink coffee here we go um n-o-l-h-v-a hva.com the reason i want i i want to i think it's important to show it is i'm going to show you how to go look at your specific state um

34:57

so yeah here it is i think i just saw it pull okay if you scroll down that's the main site but if you scroll down under state associations and you hit click here on the right hand side there's white boxes third one down here click here okay and then pull your state let's just say

35:12

pull pull whatever just pull one florida okay and hit go it'll take you to the florida site and then under faq so hit just hit faqs and every single one is going to have an faq your state's going to have a cue and look under six or seven just look at

35:29

those those answers our policies cover what contracts are covered there you go so for instance florida three hundred thousand dollars per contract owner is what's covered that's the that's the national association of life and health guarantee association whatever it is no lhga but i

35:48

want to be very very clear here listen to me the state guarantee funds cannot be equated to fdic fdic is the best coverage on the planet okay next question do my um i think that was it did he have a second question to that producer

36:06Have any annuity companies gone bankrupt

36:08

have any migra companies gone bankrupt in essence absorbed by the state guarantee fund the one that the one that i can point to that has happened 2008 was a company in indiana that was absorbed in full by guggenheim life after that typically there's a lot of um

36:27

self-policing in the annuity industry because annuities are confidence products so most of the time we see um the bigger companies coming in and buying the smaller companies and the guarantees behind them so we really don't see that annuity companies aren't

36:40

smarter than banks they're just more regulated they can't do stupid things with your money so next question

36:45What is a deferred income annuity

36:46

your booklets and website talk about q lags let's talk about q lex for a second first of all they are a deferred income annuity so deferred income annuity is a q lot q lex deferred income annuity but q lakhs can only be used in qualified accounts like traditional iras and now some

37:03

some retirement plans but most of them are in traditional iras currently at the time of this taping you can use 25 of your total ira assets or 145 000 whichever is less and you can defer that income out to as far out as age 85 you don't have to go that far and that 145 000 in this

37:25

example is not used to as part of your requirement distribution calculations it's a it's a great strategy for future income it's a great strategy to have income start in the future to hopefully address inflation with income starting in the future

37:40

it's also a good way to add a spouse as a joint payout person on that ira so that they can get a lifetime income stream as well but that's in essence what it is it was designed and introduced in 2014 by the irs and the treasury department they designed it because they want

37:57

people to plan for income in addition to social security and this is their salvo into that's a great product the downside of the product is that there's no growth component on it um you you can structure it so that that 145 5000 if you die early is going to go

38:12

to your beneficiary but it's not going to grow by like a percentage that you can track what what the annuity companies do is the longer you allow them to hold on to the money the higher the payment we do have a cue like calculator on our site if you want to

38:25

have a full conversation about that we certainly can do that but it is just think of it as a another part of your income floor using ira assets it's a pension and you can put your spouse on there as well

38:38What is my annuity recommendation

38:39

i i think i dumbed it down i think it was good right i mean if you ask me to dumb it down that's kind of a natural for me right not your hit um andy in researching mygas i see three are offering 4.3 percent b plus plus rated in your state we just

38:55

have to have a conversation about that um typically if it's reached my site there might be a couple of exceptions to that then we've done our due diligence on that specific carrier now let me say this when i do my analysis for recommendation for omiga

39:11

it's different from when i'm doing lifetime income if i'm saying okay i recommend this carrier for lifetime income we're marrying that company for as long as you're breathing i have a different take on things then okay so there might be my good companies that

39:23

i recommend to you for a three year duration that i would never recommend to you for a lifetime income i hope that makes sense what my analysis of their financials and their bond holdings and their solvency ratios and of course i've done that in the past

39:35

with my time at morgan stanley and dean water payne weber ubs i know how to do that i'm looking at can they back up the claim for three years do they have the money in place to do that so that after the three years you can move on but i would just have to

39:49

talk about talk to you about a specific uh the specific carrier you're talking about i don't want to do that on this on this taping we typically don't mention companies and then give analysis of that company just out of respect for them but i will do that one-on-one with you so

40:05

next question

40:05Should you ever buy an annuity

40:07

i'm 35 should you should never buy an annuity even if you're in canada or u.s first of all we don't sell or have the capability or ability to sell to anyone in canada thank you for joining us but it just is what it is but let's just say you were in the united states and you were 35.

40:26

under no circumstance should you ever buy an annuity my opinion um i always tell people unless you're 50 or above you really shouldn't be looking at that are there some specific asterisks to that you know one-off situations yes there there are but um

40:44

in my opinion if you're less than 50 you should be running the other way when someone says annuity because that person's a sociopath that they're really trying to sell you one especially i see this all the time 20 year olds and 30 year olds and 40

40:55

year olds buying index annuities that is just dumb that is stupid and the person selling you that should lose their license in my opinion next question

41:04How to buy a lifetime income annuity

41:05

ti this is uh ted looking further i see that tia changes payout rates for every year seems like the pay they raised payout rates by five percent for all the new annuitants in 2022 this seems to be different from a spea once again ted i would have to see the specific

41:21

product that tia is offering and just doing apples to apples to comparison um but understand the older you are the higher the payment it's that simple don't don't go in the weeds any more than that um it's just like social security are the payments higher at 70 compared to 65 yes

41:38

because you're older which means there's less projected payments which means the payments will be higher so it's nothing nothing more nothing less so don't do any over analysis on that next question stan can you talk about how purchasing a lifetime income annuity um can make

41:56

someone a better investor i call it putting in an income floor an income floor would be social security a pension if you're so fortunate dividend income whatever's hitting your bank account so if you said to me hey stan um the wife and i are our floor you know

42:13

that that nut we have to hit every single month is six thousand dollars and we're at four thousand dollars then i would say let's reverse engineer a quote to solve for two thousand dollars so that you're going to be at the six thousand dollars that's going to

42:25

pay the bills and you go live your life now when you do that what you're going to find is you're going to be a better investor because you do not have to disrupt your investments to pay the bills which totally shoots down the four percent rule a lot of you have been

42:39

presented by your advisors well don't buy an annuity because we could just do four percent we can just peel off four percent make have the money grow and uh and you know you know it'll all work out well in these markets that doesn't work out okay my opinion

42:53

you put the income floor in place and then you go invest the rest and and keep your powder dry and if there is an inflation needs let's just say in this example the six thousand dollars you come back two years from so you know what we need an additional 250

43:07

for that income floor then we do a reverse engineer quote for 250. use as little money as possible to solve for that specific inflation need remember inflation is not some pie in the sky thing that it's all all things for all people no it's about you

43:23

it's about your specific situation your specific income floor numbers your specific needs and let's solve for that yes i know the media doesn't look at that like that but it is like that give an example my my daughters are out of the house i'm not buying as much milk and cereal and

43:39

taking them dance lessons anymore so i don't pay as much in gas i don't pay as much in food so inflation affects me differently i want you to look at that for yourself as well and don't get hung up on all of this talk from the media and and you know the

43:53

cnbc's and the fox businesses of the world that's just inflation inflation inflation yes if you're a truck driver it's tough if you run a long care service it's tough but if you're retired and you're not traveling that much it's not as big of a deal yes we all have to buy groceries

44:08

but but you know most of us can't afford that not all but most can um and but it's not transitory ms yell and i think this one's here for a while um i just you know there's just no good answer to that but from being a better investor which is what um leah was talking about

44:27

what we have found and people call me all the time and say you know these markets are crazy but i'm so glad we had the income floor in place because i'm just i'm just watching it or i'm buying specific things for better opportunities etc with that being said let me just say

44:40

this and i want you to listen very clearly to me never under any circumstance by any annuity type regardless of the sales pitch for market growth and if you do you're a fool or you've bought the sales pitch because annuities are not market growth products

44:55

i know the industry disagrees with me on that i know that carriers disagree with me on that i know the agents and advisors disagree with me on that but i'm right i'm totally right about it because with any annuity product that anyone's pitching for market growth

45:07

there's limitations on choices and there's limitations a lot of times on upside when you're investing in the market there should be zero limitations and that eliminates all annuity types you buy an annuity for what it will do not what it might do that's the contractual

45:22

guarantees and if you don't need those contractual guarantees if you don't need to transfer risk to solve for one of the one of the four items that i list that annuity solve for and the acronyms pill principal protection income for life legacy long-term care confinement care

45:37

if you do not need to contractually solve for one of those four items in that pill then you do not need an annuity do not buy an annuity for growth period

45:47Private equity and annuity companies

45:47

and market growth okay thanks so much for all your insights last question i have this from ted ted that's the main question you want this is this is live event wonder if you are concerned with private equity companies by annuity companies and reinsurance and bermuda the answer

46:02

is yes and what what ted is referring to let me just kind of dumb that down a little bit is with 10 000 baby members hitting age 65 every single day it's a demographic tidal wave of people looking for products that provide guarantees and obviously the smart money you know

46:19

the gurus the master of the universe the the single malt scotch drinkers drink smoking a cigar they want they want a part of that so we're seeing a lot of private equity type money come in good friend of mine carrie pector who's been on my podcast fund with annuities

46:34

we talked about this he calls it the bermuda triangle effect of these companies you know coming in and then parking your monies and money in bermuda we are watching it closely i'm working with some firms watching it closely we're going to start um addressing this in a big way probably

46:51

later this year in 2023 um but i'm concerned about it i mean annuities are boring products anyone that says they're not or presents them as something else then i don't know what they're doing they're boring contractual products i like boring i like simple i

47:06

like when i can explain it to a nine-year-old no offense to nine year olds if you can't explain it to a nine-year-old don't buy it if someone pitches something and you can't explain it then don't buy it but you have people now getting into the business that are

47:21

not your typical stodgy conservative person in the annuity industry and it is a little concerning and we are watching it closely definitely yeah

47:31Annuities that protect the principal

47:32

next question we're retired income from our pensions and social security is 60 000 more than our annual expenses you said that everyone needs some exposure to the stock market we would rather have nothing in stocks then my opinion if that's the case then you really have

47:46

a couple of choices there's really five places to go that protects the principal in full please do not argue with me on this i'm right cds money markets aaa aaa municipal bonds treasuries and fixed annuities micas i'll do it again cds money markets triple a triple a

48:03

municipal bonds that are insured treasuries and fixed-rate annuities migrants you also could throw indexed annuities in there because they're cd products as well but they fall under that fixed annuity category so if you don't want any exposure to the markets then you need to do a

48:17

combination of cds and my goals in my opinion just ladder cds and ladder migas you protect the principal you don't pay any fees you get a guaranteed interest rate did that for a couple the other day that under the same premise that they really didn't

48:30

need more income they just didn't want to lose any money and from a legacy standpoint they wanted to leave all of that money intact to the beneficiaries but that yet they wanted access to the interest that earned no brainer cd might ladders all day long i don't sell cds but that's the

48:45

way to do it next question that is about it for questions that is about it for questions very nice listen we're going to do this um ongoing i'm going to start bringing on guests but i'm not going to tell you who they are until you get the email but

49:01

look out for that i really appreciate you joining me look out for our podcast every tuesday fun with annuities we put out content every single week go to my site schedule a call and i hope to see you soon thanks for joining me have a great day you