There Are No Annuity Roller Coasters: Fun With Annuities

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Welcome to Fun with Annuities. I'm your

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host, Stan the Annuity Man, America's

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annuity agent, licensed in all 50 states

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and Puerto Rico, the founder of

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Contractual Guarantees Only, CGO, which

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really means you own an annuity for what

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it will do, not what it might do. And

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most of the sales pitches you're going

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to hear out there all kind of might do

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nonsense. Today's topic is there are no

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annuity roller coasters. Let me explain

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that. You know, my background I was with

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Dean Witter, Payne Weber, Morgan

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Stanley, UBS, Union Bank of Switzerland.

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So, I've been on that side of the ledger

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where, you know, markets go up, markets

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go down. At the time of this taping,

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check the date. Um, you know, we're in a

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raging bull market where artificial

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intelligence is kind of driving the

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train. Very eerily similar to, you know,

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when the dot era was around. I was there

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at Morgan Stanley and what they call

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syndicate manager. that doesn't mean

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mafia. That means I had access to all

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the IPO shares that I could give away.

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And boy, people went crazy. And it was

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the same kind of irrational exuberance

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that you're seeing now. Hopefully

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though, um, artificial intelligence is

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the real deal. And it'll just continue

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this bull market run that we're on right

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now. I It's fantastic for you guys out

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there that are doing some in the market.

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As you know, only look at contractual

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guarantees. That's where we live. I

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think part of your portfolio should be

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in contractual guarantees. When I say

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there's no annuity roller coasters, it

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is what that sounds like. I mean,

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markets go up, they go down. I think one

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of the interesting parts about today's

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markets, a lot of the advisers have

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never really seen a down market. A lot

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of the advisers, I have cowboy boots

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older than they are, they have never

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seen anything go down. Every dart they

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throw seems to be a winner. and the

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price toearnings ratios, those type of

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foundational um analysis, you know,

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Benjamin Graham type approach doesn't

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really hold water that much anymore. I

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mean, it's um there's a lot of things

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going on that don't make that type of

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analytical sense to the Warren Buffett

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types, the Charlie Munger types of the

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world. You know, they look at this and

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say, you know, it it doesn't make any

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sense to them. If you look at Buffett's

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portfolio, I mean, they they're buy they

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have candy and insurance and CocaCola

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and things like that. Um, things that

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they can explain to a nine-year-old. I

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always tell people with annuities, same

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thing. If you can't explain it to a

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nine-year-old, then don't buy it. But

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with annuities, annuities are issued by

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life insurance companies. They're

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contracts. When you have contractual

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guarantees, there are no roller

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coasters. There's no ups and downs in

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market and this and that and there's

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just not.

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Great example. Guy called me the other

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day and was talking about multi-year

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guarantee annuities and that's the

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annuity industry version of a CD, but I

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also feel like it fits into that bond

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type category. Now, having managed bonds

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for Morgan Stanley and the other firms

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and I know what I'm talking about there,

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as you know, if you've been a bond buyer

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that the underlying valuation

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fluctuates.

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you know, it doesn't stay the same. What

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I love about multi-year guarantee

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annuities, you go to my site at

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theanuityman.com and and check those out

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that have been approved for your state.

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What I love about them is that

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underlying value does not fluctuate.

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There is no roller coaster to it.

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And for you,

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the people out there that are looking at

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chapter two of their lives, which some

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people call retirement, I call it

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chapter two because I want you to pivot

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into something different and fun and

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unique for you where you, you know,

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there's three phases of retirement, go-

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go, slow, go, and no-go. I want you to

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be cognizant of the fact and taking

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advantage of the go- go years. So,

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there's no there's no roller coasters

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with multi-year guarantee annuities.

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Now, with um the four types of annuities

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that provide lifetime income, there's no

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roller coasters on those either because

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I do not believe in attaching cost of

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living adjustment increases to them

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because the annuity company just simply

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lowers the payment. So, you have a

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static amount of of money that's that

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that's coming in every single month for

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the rest of your life. And we can

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structure it so that not one penny goes

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to the annuity company. They're on the

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hook to pay, but if you die early, 100%

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of the money will go to your listed

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beneficiaries. I mean, that's how most

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people try to set them up with us. And

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that's what we advise if you want to

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make sure there's some legacy there if

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something happened to you in the policy.

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There's no roller coasters with lifetime

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income with annuities. These are

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contractual guarantees.

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Period. I mean, that's what they are.

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Now, there's three types of annuities

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that we really do not

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we don't really like them that much

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because they're they're based on

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hypotheticals and theoreticals and non-g

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guaranteed return scenarios. Now, one of

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those which is indexed annuities, that's

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a fixed product. We use those to deliver

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income writers for future lifetime

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income streams. But even with indexed

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annuities, it's a CD product. The

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underlying value never fluctuates.

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There's no roller coaster effect with

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indexed annuities. Now, I have my I have

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my problems with the way that they're

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pitched too often with agents, you know,

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out there pitching market returns, which

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they're not designed for that. They're

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designed for CD returns and that's fine,

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but we use them exclusively to deliver

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the the guarantees for the for the

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income writer. But again, there's no ups

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and downs. Now, the registered linked

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annuities out there um for the brokerage

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firms are now pushing and and the reason

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that they brought them out is because

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they were losing so much in sales to

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equity index annuities, fixed index

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annuities. They used to be called equity

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index annuities. they just were losing

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so much money they created their own

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version of that a little bit more souped

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up it's got a little bit more mo moving

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parts I call them co-ay annuities but

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again what the the pitch with the RIA

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type buffer type annuities is you know

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no roller coasters variable annuities

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you can roller coaster okay that's

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mutual funds wrapped with an insurance

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policy once again we don't sell variable

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annuities for that reason we don't sell

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Ryus because we you know if you want

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market growth go get it but what I want

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to just get through to you is when

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you're buying annuities or you're

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considering annuities, you need to

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consider them for the contractual

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guarantees of the policy. You're a

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better investor if you have that income

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floor in place knowing that that's not

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going to be disrupted and that's not

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going to fluctuate and that's a

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non-correlated asset, meaning not

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attached to the markets and it's going

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to hit like clockwork. You can be a

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better investor because you don't have

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to disrupt your investments that are

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long-term to create income or liquidity

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because you have that income floor in

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place.

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Life insurance companies issue

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annuities. Annuitities when they're

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purchased correctly for their

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contractual guarantees, there are no

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roller coasters there. There is no ups

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and downs. There are are no ups and

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downs to that. Bad bad grammar, Stanley.

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There are no ups and downs.

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So, I want you to think of them like

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that. And if someone's pitching you

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hypotheticals and theoreticals with

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[clears throat]

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RiyAS or indexed or or um variables,

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just go, you know, go buy the market. go

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buy stuff with unlimited upside, which

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is non annuities. Now, I know the

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annuity industry is going to blast me as

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they normally do, but I'm right. You

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I've done that other side where there

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are roller coasters, but with roller

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coasters, there's excitement on the

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downside, there's excitement on the

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upside, and you can get unlimited

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returns

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um in non-anuity products. Just just

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understand that it's all about the

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contractual guarantees.

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I [snorts] had a consultant the other

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day uh reaching out to me and and they

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just did not understand my business

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model. You know, our headquarters in Las

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Vegas, we have a very unique proprietary

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business model and how we do things.

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Everybody in the building's licensed in

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all 50 states, but they're not on

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commission. Um, you know, they're

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incentivized by our clients being happy,

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making sure the process goes well, being

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the administrative arm for our clients.

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[clears throat]

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But the consultant asked me, he goes,

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"Well, tell me about the process, Stan,

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for your annual reviews."

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And I went I looked I looked at the the

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the guy who runs the company for me,

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he's also a co-owner, and I said, "What?

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What's he talking about?" Annual

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reviews. When you're buying contractual

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guarantees, which is what we only

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recommend, what are we reviewing?

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Annual reviews are for things that

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aren't guaranteed or don't fluctuate or

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you had these goals that you're not sure

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you're going to hit. I never get a call

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from anyone saying, "Boy, that was a

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wild year for us, Stan." No, it wasn't.

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There's no roller coasters in annuities.

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There's no roller coasters when you buy

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an annuity for what it will do, not what

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it might do. And I told this consultant,

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"You obviously don't know my business.

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You obviously haven't done the research.

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You obviously haven't heard anything

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[clears throat] that I've said, read

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anything that I've written on the seven

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books that I've written that you can get

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for free at my site." um or watch any of

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my videos, I'm always talking about will

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do, not might do. I have will do on the

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side of my caps. I mean, I think it's on

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this one. Zeke, is it on this? Will do.

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There you go. I mean, so I looked at the

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guy. I'm like, you need to do some more

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research before you ask that question

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because we're not the normal advisory

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group out there. We're not the normal

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agent or broker or advisor that's

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selling annuities because they're

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selling the dream. We're selling the

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contractual realities because that's

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what you're going to own. I always tell

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people if you buy the dream eventually

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you're going to own the contractual

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realities. And I get calls all the time

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from people that say, "Hey Stan, um you

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know, can I get out of this uh index

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annuity because it's not performing like

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the guy promised?" I'm like, "Yeah,

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probably not because it's a long-term

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surrender charge." But you should have

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never bought it for that potential. You

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should have never bought the dream and

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certainly shouldn't have never bought

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anything with a with an upfront bonus

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because yeah, there's only 100 pennies

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in the dollar. Guy called me the other

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day. He said, "Well, this guy offered a

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25% bonus." I was like, "Is there 125

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cents in the dollar?" He goes, "No,

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100." I'm like, "Okay, so they're taking

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something away, right? I mean,

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rationally we can say that."

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I think the roller coasters in the

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annuity industry are with the sales

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pitches. They're all over the board.

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They're up. They're down. They're all

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perfect world that I live in. Annuities

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are if I was the annuities are number

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one, all commissions would be the same.

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You know, commissions are built in and

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hidden from the client, but they'd all

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be the same. There'd be no incentive to

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sell one product over the other. And

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then back tested hypothetical numbers

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would be illegal to show.

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So, the contractual guarantees of

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annuities, and there's eight different

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types.

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I mean, if you're buying for the

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contractual guarantees, there's no

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roller coaster. But the roller co So,

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I've solved that. But the roller coaster

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I'm trying to get rid of is the roller

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coaster of sales pitches that are out

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there, not only at the bad chicken

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dinner, expensive steak dinner seminar,

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but also when people are starting to

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talk about products on the internet, um,

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that's insane because annuities are

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commodities. There's not one company

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better than the other. We represent them

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all, but we quote all carriers for the

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highest contractual guarantee. So, no

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roller coasters with contractual

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guarantees. There are some roller

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coasters with the sales pitches you're

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going to hear out there. I hope that you

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use us or consider us or try us. Go to

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theanuityman.com.

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You can email me at

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stantheanuityman.com.

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Schedule a call and if you want to speak

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with me, demand to do that and I will

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fit you into my schedule. That is fun

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with annuities.

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I'm Stan the annuity man. Stay safe out

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there. Put your thinking caps on.