There Are Only 2 Types of Annuity Rates: Shootin’ It Straight With Stan

0:00
Welcome to Shooting it Straight with

0:01
Stan. I'm your host Stan the Annuity

0:03
Man, America's annuity agent, licensed

0:04
in all 50 states in Puerto Rico. The

0:06
founder of CGO, contractual guarantees

0:09
only, which means you own an annuity for

0:10
what it will do, not what it might do.

0:12
Never buy an annuity for market growth,

0:14
potential hypothetical non-G guaranteed

0:17
returns. Annuities are contractual

0:19
guarantees that are issued by life

0:21
insurance companies. Do not buy the

0:22
hype. Market growth does not equate into

0:25
annuities. So, never buy an annuity for

0:27
market growth, a pitch, upfront bonuses,

0:29
all that stuff. Be smart. Um, you have

0:32
to think before you jump to these some

0:34
of these sales pitches. Hopefully,

0:36
you'll choose us. Go to my site at

0:38
theanuityman.com. You can run quotes

0:39
anonymously without putting in your

0:41
information and get real quotes.

0:43
Download my six owners manuals. Schedule

0:45
a call with me. Email me at

0:46
stantheanuityman.com.

0:49
Today's topic is there are only two

0:51
types of annuity rates. R a tees rate.

0:55
So people are always, you know, fixated

0:58
with the Fed and fixated with treasuries

1:00
and they've been trained by CNBC and Fox

1:02
Business or or Bloomberg or whatever

1:04
you're watching out there. Got to follow

1:06
the Fed, the Fed, the Fed, the Fed, the

1:07
Fed.

1:09
No, the annuity industry is a little bit

1:11
different because annuities solve for

1:14
four things. Principal protection,

1:15
income for life, legacy, and long-term

1:16
care. That acronym is PIL, principal

1:19
protection, income for life, legacy,

1:21
long-term care. And there's only two

1:23
questions to ask and answer to see if

1:26
you need an annuity. First, what do you

1:27
want the money to contractually do? And

1:29
number two, when do you want those

1:30
contractual guarantees to start? Not

1:32
hypothetical, not theoretical,

1:34
contractual. And from those answers, we

1:36
can point you to the solution uh

1:40
contractually that's going to provide

1:41
the highest number for you. Okay? But

1:43
when it comes to rates, annuities,

1:46
the first the first thing you need to

1:48
look at is lifetime income. So, lifetime

1:50
income, there's four types of products

1:53
in the annuity world. You can't just

1:54
say, "I hate all annuities, buy them."

1:56
Well, you already own one. It's called

1:57
Social Security. That's the best

1:58
lifetime income annuity with an

2:00
inflation writer on it on the planet.

2:02
You already own one annuity. It's called

2:04
Social Security. If your employer

2:06
provides a pension, now you own two.

2:08
Okay? But lifetime income is primarily

2:10
based on your life expectancy at the

2:12
time you take the payments. Interest

2:13
rates play a secondary role. Interest

2:16
rates play a secondary role. It's life

2:18
expectancy. give you an example that

2:20
that will correlate easily in your

2:22
brain. The higher payment for social

2:24
security is at 70 as compared to 65.

2:27
Why? Because you're older. Why? Because

2:29
you have less life expectancy,

2:31
which means that there's fewer projected

2:33
payments, which means those payments are

2:35
higher.

2:36
It's really that simple. People say,

2:38
"Well, I might I might wait till I'm,

2:39
you know, two years from now. Maybe I'll

2:41
get a higher a higher guaranteed

2:42
payout." You will get a higher guarantee

2:44
payout because you're older and you have

2:46
less life expectancy. I mean, it's

2:49
really that simple. So, when we're

2:51
talking about there's only two types of

2:52
rates when it comes to lifetime income,

2:55
it's a payout rate. Now, some there are

2:57
some sites out there that try to compete

2:58
with us. That's a joke. And they'll put

3:01
beside like an immediate annuity, 7.2,

3:03
7.3. That's not yield player. That's a

3:06
numerical reflection of your life

3:08
expectancy. Well, I'm literally looking

3:10
for a 7.8 on a on an immediate. Well,

3:13
then get older.

3:15
[laughter] If you're not getting it on

3:16
our quotes, then you're you're young.

3:18
You're you're too young to get it. It's

3:21
not interest, it's not yield.

3:24
So, with life expectancy, the first rate

3:27
I want to talk about and get you

3:29
clearheaded on, payout rate, payout rate

3:33
is the amount of money they're going to

3:35
pay for the for the rest of your life.

3:38
The other rate is like an interest rate.

3:41
Let me give you an example. Multi-year

3:43
guarantee annuities are the annuity

3:44
industry's version of a CD. I call them

3:47
annuity bonds because you're buying a

3:49
specific duration with a specific life

3:51
insurance company and they're

3:52
guaranteeing an interest rate for that

3:54
duration. So, for example, you can say,

3:56
I want a five-year multi-year guarantee

3:59
annuity and it's yielding this and

4:02
they're going to guarantee that for that

4:04
5-year time period and and you can go to

4:06
my site and pull up a live feed of the

4:08
best fixed rates on the planet. Not do

4:10
you don't have to put in any information

4:12
just your state and you just pull the

4:13
duration and you'll see you can buy one

4:15
year, two year, three year, four year,

4:17
five year, six year, seven year, 8year,

4:19
9year and 10year ma contractual

4:22
guaranteed rates.

4:24
Those are rates. They work like CDs.

4:27
They work like bonds. They pay an

4:29
interest rate for a specific period of

4:30
time that you choose. You can ladder

4:32
them. You can buy three, five, seven,

4:34
10. You can do whatever you want. But

4:36
that's a rate. That's an interest rate.

4:40
Whereas with lifetime income, that's not

4:42
an interest rate. That's a payout rate.

4:44
So those are the two rates. Interest

4:46
rate, payout rate. Completely separate

4:49
animals. Cons completely separate

4:51
things.

4:54
Okay? Both of them are transfer of risk.

4:56
You're transferring the risk to the

4:58
Migas for the interest rate guarantee

5:00
locked in for the lifetime income.

5:02
You're transferring the risk for them to

5:05
pay you for the rest of your life. this

5:07
joint life for the rest of both of your

5:09
lives as long as one of you is

5:10
breathing.

5:12
But those are the rates.

5:14
Now, once again, you can go to my site.

5:16
You can run the the lifetime income

5:18
quotes like income writers. All you have

5:20
to put in is your state of residence,

5:23
gender, and your date of birth. No name,

5:25
no email, no phone number. We're the

5:27
only ones that do that. Period. We will

5:29
be the only ones to ever do that because

5:30
for whatever reason, everyone else is in

5:32
the data collection business. I'm not.

5:34
I'm in the annuity education business to

5:36
hopefully attract you as a client

5:38
because we're educating you and we're

5:39
being transparent and we're shooting it

5:41
straight.

5:43
Same thing with the MAS. MA is live feed

5:45
of all carriers. And by the way, I don't

5:48
I'm never going to mention a carrier

5:49
name because I don't care. For lifetime

5:51
income, it's A+ or better. No

5:52
exceptions. A+ or better for lifetime

5:54
income. We're going to marry that

5:56
company for the rest of your life.

5:58
Multi-year guarantee annuities, we're

6:00
going to date them. We're going to date

6:02
them for the duration. So, it might be

6:03
less than A+, but I'm going to sign off

6:05
on it. And I've batted a thousand%.

6:08
In my career, and that's decades, okay?

6:11
But don't be confused about the Fed and

6:13
all this stuff. I get people all the

6:15
time, well, I'm tracking the Fed. I'm

6:16
going to time it. I'm gonna time the No,

6:18
you're not. You're not going to time it.

6:20
I'll give you an example. My wife and I

6:22
buy MAS because Annuity Man is the the

6:25
company is a growth stock. Best growth

6:26
stock you can't buy because it's private

6:28
and I own it. But with our additional

6:30
money, we buy MAS. we want and we buy it

6:32
with nonIRRA money. And by the way, with

6:34
both of these products, the with the

6:37
rates, interest rates, and then payout

6:38
rates. You can use any type of account,

6:40
IRA, nonirra, Roth IRA, just all that

6:43
does is determine the taxation of the

6:44
money coming out. But my wife and I buy

6:47
these MAS, and we don't get it right all

6:49
the time. There just recently we

6:51
purchased a couple MAS and the two

6:53
companies we bought, rates went up after

6:56
we bought them, you know, like 60 days

6:58
after we bought them. Okay, great. I

6:59
can't time it. I'm not going to time it.

7:01
I'm not going to try to time it. At the

7:03
time of this taping, I rates both sides,

7:06
interest rates, payout rates are fair

7:08
and they highest they've been in a long,

7:10
long time. Bell doesn't ring at the top

7:12
or the bottom player. You know, if it's

7:14
fair and I told my wife the same thing.

7:16
Hey, that's a great company. It was a

7:17
fair um guarantee and we went with it

7:20
and I'm good and I'm not looking in the

7:22
rearview mirror. But what I want you to

7:24
do though is realize that interest

7:27
rates, the Fed, whoever, whoever's in

7:30
charge,

7:32
it's not linear

7:34
like it is with the markets a lot of

7:36
times. A lot of times you would think

7:37
like MIA companies that if interest

7:39
rates raised or lowered that it would

7:41
follow. Sometimes it does, sometimes it

7:44
doesn't. Same thing with lifetime

7:45
incomes. Sometimes it does, sometimes it

7:47
doesn't. You go say, "Well, wait a

7:48
minute. Why? Why wouldn't interest rates

7:51
positively affect every single company?

7:52
If that company doesn't want your age

7:54
range, they're going to lower the

7:55
guarantee not to attract you. If they

7:57
have enough of you in their actuarial

7:59
pool that they're pulling the risk,

8:01
they're not going to they're not going

8:02
to raise the rates to attract you. Same

8:04
thing with MAS. If they have raised

8:06
enough money and interest rates go up,

8:08
that doesn't mean they're actually going

8:09
to go up. They might go down with that

8:12
specific company, okay, to not attract

8:15
you. That's the reason I always say

8:17
annuities are commodity products.

8:18
Shopping all carriers for the highest

8:20
contractual guarantee. On both sides of

8:22
that ledger, rates for principal

8:24
protection, rates for payout. We're

8:27
shopping all carriers because somebody's

8:29
going to want your business. Somebody's

8:31
going to want to attract you. So there's

8:33
not one company that's better than the

8:35
other. All right? So just remember

8:37
there's two types of rates in the

8:39
annuity world. There's interest rates

8:41
for like MAS and then there's payout

8:44
rates for the lifetime income products.

8:48
And if you remember one thing in

8:49
addition to that is you shop all

8:51
carriers for the highest contractual

8:53
guarantee that you're looking to

8:54
accomplish contractually

8:57
not hypothetically. Do not buy annuities

9:00
for market growth. Listen to me. Buy

9:02
them for the contractual guarantees of

9:04
the policy in the story. Go to my site

9:06
theanuityman.com. One last thing,

9:08
there's a virtual Stanley. There's a

9:10
virtual me on the site. Bottom righthand

9:12
corner, you'll see the caricature. If

9:14
you click it, you get to ask Virtual

9:16
Stanley questions. And what we've done

9:18
with the company that is supporting this

9:20
great group of guys and gals from MIT

9:23
grads, they have fed Virtual Stanley the

9:25
2,000 videos and the 400 articles and

9:28
the seven books that I've written. And

9:29
the answers you're going to get are me

9:31
247365.

9:33
You can always schedule a call with me.

9:34
You can always email me at

9:35
stantheananuityman.com.

9:38
And we also have online applications as

9:40
well if you don't want to interact. Um,

9:43
you know, we we can take you I think 85%

9:45
of the way current rules in the annuity

9:47
industry, but we offer that as well. We

9:50
are the tech leaders out here, but yet I

9:52
this redneck still owns the company. How

9:54
about that? I just surround myself with

9:55
smart people. The guy that runs my

9:56
company's from Google. Uh, very smart.

9:58
So, we're we're teched out and we're

10:00
doing that to give you the options to

10:02
shop and get your questions answered

10:04
without having to talk to someone if you

10:06
do not want to do that. But you can you

10:07
can always take that off-ramp and go old

10:09
school and talk with us. My name is Stan

10:11
the Annuity Man. That is Shooting It

10:13
Straight with Stan. We'll see you next

10:15
time.