Traditional or Reverse MYGA Ladder Strategies: Shootin’ It Straight With Stan (TAM Classic)

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welcome to shooting it straight with

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Stan I'm your host Stan the annuity man

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America's annuity agent licens in all 50

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states today's topic is traditional or

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reverse Miga ladder strategies so

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traditional lading strategies with migas

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or reverse migga strategies so I'm going

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to explain both now migas multi-year

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guarantee annuities are the annuity

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industry version of a CD the annuity

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company life insurance companies issue

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annuities they issue Mig and they have a

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guaranteed yield for a specific period

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of time if you want to go see the best

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live feed of migga rates for the country

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and your state specific go to the

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annuity man.com and you can pull it up

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and Shop into your heart's content don't

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have to sign up you can just look at

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rates but

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traditionally we're looking at lading

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migas we're we're doing a short-term

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ladder say a threee four year fiveyear

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ladder why are we doing that we're

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hoping that rates go up we're hoping to

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have money coming to and available as

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rates are rising so we can attach

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ourselves and lock in those higher rates

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that's a traditional ladder whether

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you're lading CDs or bonds or multi-year

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guarantee annuities migas fixed rate

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annuities but ever since the interest

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rate Rises started happening in October

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of

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2022 in the MGA space I've been telling

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people let's look at the reverse of that

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because the Great great thing about

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migas as compared to a lot of CDs and

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bonds migas are not callable and what

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does that mean that means that once it's

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issued that that yield that guaranteed

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annual yield that you've locked in the

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annuity company can't call it back they

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can't bring the money back and send it

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to you and say we don't want to pay that

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high interest rate again

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anymore so let me give you an example

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let's just say the time this tap is look

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at the date and rates go down three

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percentage

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points 5 years from now but you locked

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in a nine-year multi-year guarantee

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annuity the annuity company can't say

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well you know rates are lower so send us

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that money we're going to take the money

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back you got to go find something else

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because CDs and bonds will a lot of them

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not all but a lot of them with

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multi-year guarantee annuities you've

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locked in that rate so when I talk about

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reversing that traditional lading is

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let's let's catch Rising

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rates reversing is let's lock in rates

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because they're going to be

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falling so instead of doing a 3 four and

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fiveyear traditional MGA ladder hoping

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rates rise let's do a

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1075 or a

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1097 ladder to lock in the rates because

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they're not

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callable now with multi-year guarantee

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annuities you have a couple of ways that

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you can filter how you want to buy them

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you could say hey I I just want to Lock

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and Load and I don't I'm not planning on

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taking any interest out it's just going

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to grow and compound and and by the way

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you can use it migas and Ira money non

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Ira money Roth IRA money doesn't matter

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okay the contractual guarantees are the

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same but think about this for a

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second let's just say you went longer on

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the yield curve the 10 the 10 10 is the

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longest we can go 10e lock in and rates

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go drastically down and you've locked in

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this High rate you're going to be a

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happy

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camper now of course there's people out

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there say but yeah but what if it goes

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way up well if it goes way up like like

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Jimmy Carter way up interest rates back

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in the day our country is in trouble

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because we got 32 trillion in debt last

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time that happened we didn't have 32

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trillion in

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debt think of your mortgage being raised

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think of you you're raising your

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mortgage percentage keep and keep

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raising it at some point in time there's

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a Breaking Point there's a Breaking

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Point with with our you know with our

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country we can't keep doing

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this but to take advantage of it as a

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consumer to protect your principle and

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lock in a Guaranteed Rate that's not

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callable migas make sense and lading

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makes sense and I know typically in some

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past uh videos I did probably in 21 or

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20 I was talking about lading to catch

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Rising rates it's now we're at the the

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high rates let's reverse the ladder and

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go longer go longer on the yield

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curve and that's hard for a lot of you a

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lot of you say I I really I really don't

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want to go past five years I really

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don't want to go past three years I

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respect that it's your money do what you

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want but what I want to do is put

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something in your head and say okay if

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you instinctually feel that that rates

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are going to go down and I do and maybe

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I'm wrong but just I'm thinking

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rationally and pragmatically in in all

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the economics classes I took in college

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hopefully they apply um I think they're

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going to go down so would it make sense

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would it move you to lock in a little

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bit longer it says so if five makes five

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is the max maybe seven or if seven is

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the max in your head maybe 10 maybe lock

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in 10 or maybe split it maybe go you

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know what stand it makes my stomach hurt

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so I'm gonna stay at the five but I'm

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GNA put half in the five year and a half

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in a 10 year I don't think you're going

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to be mad I don't think you're going to

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lob a call at me and yell at me you can

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I'll take it but I don't think that's

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going to happen

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because these rates are fair the Bell

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doesn't ring at the top of the bottom

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you know that so you can't time it and

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you can't watch boo pal I call him Boog

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pal because there was a baseball player

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for the Orioles called Boog pal Boog pal

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and Miss yell and the Dutch boy haircut

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you can't watch them who cares annuity

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companies don't it's not linear they're

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not watching them you know and following

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everything that they do a lot of the

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migga rates come down to capacity and

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how much money is coming into the

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annuity companies and how much money

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they want to attract meaning they'll

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raise the guarantees to attract that

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money but if they they're getting in

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enough money they won't raise the

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guarantees so it's not linear a lot of

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times when boo pal um raises uh interest

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rates the annuity industry yawns they're

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like whatever I mean it's not you can't

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time it there's no Sweet Spot there's no

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Arbitrage moment I know all you Masters

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of the Universe want it to be and I get

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those questions all the time there just

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isn't you either think that the interest

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rate is fair or you do not now with

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migas you can do a couple things like I

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said previously you can have you can

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peel off the interest if you want you

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you can Lock and Load if you want some

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allow you to take 10% pill free interest

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out every year some 5% some the interest

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and that's listed on my site at the

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annuity man.com but what I want to kind

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of drill into your head is a little bit

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of a contrarian thought you might want

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to go longer on the yield curve you

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might want to lock in longer term paper

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longer term guarantees with migas

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because they aren't callable because you

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can't have the contractual rug ripped

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out from underneath you because you know

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the CDs and bonds when rates go down

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will be called a lot of them you want to

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have some of your money not

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callable they can't get it so if rates

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went in half from here and you have a

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non-callable Miga you I mean you're

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going to you're going to reap the

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benefit and that's what I want you to

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think about now could rates go up from

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here sure absolutely it would surprise

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me if they drastically went up but if

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they did great then you get to buy

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higher rates but I want you to think

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about reverse lading strategies typical

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lading strategies work all the time and

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your time Horizon might be short to make

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make the the short MGA strategy make

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sense the three four and a five- year

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old what we typically did years ago but

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I think the new way to look at it is you

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know 1097 or 10987 reverse it and go

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longer than you typically

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would that's my take migas are not

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callable migas are the annuity industry

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version of a CD Myas if your duration

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you want to lock in is more than three

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years historically multi-year game

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guarantee annuities will provide the

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highest contractual yield out there if

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your duration that you're looking to

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lock in is less than 3 years then go buy

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CDs and treasuries and no I don't sell

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CDs and

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treasuries but that's the way it should

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work all right hey annuities aren't all

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lifetime income products there are

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principal protection annuities like

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migas that give you a guaranteed

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contractual annual yield and that is a

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good thing take advantage of it go to my

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site at the annuity man.com schedule

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call with us you might actually get me

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which would be just a hoot because I'm

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this wired when I call you and I'll call

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you right on the dot when you schedule

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so with that I'll see you next time

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shooting it straight with Stan my name

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is Stan the annuity man