What Do Fixed Annuities Provide?

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Hi there, Stan the Annuity Man,

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America's annuity agent, licensed in all

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50 states in Puerto Rico. Today's topic

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is a good one. What do fixed annuities

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provide? The warm fuzzy answer, the

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politically correct answer is it

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provides love and comfort and desire and

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wonderfulness and and and fuzzy kittens.

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No. Well, maybe. But it really provides

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contractual guarantees. We're going to

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talk about those after this.

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So first of all, let's talk about fixed

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annuities as a category. I mean there

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are market type products which we don't

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sell because they shouldn't be market

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type products because you should never

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buy annuities for market returns. Those

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are variable annuities and registered

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index linked annuities. If you want to

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go get market returns, go get them. But

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not with those. That's the reason we

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don't even recommend or look at those.

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But fixed annuities, there's CD type

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annuities, MAS, there's there's income

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annuities, which are SPSDs and QAXs. Um,

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and then there's income writers attached

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to an index annuity. And there's there's

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index annuities. Those are kind of the

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fixed annuity broad categories of of the

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main product. So once again, Migos,

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multi-year guarantee annuities, the

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annuity industry version of a CD. You

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can get go to my site and see live rates

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for your state. Then you got fixed index

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annuities which is not repeat not a

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market product. It's a CD product

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developed in 1995 to compete with CDs.

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And then you have single premium

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immediate annuities, deferred income

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annuities, qualified longevity annuity

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contracts which are lifetime income

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products. And then you have income

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writers which is a lifetime income

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product that's attached to an index

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annuity for lifetime income guarantees.

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But it's very simple what annuities and

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fixed annuities provide. They provide

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contractual guarantees. An easy to

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remember acronym is one that I've come

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up with called pill. P stands for

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principal protection. I stands for

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income for life. L. L is for legacy. The

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other L is for long-term care. Pill.

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Principal protection. Income for life.

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Legacy long-term care. That's what they

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solve for. That's what they provide.

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Those are the contractual guarantees.

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That's the transfer of risk. You're

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transferring the risk to the annuity

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company to do one or more of of those

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four items in the pill. It's not a

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growth product. There's no G for growth.

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There's no inform market. There's no B

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for Bitcoin. None of that. These are

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contractual guarantees.

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Period. Now, um, annuities, I know

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you're going to believe this, but back

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in the Roman times, this is true.

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Immediate annuities were developed for

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as a pension for the dutiful Roman

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soldiers and their family for landed on

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the line for the empire. That's where

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the word annua came from, which means

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payment, I guess, in Latin, and that's

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where the word annuity came from. Um,

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the annuity industry has many types of

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products, but they only have one

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monopoly. And the monopoly is lifetime

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income. Meaning that it's going to pay

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for as long as you're breathing. You

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already own the best inflation annuity

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on the planet. It's called social

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security. It's going to pay as long as

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you're breathing. If you have a pension

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from your company or if you work for the

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state or government or or a good labor

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union, you might have a pension. That's

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an annuity. It's going to pay for as

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long as you're breathing. But the

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annuity industry has a monopoly.

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You know what? What what what good does

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an annuity provide for lifetime income?

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It provides lifetime income. People say,

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"What's the ROI on a lifetime income

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stream?" I don't know that until you

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die. Up until then, it's a transfer of

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risk. You're going to be paid as long as

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you're breathing or on a respirator. You

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can set it up joint life. So, if you

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die, the income continues uninterrupted

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and unchanged for your spouse's life.

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And we can set it up so that if both of

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you died early in the policy, 100% of

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any unused money goes to the

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beneficiaries and not the annuity

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company. That's another misconception

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out there that people think when I die,

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the annuity company keeps the money.

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Vast majority of people do not structure

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it that way. You can structure however

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you want to structure it. So what are

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the benefits annuities provide? In my

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opinion, the biggest one and the one

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that no one can do in the end in the the

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financial industry is lifetime income.

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I said the other day to a guy on a on an

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interview, I said marketing, I mean

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business schools are going to study the

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complete blunder of a marketing

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opportunity that has been blown by the

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annuity industry to not just run ads

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over and over and over and just say

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lifetime income, lifetime income,

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lifetime income, and drive it home that

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that's what annuities are primarily for.

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Not all the time, once again, principal

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protection, income for life, legacy,

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long-term care. But if I'm running the

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annuity industry, I'm saying, "You

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already own social security. Don't you

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want another one? Don't you want another

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one?" I mean, you already got the best

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pension. Don't you want another one? I I

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to this day can't understand it. So, if

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you walk away from one thing from this

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video other than my dashing good looks

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and great logoed apparel is that if you

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want a pension, if you want lifetime

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income, there's only one product, hold

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your nose and vomit. It's an annuity.

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The question is which type? Now, that's

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where we come in. you schedule a call

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with me or send me an email

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stantheanuityman.com

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or you can go to my site and download

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the books and run the quotes yourself

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before you do all of that. But the two

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questions I asked is what do you want

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the money to contractually do and when

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do you want those contractual guarantees

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to start? From those two answers, I can

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determine which one of the products will

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will provide the highest contractual

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guarantee after we shop all carriers for

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you. For lifetime income, it's A plus or

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better carriers period. No exceptions,

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no negotiations. That that's it. You're

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going to put your lifetime income in the

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hands of a company that can back it up

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and I'm going to make sure that happens.

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Okay. But I think it's a it's a very

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interesting question. What you know,

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what do fixed annuities provide? What

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are the benefits that they give? First

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of all, it's contractual guarantees. And

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I guess once the contractual guarantees

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are in place, that's when the warm fuzzy

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sleep well at night, feel good, hug your

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loved ones, all that stuff comes in. but

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not until those contractual guarantees

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are in place. So, just think about it.

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Now, for my specific situation, I'm

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young and vibrant, 62 at the time of

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this taping. Hopefully, I'll work for a

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lot more lot more years. My wife and I,

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we just do principal protection because

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we don't really need the income. It's,

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you know, the company's the company.

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It's a growth company. So, we do

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principal protection. But for a lot of

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you in chapter 2, it's about lifetime

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income. only nine, not 90, 9% of the

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people that work or have worked have a

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pension that's provided by their

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employer and a lot of that is, you know,

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state system, federal system, military,

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etc. Nothing against gives that. That's

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great. My mom and dad were both retired

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school teachers from North Carolina and

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they got a pension and my dad's like,

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"We just don't have any money." I was

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like, "Let me run you the number of that

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pension. That pension you're getting is

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a multi-million dollar pension." You

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know, he never believed me, of course,

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because I was never right. But that's a

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whole another story and a whole another

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scab I just knocked off. But the point

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is that's a pension. But for most of you

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out there, you don't have that. For most

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of you out there, the biggest thing is

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what's going to be my income floor?

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What's going to be that amount that hits

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my bank account every single month? How

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do I create that? Stan the annuity man.

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It's with a lifetime income guarantee.

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All right. Now, with that being said,

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you need to know a couple things. It's

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not about the Fed. It's not about rates

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with lifetime income. It's about your

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life expectancy. If it's joint, it's

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life expecties.

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All right? So, put that in the back of

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your mind. Don't say, "Well, I'm I'm

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going wait on the Fed." No. No. That's

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dumb. It's life expectancy. The older

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you are, the higher the payment.

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Just like with Social Security, is the

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payment higher when you're 65 or is it

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higher when you're 70? It's higher when

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you're 70 because you're not going to

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live as long. It's just that simple. So,

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fixed annuities can provide what you

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want them to provide, but there's only

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four things: principal protection,

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income for life, legacy, and long-term

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care. There's one more way to use

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um fixed annuities that is a positive

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for your family. And by the way, I'm

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pointing to a video above me, a spinning

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clock. Um I did I did a video on that.

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It's called How annuities Can Help Your

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Family. I've used it for my family. when

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when my LRA jet that's rented of course

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hits the mountain um things are going to

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happen and be triggered for my daughters

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and my wife that are that are guarantees

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lifetime income guarantees. Maybe that's

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something that you should consider as

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well. But at the end of the day, um we

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just want you to consider us as your

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source for annuities. I want to be your

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agent. If you have an old annuity that

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you want me to be agent of record on, I

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will do that as well. You know, there's

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no cost for that. Uh, I get nothing

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other than to be able to help you make

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good decisions on the annuities that you

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purchased before you found these videos.

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So, that's pretty much it. I think I

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covered the full gamut. And that was

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just off the cuff. How about that? Off

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the cuff. One cup of coffee and a power

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bar. And that and you got all of that.

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So, uh, thanks for joining us. See you

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next time.