What Is A Bonus Annuity?

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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 one that might make me

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intense. How about that? The topic is

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what is a bonus annuity? I mean, it's

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like someone sticking a knife in the

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side of me. Hey, Stan, that's what this

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is. What's a bonus annuity? A bonus

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annuity is what's wrong with this

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industry. That's I mean and we're going

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to talk about that and I'm going to go

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off as only I do factually and you're

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going to understand why

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there's no philanthropist at annuity

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companies after this.

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So what is a bonus annuity? I wish there

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wasn't a bonus annuity. Bonus annuities

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are

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typically indexed annuities where

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there's an upfront bonus. Slow down.

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Don't get excited. An upfront bonus

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attached when you buy it. They attach

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the bonus to typically the income base.

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And you go, "Well, Sam, that sounds

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great. That sounds like it's free

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money." There's no philanthropist at

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annuity companies giving away free

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money. There's a hundred pennies in the

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dollar.

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There's not 125 if there's a 25% bonus.

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There's not 150 pennies that there's a

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50% bonus. And you're saying, "See, is

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there a 50% bonus?" Yeah, there was.

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There was one recently that was 50.

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I know what you're saying. That sounds

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good. No, it doesn't.

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It means nothing. Bonus annuities are

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part of the overall contractual

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guarantee. The bonus with the annuity is

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part of the overall contractual

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guarantee.

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For the last 10 years, I've come up with

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a saying for bonus annuities. It's candy

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for the stupid. If you think

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that someone's giving away free money,

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you're an idiot. You're a [ __ ]

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You're who the salesperson that's trying

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to pitch looking to looking for. I had a

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I had a person high up in the industry

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in my office recently. Nice person. Nice

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person.

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long story. And he he was proud. He

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goes, "You know, Stam, uh, we just

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introduced our first bonus annuity." I

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said, "Who gives a shit?"

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And he's like I'm like, "Who cares?

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Who cares? Bonus bonus bonus annuity.

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What? Why not a unicorn annuity? Let's

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give away unicorns."

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Index annuities were put on the planet

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in 1995 to compete with CD returns.

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Since that time, they've been the most

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bastardized, overpromoted, overpromised,

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overhyped, now with a bonus product

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ever. What is a bonus annuity? It's

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something to be wary of. What is a bonus

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annuity? If something leads with that,

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get up and walk out. What is a bonus

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annuity? If that's what the guy's

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pitching or gal's pitching and they're

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spending a lot of time on the bonus, get

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up and leave or hang the phone up. You

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own an annuity for what it will do, not

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what it might do. The will do are the

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contractual guarantees. The bonus is

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nothing special. It's part of the

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overall contractual guarantee. So, when

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we ask you two questions, what do you

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want the money to contractually do? And

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when do you want those contractual

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guarantees to start? And you might say,

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I need lifetime income to start seven

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years from now. We're going to quote an

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income writer that's attached to an

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index annuity. And it might have a

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bonus. Who gives a crap?

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We're going to quote for the highest

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contractual guarantee of of that out

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there, A+ or better with or without a

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bonus. Who cares? Let me give you a

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correlation. What is a bonus annuity?

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It's like you going to the car

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dealership and saying, "You know what?

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[snorts] I don't care about the

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transmission. I don't care about the

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engine. I don't care about any of that.

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Show me the car stereo.

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I'm going to buy this. I'm going to buy

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this car for the car stereo system."

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That's that's that's the correlation of

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buying an annuity for the bonus. I had a

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guy call me the other day, Stan. This

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guy's offering a 25% bonus. You got to

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hire one. I said, "No, but you're losing

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your mind. Turn on your brain, Ernie.

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You're getting ready to get taken."

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There are these things in the annuity

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industry called sales and marketing

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organizations where,

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not us most of the time because we we

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have direct contracts with a lot of the

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carriers. But for the smaller agent,

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they have to run through the SMO group

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and for contracting things like that.

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And I have a good friend there and I

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say, "Well, what's what's trending?" And

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he goes, "Here's what they agents will

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call up and say, what's got the biggest

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bonus and the biggest commission?"

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Both of those have nothing to do with

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the client. I'm like, "That's what they

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ask?" Yep. They want the biggest bonus

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and the biggest commission because they

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know the bonus is going to attract the

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people to buy the the the product even

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though the bonus,

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it's not a big deal. I'm like, "That's

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what's wrong with our industry." What is

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a bonus annuity? It's what's wrong with

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our industry. What is a bonus annuity?

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It's something that the annuity should

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get rid of. What is a bonus annuity?

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It's something that shouldn't be here.

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What is a bonus annuity? It's something

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that shouldn't be overly promoted. What

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is a bonus annuity? It's o it's part of

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the overall contractual guarantee that

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we quote. And if you go to our site and

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quote income writers, you're going to

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quote with and without bonus. You won't

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even know. You're just looking for the

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highest contractual guaranteed number.

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What is a bonus annuity? It's a problem.

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What is a bonus annuity? I'll tell you

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what it's not. It's not free money.

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What is a bonus annuity? It's something

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you shouldn't be focused on. What is a

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bonus annuity? Who cares?

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Annuities solve for four things. The

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acronym is pill. P stands for principal

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protection. I stands for income for

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life. L stands for legacy. The other L

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stands for long-term care. If you don't

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need to solve contractually for one of

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those, you do not need an annuity.

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There's no G for growth. There's no M

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for market. There's no S for stock.

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There's no B for Bitcoin pill. And then

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you shop all carriers for the highest

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contractual guarantee. There's no B for

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bonus.

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What is a bonus annuity?

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It's something the annuity industry

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should clean up. What is a bonus

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annuity? It's something the annuity

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industry should be ashamed of how it's

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being promoted and sold. What is a bonus

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annuity? Irrelevant. That's what it is.

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In the world that I live in, which is

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the world that the annuity industry

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should live in, which is you own an

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annuity for what it will do, not what it

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might do. You quote all carriers, bonus

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or no bonus. Who cares? If it has the

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high if if the bonus equates into the

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highest contractual guarantee number

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after shopping all carriers, great.

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But who cares?

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And I think that's it at the end of the

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day. What is a bonus annuity? Who cares?

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Who cares? The passion of this and the

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truthful answer of this video is why you

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should consider us to be your agent or

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agent of record if you've already bought

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one of these crap things.

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We'll help you make lemonade out of it.

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Would love to talk with you. Schedule a

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call, run quotes 247 on my site,

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download the books, and do me one last

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favor. I did a video on um how annuities

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can help families, help protect

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families, provide for families to

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contractual guarantees for families. I

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gave some details on some things I'm

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doing for my family, my two daughters

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and my wife. Um, preparing now for when

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I pass away. And you should too. You

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should you should view that video

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because I think from a legacy

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standpoint, it might be something you

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might be interested in. And if so, then

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we need to talk. Okay. My name is Stan

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the Annuity Man. See you next time.