What Is A Fixed Rate Annuity?

0:00
Hi there, Stan the Annuity Man,

0:02
America's annuity agent, licensed in all

0:04
50 states

0:06
in Puerto Rico. Today's topic is what is

0:09
a fixed annuity? Stan the annuity man.

0:12
It's got to be that simple. What is a

0:14
fixed annuity? It's really not because

0:17
there's many types of fixed annuities

0:19
and we're going to talk about all of

0:21
them after this.

0:29
So, I know the question is what was a

0:31
fixed what is a fixed rate annuity and I

0:33
said fixed annuity and the reason I did

0:35
that is because

0:37
[cough and clears throat] I think people

0:38
get confused. Okay, fixed annuities are

0:42
are issued by life insurance companies.

0:45
A fixed annuities are regulated at the

0:48
state level. They're not securities.

0:51
They're not regulated by FINRA and the

0:52
SEC. They're they're fixed. Okay? Okay,

0:55
they're fixed. They're life insurance

0:57
products. That's the first thing you

0:59
need to know. So, fixed annuities can be

1:02
uh lifetime income annuities like single

1:04
premium immediate annuities, deferred

1:06
income annuities, qualified longevity

1:08
annuity contracts.

1:10
Um, also fixed index annuities, which is

1:12
a CD product. There's not a market

1:15
product. There's also Migas, multi-year

1:17
guarantee annuities, which is the

1:18
annuity industry version of a CD.

1:22
There's income writers that are not a

1:24
standalone fixed annuity, but they

1:26
attach to fixed annuities for lifetime

1:28
income.

1:30
So those are the those are the pretty

1:33
much the broad view of the fixed annuity

1:37
types.

1:39
But if you ask the question, what's the

1:41
best fixed rate annuity? I am assuming

1:45
that you're talking about multi-year

1:47
guarantee annuities, which is the

1:49
annuity industry version of the of a CD.

1:52
I personally call them annuity bonds

1:53
because I used to manage bonds at

1:55
Morgan, Stanley, Deaner, Payne Weber,

1:57
and UBS, and they function similarly

2:01
except for the fact that there's no

2:03
underlying value um fluctuation.

2:08
You're buying paper from a company. I

2:09
mean, you're buying you're buying a in

2:11
other words, there's a plus paper, a

2:13
paper, a minus paper, a double plus

2:15
paper. You're buying a guaranteed yield

2:17
for a specific period of time. So, if

2:20
you're asking what's the best fixed rate

2:23
annuity, I'm assuming you're talking

2:24
about multi-year guarantee annuities.

2:26
And then it comes down to what duration

2:28
do you want to lock in. Durations are

2:31
one year, two year, three year, four

2:33
year, five year, six year, seven year,

2:34
eight year, nine year, and 10 year in

2:36
length. the vast majority of them.

2:38
There's some that go even farther, but I

2:40
don't think there's reason for you to do

2:42
that.

2:44
So, one one year through 10 year.

2:47
So, what's the best one? Well,

2:50
because fixed annuities are issued at

2:53
the state level, the best fixed rate

2:55
annuity is going to be for your specific

2:58
state of residence. If you go to my site

2:59
at theanuityman.com

3:01
and you look at the best fixed rates,

3:03
MIGA rates, you have to put in your

3:05
state of residence

3:07
and then the duration that you're

3:09
looking at and then we will show you the

3:11
best rates from the highest yield

3:14
contractually down.

3:16
We also show the ratings of the company

3:18
etc. And you know at the end of the

3:20
process we need to discuss with you

3:23
which one's appropriate, which ones that

3:25
I actually recommend. We show

3:26
everything. that doesn't mean I

3:28
recommend everything. Um, so the best

3:31
fixed rate annuity really comes down to

3:33
your state of residence and then the

3:36
duration you're looking at. And then

3:38
after that would be um two variables

3:41
that you need to answer. Number one, do

3:42
you want to have the ability to take

3:44
interest out on an annual basis or some

3:48
of them offer 10% free withdrawal up to

3:51
10%. Don't have to take the 10 but up to

3:53
10. Do you want that ability for that

3:55
type of liquidity or you just want to

3:56
lock and load? And then the the second

3:59
one is what rating because what we show

4:02
is AMB best ratings and there's four

4:04
rating services ambest Moody's standard

4:07
pores and Fitch. We do not look at Weiss

4:09
for Migos. They just aren't in that

4:10
game. So AMB, standard pores, Moody's

4:12
and Fitch. So what we're showing is

4:14
ambest I'm personally looking underneath

4:16
the financial hoods of all these

4:18
companies and then you know we can

4:20
discuss you know if I recommend them and

4:24
they're A minus or B plus or A or

4:27
whatever um we'll have that discussion.

4:32
So again what's the best fixed rate

4:33
annuity? It's got to be in your state.

4:36
Okay. Then you got to then you have to

4:38
look at the duration which one you look

4:41
at. And by the way, we can ladder them.

4:43
We can do multiple durations. Then you

4:45
have to make the decision, do you want

4:47
to have the ability to take money out

4:49
via interest or a 10% penalty-free

4:51
withdrawal or do you just want to lock

4:52
and load? And then the fourth

4:55
determining factor is the rating of the

4:57
company, the financials. I have to be

4:59
involved in that. I have to be involved

5:02
in that because I want you to understand

5:04
what you're buying. Uh I want to make

5:06
sure it's in proportion. I want to make

5:08
sure that we're looking at all of those

5:09
things. Now, one of the things people

5:11
always ask me too is about the state

5:12
guarantee fund, which [clears throat]

5:15
backs up annuities up to a certain level

5:19
for your state. That site is nolga.com.

5:22
You can go look at them yourself. But if

5:24
I'm recommending I'm batting a,000%.

5:27
I'm looking at the for the best fixed

5:30
rate annuity. I'm looking at the that

5:32
specific duration and can that company

5:34
back up the claim for that duration.

5:36
That's my recommendation. We're not

5:38
marrying them. we're dating them. For

5:39
lifetime income, it's A+ or better, but

5:41
for MAS, we can do a little bit less on

5:43
the ratings because I'm looking at them

5:45
for just that duration. So, just

5:48
remember fixed annuities, there's many

5:50
types regulated at the state level, but

5:52
if you're talking about fixed rate

5:54
annuities,

5:55
multi-year guarantee annuities is where

5:57
you want to go. where you do not want to

5:59
go and do not allow anyone to say don't

6:02
buy the MA, buy the index annuity

6:04
because the index annuity is going to

6:06
outperform the not the MA. Flatout

6:08
fraudulent lie. Just just they cannot

6:11
say that because the index annuity

6:15
return is not guaranteed. The MA return

6:19
is contractually guaranteed. The index

6:21
annuity the only thing guaranteed over

6:23
there is principal protection. any gains

6:26
or anything like that. Not not

6:30
guaranteed. MAS guaranteed. The reason

6:33
that they're going to they should be

6:35
using us, they are going to try to push

6:37
it this highest commission product on

6:39
the planet. MAS are not. So, they're

6:41
just simple.

6:43
Do consider using us. Go to my site at

6:45
theanuityman.com. You can schedule a

6:47
call with me. You can send me an email

6:48
standanuityman.com.

6:50
You can run quotes 247365 without

6:54
putting in your information.

6:56
without putting in your phone number and

6:58
your and your email address and your

7:00
name. You can just put gender, your date

7:02
of birth, and what you're trying to

7:03
solve for. Migas, you can you can see

7:05
those 24/7, 365. Never put your name in.

7:09
Why are we doing that? I want to change

7:11
the industry. We dominate it now. I have

7:13
the biggest staff in the business. All

7:16
under one roof in Las Vegas, Nevada.

7:19
Open 12 hours a day, Monday through

7:21
Friday, and eight hours on Saturday.

7:23
working 68 hours a week around your

7:26
schedule and I have the most staff of

7:29
anybody and we're hiring still hiring

7:34
and all of them are licensed in all 50

7:36
states including the receptionist

7:38
because they have to be by law

7:41
to talk to you and if if you call in

7:44
from Mississippi they have to be

7:46
licensed in Mississippi to take that

7:47
call. One last thing above my head,

7:49
spending clock. There is a video I did.

7:51
It's kind of a fun one. Attention all

7:53
annuity haters. You already own an

7:55
annuity. It's fun. It's It's fun one to

7:57
send to your advisor that hates

7:59
annuities. It's It's fun to send to the

8:02
kmagin idiot at the u the blowhard guy

8:05
at the cocktail party that says, "I hate

8:07
all annuities." Yeah, whatever. Here's

8:09
the video. You already own one.

8:11
[clears throat]

8:13
I'm waking some people up out here.

8:15
That's good. You know, they need to

8:16
understand annuities are a great product

8:18
and annuities have a monopoly on

8:20
lifetime income. Somehow the industry is

8:22
focused on growth, but it's the lifetime

8:24
income that we need to focus on. Hey

8:26
there, my name is Stan the Annuity Man.

8:28
I think my time's up. until tomorrow.