What Is A Retirement Annuity Contract?

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Hi there, Stan the Annuity Man, America's annuity agent, licensed in all 50 states. What is a

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retirement annuity contract? Sounds very formal, very fancy, very hoity-toity. It's really not.

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I don't know why people keep using retirement annuity contract. Because retirement chapter 2,

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it's all about you. That can mean a myriad of things, and we'll talk about that after this.

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So, what is a retirement annuity contract? In essence, it's a contract between you and the

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issuing life insurance company. Life insurance companies issue annuities. There's not just one

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annuity. You can't say, "I hate all annuities. I hate annuities. Hate them." Well, you already own

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one. It's called Social Security. You might own two, which is you might have a pension. But you

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actually own another one, RMDs off your IRA, which is required minimum distributions, the annual

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amount you have to take when you turn a certain age, when the IRS taps you on the shoulder. So,

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when people say, "What's a retirement annuity contract?" Understand there's many types of

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annuities. So, it really comes down to, what do you want the money to contractually do? So, we

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really have two questions we ask every single person. If you go to my site at theannuityman.com

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and schedule a call, free, by the way, we're not hammers looking for nails. We'll say, "What do you

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want the money to contractually do? And when do you want those contractual guarantees to start?"

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And you've got to be specific, not Pacific. That's an ocean. Specific with your answers. Don't

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just say, "I just want the best thing out there, son." Or, "I just want a reasonable rate of

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return, son." No. Annuities solve for four things. The acronym is PILL. P stands for principal

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protection. I stands for income for life. L stands for legacy. The other L stands for long-term care.

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There's no M for market. There's no S for stock. There's no B for Bitcoin. There's no G for growth,

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market growth. Never buy an annuity for market growth. I know that probably the two

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best-selling types of annuities out there promise, hopeful market returns. Potential, hypothetical,

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theoretical unicorns chasing the butterflies. Back-tested numbers that never work. If you

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want market growth, don't buy an annuity. If you want contractual guarantees, then buy an annuity.

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But do you want contractual guarantees just to protect the principal? Do you want contractual

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guarantees just for lifetime income for you and your spouse or just you? Do you want contractual

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guarantees for legacy to leave money if you can't qualify for life insurance? Do you want

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contractual guarantees for long-term care? If you do not need that, then you don't need a retirement

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annuity contract. A retirement annuity contract, in essence, is the contract and the product type

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and the goal and the contractual solution that you choose, and then the issuing life insurance

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company that issues that annuity product. You have a contract with them. And because it's a contract,

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you only consider the contractual guarantees of the policy. I am the pioneer of CGO, contractual

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guarantees only. When I first started saying that out there, people — you know, you're leaving a lot

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on the table, son. Because, you know, how about all the potential? Screw potential. Potential? Go

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buy stocks. Go buy mutual funds. And I know what I'm talking about. I used to work for Dean Witter,

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PaineWebber, Morgan Stanley, and UBS. I've been on that side of the table. So, when I decided to

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come out and dominate the annuity space, I still am shocked how much of the sales pitches that are

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out there are about growth, market growth. Most of the people that are pitching fixed annuities,

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like index annuities, for market growth, they couldn't pass a Series 7 test if they had a

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loaded gun pointed to their head. They couldn't do it. And then now, on the securities side,

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you have to have a securities license to sell what's called a registered index link annuity,

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which is a fancy version of an index annuity. I call it a co-pay annuity, but you got to have

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a Series 7 securities license to sell it. Once again, I'm confused. You know, if you're looking

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at a retirement annuity contract, you're looking to transfer the risk. So, you're looking to

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transfer the risk to the life insurance company that's issuing the annuity to provide lifetime

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income, or you're looking to transfer the risk to the life insurance company issuing the annuity to

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protect the principal. That's it. For lifetime income, there's no ROI until you die. And death

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is not a good strategy. You can only use it once, as I told Big C behind the camera. The point is,

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retirement annuity contract, that's some generic name made up by probably financial journalists

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that don't know what the heck they're talking about. Well, have you considered a retirement

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annuity contract? What are you talking about? In the world that I live in, which is dealing

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with thousands and thousands of clients in all 50 states, no one says, "I want a retirement annuity

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contract." And when they do, that means I'm like, "What article was that from?" Well, that

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was from Freddy Jones from, you know, Money Money Newsletter, whatever. Hopefully, there's no Money

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Money Newsletter because I just blasted them. The point is, these are simple. Annuities are very,

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very, very simple products. There's nothing complex about them when you strip it down to

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the contractual guarantees. The complexity starts when agents start talking about them and trying to

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sell them to you. Then it gets complex. You know, if there's so many moving parts, you don't know

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how many moving parts there are, don't buy it. The simple products — immediate annuities, deferred

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income annuities, qualified longevity annuity contract, income riders, MYGAs — that's where we

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focus. Those are simple products. I literally could explain it to a group of second graders,

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and they'd all be like, "Got it. Wish I had money to invest." You're too young. But the point is,

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if I can explain it to a nine-year-old, no offense to nine-year-olds, then that's a good product. The

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ones that are coming out now, the retirement annuity contracts that are coming out now,

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are complex. And don't buy anything you don't understand. So, I wanted to address this topic

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because it's kind of a made-up topic. Retirement annuity contract. Okay. What are you trying to

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solve for, Chester? What's the goal of the asset specifically? Don't say something broad. Well,

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I'd really like to have, I'd like to have it all. Well, if you ask enough agents, they're going to

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tell you they have that product, and they'll sell it to you. Okay? If it sounds too good to be true,

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it is every single time. You own an annuity for what it will do, not what it might do. And the

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will do are the contractual guarantees. If the annuity industry would just adopt that — just that

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saying — and stick to it, the industry would triple in size. But they're obsessed with potential. They

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think that the public wants potential. They want hypotheticals. They want shiny things like upfront

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bonuses, which I call candy for the stupid, but there's 100 pennies in the dollar. What

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people want — and I know 'cause I'm the top agent out here, and we're licensed in all 50 states,

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so we're talking to everybody — what people want are guarantees. They want to go into chapter 2 of

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their life with guarantees. They want to go into chapter 2 of their life with a full income floor

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of income that's going to hit their bank account every single month, regardless of what happens in

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the world. They want guarantees. They don't want fluff. I guess the same thing could be said for

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the news. We're at a point in our country, we just want news, okay? We don't want your opinion on the

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news. We don't want your guest opinion on the news. We just want the news. Whoever can figure

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that out is going to win. We figured that out on the annuity side, and we're winning. I never

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have a client — and we have tens of thousands of clients — we never have a client call up and say,

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"Hey, how's that annuity doing that you sold me or that I purchased?" If they did, our

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answer would be like, "It's the same contractual guarantee that you purchased. It's doing exactly

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what it's going to do because it's contractual." People always say, "Stan, how did you go from you

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and your wife to now all these employees in this huge office in Las Vegas?" It's because we sell

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contractual guarantees. That model is scalable. We take care of our clients, but we're not having to

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revisit it because we sell the contractual guarantees. So, retirement annuity income,

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it comes down to what you're trying to solve for. And if you talk with us, we might come to the

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conclusion that an annuity, annuities, whatever type, doesn't fit. We'll tell you that as well.

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Hey, one last thing. You know, if you're intrigued and want to know more about how the process works,

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if you did become a client and went through that process, above my head is a video. It's

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kind of a countdown. Click that, and it'll take you to a video that explains the process at The

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Annuity Man, where everyone in that building is licensed in all 50 states, but no one in

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that building is on commission. We're not hammers looking for nails. Give us a shot. Go to my site,

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download the free books, watch the videos, run quotes to your heart's content, then let

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us get involved and let's have a conversation. My name is Stan the Annuity Man. See you next time.