What Is Annuity Suitability?

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

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wearing the Stanifesto shirt. You're saying, "What's that, Stan?" That's my first book I

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wrote. It's called the annuity Stanifesto. Like manifesto, but Stanifesto. It's like the rules

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I have in my office in Las Vegas. They're Stantutory. They're Stantutory rules. Today

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we are talking about annuity suitability. What is annuity suitability? Why is it important?

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How does it affect things? It's actually a really good question. I think I did I ask that producer?

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I don't think I did. I think it was someone else. Regardless, we're going to talk about it.

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All right. So, what is annuity suitability? I guess the short answer in plain easy to

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understand North Carolina English, which is where I'm from, is when you apply for an annuity,

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let's just say you go through the process with us. You go to my site at theanuityman.com. You

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run quotes. You schedule a call. We talk to you. We explain everything, the good,

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the bad, the limitations, the benefits, and you make a decision that this actually fits for you.

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Okay? So, what you're going to do is we we're gonna schedule a call with my application team.

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They're going to take you across the finish line from start to finish. But part of that process is

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what's called annuity suitability. And it's making sure the annuity companies are making sure that

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you're not putting too much money into annuities. I know what you're saying. Wait a minute, Stan.

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I thought the annuity industry was full of evil, mean sociopath people. I've met those people,

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but it's not everything. And the rules are very stringent. Okay. So, annuity suit suitability,

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they want to know your net worth, your income, kind of your 30,000 foot investment picture.

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They want to know the percentage of this annuity purchase in addition to other annuity purchases

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and make sure you're not putting too much money into annuities. I know what you're saying.

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That can't be true, Stan. Don't they just want all the money? Well, no, because annuities aren't for

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everybody. Okay, you either need the transfer risk for principal protection, income for life,

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legacy, and long-term care, or you do not. We'll tell you when you do not. But the companies want

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to know your financial information, which by the way is 100% confidential. We do not share,

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sell, keep any of that. That's for the annuity suitability department at the carrier that you

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chose carrier meaning annuity company to make sure that it's in your best interest to move forward

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with the annuity. That's annuity suitability. Now you're saying if you're one of those people out

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there and I got a call the other day guy goes I said well tell me about your annuities. He goes

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well I got all my money is in annuities. I said how's that even possible? It's like legally I'm

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not sure that's possible but here's how it's possible. If Johnny Apples Seed, annuity agent,

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local guy, fills out your application, they can fudge the numbers. Now, just a side note,

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that's a misdemeanor and could be a felony. Just a side note. But let's just say they do that. Okay?

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Let's just say you have $500,000 to your name in your IRA and they put your net investable net

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worth. And investable net worth means not your house, not your car, and not your guitar. Okay?

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It's investable net worth, liquid net worth, stocks, bonds, mutual funds, CDs, whatever. So,

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let's say Johnny Apples Seed put down that that number is a million, and you're going to buy

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$500,000 worth of annuities, even though $500,000 is all you have. Well, the annuity company,

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all they have is the paper. They're looking at what has been filled out. So, what I'm

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saying is if someone has oversold you annuities, then you have an argument legally against that

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person because it's like fictitiously filling in a mortgage application. Unless you're a politician,

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you can't get away with that. Okay, can we nod our heads on that one? If you're a politician,

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you can do what you want. But the point is that's what annuity suitability is for. It's also for the

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solution. Like, you'll have to tell my application team, what are you trying to solve for? Lifetime

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income. Great. Principal protection, great. The annuity company has to verify that. So,

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annuity suitability, if you have a brokerage firm or you have had to fill out those things before,

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okay? But the life insurance industry, life insurance companies issue annuities,

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it's very stringent and it's very strict. Okay? And we take this part of it very serious,

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very serious. There are times that even the ratio works like the percentage ratio. We send it to

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the company and the company still declines it for whatever reason. It's their discretion. We

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have to accept that. So let's just say it's 62% of your portfolio instead of 50. They might say no,

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we don't want to do that. Okay, that's fine. Bottom line is the annuity suitability part of

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the business that I dominate is for you. It's to protect you. It's not for us. It's not for us to

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get information and segment information. It's not It's not that at all. I had a call the other day,

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now this is a good story. I had a call the other day and one of my we call them policy delivery

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and application team, PEDATs, and the one of the PEDATs called me and said Stan The Annuity Man,

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America's annuity agent licensed in all 50 states, because they have to do that too. And

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um they said this gentleman doesn't want to give his information. Doesn't understand why he needs

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to give all this financial information just to buy a knee. So I said, "Put him on the line. Put him

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on the line." So we talked about it. I was like, "Listen, we're just this is to protect you. We're

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not coming after you. This is actually for your protection." So you know, I told him, I said,

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you know, on your net worth, you don't have to go 1,213,48. you just give us the broad stroke to

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make sure that this is a suitable move for you because annuities aren't investments. They're

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contracts. But the life insurance company takes it serious when they look at that. What are you

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trying to do? What's the proportion? What's the ratio to your investments that you have and they

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don't want you to go all in and don't allow anyone to take your whole 401k and go all in if that's

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all the money you have in the world is your 401k. There's some really good people in the annuity

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industry. There's some there's some complete hoo-has in the annuity. I don't know what a

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hoo-ha is, but it's better than what I was getting ready to say. But the suitability part of it is to

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weed out the hoo-ha. They still can be nefarious if they want to, but they're putting their pets on

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the line for that one. Okay? And they might spend time in jail if they fictitiously fill out your

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application. So, just remember that. All right? And remember that when you go through the process

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with my PDAT team that they're going to ask you questions, but they're confidential. We don't

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share. We don't keep any of that information. We just send it to the insurance company for

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them to approve. All right. So, that is annuity suitability. It's important. It's a pain. I hate

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when people ask me stuff like that, but it's just part of the business, but it's there to

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protect you. Do me one favor above me. Click that link and it tells a story about the annuity man,

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the company, how it happened. Spoiler alert, you would think that I had this epiphany business

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moment that hey, let's sell annuities direct to all 50 states. No, I hurt my back. That's one of

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those business moments. I hurt my back was laying on the ground and going, well, I still got to sell

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annuities because my daughters are going to big private schools and so I got to pay for it. So,

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the point is it's a great story. You might want to listen to it. Please, you know, give us a shot. At

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least go to the site theanuityman.com. Hit the subscribe button if you want to. If you don't,

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that's fine, too. We've done thousands of videos and as long as I'm breathing, I'm gonna-- I have

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committed myself to flooding the zone with facts in the annuity industry. I'm going to

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suffocate the hoo-has out there. All right, my name is Stan the annuity man. See you next time.