What Is The Average Return On A Fixed 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. Um, today's

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topic is an interesting one, kind of a

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loaded question. What's the average

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return on a fixed annuity?

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[sighs]

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I love these questions because it gives

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me the opportunity to clarify because if

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you ask most agents that question,

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they're going to give you a fictitious,

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high percentage answer to rope you in.

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I'm going to give you the facts so you

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can make a good decision on these

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products because there's not a there's

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not a one-sizefits-all answer as you can

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imagine. So, I'm gonna do that after

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this.

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So, what is the average return on a

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fixed annuity? Well, that's a loaded

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question because there's many types of

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fixed annuities. There's single premium

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immediate annuities for lifetime income,

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deferred income annuities for lifetime

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income, qualified longevity annuity

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contracts for lifetime income, income

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writers for lifetime income, multi-year

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guarantee annuities for principal

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protection, fixed index annuities for

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principal protection. I can keep going.

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Okay, so there's not oneizefits-all

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answer. And re the word return is an

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interesting part of the question. Now,

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with multi-year guarantee annuities,

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this is really simple. These are CD

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products. It's like the annuity industry

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version of a CD. I call it an annuity

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bond is a guaranteed interest rate for a

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specific period of time that you choose.

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You can go to my site, see the best live

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rates for your state for free. Don't

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have to sign up, etc. That's easy.

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What's the what's the best return? It

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depends on the duration you're looking

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at and your state of residence. And you

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can just see it right there. So MAS is

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the purest form of what's you know

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what's the best return

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on AMA. You can just look for your your

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state of resonance and the duration and

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see for yourself and it changes. It's

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fluid. The the feed that I have on my

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site is real time. Okay. Now index

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annuities,

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[sighs and gasps]

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this is where the the lines are blurred

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between fact and fiction. um index

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annuities put on the planet in 1995 to

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compete with CDs, not markets, but

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they're sold as market products,

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unfortunately. They're not securities,

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and they do not give market returns.

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They're CD products.

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You know, since 1995, they've they've

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given you CD returns, not market

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returns. But what's the you know, what's

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the I don't know. I I don't even want to

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go there with the index annuity side

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because

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some of the index annuities are horrific

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out there. Some of are fair and then

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some are mediocre, but none are great

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from the standpoint of returns.

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Historically, there might be one unicorn

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out there over the last 10 years that's

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done okay, but they weren't designed to

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do market returns, even though they're

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pitched as market upside with no

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downside. So, what's the return on index

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annuity? I know this, it's not

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guaranteed,

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and that's all I know. We use index

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annuities to deliver income writers for

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lifetime income. If you need income to

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start later, which leads us to the

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lifetime income products, Spds, QX, and

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income writers, what's the return?

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Return

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is your life expectancy. So, if you're

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buying lifetime income, it's all about

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the annuity company being on the hook to

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pay for as long as you're breathing, or

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if it's joint life, as long as one of

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you is breathing. And we've set it up

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typically to where 100% of any unused

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money goes to the beneficiaries

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and the evil annuity company doesn't

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keep a penny under any circumstance even

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though they're on the hook to pay if

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you're on a respirator. So return I

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always tell people there's no ROI until

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you die. ROI means return on investment.

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We can't calculate that until you keel

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over.

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If you live forever it's a great return.

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If you live short, it's not a good

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return, but we set it up to where the

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money goes to your family and and the

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annuity company doesn't keep a penny.

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Now, there's some sites that

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fictitiously put up for lifetime income,

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they'll put up like 7.8 or 6.3 or 8.4.

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That's a numerical reflection of your

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life expectancy. That's not yield

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player. I got a call the other day, guy

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goes, "Well, I got 7.8%

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uh return yield on this immediate

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annuity." No, you did not.

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That's the payout based on your life

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expectancy. It's not yield. Because with

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lifetime income,

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lifetime income, all four part uh all

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four products, SPSD issu income writers,

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all four is a combination of return of

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principal plus interest. Listen to me.

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Return of principal plus interest. And

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the true value proposition is if you're

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at zero, if you drawn the account to

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zero, the annuity company's still on the

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hook to pay. So you can't calculate

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return until you die. And anybody that

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tries to say, well, you're getting 7%.

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They're full of crap.

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And on income writers, income writers

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are attached to index annuities, you

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draw a line down a blank sheet of paper,

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index over here, we don't care. Income

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writers over here, that's the

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contractual guarantee. And similar to

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social security where your social

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security grows by 8% until you turn it

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on, right? Income writers, isn't that

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interesting how they do that? They'll

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have they'll have income writer rates

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that grow while you're deferring. That's

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not yield. That's not real money. That's

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monopoly money that can use to calculate

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your first lifetime income stream

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payment. Okay? I get calls all the time,

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well, I bought this index annuity with

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an 8.2% yield. No, you didn't. You

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bought an index annuity. That's a CD

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product if you're lucky. And on the

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return standpoint, and on the income

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writer side, the 8.2 is monopoly money.

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And oh, by the way, income writers have

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fees. And that 8 8% that you love so

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much, Ernie, it's increasing the fee by

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that much every year.

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Really? Yeah.

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If it sounds too good to be true, it is

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every single time. If your neighbor can

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get a 5% CD, you can't get an 8%

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freaking yield. That's an income writer.

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So, what's the return on a fixed

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annuity? It depends on the type of fixed

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annuity. There's only one that's

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absolutely pure from the standpoint of

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that question. That's a multi-year

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guarantee annuity. Principal protected,

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no fees, no moving parts, non-correlated

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mean not attached to the market, and a

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guaranteed interest rate for a specific

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period of time that you choose. Duh.

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That's it. Everything else, index

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annuities, not guaranteed return. So,

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don't know. Don't know, but it's not

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going to be as good as what's being

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pitched to you. I can tell you that

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right now.

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And then lifetime income products,

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what's the return? I don't know that

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until you die. It's a transfer of risk.

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Lifetime income stream annuities before

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annuities as a category is the only

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category in the financial business that

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can provide a lifetime income stream

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that can provide a pension.

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Don't say 30-year bond because what if

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you live 35, Ernie?

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Okay. When you buy lifetime income, you

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need to look at it as a pension. You

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don't need to look at it as investment

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because it's not. You're transferring

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the risk to the life insurance company

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that issued the lifetime income stream

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through the annuity to pay you for as

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long as you're breathing. This question

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about average return is flawed from the

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start because you're you're you're

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looking at annuities as investments.

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They're not. They're contracts. They're

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transfer risk contracts. Period.

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You're either transferring the risk for

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principal protection, you're

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transferring the risk for income for

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life, you're transferring the risk for

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legacy, or you're transferring the risk

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for long-term care. That's it.

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They're not investments.

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You're transferring the risk. They're

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contracts. Don't believe me? Buy one,

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you're going to get a contract in the

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mail. So, when you base your decision

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for purchase, it should be on the

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contractual guarantees. Duh. Not that

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fluffy chart that Johnny Apples Seed

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agent showed you because it never comes

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true. And also too, never buy an annuity

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for a bonus. Bonus is candy for the

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stupid. If you think bonus is real

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money, don't go to Vegas. Never go to

8:17
Vegas. It's just part of the overall

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contractual guarantee. There's 100

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pennies in the dollar. All right. I

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encourage you go to my site at

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theanuityman.com. You can run quotes

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247365

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anonymously. Just your name, date of

8:30
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8:32
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8:39
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8:40
quotes. Those are real quotes. Those

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aren't estimates. They're real.

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You can schedule a call with me. You can

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free owner manuals. There's six of them

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that I've written. You get them for

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above me. I did a video on all the

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technology that we're doing. It says

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virtual Stanley Liz. What's virtual

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How how much more number one do you

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want? Dominate.

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Set this set the industry trend. And

10:40
hopefully people follow me and do

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exactly the same thing so that annuities

10:43
are sold properly and for their

10:45
contractual guarantees.

10:47
I'm okay with that. All right, my name

10:49
is Stan the Annuity Man.