What Is The Typical Base Product For A Hybrid Annuity?

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What is the typical base product for what's called a hybrid annuity?

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

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Puerto Rico. Top agent in the country, independent agent in the country, represent all carriers. I'm

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also the pioneer of what's called CGO, contractual guarantees only, which is how we view and look at

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and recommend annuities, only on their contractual guarantees, not hypotheticals, theoreticals,

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projected, backtested, hopeful, unicorns chasing the butterfly scenarios that proliferate the

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hybrid world, which is what we're talking about, hybrid annuity. You know, when you say the word

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hybrid, though, it does knock a little bit of a scab off with me, which I'm going to,

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I'm going to take a sip of a Coke Zero and try to calm down, and then I'm going to come back

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and we're going to talk about hybrid annuities.

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So, let's get one thing straight. The word hybrid

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makes me throw up, makes water in my mouth, like accumulate like I'm getting ready

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to vomit. I don't like the word hybrid because it's overused in the annuity industry. I thought

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I had squashed this like a bug about three years ago when I started making fun of people going,

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"I've got a hybrid annuity." I'm like, "You're an idiot." Hybrid is a plant. Can we all agree

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about that? Yeah. Hybrid can be a car. I had a hybrid Honda that was like half gas,

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half electric. That's a hybrid car. Okay? Hybrid, I found out the other day when walking through a

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very high-end store with my wife, hybrid can be a mattress. There's hybrid mattresses out

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there. But the one thing that hybrid cannot be is a damn annuity. There's no such thing as a hybrid

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annuity. That's made up out of thin air by Johnny Appleseed agent and the agent army out there to

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make you think that you're getting someone that morphs and changes and becomes this thing that's

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a hybrid. No. What they're talking about, they meaning the agent army of high commissions,

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they're talking about either a fixed index annuity or a registered index link annuity. Both have been

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somehow called hybrids. Does it make you feel better when they say hybrid? Does it give more

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value when you say hybrid? Do you pay more money for the hybrid mattress or the hybrid plant or

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the hybrid car? Why don't we just call it a unicorn annuity? Why don't we call it that?

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I'd rather it be called a unicorn annuity because unicorns, you don't see them all the time,

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and they've got a horn out of their head, and they can fly. I'd rather it be called that than hybrid.

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Let's go through the hybrid annuities that these agents continue to use this word until I ban the

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word. There is no free speech in the annuity world, player. I oversee it. I oversee it in

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my big annuity throne and go, "No, you cannot use that word hybrid." Index annuities are put

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on the planet in 1995 to create CD returns, to create CD returns, not market returns, to

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create CD returns, not market returns, to create CD returns. There's nothing hybrid about that.

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The only change in potential unicornness of the product is you can attach an income

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rider to an index annuity for lifetime income. So, if you draw one line down a blank sheet of

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paper, index side here, CD returns here, 800 index options over here that all create CD returns,

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income rider guarantee over here, two separate ledgers. We only focus on the guarantee. We do not

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focus on the theoretical, hypothetical, "Look what you'd have done if you'd owned it 10 years ago,"

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like, we've never heard it. And then Mr. Jones goes, "I've never heard of that index." Well,

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you know, it's only been around about six months, but we did a 10-year backtested number on that.

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Come again. Come again. How's that work again? And then registered index linked annuity. And

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I'm going to go on record, so all you regulators listen up closely. I'm not securities licensed.

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I used to be securities licensed. I don't want to be securities licensed. This product does not

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make me want to be securities licensed. But you got to be securities licensed or, you know, IRA,

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whatever. Got to be one of those dudes or dudettes to recommend it, but I call that a co-pay annuity.

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Yes, it's attached to an index, but you have to pay and share in some of the downside. So, that's

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a co-pay annuity. So, those are the two chassis. Getting back to the question that makes my

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mouth water and I want to throw up, projectile, hybrid. Okay? That's the two. That's the two.

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Notice I'm not a huge fan. Because both are sold as alternatives to markets, but you can share in the

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market. Come on, man. Come on. If you want market growth, go get market growth. If you want market

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growth, never buy an annuity, including these two hybrids, chassis, or as I call them, unicorns.

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This is a unicorn. This is a unicorn. This unicorn over here does this, and this unicorn over here

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does this, and they fly. And when they fart, they fart out like pixie dust. It's beautiful, and you

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should own one, Mr. Jones. Which unicorn do you want? Do you want the fixed unicorn from the life

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insurance industry that's regulated at the state level, or do you want this other unicorn that your

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master of the universe broker and advisor can sell you, and that you can share in some of the

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downside of which you have to pay for? You have to pay for that, right? Which unicorn do you want?

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Let's use the word unicorn instead of hybrid from here on in, please. Okay? And also,

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please own an annuity for what it will do, not what it might do. Four things that annuities

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solve for, only four. The acronym is PILL: principal protection, income for life, legacy,

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long-term care. There's no G for growth. There's no U for unicorn. There's no H for hybrid. There's

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no S for stock market. There's no B for Bitcoin. These are contractual guaranteed products.

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So you have to ask yourself, why are you doing that? Why are you buying the dream? Why

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are you being convinced to buy these products based on non-guaranteed scenarios? Why? Yeah,

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you're smart. You're smart like that. You're going to get a product that your neighbor knows nothing

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about. You're going to show them. You're going to show them you can do it. You can do it. Market

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upside with no downside. You can do it. You know better. You've analyzed it. Yeah. Come on, man.

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Annuities are simple. I mean, this is simple. I always tell people,

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it's the advisors that make the annuities complex, the agents and advisers. "Well,

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let me show you this. If we flipped it and ripped it and dipped it and over here into this,

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and then we turned it..." Come on, man. These are commodity products. You quote

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for the highest contractual guarantee. Period. End of story. I mean, it's that simple. If you

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can't explain it to a nine-year-old, no offense to nine-year-olds, do not buy it.

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Do me a favor. I know I'm on a rant. I'm like butter, baby. I'm on a roll. Get it? Up here. Up

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here. The man upstairs? No, it's a video. I'm the man. And that video talks about lifetime income

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and talks about how it's priced, not how you think it's priced, how it's actually priced

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so that you can make a good decision. You need more income. Nod your head. You need more income.

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Don't believe me? Ask the spouse that's put up with your ass for all these years. You need more

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income. They need more income when you die. My wife the other day says, "How much income,

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you know, is going to be there when you die?" I'm like, "Thanks. I appreciate

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that." But I told her we might put more into place because she wants to have a house near

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one of the girls. Great. Okay, let's do that. Alright? Man, that was cathartic, as they say.

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Annuity catharsis by Stan the Annuity Man. See you next time.