What Kind Of Returns Do Fixed Rate Annuity Contracts Offer?

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So, Stan the Annuity Man, America's

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annuity agent. What kind of returns do

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fixed rate annuities offer and give and

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promise and all that yummy stuff?

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I'm America's annuity agent for a

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reason. And the reason is I only focus

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on the contractual guarantees of the

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policy. You own an annuity for what it

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will do, not what it might do. So when

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we talk about returns on annuities, it's

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different than when you talk about

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returns on investments like stocks,

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bonds, mutual funds, ETFs, crypto,

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whatever you want out there in the

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non-anuity world.

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Returns

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on fixed annuities should be

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contractual.

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That's what you're looking at. Returns

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on non-anuity assets, go for it. Knock

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yourself out. Hopefully, in the bull

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market that we're in at the time of this

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taping, you're making lots of money by

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throwing the darts or having your

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professional dart thrower that you pay a

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fee for do it for you. But the problem,

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the question isn't a problem. The

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problem is annuity agents and advisors,

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they blur the line. So, they're talking

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a lot of times about annuity returns

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that are non-g guaranteed.

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Anyone that talks about annuity returns

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that are non-g guaranteed,

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you need to go to the other side and

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just buy something that has real growth

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because that is a too good to be true

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pitch. We're going to go all over all of

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that so you can understand what you're

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hearing, seeing what's what's being

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shown, and hopefully choose us for a

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rational contractual approach when

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looking at annuities for your portfolio.

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I'm going to I'm going to do all of that

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after I take a sip of sugar-free Coke

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because I got the sugars after this.

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[music]

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Okay. So, what kind of returns do fixed

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annuity contracts offer? Um, getting

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back to the sugars part in the South

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where I'm from, they don't call it

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diabetes, they call it the sugars. You

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got the sugars, man. I got the

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pre-shugars, you know, pre-diabetic. So

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I, you know, even though I like, like if

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I was on death row, peach cobbler, man,

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that's what I'm going to do. Peach

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cobbler. So what are [snorts] the

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returns? Let's go through the types of

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fixed annuity contracts that are out

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there one by one. Okay. Multi-year

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guarantee annuities, the annuity

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industry version of a CD, multi-year

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guarantee annuity, acronym, MIGA. You

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can see a live feed on my site specific

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to your state of residence.

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Returns on those are contractual, okay?

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Just like a CD, you lock in a specific

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interest rate for a specific period of

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time. 1 year, 2 year, three year, four

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year, 5 year, six year, seven year, 8

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year, 9year, and 10year are available to

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lock in contractual. Now, you can also

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choose whether you want to have the

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ability to take interest out or 10% of

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the contract out or if you just want to

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lock and load and let it grow

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contractually tax deferred. You can put

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it in a Roth IRA, a nonirra, savings

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checking account, or a traditional IRA.

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works in all three. That's the That's

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the return there. Now,

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this is when it gets a little fuzzy on

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the return side, but I'm getting ready

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to clarify and make it very simple for

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you. There are four fixed annuity

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products that provide lifetime income.

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So, solving for longevity risk, you're

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transferring risk to the annuity company

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to pay for as long as you're breathing

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and or on a respirator. Okay. So those

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products are SPIA, single premium

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immediate annuities, DAS, deferred

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income annuities, qualified longevity

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annuity contracts. Those are QAXs. And

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then income writers that ride on top of

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a policy. Typically that's an index

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annuity. We're going to talk about index

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annuities in a second. But the question

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is what's the rate of return? What's the

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good return on a contract for a fixed

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annuity? return

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for lifetime income is primarily based

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on your life expectancy or life

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expecties

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if you set it up joint payment.

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All right, interest rates play a

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secondary role.

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Interest rates play a secondary role.

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Interest rates play a secondary role.

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Okay? So don't don't hit me with well

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I'm waiting on the new Fed chair and

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what are you stop with lifetime income.

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It's about life expectancy and right now

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life expectancy tables are bargain

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because AI is getting ready to change

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things and make our life expecties

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longer which means the payments will be

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there'll be more payments which means

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the payments will be lower. So it's a

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bargain right now. Doesn't mean you have

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to buy it right now but you got to know

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that right now.

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So rates of return

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with like what's my ROI on a lifetime

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income annuity stand the annuity man I

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don't know that until you die or if it's

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joint I don't know that until the second

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person dies and we structure most of

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these policies unless you tell us

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otherwise so that 100% of the money goes

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to the beneficiaries if you die early in

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the policy. So throw out that crap thing

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you heard from your friend. Well don't

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buy an annuity for lifetime income

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because if you die money goes poof. No

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your brain just went poof friend. You're

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drinking too much. Okay, you're losing

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too many brain cells.

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Most of the lifetime income stuff that

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we that we structure is lifetime income

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and with a backs stop little league

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reference there. Okay. So, what's the

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

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that until you die. What's the rate of

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return stand?

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That's a numerical number on your life

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expectancy. There are sites out there

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that fraudulently put up like immediate

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annuities uh return of 7.3% or 8.2%.

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That's a numerical reflection of your

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life expectancy player. That's not

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yield. They throw it up there to think

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you're thinking, well, I'm getting a

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7.8. No, you're not.

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With lifetime income, it's a combination

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of return of principal plus interest.

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That ain't yield player. Yield is a MGA.

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Don't touch the money. Peel off the

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principal off the top. Lifetime income

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combination return of principal plus

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interest. That's not yield. So if you

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said to me, well, what's the payout on a

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$100,000 immediate annuity? Let's just

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say it's 7.3. I'm just pulling that.

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Okay, great.

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Does that mean it's yield? No. But you

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asked me the question of this this uh

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video was what's the return? What's the

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what what type of returns am I going to

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get with lifetime income? The return is

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it's going to pay you forever. Nobody

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yet has called me up and said, "Stan,

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what's the rate of return on that social

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security lifetime payment I'm getting?"

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Nobody does that. But yet, you will go

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anal probe. Sorry about that, Dr. C.

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That's a medical term. Anal probe into

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the return on investment for an

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immediate annuity. Well, I need to know

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what that is. Well, do do you know what

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that is for your pension or your social

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security? Well, no, that's that's

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different. No, it's not.

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You're either going to transfer the risk

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for lifetime income or you're not. If

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you're going to overanalyze it, then

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don't buy it.

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Which leads me to the index annuity

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side.

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This is where this is where it gets

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weird, okay? Because in 1995, index

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annuities were put on the planet and

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introduced. First, I think first carrier

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was Keyport Life. For all of you who's

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going, "Yeah, I remember Keystone."

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Keystone's a beer. Okay, it's a beer.

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It's not here anymore. I remember we

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used to get Keystone Light in college.

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It was like $1.99 six-pack or something

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like that. That was before I stopped

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drinking. Um, but the point is in 1995,

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Keyport Life, that's when indexed

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annuities were introduced. Since that

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time, in the biggest raging bull market

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of all time, they've done exactly what

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they were designed to do. What's that,

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Stan? CD returns. What's that stand? CD

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returns. What's that stand? CD returns.

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So if anybody is out there promising,

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well, you can get 7, 9, 10, 12, 13, 8.

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I've seen 20. They're lying. Okay. The

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blended rate of return is CD type

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returns.

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Four, three, four, maybe 5% if you're

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lucky. That doesn't mean it's bad. That

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means how it's sold is bad. And then

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they throw up throw on the upfront bonus

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which is candy for the stupid. There's

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no philanthropist annuity companies.

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It's just part of the overall

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contractual guarantee. Everything is

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easy to explain in the fixed fixed world

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from returns ma very easy. Lifetime

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income the four products very easy.

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Index annuities

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sales pitch nonsense. If you buy the

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dreams you're going to own the

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contractual realities.

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Period. End of story. Driving me crazy.

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We sell more than anybody because we

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attach income writers to them and then

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we completely ignore the index annuity

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product because you're buying the

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contractual guarantee the income writer.

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So when you're looking at rate of return

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or returns of fixed products, it's very

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very very easy because we only look at

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the contractual guarantees of the

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policy. where it gets fuzzy and nebulous

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and nuance and crap and and just

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nonsense is on the index back tested

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return hypothetical theoretical unicorn

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chasing the butterfly crap. It's a CD

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product and there's nothing wrong with

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that. Okay, but if you think you're

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going to get more than that, you're what

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they call the sucker at the table in Las

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Vegas. No exceptions. Do me a favor, go

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to my site. I have a bunch of books. I

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got a book on all of these products. MA

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DSPIA QAC and income writer and index

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annuity. That would be six. Dr. C with

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the thumb owners manuals. You can

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download for free. I wrote them. I've

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done a bunch of videos on them. You can

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schedule a call with me. You can email

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me stantheanuityman.com. But one thing I

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want you to do above my head is a video

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talking about the commoditization of

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annuities. Annuitities are commodities.

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Annuitities

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are commodities. You shop all carriers

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for the highest contractual guarantee.

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Then we look at the rating. Then we look

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for my recommendation. That's the

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trifecta of wonderfulness in annuities.

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That's it. Highest number rating stands

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recommendation. That's how easy it is.

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Okay. Hope this helped. Hope this put

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everything in perspective because it

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need that foundation needs to be there

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so you can make a very good decision on

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your your terms and on your time frame.

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My name is Stan the annuity man.

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See you next