Why Might An Individual Choose A Fixed Annuity?

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Why Might an Individual Choose a Fixed Annuity? Hey, great question for a person that can

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answer it. Hi there, my name is Stan the Annuity Man, America's annuity agent,

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licensed in all 50 states and Puerto Rico, the founder of Contractual Guarantees Only.

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We're going to talk about this question of why somebody should, might, or could choose

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a fixed annuity, but the answer is a little bit more granular than what you think. So,

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we'll cover that in detail after this.

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So, first of all, let's talk about fixed annuities.

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“What’s your best fixed annuity, Stan?” Well, there's many types. There's multi-year

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guarantee annuities, which is the annuity version of a CD. There's fixed index annuities,

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which is a fancy version of a CD, which gets CD returns. There's qualified longevity annuity

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contracts for your IRA for lifetime income. There's single premium immediate annuities

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for lifetime income. There's deferred income annuities for lifetime income.

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So, why would someone choose a fixed annuity? Well, there's four reasons. I've come up with an

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easy-to-understand and remember acronym: PILL. P stands for principal protection.

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I stands for income for life. L stands for legacy,

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leaving money to your beneficiaries. And the other L stands for long-term care.

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So, principal protection, income for life, legacy, and long-term care. Those are the four reasons

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that someone would choose a fixed annuity. And fixed annuities are nothing more than

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transfers of risk. You're transferring risk to that life insurance company

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that's issuing the annuity to solve for one or more things in the PILL.

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Notice there's no G for growth. There's no S for stock market. There's no B for

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Bitcoin. There's no R for reasonable rate of return. There's none of that.

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You own an annuity for what it will do, not what it might do. And the “will do” are the

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contractual guarantees of the policy. I am the only one out here doing that.

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I get emails from, I guess, advisors with nothing else to do, or agents going, “Well,

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I think they're for market growth.” Well, keep thinking that, player,

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as I stomp you into the ground in a competition for clients and happy clients.

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Every single one of my quadrillion clients— and we manage multiple billions of dollars of

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annuities that are fixed— are happy because they bought the contractual guarantees.

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Now, you're saying, “Well, okay, Stan the Annuity Man, America's annuity agent, licensed in all

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50 states and Puerto Rico, how do I determine which of those types of fixed annuities to get?”

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Two questions. I made this simple. Key fact: people process information— like

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when you watch the news— I don't care what your education level is— at the sixth-grade level. So,

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when people watch the news, it's at a sixth-grade level. And if you don't believe me, turn off

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the news for 30 days and then turn it back on, especially local news. You'll be like, “Oh my God,

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that's dumb how they're presenting it.” But they're doing that for a reason.

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But it gets worse. Financial information, regardless of how smart you think you

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are, processed at a third-grade level. Third-grade level. Hello.

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I really think it's second graders. I always say, if you can't explain it to a nine-year-old— no

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offense to a nine-year-old— you shouldn't buy it. And the vast majority of the complex annuities

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out there, there is no way they're explaining it to the clients, the

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agents, they don't even understand it. But getting back to the two questions to

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determine what type of annuity, fixed annuity, you might need— or even if you don't need one at all.

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Oh no, the sales Gods just turned on Stan. Why would he say that? Isn't everyone a

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nail and Stan and his team are a hammer looking to hit the nail?

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No. Annuities aren't for everyone, even though you already own one. It's called Social Security.

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The first question you ask is: “What do I want the money to contractually do?”

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I'm going to pause so your third graders can process that.

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Second question: “When do I want those contractual guarantees to start?”

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Alright? Now, of the PILL, the primary two letters that people use are the P for principal

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protection or the I for income for life. Annuities, the four types for lifetime

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income, are the only product on the planet in the financial world that can pay for as

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long as you are breathing, regardless of how long you breathe and/or are on a respirator.

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And don't come to me, “Well, how about 30-year bonds, Stan?” No, not the same thing.

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What if artificial intelligence changes the game? You live to 125. Annuities are the only product

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that can pay for as long as you're breathing. People always say, “Well, what's the ROI on

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that income annuity, Stan?” I don't know that, player,

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until you die. Tell me when you die, and then I'm going to give you the ROI.

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In fact, I've made this offer for the last five years. No one has taken me up on it.

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I will literally come to your funeral, and I will sing the ROI or freestyle rap it to

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your family and blend in with the whole ceremony for it to work, and then let them know what the

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ROI was on your lifetime income stream. Now, in saying that, people say, “Well,

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that's rich there, Stan, because when I die, the annuity company keeps the money.”

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Well, that's stupid. Don't say that out loud, or if you're going to say it, say it in the

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bathroom as you're getting ready in the morning because you don't want anyone to hear that.

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We structure 99.99999% of all lifetime income streams so that if you die in a

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fiery Learjet crash, 100% of the money goes to the family. 100% of the money goes to the

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family. 100% of the money goes to the family. The evil annuity company doesn't keep a penny.

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So, getting back to the two questions: What do you want the money to contractually do? When do

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you want those contractual guarantees to start? If you said, “You know what, Stan? I just don't

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want to lose a penny. I want Warren Buffett's rule. Rule number one: don't lose money. Rule

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number two: don't forget rule number one.” Love that. He's 99 years old.

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I love that. You're right. That's a multi-year guarantee annuity.

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Now, Johnny Appleseed agent down the road is going to try to sell you a fixed index

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annuity and tell you it's going to do better than a multi-year guarantee annuity. The only

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reason is they get much more commission for selling the indexed annuity than the MYGA.

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The MYGA is your better play. You can buy it short-term. There's no fees, etc., just like a CD.

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But a lot of you are saying, “We really need more income, Stan.”

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And the reason you're saying that is only 9— not 90— 9% of the people in the country have

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a pension waiting on them for retirement. And most of those people are military,

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good labor union, or government workers. Everybody else has a 401(k), 403(b),

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457— translation: tax-deferred growth that you're going to eventually turn into a

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lifetime income stream. Hopefully, you're going to have to because there's no pension.

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The only pension that you have already in place is Social Security, the best inflation annuity on

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the planet. But that was never put on the planet to be the sole primary source for your lifetime

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income. It was supposed to be a supplement. But unfortunately, with 60% of senior citizens

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with less than $10,000, it is what it is. Okay? But lifetime income is where most people want

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to transfer risk to annuities— what I call building the income floor.

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What's your income floor? Good question. Social Security, required minimum distributions

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when you have to take those, because that's a payment that's coming every year as long as you're

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breathing and there's money in the account. And then you're going to have to fill in

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that blank with dividends or rental properties or whatever you're doing

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on a side hustle— selling cotton candy at the fair, you know, that type of thing,

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or candied apples. I'm dating myself. I don't think that's even— behind the camera,

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Dr. C., and to the right is the consultant, Dr. V.— I don't even think they allow that.

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I don't think that's legal anymore to give children that much sugar.

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But, you know, we survived. Yes, I'm pre-diabetic, but that's a whole other story. I'm not blaming

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the cotton candy or the candied apples. But lifetime income— you've got

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to build that income floor. And maybe annuities are that gap.

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So, let's just say I've got $3,000 worth of expenses, and everything else equates into

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$2,500. You need a $500-a-month annuity to build that income floor. We can reverse engineer that.

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You can go to my site at theannuityman.com and run quotes 24/7/365. No one will call

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you because you don't have to put in your phone number. You're going to have

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to put in your email because we're going to email you all the quotes for your records.

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Now, one last thing. We're talking about fixed annuities.

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Because we're talking about lifetime income, on top of that: How do we solve for inflation?

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Because Johnny Appleseed agent is going to tell you they have a product that adjusts

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for inflation. They are full of crap. They're a crap sandwich looking for a commission, okay?

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There is no product that magically solves for inflation, okay?

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What we do is, at the time you need to fill that gap, we do a

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reverse-engineered quote to solve for that. You can reach me anytime. Email direct:

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[email protected]. Don't be scared. It's just a typewriter— typewriter? It's just a

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keyboard. Gosh, I'm dating myself. But yeah, just shoot me an email:

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[email protected]. Go to my site at theannuityman.com and look for anything there.

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I've written books on all this stuff for free. And if you're nice to us, I might even send you

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one of these hats. But you've got to be nice. You've got to email me direct for that one.

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So, with that being said, who buys a fixed annuity? It's bigger than that. The two questions

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and the PILL, and then contact us and we'll help you get across the finish line if that's the goal.

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Do me one favor. I've got a video above me— spinning clock. You're saying, “Stan,

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how'd you do that?” I'm a technology wizard, in addition to being Stan the Annuity Man.

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But that video is talking about lifetime income, but it's also talking about how

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artificial intelligence is going to change the game with lifetime income

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sooner than later in the annuity space. I'm not Democrat. I'm not Republican. I'm

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not libertarian. I'm not communist. I'm not socialist. I'm contractual.

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You own an annuity for what it will do, not what it might do.

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I'm Stan the Annuity Man. See you next time.