Why People Hate Fixed Annuities

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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 of Puerto Rico, founder of

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contractual guarantees only, which is

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you own an annuity for what it will do,

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not what it might do. Today's topic is

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why do people still hate or hate fixed

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annuities? I'm going to broaden the

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subject. Why do people still hate

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annuities?

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Simple answer after this.

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So, why do people still hate fixed

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annuities? Okay, so let's go through

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fixed annuities

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and break this down. First of all, let's

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go through the other ones. The other

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ones that are securities.

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Um, there's variable annuities and

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there's registered index link index

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linked annuities. So on those, you know,

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variable annuities typically have an

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average annual fee of 3% for the life of

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the policy. That's reason enough to hate

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them. So I understand that. And they're

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just mutual funds. The industry calls

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them separate accounts for whatever

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reason. Um and you're better off just

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going and buying mutual funds, my

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opinion, unless you need tax deferred

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growth, but there there's other ways to

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do it. Registered index linked annuities

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are the newest um foray. How about that?

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How about that? into the annuity uh

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space, newest product. And it's nothing

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more than a direct assault on the

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indexed annuity side because the index

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annuity side was selling so much money

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and taking money from the brokerage

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firms. The brokerage firms handle all

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the money majority and they're trying to

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figure out how to keep it registered

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index linked annuities. Tell you this

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right now, you've heard it for me

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before. If you haven't, this is new to

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you. Thank you for watching. Never buy

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an annuity for growth.

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Never buy an annuity for potential

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returns, hypothetical returns,

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theoretical returns.

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Never buy that. If you're going to do

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hypothetical theoretical, go buy the

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market player and get all the upside and

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don't pay the fee.

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In today's world, you certainly can do

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that. So, why do people then hate fixed

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annuities?

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Fixed annuities. Let's go through the

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primary types. Multi-year guarantee

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annuities. That's the annuity industry

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version of a CD. Don't make it any more

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difficult than that, please.

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All right. You buy You buy the MA. You

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buy the term you want. 1 2 3 4 5 6 7 8 9

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10. Your choice. And then they the

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annuity company, they're going to pay a

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specific interest rate for that specific

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period of time. No fluctuation,

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contractual guarantees.

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Do you hate CDs?

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Of course you don't. You do not hate

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CDs. So guess what? You don't hate

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Migas. And that's a fixed annuity. I

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actually call Miggas annuity bonds

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because it's the issuing annuity

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company, life insurance company issuing

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annuities. You're buying a guaranteed

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interest rate and they're backing it up.

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I know what I'm talking about. used to

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be with Morgan Stanley, Deanwood or

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Payne Weber, UBS used to manage bonds at

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a really high level. So I get it and I

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come out here and I go,

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"Yeah, we we call uh Migas annuity type

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CDs because that's the correlation,

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but they're also in my opinion annuity

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bonds."

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You can't hate that. You don't hate

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that. All right. So, let's go through

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the um lifetime income products on the

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fixed side. Single premium immediate

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annuities, deferred income annuities,

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qualified longevity annuity contracts

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that can only be used in your

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traditional IRA. All of those are for

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lifetime income. All are for lifetime

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income. They're transfer of risk

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products to the annuity company. The pay

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you pay you is for as long as you're

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breathing. And if you set it up joint

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with your spouse for as long as one of

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you is our breathing or on a respirator,

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there's no ROI until you die. You answer

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two questions with us. What do you want

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the money to contractually do? When do

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you want those contractual guarantees to

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start? And the acronym that I use to

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that we solve for and that only

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annuities only solve for is pill,

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principal protection, income for life,

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legacy, and long-term care. There's no G

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for growth. There's no M for market.

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There's no R for arasable right of

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return. None of that. There's no there's

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no B for bonus

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pill, principal protection, anchor for

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life, legacy, and long-term care. So,

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let's look at a correlation.

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Social Security is the best inflation

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annuity on the planet that you currently

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own. I know you're saying, "Wait, there

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ain't no there no way that's an annuity.

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I hate annuities. And if I hate

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annuities, I wouldn't have an annuity."

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You have an annuity. Social Security.

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Guess what that is modeled after?

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Single premium immediate annuities that

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started in the Roman times as a pension

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payment to the beautiful Roman soldiers

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and their families and been sold in this

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country for over 200 years. And you can

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structure it so that the annuity company

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never keeps a penny even though they're

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on the hook to pay. A lot of people out

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there going, "Well, shoot. When you die,

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the bus hits me like day two, money goes

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poof, Stan." No, it doesn't, Fred.

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We can structure that backs stop so that

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100% of the money goes goes to the

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beneficiaries, not the annuity company.

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Even they're even though they're on the

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hook to pay. SPAS

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are the foundational product for DAS. A

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SPIA. If you turn on the income within

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one year, it's a SPIA. Once it goes past

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two years, it magically becomes a DIA.

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Same product. And qualified longevity

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annuity contracts use in IAS are DAS.

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It's the same product which is the same

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as social security.

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Still hate fixed annuities. Do you

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hypocrite?

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Hypocrite much? You're going to too many

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cocktail parties and you drink drinking

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too much tequila you know I said it

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wrong but I kind of fit something in

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there.

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So let's get to the one

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that has reason to hate. And it's not

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the product's fault. It's not the

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carrier's fault. It's the agent army

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nonsense that's going out there. The

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sales pitch. It's fixed index annuities

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put on the planet in 1995 to complete

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compete with CD returns to compete with

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CD

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returns. They're not market products.

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That's the one because that's the one

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that has the upfront bonus and the

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moving parts. Mr. Jones, you can get a

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26% upfront bonus. You get market upside

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with no downside. You get free long-term

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care. And you get you get it all. You

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get it all. It's one product, one

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solution. No, [sighs]

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no, no, no. The reason the the steak

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dinner invitation in the mail that comes

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to you is to a steak place you'd never

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eat at, it's because it's the highest

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commission product out there. Doesn't

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make it a bad product. I'm to me it's a

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CD product. But if you said, "Hey, Stan,

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I want principal protection. I want a

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guarantee." That's not an index annuity

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because the returns aren't guaranteed.

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Now, we use index annuities for one

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reason and sell more than probably

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anybody. I don't know the stats, but we

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sell more than anybody on anything.

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No one agent in the country. And I got a

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full team in Las Vegas under one roof.

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Everyone's under one roof. They're all

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licensed. And they're not on commission.

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They're not hammers looking for nails.

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But we use index annuities as an

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efficient and cost-effective delivery

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system for the income writer guarantees.

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The income writers attached to index

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annuities. That's the contractual

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guarantee. We don't talk about this over

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here,

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Sam. Are you telling me you don't talk

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about caps and spreads and participation

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rates and those combinations? No. No. I

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I I look at I would rather us talk about

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the lines on our hand, the um the

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inversion or the outversion of our

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navls. I'd rather do that. It makes more

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sense. Why, Stan? Why do you say?

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Because with the vast majority of index

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annuities, the annuity company can

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change the rules on how the gains are

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calculated. It's a it's a CD product.

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Please stop trying to get oil out of a

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brick. About cuss there. Sorry about

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that. It just makes me mad how these

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things are pitched. And upfront bonus is

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candy for the stupid guy called me the

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other day and he goes, "Hey St.

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Get a 50% upfront bonus." I'm like, "How

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many pennies are there in the dollar,

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Ernie?" 100. So they're not 150. Not the

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last time I checked. Okay. Okay. So, the

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100 pennings in the dollar, they're

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giving you 50% bonus. Don't you think

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they might be taking something away or

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adjusting something within the contract

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maybe to get you? You think? Yes.

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So, you should not hate fixed annuities.

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You should hate how indexed annuities

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are sold, but properly placed to deliver

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the income writer. It makes total sense.

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Do me a favor. Go to my site at

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theannuityman.com.

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Run quotes. If you want to talk index

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annuities, schedule a call. I'll go down

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that rabbit hole with you. Email me

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stantheanuityman.com.

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Okay.

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Use us. You know, we're not hammers

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looking for nails. We're reactive, not

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proactive. Which is different in the

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annuity industry. I did that for a

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reason because I don't like going to car

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dealerships and Johnny car salesman

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going, "You want to buy?"

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Like, "Leave me alone." Okay. When I

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find the car, I'll stroke the check for

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it, but it won't be with you. All right.

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One last thing, spending clock, go to

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this video.

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It's one I did about how how annuities

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can address inflation properly,

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pragmatically,

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mathematically, and contractually. Not

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some pie in the sky nonsense player. We

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don't do that. We don't sell dreams. We

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sell contractual realities. Isn't this

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fun? Yeah, this is fun. That's why I do

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it. I'm getting a [snorts] little stiff.

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You know, my wife saw one the other day.

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She goes, "Stand straight." I said,

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"Baby, we've been married 38 years. I'm

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a hunch. All right. I'm a hunch over and

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at the end of the day, I'll be a walking

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you. So, get used to it. My name is Stan

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the Annuity Man. See you next time.