Why You Should Never Annuitize a MYGA: Shootin’ It Straight With Stan

0:00
Welcome to Shooting It Straight with

0:01
Stan. I'm your host Stan the Annuity

0:03
Man, America's annuity agent, licensed

0:05
in all 50 states in Puerto Rico. The

0:06
founder of CGO contractual guarantees

0:08
only, which means you only own an

0:11
annuity for what it will do, not what it

0:14
might do. Title of the of the speech

0:17
today of the topic today is why you

0:20
should never ever annuititize a MIGA. A

0:24
MIGA is a multi-year guarantee annuity.

0:27
It's the annuity industry's version of a

0:28
CD. Go to my site, you can see live feed

0:31
of the best MIGA rates for your state.

0:32
You can download a MIGA owners manual.

0:34
If you stay on this YouTube channel, you

0:36
can watch a quatrillion MA videos that

0:39
I've done. But but you should never

0:42
annuitize a MA. And annuitization,

0:44
annuitize means to create payments. So a

0:48
MA is a principal protection product.

0:49
You can take interest off the top, never

0:51
touch the principal, or you can let it

0:52
grow and compound tax deferred. But

0:55
every deferred annuity has an

0:57
annuitization feature which means that

0:59
you can convert it at some point in time

1:02
into a lifetime income stream. In other

1:04
words, you can convert it from a MGA to

1:07
a SPIA single premium immediate annuity

1:09
which is the a lifetime income stream

1:11
annuity.

1:13
So the MIGA company will give you that

1:16
alternative of that choice. In in fact

1:18
in your policy when you get it, you're

1:20
going to use us. We're going to take you

1:22
through the process. you're going to buy

1:23
a MIGA if you want principal protection.

1:25
But inside that policy, you'll see

1:27
annuitization tables like if you decided

1:30
to turn it in to a lifetime income

1:32
stream.

1:34
Never do that ever, ever, ever, ever,

1:37
ever because

1:40
99.9999%

1:42
of the time, I I should say 100 because

1:44
it is, but I'm going to say 99.999 to

1:46
make everyone happy. my my people that

1:49
are around me, the handlers.

1:52
The quote from the MA for for an immed

1:54
to turn it into an immediate annuity is

1:56
horrific. It's not competitive.

1:59
So, I've come up with a a strategy

2:00
called MAS to SPIA. Some people say, you

2:03
know what, Stan, I need income five

2:05
years from now, but I don't want I I

2:06
don't want to lose any money right now.

2:08
So, we buy a MA principal protection

2:10
protected get an annual interest rate

2:12
for those five years. And at the end of

2:14
the five years when that MIGA has

2:16
matured and there's no surrender

2:17
charges, we do what's called a 1035

2:20
non-t taxable event doesn't trigger any

2:22
taxes transfer to the highest paying

2:25
immediate annuity after quoting all

2:26
carriers A+ or better in the immediate

2:29
annuity space.

2:33
That's what makes sense.

2:35
That's what works and that's the way to

2:37
get the highest contractual guarantee.

2:39
Now, the issuing MIGA company, they

2:42
would love for you to annuitize that

2:44
MIGA with them because the payout that

2:45
they're going to give you is horrific in

2:48
most cases. It's not competitive if you

2:50
do an applesto apples quote with the

2:52
MIGA annuization quote versus Stan the

2:55
annuity man and team quoting all

2:57
carriers for the highest contractual

2:59
guaranteed single premium immediate

3:01
annuity quote.

3:04
It's one more step, but it's a step that

3:07
is in your financial favor. It's a step

3:10
that we will do for you. It's a step

3:11
that we will handle the paperwork. It's

3:13
a step that's turnkey for you through

3:15
the annuity man.

3:19
But never ever and and this goes with

3:22
this goes for any deferred annuity,

3:24
variable annuities, fixed index

3:26
annuities, MA annuities, traditional

3:29
fixed annuities, whatever it is,

3:31
whatever is deferring, never ever ever

3:34
ever

3:36
annuitize internally

3:40
unless I I guess there's a 1% chance

3:43
that that rate was from 1963 when you

3:46
you're you bought the variable, I

3:48
And that annuitization rate is really

3:50
good. And then you're going to have to

3:52
we're going to have to prove it by

3:54
quoting all carriers and doing an

3:55
applesto apples quote and showing it

3:57
side by side and proving it to both me

4:00
and you that you're getting the highest

4:02
contractual guarantee. That's all I care

4:04
about. If you can prove that

4:06
annuitization inside of your deferred

4:08
type annuity MA variable indexed is

4:11
higher than the immediate annuity I can

4:13
quote with all immediate annuity

4:14
carriers, then have at it. lock it in

4:17
player.

4:18
But I'm just going to tell you it's not

4:20
going to happen. And the annuity

4:22
companies design it that way. They don't

4:24
want you to Well, let's put it like

4:26
this. They're not real thrilled about

4:28
you annuitizing to MGA, but if you want

4:30
to go ahead and do that, they'll give

4:31
you a crappy rate. They'll do that. No

4:33
problem. They'll make money and build

4:35
another building and put your name on

4:36
it.

4:38
But with annuities, I don't care what

4:41
type, you're buying them for the

4:42
contractual guarantees. Period.

4:46
So, if you're buying it for the

4:47
contractual guarantees, you're quoting

4:48
all carriers for the highest number. For

4:52
lifetime income, it's A+ or better. Do

4:54
we care about the name of the company?

4:55
No. Do we care about the name of the

4:57
product? No. Do we care about the

4:58
brochure? No. Do we care about where

5:02
they're located? Headquarters? No. We

5:04
care about the rating and the highest

5:06
number. For lifetime income, A+ or

5:08
better and the highest number.

5:13
A lot of the migas that we recommend um

5:15
that's not for lectto income that's for

5:17
a specific period of time. I always say

5:18
we marry we marry the lectto income. We

5:21
date the mas. There are times that we'll

5:24
recommend you know something less than a

5:26
plus a a minus sometimes b plus carriers

5:30
because they have a high interest rate

5:32
for that specific period of time. And my

5:33
financial analysis and recommendation is

5:36
based upon the fact that I sign off on

5:38
them being able to guarantee that rate

5:40
for that specific term.

5:46
What I don't want you to do is be lazy.

5:48
Now, what I've done at my my company

5:50
here in Las Vegas, that's where the

5:52
headquarters at. Everybody in my B

5:54
building is licensed in all 50 states.

5:56
They're not on commission. They're here

5:57
to help. And I've put this together in a

6:00
very big way. We are the grill in the

6:02
room direct to consumer. We are the

6:04
biggest. We're the biggest in sales.

6:06
We're the biggest brains. We have the

6:08
biggest employ staff.

6:11
We're the biggest. Okay. So, what you do

6:13
is you use us. Don't be lazy. Use us.

6:16
Hey, I've got this MA. I'm thinking

6:17
about creating a lifetime income stream.

6:19
Can you quote the the highest

6:21
contractual guarantees for me? Yes, we

6:23
can. Or you can go to my site and do it

6:24
yourself.

6:28
But don't be lazy. Don't be lazy and

6:30
allow that deferred annuity, index

6:33
annuity, variable annuity, MA,

6:36
just have them annuitize it. Don't do

6:38
that. And don't have some agent advisor

6:39
to tell you to do that because they

6:41
don't know what they're doing.

6:43
MA to SPIA is a great strategy.

6:47
Principal protection with guaranteed

6:49
interest rate for a specific period of

6:51
time and then transition and transfer to

6:53
a lifetime income stream. Fantastic. But

6:56
we have to go quote all carriers. You

6:58
can't annuize internally with the MA.

7:02
Okay.

7:03
You're saying, Stan, you're really

7:05
passionate about a MIGA and

7:06
annuitization. No, what I'm passionate

7:08
about is you not making a mistake. What

7:11
I'm passionate about is you not falling

7:12
for a crap sales pitch. What I'm

7:14
passionate about is you being able to

7:16
tap into 30 plus years of experience and

7:19
the best team in the business that only

7:21
look at contractual guarantees. We're

7:23
not selling the dream.

7:25
We're showing you the contractual

7:27
realities and hopefully those

7:28
contractual realities make sense to you.

7:32
All right, pretty basic. So, MA to SPIA,

7:35
yes. MA to annuitization within the MA.

7:37
Uh-uh. No.

7:40
All right. My name is Stan the annuity

7:43
man. That shooting is straight with

7:44
Stan. Yes, I know. Very colorful today,

7:47
but you know, that's how I roll. I try

7:48
to blend in as best I can. Doesn't work

7:52
out too well. See you next