“Fun With Annuities” The Annuity Man Podcast: Recent Episodes
The Annuity Man
Fun With Annuities® Podcast is hosted by America’s Annuity Agent, Stan The Annuity Man®. Hear brutal annuity facts with no sales pitches from the top independent agent in the country, licensed in all 50 states. Author of 7 books, Stan dives deep on all annuity types and strategies. It’s fun, learning the contractual truths on how annuities actually work and if they’ll fit your personal retirement lifestyle. Listen in on how you can be livin’ the reality, not the dream.
In this episode, The Annuity Man discussed:
- Solving for longevity risk
- Four products for lifetime income
- Focusing on guarantees
Key Takeaways:
- There is no ROI until you die. Up until then, it’s a transfer of risk to the annuity company to solve for longevity risk. The longevity risk is the fear that you’ll outlive your money. An annuity will pay as long as you’re breathing, even if you are on a ventilator.
- The annuity industry has four major types: Single Premium Immediate Annuities, Deferred Income Annuities, Qualified Longevity Annuity Contracts, and Income Riders. All four provide a lifetime stream as long as you are breathing or if you set it as joint-life, as long as you or your spouse is breathing.
- Forget all the shiny things that agents try to make you fixate on. Focus on the guarantee that you will get paid as long as you’re breathing. You could also structure the contract so that your money goes to your beneficiaries when you die.
"The good thing about turning on lifetime income stream and transferring that risk to an annuity company to pay for as long as you're breathing or on a ventilator is that it's turnkey. And there will come a point if we live long enough that we will need that income to be turnkey." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Annuities with a push-comes-to-shove feature
- Advantages of liquidity
- Balance between potential and liquidity
- Why flexibility matters in annuity planning
- Meeting diverse financial needs through annuity design
Key Takeaways:
- Certain annuity products, such as the MYGA (Multi-Year Guaranteed Annuity), fixed-rate annuity, and CD annuity, offer a liquidity option known as the "push-comes-to-shove" feature, allowing penalty-free withdrawals in case of emergencies.
- The "push-comes-to-shove" feature in annuities provides access to funds when faced with unexpected financial circumstances, offering peace of mind and flexibility.
- By allowing penalty-free withdrawals, these annuity products cater to individuals seeking a balance between growth potential and liquidity, ensuring financial security during unforeseen events.
- The inclusion of the "push-comes-to-shove" feature in annuity products reflects an understanding of the need for accessible funds, particularly in times of crisis or emergencies.
- Annuity providers recognize the importance of offering products that not only provide long-term growth opportunities but also address the potential need for immediate access to funds, catering to the diverse financial needs of their clients.
"Annuities that provide you the liquidity, either taking out interest or 5% or 10%, those are push-comes-to-shove annuities." — Stan The Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Annuity companies are more regulated than banks
- Features that protect the annuity industry
- There is no run on annuities
- How the banking crisis will affect the annuity industry
Key Takeaways:
- Annuity companies are more regulated than banks, with features like surrender charges and market value adjustments that prevent runs on the company.
- Annuity companies are required to invest in investment-grade bonds, providing stability, unlike banks that had to sell bonds during the recent crisis.
- Lifetime income products offered by annuity companies, such as SPIAs and DIAs, are irrevocable and provide a guaranteed income stream for life, preventing panicked withdrawals.
- The National Association of Insurance Commissioners (NAIC) plays a crucial role in overseeing annuity companies and protecting consumers, and the recent banking crisis will likely lead to increased oversight of the annuity industry.
"The bottom line: the annuity industry has put in place features to not only protect you, the consumer, which is their ultimate goal, period, but to protect the industry as well." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Why would you want to stop taking in income?
- Three types of irrevocable lifetime income teams
- Light-switch Annuity Products
Key Takeaways:
- There a myriad reasons why you would want to stop taking income, and there are annuity reasons that allow for this. One reason could be if tax laws change in the future and you want to shut down the income stream to not getting taxed, or when you want the income to accumulate for your death benefit.
- The three types of irrevocable income lifetime income streams are Single Premium Immediate Annuity, Deferred Income Annuity, and Qualified Longevity Annuity Contracts.
- A Multi-Year Guaranteed Annuity is the annuity industry version of a CD. It allows you to take out interest while keeping the capital intact, and it’s a light-switch annuity product. Another light-switch product is an income rider attached to an indexed annuity.
"There are annuities that aren't light switch annuities: SPIAs, DIAs, and QLACs - but there are annuities that are light switch for income, MYGAS, and then income riders which are lifetime income products." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The fear of running out of money
- Solving the fear of running out
- Is FORO more important the FOMO?
- Using math to address FORO
Key Takeaways:
- Most of us didn’t grow rich. We saw what it was like to live in scarcity, and today, many of us still carry those scars. Despite having millions or a portion of that, some people might still feel poor and fear running out of money.
- If you’re worried about running out of money or won’t have enough in your retirement, consider looking into strategies that provide guaranteed lifetime income.
- The fear of running out is more important to address than the fear of missing out, especially for chapter two of your life. In addressing FORO with annuities, we’re solving for lifetime income or protecting the principal and peeling off the interest.
- One more way to address FORO is to do some math and remove the emotionally-charged memories from the equation. Annuities are math; they’re not hypotheticals.
"The fear of running out can be solved with annuities in combination with the best annuity you have on the planet, which is Social Security and principal protection products and contractual guarantees. We can solve for the scars of scarcity." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The value of annuities for lifetime income planning
- Laddering strategy with annuities
- Placing an annuity inside a trust
Key Takeaways:
- When it comes to planning for lifetime income, annuities can be a valuable tool. However, it's essential to approach annuities with strategies that allow for flexibility and the ability to adapt to changing circumstances.
- By purchasing multiple annuities with different start dates, you can create a steady stream of income that aligns with your needs over time. This approach, called laddering, allows you to adjust your income as your requirements change, providing a level of flexibility that a single annuity may not offer.
- By placing an annuity inside a trust, you can maintain control over the asset while still benefiting from the lifetime income it provides. This strategy can be particularly useful for those who want to ensure their assets are managed according to their wishes, even if they become incapacitated.
"It's a keep your powder dry strategy, meaning that you can go into this with a plan in place for future income needs in the future. You know exactly to the penny what that's going to be. But if something changes between now and then, you can get all your money back because the underlying value walk away money is with that Indexed Annuity, which is a Fixed Annuity." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Focusing on contractual guarantees
- What annuities solve for
- Common annuity pitch traps
Key Takeaways:
- Avoid non-guaranteed hypotheticals and focus on contractual guarantees when considering annuities.
- Buy annuities for specific needs like principal protection, income, long-term care, or legacy, not for market returns.
- Be wary of urgency sales pitches, steak dinner seminars, advisors behaving like friends, backdated performance illustrations, promised market participation with no downside, upfront bonuses, and showing other clients' accounts as proof of returns.
"Do not fall for market upside but no downside. Do not fall for market participation with principal protection. All those yummy sales pitches that look like they should go on a t-shirt. Do not fall for that. Do not fall for the upfront bonus." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- An overview of Deferred Income Annuities
- Finding the best fit
- Income Riders attached to Indexed Annuities
Key Takeaways:
- DIAs are essentially single-premium immediate annuities deferred past one year. It has no moving parts, no annual fees, and no market attachment, making it a straight transfer of risk for lifetime income. DIAs can be used in Roth and traditional IRAs, and are taxed based on the account type.
- DIAs are efficient, no-cost, no-fee transfer-risk pension products that can be deferred for up to 40 years. Compare DIAs and income riders on Fixed and Indexed Annuities to find the best fit based on contractual guarantees and flexibility.
- Income Riders attached to Indexed Annuities provide future income needs. Income Riders are separate ledgers that cannot be cashed in or transferred, but can be used to determine a lifetime income stream. They offer flexibility, such as a 10% free withdrawal annually, but this can disrupt the income rider guarantee.
- Compare both DIAs and income riders using the four filters: contractual guarantees, carrier ratings, flexibility, and fees.
"Don't fall for sales pitches. These are contractually guaranteed commodity products. There's not one that's better than the other, and if you use those four filters, you're going to make a good decision." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The value of annuities for lifetime income planning
- Laddering strategy with annuities
- Placing an annuity inside a trust
Key Takeaways:
- When it comes to planning for lifetime income, annuities can be a valuable tool. However, it's essential to approach annuities with strategies that allow for flexibility and the ability to adapt to changing circumstances.
- By purchasing multiple annuities with different start dates, you can create a steady stream of income that aligns with your needs over time. This approach, called laddering, allows you to adjust your income as your requirements change, providing a level of flexibility that a single annuity may not offer.
- By placing an annuity inside a trust, you can maintain control over the asset while still benefiting from the lifetime income it provides. This strategy can be particularly useful for those who want to ensure their assets are managed according to their wishes, even if they become incapacitated.
"It's a keep your powder dry strategy, meaning that you can go into this with a plan in place for future income needs in the future. You know exactly to the penny what that's going to be. But if something changes between now and then, you can get all your money back because the underlying value walk away money is with that Indexed Annuity, which is a Fixed Annuity." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Should you purchase I Bonds?
- Treasuries are as safe as it gets
- Five places to put your money
- Inflation is personal
Key Takeaways:
- Purchasing I Bonds is a no-brainer. Go to treasurydirect.gov to buy direct from the treasury I Bonds.
- Treasuries are as safe as it gets because they can tax us and confiscate our money to pay them off, and that would happen if we needed to do that. The downside to I Bonds is that they don’t allow you to put as much money in them.
- There are only five legitimate places to put your money that protects the principal and that you’re not going to lose a dime, and you’re going to get an interest rate. Those five are money markets, CDs, fixed-rate annuities - also called MYGAs, treasuries, and Triple A-Triple A insured municipal bonds.
- Inflation is personal. Don’t get too caught up on inflation because most people in retirement will not be affected that much by it. Ask yourself if you’re being affected by it, or are you overplanning?
"If it’s a no-brainer, then it’s a no-brainer, and I-Bonds are the ultimate no-brainer. You can do it every year, so why not put it on your calendar and do it every year? It just makes sense. " — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Traditional laddering with MYGAs
- What is “reversing”?
- Traditional laddering and reversing
Key Takeaways:
- You do a traditional 3-year, 4-year. 5-year ladder if you are hoping that rates will go higher. It’s a strategy you use when you want to have money as the rates are rising so that you can attach yourself and lock yourself in with those higher rates.
- Reversing is the opposite of laddering; you lock in the MYGA for 10, 9, 7, or 10, 7, or 5 years because the rates are falling. This is also a great strategy to use with MYGAs since MYGAs are not callable, the rates are locked in.
- If you are undecided whether you should ladder or reverse, you can put half your money in one and half in the other to get a more balanced outcome. What’s important is that you should have some of your money be not callable.
"A lot of times when Powell raises interest rates, the annuity industry yawns. You can't time it; there’s no sweet spot. There's no arbitrage moment." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Protecting your beneficiary from dumb choices
- How Stan lovingly handcuffs his beneficiaries
- Handcuffing your loved ones is good for them
Key Takeaways:
- Lovingly handcuffing your beneficiaries with annuity guarantees protects them from making dumb decisions with lump sums.
- Stan has written in the trust that when he dies, there will be a lifetime income annuity purchase for each of his daughters, guaranteed to pay them for the rest of their life as long as they are breathing.
- Your beneficiaries might not react positively to you giving them income instead of a lump sum, but handcuffing them contractually is the right thing to do and it will be good for them in the long run.
"Death is not a good strategy, because you can only use it once. But wouldn't it be good to know regardless of what happens, that they're taken care of? And that lifetime income stream is going to be in place?" — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- State guaranty funds
- The true safety of the industry
- Life insurance companies are more regulated
- Assigning unused money to beneficiaries
Key Takeaways:
- If you look at the state guaranty fund, each state has a specific rule in place to protect you and your money in case something happens to the carrier.
- You should be buying the claims-paying ability of the life insurance company from the standpoint of safety. The true safety of the annuity industry is the industry policing itself.
- Life insurance companies are not smarter than banks, they’re just more regulated. The company is handcuffed from making financially stupid decisions.
- You can structure an annuity so that 100% of any unused money goes to your family or beneficiaries.
"You can protect yourself and your hard-earned money in a myriad of ways. You can protect it by buying very good companies, by buying underneath the state guarantee fund within your state, and by structuring the policy so that 100% of any unused money goes to your family or beneficiaries." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Retirement planning is not a game
- Asking hard questions
- Diversification and limits
- Two key questions to ask
Key Takeaways:
- Stan emphasizes that choosing an annuity is not about sales tactics or commissions, but about protecting your life's hard-earned savings and creating a secure retirement strategy.
- Always ask detailed questions about the annuity product, understand its contractual guarantees, and don't buy something you can't fully comprehend. If an advisor can't explain it clearly, walk away.
- Don't put more than 50-60% of your investable assets into annuities. Shop across multiple carriers for the best contractual guarantees and focus on your specific needs using the PILL framework (Principal protection, Income for life, Legacy, Long-term care).
- When considering annuities, focus solely on the contractual guarantees. Ask two key questions: "What do you want the money to contractually do?" and "When do you want those contractual guarantees to start?" This approach helps create a predictable, surprise-free retirement income strategy.
"Every single time when someone's pitching you something, I want you to think to yourself, ‘this is not a game. Let me ask hard questions. Let me understand everything before I make a final decision on this hard earned money.’” — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Income Riders vs. Single Premium Immediate Annuities (SPIA)
- Comparison Process
- Strict rules
- Probability of Improvement
Key Takeaways:
- Stan explains that in some cases, you can potentially swap an income rider from a variable or indexed annuity for a SPIA with a higher guaranteed lifetime income stream.
- To determine if a transfer makes sense, you must: compare the income rider amount, use the accumulation value (not the income rider value), ensure the new annuity provides a higher contractual guarantee, verify the transfer is a non-taxable event
- The annuity industry has strict rules to prevent unnecessary "flipping" of annuities. Any transfer must demonstrate a clear financial benefit to the consumer, with a side-by-side comparison showing a higher contractual guarantee.
- Stan estimates that about 70% of the time, you won't beat the existing income rider by transferring to a SPIA. However, he recommends checking to ensure you have the highest possible contractual guarantee.
"The annuity industry does not want agents and advisors out there transferring an account to create a commission for the agent or advisor. Whatever you think about the annuity industry, they really do care about the consumer." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Annuities were never meant to be a market product
- The complexity of index options
- Misleading sales pitches to avoid listening to
- Annuities solve for your specific goals
Key Takeaways:
- Fixed indexed annuities were created in 1995 to compete with CD returns, not to provide true market participation. They are fixed annuities issued by life insurance companies, regulated at the state level, and not securities.
- There are over 750 index option choices and 50+ indices, with complex calculation methods that can change annually. Most index options are one-year long, and the insurance company can modify terms at each anniversary.
- Common sales pitches like "market upside with no downside" are misleading. Upfront bonuses are essentially marketing tricks, and claims about free long-term care are inaccurate. The most legitimate use is for guaranteed Income Riders.
- Indexed Annuities should be bought for principal protection, CD-like returns, or future income streams - not for growth. Always solve for specific financial goals and shop for the highest contractual guarantees across carriers.
"If you buy the dream, you're going to own the contractual reality, which means that if you're going to buy them, buy the contractual guarantee." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- You can’t time annuities
- Annuities provide guarantees
- The cost of waiting
- Annuities are not bought for market growth
Key Takeaways:
- You can't time the market when it comes to annuities - there is no "perfect" time to buy.
- Annuities can provide different contractual guarantees like principal protection, lifetime income, legacy, and long-term care coverage.
- There is a cost to waiting to purchase an annuity, as you may miss out on payments.
- Do not buy annuities for market growth, but rather for the contractual guarantees they provide.
"There is a cost of waiting. Does that cost pay off? If you wait, it can pay off for lifetime income because you're older, but you have to factor in the payments that you missed while you were waiting to get the higher payment." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Gap Filling and Annuity Options:
- Social Security Timing and Considerations:
- Balancing Emotional and Financial Well-being:
- Flexibility and Lifetime Guarantees with Annuities:
Key Takeaways:
- You need to find ways to cover your income needs before Social Security kicks in, typically from ages 62 to 70. Consider using strategies like Single Premium Immediate Annuities (SPIAs) or Multi-Year Guarantee Annuities (MYGAs) to provide contractual income during this gap. SPIAs pay a guaranteed income for a specific term, while MYGAs offer a fixed interest rate with the potential to preserve your principal.
- When deciding whether to take Social Security at age 65 or 70, consider your personal circumstances. Factor in the payments you'll miss while waiting for a higher payout and how long it will take to recoup those amounts. Think about living for the present and enjoying your money now rather than solely focusing on maximizing every penny.
- Reflect on the emotional and lifestyle aspects of your financial planning. Prioritize your personal happiness and well-being by doing things for yourself and living life to the fullest. Stan encourages turning on the lifetime income stream sooner rather than later, especially if you've spent a lifetime scrimping and saving.
- Use annuities to provide both lifetime guarantees and gap-filling strategies. Explore these options based on your specific needs and circumstances to bridge the gap between now and when Social Security kicks in. Consider both period certain Immediate Annuities for guaranteed income over a specific term and MYGAs for interest income while preserving your principal.
"If it sounds too good to be true, it is. Every single time. There are limitations to every strategy. You just have to weigh the good and the bad to see if it makes sense." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Retirement planning essentials
- Achieving financial security in retirement
- Determining a lifestyle number
Key Takeaways:
- Lifestyle income guarantees are crucial for retirement planning, allowing retirees to live their desired lifestyle without worrying about market fluctuations or economic uncertainties.
- Annuities are the only financial products that can provide contractually guaranteed lifetime income, which can be combined with other sources like Social Security and pensions to achieve financial security.
- It's important to determine a "lifestyle number" - the monthly income needed to live comfortably and enjoy retirement, beyond just covering basic expenses. A combination of financial products can be used to achieve this lifestyle income guarantee.
"At the end of the day, it's about your lifestyle. It's about living chapter two of your life, and checking off all those boxes and making sure that you maximize every single day and be happy about it every day." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Annuity companies are more regulated than banks
- Features that protect the annuity industry
- There is no run on annuities
- How the banking crisis will affect the annuity industry
Key Takeaways:
- Annuity companies are more regulated than banks, with features like surrender charges and market value adjustments that prevent runs on the company.
- Annuity companies are required to invest in investment-grade bonds, providing stability, unlike banks that had to sell bonds during the recent crisis.
- Lifetime income products offered by annuity companies, such as SPIAs and DIAs, are irrevocable and provide a guaranteed income stream for life, preventing panicked withdrawals.
- The National Association of Insurance Commissioners (NAIC) plays a crucial role in overseeing annuity companies and protecting consumers, and the recent banking crisis will likely lead to increased oversight of the annuity industry.
"The bottom line: the annuity industry has put in place features to not only protect you, the consumer, which is their ultimate goal, period, but to protect the industry as well." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- 4 contractual paths to future income
- Factors that affect the suitability of a plan for your situation
- Immediate Annuities
- No free lunch
Key Takeaways:
- There are 4 main contractual paths to achieve future income: 1) Buying an immediate annuity when income is needed, 2) Using a "My Go-To SPIA" Fixed-Rate Annuity, 3) Purchasing a deferred income annuity (DIA), and 4) Buying an Indexed Annuity with an Income Rider.
- Each of the 4 options has its own advantages and disadvantages, and the best choice depends on the individual's specific needs, goals, and preferences around factors like control, flexibility, and predictability of the income stream.
- Immediate annuities are straightforward "commodity" products that simply transfer risk, while DIAs provide a guaranteed future income stream that can be calculated in advance. Income riders on indexed annuities offer flexibility but come with tradeoffs.
- Understand the nuances of each option and don’t fall for overly-optimistic sales pitches, as there is no "free lunch" when it comes to annuities.
"If it sounds too good to be true, it is every single time." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Should you complain about inflation?
- The people actually impacted by inflation
- Annuity products that provide solutions for inflation
- Avoiding media influence regarding inflation
Key Takeaways:
- Stop complaining about inflation. For those who have worked hard and saved, higher prices for groceries and gas are manageable. Focus on living your life to the fullest rather than worrying about inflation.
- Recognize the reality that 60% of Americans are living paycheck-to-paycheck and are severely impacted by inflation. While it's understandable to be concerned, those with significant savings should not let inflation dominate their financial decisions.
- Be wary of annuity products that claim to provide solutions for inflation. Annuity companies do not give anything away, and any potential inflation adjustments come with significantly reduced initial payments.
- Stop being influenced by constant media coverage of inflation. Inflation is a long-term issue that will always be present, but it should not dictate your daily life and enjoyment. Focus on your health, family, and living in the present.
"Buy the eggs, buy the milk, fill the cart with gas, do the best you can and go live your life to the fullest every single day. Buy nice stuff if you can afford it. Buy nice food if you can afford it. But don’t complain about it while you’re doing it." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Using annuities to create a pension
- The best inflation annuity
- Focusing on guarantees
Key Takeaways:
- Annuities can be used to create a personal pension that provides a guaranteed lifetime income stream, similar to a traditional pension. The main annuity types discussed are Single Premium Immediate Annuities (SPIAs), Deferred Income Annuities (DIAs), Qualified Longevity Annuity Contracts (QLACs), and Income Riders.
- Social Security is considered the best inflation annuity and pension, and no commercial annuity can fully protect against inflation without significantly reducing the initial payment. Relying solely on Social Security may not be enough for many retirees.
- When evaluating annuities, the focus should be on the contractual guarantees, not hypotheticals or marketing claims. The "best" annuity is the one that provides the highest contractual guarantee tailored to the individual's specific needs and situation.
"There is no “best [annuity]”, regardless of what your agent or advisor might tell you. Best means highest contractual guarantee. Best means solving for your specific situation." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Options that annuities provide
- Living off interest
- When to annuitize
- Laddering interest rate movements
Key Takeaways:
- Annuities provide more options than just immediate lifetime income annuities. There are various types like Multi-Year Guarantee Annuities, Index Annuities, Variable Annuities, and Deferred Income Annuities that can be used for different income needs.
- With current interest rates, it may be possible to live off the interest from a portfolio of fixed-rate annuities and CDs without having to annuitize and lock in a lifetime income stream. This can provide more flexibility.
- Annuitization should be viewed as a last resort option if interest rates drop significantly and living off the interest is no longer sufficient. It's important to maintain a diversified approach.
- When using fixed-rate annuities and CDs for income, it's recommended to ladder the products to avoid having to time interest rate movements. This provides more stability and flexibility.
"Annuitization at this point in time, for a lot of you out there that have large sums of money, is a last resort. And we will go there if rates move down, but if they remain at these levels at the time of this tape and they go up from here, then you're going to be able to, potentially, hopefully, depending on what your income needs are, take the interest and never touch the principle." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The Annuity Pill
- Questions to ask when considering an annuity
- Annuities are contracts
Key Takeaways:
- Remember the acronym PILL, as the four primary things that annuities solve for. P stands for principal protection, I stands for income for life, the first L stands for legacy, and the other L stands for long-term care.
- When considering an annuity, ask yourself these two important questions: “What do you want the money to contractually do?” and “when do you want those contractual guarantees to start?”
- Annuities are great if you buy them only for their contractual guarantees. You own an annuity for what it will do, not what it might do so buy wisely.
"Annuities solve for four primary things: principal protection, income for life, legacy, and long-term care and if you don't need to solve for these items, then you do not need an annuity of any type. " — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Buy only what you understand
- Don’t fall for bad sales tactics
- Seeking the facts
Key Takeaways:
- Annuities should be simple and easily understandable; if not, avoid purchasing them.
- Don't fall for misleading sales tactics, bonuses, or unrealistic projections from agents motivated by personal gain.
- There are extensive options for index annuities, but few experts; exercise caution, do not trust sales pitches, and seek factual information from credible sources.
"If you can't explain it to a 9-year-old, you shouldn't buy it." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Annuities are DIY products
- Focusing on contractual guarantees
- What annuities solve for
Key Takeaways:
- Annuities are do-it-yourself products that allow self-management without advisor fees. Annuities provide contractual guarantees, and shopping for carriers with the best rates is important.
- Annuities are for do-it-yourselfers focused on contractual guarantees, not hypotheticals, sales pitches, or hype.
- Annuities can solve principal protection, income for life, legacy, and long-term care needs for pro-consumer buyers.
"For all of you do-it-yourselfers out there that's been managing your own money… annuities are right up your alley because they are do-it-yourself products." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- How lifetime income is priced
- Don’t time annuity purchases
- Laddering annuities
Key Takeaways:
- Lifetime income annuities are primarily based on your life expectancy. Interest rates play a secondary role in the pricing.
- Higher interest rates will positively impact annuity pricing. Don't try to time the market for annuity purchases; base decisions on contractual guarantees.
- Consider laddering annuity purchases to take advantage of future pricing changes.
"Remember, lifetime income annuities are primarily based on your life expectancy or life expectancies if joint at the time you take the payment. Interest rates play a secondary pricing role." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- What a MYGA and SPIA is
- MYGA to SPIA Strategy
- Flexibility and Control
Key Takeaways:
- MYGA is the annuity industry's version of a CD, offering locked-in, non-callable interest rates annually. SPIA is the original lifetime income annuity, with a long history dating back to Roman times and used for pension payments.
- Use a MYGA to lock in a guaranteed interest rate for a specific duration, such as five years then take out interest or up to 10% penalty-free, depending on the specific MYGA. At the end of the duration, the Myga can be transferred to a SPIA, with a non-taxable event transfer.
- The MYGA to SPIA strategy takes advantage of the control and flexibility that these two products offer. MYGAs and SPIAs also do not have any annual fees, which makes them very cost-effective.
"You can have your cake and eat it too - just a few bites. You can protect the principal. You can peel off interest, if needed, during that duration of the MYGA, and at the end of that term, you have full control of the asset." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- What annuities are for
- Establishing an income floor
- How to actually adjust for inflating needs
- Securing an income stream through annuities
Key Takeaways:
- Annuities provide contractual guarantees for principal protection, lifetime income, legacy, and long-term care (PILL acronym), offering advantages over market investments focused solely on growth.
- Prioritize establishing an income floor or guaranteed income stream, particularly through fixed annuities, to cover essential expenses in retirement.
- Reject cost-of-living adjustment annuities and instead incrementally purchase additional annuities to address inflating needs in retirement.
- Income flooring through annuities is especially important for securing a spouse's income stream after the death of a partner, providing a contractual, guaranteed income stream that is more reliable than the 4% withdrawal rule.
"Annuities for lifetime income is the only product category that's going to pay for as long as you're breathing. You're transferring the risk to the annuity for the life insurance company that issues the annuity." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- An overview of Deferred Income Annuities
- Finding the best fit
- Income Riders attached to Indexed Annuities
Key Takeaways:
- DIAs are essentially single premium immediate annuities deferred past one year. It has no moving parts, no annual fees, and no market attachment, making it a straight transfer of risk for lifetime income. DIAs can be used in Roth and traditional IRAs, and are taxed based on the account type.
- DIAs are efficient, no-cost, no-fee transfer-risk pension products that can be deferred for up to 40 years. Compare DIAs and income riders on Fixed and Indexed Annuities to find the best fit based on contractual guarantees and flexibility.
- Income Riders attached to Indexed Annuities provide future income needs. Income Riders are separate ledgers that cannot be cashed in or transferred but can be used to determine a lifetime income stream. They offer flexibility, such as a 10% free withdrawal annually, but this can disrupt the income rider guarantee.
- Compare both DIAs and income riders using the four filters: contractual guarantees, carrier ratings, flexibility, and fees.
"Don't fall for sales pitches. These are contractually guaranteed commodity products. There's not one that's better than the other, and if you use those four filters, you're going to make a good decision." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Why are Indexed Annuities sold in a misleading way?
- Indexed Annuities are not growth products
- What annuities are for
Key Takeaways:
- Because Indexed Annuities are a high-commission product for agents, they are often promoted in a misleading manner, obscuring their true nature and limitations.
- Indexed Annuities are not growth products, they are designed for principal protection, CD-type returns, and Income Riders. Indexed Annuities lack dividends, limiting their potential for growth.
- When it comes to annuities, remember that you should only base your buying decision on contractual guarantees. Annuities solve for these specific goals: Principal protection, Income for life, Legacy, and Long-term care.
"The upfront bonus is candy for the stupid. Buying an Index Annuity for that upfront bonus is like buying a brand-new car for the stereo system. That should be irrelevant to your decision." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The Annuity PILL
- Choosing an annuity carrier
- Putting the client’s best interest first
- The future of the annuity industry
Key Takeaways:
- The acronym PILL stands for Principal Protection, Income for life, Legacy, and Long-term care. If you don’t need to contractually solve for one or more of those items in the PILL, then you don’t need an annuity of any type. Never buy an annuity for market growth.
- Once you’ve determined what you want the money to contractually do and when you want the guarantees to start, we’ll shop all carriers, listing all the top contractual guarantees offered. Annuities are commodity products.
- Some carriers should not be recommended even if they offer the highest contractual guarantees. These carriers either do not or do not have the capability to put the client’s best interest first.
- There are some processing issues, hiring issues, and workforce issues, but all will be solved. It’s going to be a bumpy ride, but the industry is on the way to fixing problems and improving systems.
"My grandfather always told me, ‘If you tell the truth, you don't have to remember anything.’ That is our business model." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The Annuity PILL
- The best inflation annuity
- Annuities are a transfer of risk
Key Takeaways:
- Annuities provide lifetime income, principal protection, legacy planning, and long-term care benefits. If you’re not solving for any of those, then you don’t need an annuity.
- Social Security is the best inflation annuity and you can use it along with pensions to establish an income floor.
- Annuities offer contractually guaranteed solutions by transferring risk to insurance companies.
"Remember that you own an annuity for what it will do, not what it might do." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The purpose of Fixed Index Annuities
- Buying only for contractual guarantees
- Why some agents oversell Index Annuities
- Understanding contractual guarantees
Key Takeaways:
- Fixed Index Annuities are designed for principal protection and lifetime income, not market growth.
- Buy annuities only for contractual guarantees not for upfront bonuses or agent projections.
- Index Annuities are complex products often oversold by agents for high commissions.
- Buyers should thoroughly understand contractual guarantees before purchasing Fixed Index Annuities.
"This is your money. Don't believe the hype, believe the contract and own an annuity for what it will do, not what it might do." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Steve Parrish discuss:
- What are QLACs?
- Transferring longevity risks
- Creating a secure income floor in retirement
- How annuities are priced
Key Takeaways:
- QLACs (Qualified Longevity Annuity Contracts) are a pro-consumer annuity product that allows transferring longevity risk by using IRA assets for lifetime income guarantees via insurance companies.
- Longevity risks require pooling mortality credits via longevity annuities from highly-rated carriers to ensure lifelong income.
- QLACs provide a secure income floor in "chapter two" (retirement), avoiding RMDs (Required Minimum Distributions) and offering no fees. Annuities are better for longevity risk pooling and income than the flawed 4% withdrawal rule.
- Annuities are primarily priced based on life expectancy, interest rates play a secondary role in that computation.
"Older you is not going to be the same as the younger you. Take my word for it. You want to have peace of mind. You're not going to want to have to call your broker every month when the economy is going crazy. You want to play with your grandkids, go golfing, whatever, and to know that you've locked in some income." — Steve Parrish
Connect with Steve Parrish:
Blog posts: https://www.forbes.com/sites/steveparrish/?sh=61590d633079
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Focusing on contractual guarantees
- What annuities solve for
- Common annuity pitch traps
Key Takeaways:
- Avoid non-guaranteed hypotheticals and focus on contractual guarantees when considering annuities.
- Buy annuities for specific needs like principal protection, income, long-term care, or legacy, not for market returns.
- Be wary of urgency sales pitches, steak dinner seminars, advisors behaving like friends, backdated performance illustrations, promised market participation with no downside, upfront bonuses, and showing other clients' accounts as proof of returns.
"Do not fall for market upside but no downside. Do not fall for market participation with principal protection. All those yummy sales pitches that look like they should go on a t-shirt. Do not fall for that. Do not fall for the upfront bonus." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Transferring risk through annuities
- The annuity PILL
- Annuities are for guarantees and not growth
Key Takeaways:
- Fixed Annuities provide lifetime income by transferring longevity risk to insurance companies. They offer over 40 different structures, such as life/joint life with cash/installment refund.
- Buy annuities only if your goal is any of these: principal protection, lifetime income, legacy options, and long-term care coverage.
- Annuities are contracts. They are bought for contractual guarantees and not hypothetical or theoretical market growth.
"With good information, you can make good decisions." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Jack Lenenberg discuss:
- Annuities and long-term care
- The three primary types of long-term care coverage
- Tailored long-term care
- Planning for the future
Key Takeaways:
- Annuities provide principal protection, lifetime income, legacy planning, and long-term care coverage for uninsurable individuals. Long-term care insurance providers offer cash indemnity benefits without requiring receipts for paid caregivers.
- The three primary types of long-term care coverage are traditional standalone long-term care insurance policies, asset-based life insurance policies, and asset-based long-term care annuities.
- Asset-based long-term care provides customizable inflation-adjusted lifetime benefits, allowing clients to design plans tailored to their needs and budgets, with the option to recoup unused funds.
- People need income, legacy, and long-term care planning regardless of interest rates or politics, and these products help eliminate stress by transferring risk. Therefore, initiation conversations with your family, update your documents, and work with a professional team.
"Regardless of insurance and products, when it comes to long term care planning, the most important thing for our clients is to have conversations with your family, with your loved ones, with your children." — Jack Lenenberg
Connect with Jack Lenenberg:
Website: https://longtermcareinsurancepartner.com/
LinkedIn: https://www.linkedin.com/in/jacklenenberg/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Annuity marketing gimmicks
- The complexity of Indexed Annuities
- What annuities are for
Key Takeaways:
- Bonuses for annuities are marketing gimmicks and provide no real value. Contractual guarantees are the most important aspect of annuities.
- Indexed annuities are complex products with components like caps, spreads, and participation rates that limit upside gains. These components can change annually, making the product difficult to understand.
- Annuities are designed for risk transfer through contractual guarantees, not market growth. Traditional investment vehicles are better options for market growth.
"Annuities, regardless of the type are transfer of risk, contractual, guaranteed products. It's a contract between you and the life insurance company." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- How to use Indexed Annuities efficiently
- The two sides of an indexed annuity
- Focusing on what annuities really do
Key Takeaways:
- Indexed Annuities can be used as an efficient delivery system for Income Riders, which provides guaranteed lifetime income.
- There are two sides to an Indexed Annuity: the accumulation value (hopes and dreams) and the income rider amount (guaranteed lifetime income).
- Focus on contractual guarantees and avoid misleading information. Don’t attend seminars that offer unrealistic returns and instead, focus on what annuities will actually do.
"You should never buy any annuity type for what it might do. You will always own it for what it will do." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Pam Krueger discuss:
- Finding fiduciary financial advisors
- Customizing an annuity according to your goal
- Rejecting pushy pitches from agents
- Avoiding costly mistakes through education
Key Takeaways:
- Seek independent, fee-only, fiduciary advisors focused solely on your interests, not commissions or product sales.
- Avoid one-size-fits-all annuity recommendations; annuities should be evaluated based on individual needs and financial situations.
- Take advantage of the one-year do-not-solicit period after rolling over a 401(k) to an IRA to avoid urgent pitches from agents pushing specific products.
- Thoroughly educate yourself, analyze the product, and seek a second opinion before committing large sums to annuities to avoid costly mistakes.
"People know when they're looking for advice, they want a fiduciary. They want someone who's fee-only because they want someone who works only for them, not someone who sells insurance or sells mutual funds" — Pam Krueger
Connect with Pam Krueger:
Website: https://wealthramp.com/ | https://www.pamkrueger.com/
LinkedIn: https://www.linkedin.com/in/pamkrueger/
Twitter: https://twitter.com/PamkruegerTV
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Pragmatic approach to financial planning
- How annuities are primarily priced
- Four primary benefits of annuities
- Closing the gap with annuities
Key Takeaways:
- Prepare for either party leadership scenarios to ensure financial stability. Approach financial planning with a pragmatic mindset, always employing the use of research and contractual guarantees.
- Life expectancy drives lifetime income from annuities. Annuities are commodity products, and their guarantees change based on market conditions and demand. If you are expecting interest rates to decrease or taxes to increase, then consider locking in good contractual guarantees by shopping from various carriers.
- Here are the four primary benefits of annuities: principal protection, income for life, legacy, and long-term care. When buying annuities, ask yourself these two questions: what do you want the money to do, and when do you want the guarantees to start?
- Your income floor consists of your Social Security, pensions, dividend stocks, and other income sources. Use annuities to fill the gap between the income floor and other sources of income.
"Annuities are not market products, they're not growth products, they're contractually guaranteed transfer of risk products that solve for four primary things: principal protection, income for life, legacy, long term care." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- How different your life could be with more money
- Retiring from work and the markets
- Investing safely and smartly
- Living off of guarantees
Key Takeaways:
- People in the news and most financial advisors will tell you always to keep money in the markets, but you have to ask yourself this: will more money make your life any different?
- If you love the ups and downs of the markets and treat it like a passion or a hobby, then it’s alright to stay in it, but most people out there should be retiring both from work and the markets.
- When you invest money in the market, invest an amount that you won’t care about, something that won’t keep you up at night or upset your plans if you lose.
- Remember the trifecta of safe money: MYGAs, CDs, and treasuries, which you can get at treasurydirect.gov. These three provide guaranteed annual interest rates, and you can live off of these guarantees.
"Retire from your job, retire from the markets. Live your life. There are no U-Hauls behind hearses; you can’t take it with you." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Ensuring a stable retirement regardless of politics
- How annuities are priced
- Planning for political uncertainty
- Tailoring annuities to your financial goals
Key Takeaways:
- Annuities provide a guaranteed income floor regardless of political outcomes. Take emotions out of financial decisions, and focus on building an income floor for your retirement.
- Life insurance companies primarily price annuities based on life expectancy. Although a Cost Of Living Adjustment can be attached to annuities, it could lower your initial payments to make up for that adjustment.
- Prepare for both political outcomes by considering various different financial strategies. Have a plan in place to manage taxes and protect assets. Have a fact-based approach when it comes to planning and focus on contractual guarantees. Be rational, practical, and pragmatic.
- Structure an annuity to meet your specific financial goals. Consider both qualified and non-qualified accounts when planning for retirement. Have a comprehensive financial plan that includes annuities and other financial instruments. Utilize annuities to plan for your legacy and provide an income for your heirs.
"What I'm encouraging you to do is get rid of the politics - this is about your money, your family, your legacy. With money, whether you're in the stock market, bond market, annuity market, it should be a non-emotional, fact-based decision." — Stan The Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Lifetime income and principal protection
- Return of your money
- Peeling of the interest to solve income needs
Key Takeaways:
- Annuities aren’t only for lifetime income, some products just protect the principal like a MYGA or a Fixed Annuity.
- With lifetime income, annuity companies are on the hook to pay a return OF your principal plus interest as long as you are breathing.
- Will peeling off the interest, never touching the principal, and getting a return ON your money solve your income needs? MYGAs give you the option to lock in interest rates for one year up to ten years.
"If you choose the return ON then all we're going to have to do at the end of the maturity of that MYGA is roll it to another MYGA and hope that rates are at a good level. If rates go down, we can always transfer that [MYGA] to an immediate annuity for lifetime income. So you can play both sides a little bit." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- When is it a good time to buy an annuity?
- Are annuities for market growth?
- Annuity sales tactics to be wary of
Key Takeaways:
- Annuities aren’t for everybody. If you need to transfer risk, need contractual guarantees, or solve for principal protection, income for life, legacy, or long-term care, then it’s a good time to buy an annuity.
- If your goal is market growth, then an annuity is not for you. Annuities are not market-growth products. When buying an annuity, you’re buying a contract, which means you’ll own it for what it will do, not what it might do.
- Don’t buy an annuity because someone promised “market upside with no downside”, “principal protection with market participation”, or that they’ll give you an upfront bonus. These common sales tactics mislead the buyer into buying the dream but owning a contractual reality far from what was pitched.
"Is it a good time to buy an annuity? The answer to that is, do you need to transfer risk? Do you need contractual guarantees? Do you need to solve for principal protection? Income for Life legacy or long term care?" — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Terry Savage discuss:
- What is “chicken money”?
- Considering future crises in your financial plan
- Seeking trusted advisors
- Building an income floor
Key Takeaways:
- Your “chicken money” is money that you can’t afford to lose. CDs, treasury bills, money markets, AAA municipal bonds, and MYGAs are suitable options. MYGAs and CDs are great for principal protection and tax deferral benefits. Focus on having an income floor and principal protection in retirement plans.
- It’s important to consider possible future financial crises and plan for them, regardless of political outcomes. Social Security is a primary source of retirement income.
- Seek trusted financial advice from fiduciaries who fully disclose costs and operate on a fee-only basis. See to it personally that you are able to customize your financial plan according to your goals.
- Have an income floor to protect yourself against market fluctuations and ensure financial stability. Social Security is a strong foundation for retirement income. Build on it with guaranteed products. Consider both the short-term and the long-term in your financial plan.
"Chicken money, by definition, is money you cannot afford to lose, and as such, it belongs in things like short-term CDs, treasury bills." — Terry Savage
Connect with Terry Savage:
Website: https://www.terrysavage.com/
YouTube: https://www.youtube.com/user/TerryTalksMoney
LinkedIn: https://www.linkedin.com/in/thesavagetruth/
Twitter: https://twitter.com/Terrytalksmoney
Facebook: https://www.facebook.com/The-Savage-Truth-190870517609983/
New Book Link: https://www.amazon.com/gp/product/1119645441/ref=pe_2313400_441222210_em_1p_0_lm
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Locking in for three years and over
- The top three safest money
- When to go for CDs and treasuries
Key Takeaways:
- Ask yourself how long you want to lock the money in for. MYGAs provide the highest contractual guarantee if it’s three years and over compared to CDs and treasuries.
- The safest money out of all three would be treasuries, the second safest money is CDs, and the third safest would be MYGAs. Buy treasuries only from treasurydirect.gov.
- If you’re going to lock in money for three years and in, the better option would be to go for CDs and treasuries because if it’s less than three years, MYGAs historically will not provide the highest contractual guarantee.
"Three years and in CDs and treasuries three years and out multi-year guarantee annuities." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The right product for the right situation
- What is lifetime income?
- Income from interest
Key Takeaways:
- An agent selling an annuity product as a one-size-fits-all product is like a doctor prescribing one medication for everyone. There is a right product for the right circumstance, and if a person doesn’t need an annuity, they shouldn’t be sold one.
- Lifetime income is a transfer of risk pension product that an annuity company is contractually obligated to pay as long as you or your spouse are still breathing. It is priced primarily on your life expectancy, and interest rates play a secondary role.
- A multi-year guaranteed annuity is the annuity industry’s version of a CD. You can purchase a MYGA, never touch the principal, never pay a fee, just peel off interest, and then live off that.
"with annuities at this point in time at the time of this taping, and I hope it continues. You have two choices: lifetime income or interest income - it's all about money coming in establishing that income floor. " — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Planning with simplicity
- Annuity products overview
- Consumer-focused future of annuities
- Tuning out the noise
Key Takeaways:
- Lifetime income is priced primarily on your life expectancy and interest rates play a secondary role in pricing. Shop all carriers for the highest contractual guarantee, don’t gamble your retirement on hypothetical and theoretical numbers. Seek simplicity in planning.
- Indexed annuities are going to keep getting pitched, and often through misleading and hyperbolic statements, by sales agents because of the high commission. Indexed annuities aren’t bad products, they are great delivery systems for lifetime income through the attachment of an income rider.
- Companies must realize the importance of putting consumers first and giving them the power to make the choices that they want to make through education and other helpful resources. Annuities should be bought and not sold, agents have the responsibility to make sure the client understands their contract fully.
- Tune out the noise of the media and look into your life instead. Think about things that matter to you, things that make you happy, and focus on making more time for that. Eliminate the things in your life that are not adding to your joy.
"If you're in chapter two of your life in retirement, I want you to maximize the day. I want you to start structuring your day for fun and for relaxation and for reflection." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Acknowledging your wealth
- The scars of scarcity
- Should you be worried about inflation
- Setting up contractual guarantees
Key Takeaways:
- Be rational about the wealth that you have. Don’t say you’re not rich if you are not one of the 40% of Americans today who have $400 to their name and are struggling. Acknowledge the wealth that you’ve earned.
- Many people have what can be called the “scars of scarcity.” Experiencing poverty in one’s youth or growing up amid an economic crisis tends to leave scars in the mind of a person. People with the scars of scarcity tend to be needlessly cautious about spending a little extra money on things like food, travel, or other things.
- Inflation affects those who are on the low end of the country. If you are rich and worried about inflation, then you are not doing the math. A hike in the price of gas or eggs isn’t going to affect you; it’s going to affect the other 60% of people in America.
- With annuities, you can set things up contractually so that there’s a lifetime income stream that you can never outlive, or you can just live off the interest and never touch the principal.
"I need you to start acting rich. Put that team of advisers around you because you are rich, whether you think you are or not. Start acting a little bit more annuity rich, meaning put guarantees in place so you can go live your life and not worry about it." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Automating your income
- Establishing an automated income stream
- Reverse-engineering your income goal
Key Takeaways:
- Automating your income is about creating more income floor to add to your lifetime income stream with Social Security which increases with inflation. This is where annuities come into play since that’s what they’re put on this planet to do.
- Establish a good lifetime income stream that will provide for your spouse or family. Keep it simple, and make it automated, so they wouldn’t have to worry about a single thing when you’ve either passed or reached a decline in your cognitive faculties.
- By reverse-engineering your income goal, you can solve for the least amount of money you’ll need to solve for that income goal contractually. Don’t worry about inflation, focus on computation and guarantees.
"Automate your income so you don't have to worry about that monthly income. Now that you need to, you can just go live your life." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Sheryl Garrett discuss:
- The role of a financial planner
- How the industry should be
- Hiring the right planner
- Being aggressive with cash flow
Key Takeaways:
- Many personal, financial, economic, and psychological things are coming together all at once. The planner’s role is to help clients see through all of that and reach out to the appropriate specialist when they need certain products or services fulfilled for the clients.
- Everybody has questions about their personal finances. People in the industry should be working towards making it easier for people to understand finances.
- Don’t hire anybody with disciplinary issues on their records. There are plenty of people to pick that don’t have any on the record. Make sure the person you’re talking to is working as a fiduciary.
- We need to be aggressive about our cash flow. Aggressive, conscious of where our money is going, where it’s coming from, and how it will move in the future.
"We’ve been trained to go get a second opinion if we have a significant medical issue come up, but why in the world do we not get a second opinion if we’re getting ready to make a decision as significant as retirement." — Sheryl Garrett.
Connect with Sheryl Garrett:
Website: https://garrettinvestmentadvisors.com/
LinkedIn: https://www.linkedin.com/in/sherylgarrett/
Twitter: https://twitter.com/SherylGarrett
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Claiming your social security
- You can’t time annuities
- Three phases of retirement
Key Takeaways:
- Social security payments get higher if you wait until 70 because you’re older which means that your life expectancy is less, meaning that there are fewer projected payments. Fewer payments mean that those payments will be higher. It’s simple, but that doesn’t mean that that is always the better choice.
- You can’t time it with annuities, you can’t time it with lifetime income. Annuities are priced primarily based on your life expectancy. However, this doesn’t mean that you should wait until you are seventy before you get a lifetime income.
- There are three phases of retirement: go-go, slow-go, and no-go. Go-go when you are still rolling, slow-go is when you start to feel slow down, and no-go is when you have severely decreased physical and mental faculties. Make your decisions based on what phase you’re in and what your goal is.
"There are no sweet spots with annuities. There's no arbitrage moment with annuities. The older you are, the higher the payment for lifetime income when you're looking at life to make them it's that simple." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Creating a solid income floor for retirement
- Considering your income
- Many ways to create income
Key Takeaways:
- Going into chapter two of your life, you have to do your own thing. Stop keeping score. You’ve already won the game, you already have enough money, so why are you still playing?
- It’s important to have non-correlated income sources for your retirement such as pensions, rental properties, and annuities in order for you to create a solid income floor that’s not affected by market fluctuations.
- Factor in how much income you need in your retirement, what you want to do with your money, how you want the money to work, what kind of risks you want to shoulder, and what risks you want to transfer.
- Interest rates are at a point at the time of this taping where people can protect the principal and take interest off of the top. This way, you’ll create your income floor without putting your capital at risk.
"If there's a gap in your floor, what are you going to do? You're not just going to leave the gap, right? If you have a gap in your income floor, you're going to fill it. You're going to fill it with as little amount of putty or fake wood as you can. With annuities, you do the same thing." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Rick Ferri discuss:
- Outperforming 90% of investors
- Developing a simple portfolio
- Five ways to improve your portfolio
- Facing the risks
Key Takeaways:
- Investing is not as difficult as others would have you believe. The best way to invest is to keep things simple; the fewer moving parts, the better.
- Develop a simple portfolio that will hold four funds, two stock funds, and two bond funds. The bond funds have to be some fixed income type of allocation, while on the stock side, you do a stock market index fund and a total international fund.
- Are you going to be active or passive? Select a portfolio strategy. Determine whether you’re going to be aggressive or conservative and assess if you need a higher rate of return and if you can handle high volatility.
- In bad times, remember that “this too shall pass.” Investing doesn’t come without risk. Everything in life has risks. Even burying your money has a risk; inflation will eat away at its value. It’s better just to face the risk.
"The idea is simplicity. Be simple, be low-cost, be consistent, stay the course, be tax-efficient." — Rick Ferri.
Connect with Rick Ferri:
Website: https://rickferri.com/
Facebook: https://www.facebook.com/TheIndexer/
LinkedIn: https://www.linkedin.com/in/rick-ferri-b6994010/
Twitter: https://twitter.com/Rick_Ferri
Books: https://www.amazon.com/Richard-A.-Ferri/e/B001IGJTE8%3F
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Not everyone needs to be exposed
- Bonds and market volatility
- Looking into lifetime income
- Questions to ask your advisor
Key Takeaways:
- Financial advisors tend to advise their clients to do 60% equity and 40% bond split or that they always have some exposure, but it doesn’t apply to everybody. People who’ve won the game don’t have to keep playing.
- Bonds aren’t fool-proof; they go down in value if interest rates go up. If you’ve already accumulated enough to live the life you want and don’t want to tie yourself into any risks or volatility, then don’t. You have that option.
- If peeling off the interest rate isn’t an option for you, then why not look into lifetime income? You can structure your annuity where your money doesn’t have to go to the annuity company when you die. There are so many ways you can structure the contract in a way that achieves your goals.
- Advisors get paid assets under management, which is why they want you to dip into the market. Ask your advisor if you have enough money to live off. From a fiduciary standpoint, they’ll have to look at the money and tell you honestly if you are able to do that.
"Plan for when you win the game to stop playing the game. Look up at the scoreboard; you won!" — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Bonuses are not the true benefits
- Unethical practices that rush an annuity sale
- Focus on what really matters
Key Takeaways:
- Upfront bonuses are merely a part of the contract rather than the true benefits they seem to be. Focus instead on the lifetime income guarantee, on the financial stability and predictability an annuity can offer.
- Agents sometimes tout bonuses rather than clarify the long-term financial implications of the annuity in order to close a deal. It is unethical and in some cases, could even cross the line into being illegal.
- Look past the smoke and mirrors of upfront bonuses and instead, search for the annuity with the highest contractual guarantee. These guarantees are what will determine the annuity's genuine value over the course of your retirement.
"The only number that matters is the lifetime income guarantee that the company is backing up. All of the bonuses are just shiny things - candy for the stupid. Don't be that person. " — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Jason Fichtner discuss:
- Preparing for depletion
- Preaching to a hurricane
- Maximizing returns and minimizing risks
- The real danger zone
Key Takeaways:
- There’s going to be depletion in combined trust funds in 2024. In response to this, you can delay claiming your social security until you absolutely need it, you can also save a little more - do anything to minimize the risk.
- People want a personal pension and a guaranteed paycheck for life, but they don’t want an annuity. That’s absurd, because that’s exactly what an annuity is and people have it already in the form of social security, because it’s such a good thing, they would want to have another one.
- We’ve trained people to be good investors, in that they must always ask how they can maximize returns. But there is no ROI in retirement, not until you die, so we need to keep talking about how minimizing the risks with annuities is the best way to go.
- The danger zone is complacency. We need to keep reframing and educating people on the truth about retirement and finances. People right now are not too crazy for annuities, and that’s not a good thing - because that means that it’s not being represented factually.
"In retirement, we're not trying to maximize returns, we're trying to minimize risks - ensure that I have enough income to last for the rest of my life." — Jason Fichtner
The Peak 65 Generation: Creating A New
Retirement Security Framework: https://drive.google.com/file/d/128-Azi2dpeWXYafgPGAQ1Pi5f8S_ThVA/view?usp=sharing
Connect with Jason Fichtner:
Website: https://sites.google.com/site/jasonjfichtner/ | https://bipartisanpolicy.org/
Email: jfichtner@bipartisanpolicy.org
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Annuities are customizable
- An example of life with cash refund
- What does it mean to get a joint-life policy
- Options and choices when getting an annuity
Key Takeaways:
- A life-only contract means that the annuity company is on the hook to pay as long as you’re breathing, but the money goes away when you die.
- Life with cash refund means that you get paid while you’re alive, with some money going to your beneficiary when you die.
- A joint life policy means that you and your spouse will receive payments. When you die, their income continues uninterrupted and unchanged.
- There’s not just one annuity, there are many kinds, and there are also a lot of options when customizing your contract.
"I want you to understand what you’re buying and how it works ‘cause remember, an annuity is a contract" — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- What does it mean to live off the interest?
- Living off guaranteed interest
- When interest rates go down
- If you can’t live off of the interest
Key Takeaways:
- At the time of this taping, some money markets are 4, some CDs at five, and some MYGAs at five and a half. A lot of you out there have enough funds that whatever interests you can take off of those products is sufficient, and you never have to touch the principal.
- There's no guaranteed return with index annuities, variable annuities, or buffer annuities. That doesn’t mean they’re bad products, but if you can live off of a guaranteed interest, why not do that?
- When you lock in at a certain interest, it doesn’t matter if the interest rates go down in the market - you’ll benefit from what is contractually guaranteed.
- Suppose we can prove mathematically that we can’t hit your goal from living off of the interest. In that case, that’s when we’ll look for contractual guarantee products for lifetime income because they’ll provide a higher payback of your money.
"You're going to ride that peeling off the interest as long as you can. You're gonna ride that train of never touching the principal and never paying a fee as long as you can, and if rates go down, then we will pivot " — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and John Olsen discuss:
- The suitability approach and consumer trust
- How the annuity industry can be better
- Approaching people who hate annuities
- Risk management and risk transfer
Key Takeaways:
- There is a considerable certainty that companies out there are determined to give the right product to their clients.
- If you’re looking for a solution for your client, the agent should be able to show 3-10 companies that could get the client what they want and need.
- Improving your knowledge of annuities as an agent is simple: read the contract. Don’t rely on the marketing material, read the hard words.
- Here’s what you can do with risks: you either assume it, remove it, reduce it, or transfer it. Annuity allows you to transfer risks.
"These are investments to a degree, but most annuities are risk management tools. There are a few things you can do with risks: assume it, remove it, reduce it, or transfer it… Transfer the risk, that’s what annuities do. Fixed annuities are all about guarantees." — John Olsen
Check out John Olsen’s here: https://www.amazon.com/John-L-Olsen/e/B011PP1LBK/
Connect with John Olsen:
Website: http://olsenannuityeducation.com/
LinkedIn: https://www.linkedin.com/in/john-olsen-clu-chfc-aep-ba551217/
Facebook: https://www.facebook.com/john.olsen.165
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- What are MYGAs and SPIAs?
- Annuities are contractual commodities
- MYGA to SPIA
Key Takeaways:
- A MYGA, Multi-Year Guaranteed Annuity, is the annuity industry's version of a CD. The good news about MYGAs is that the interest rate is locked in and non-callable. This means that when interest rates go down, you’re going to be locked in.
- Annuities are contractual commodities, meaning that when you're buying them for the contractual guarantees, you can shop all carriers for the highest contractually guaranteed payout for your specific situation based on how you structure them.
- Through MYGAs, you can protect the principal, peel off interest, and retain liquidity. After the duration of the MYGA, we can then shop all SPIA carriers and transfer the MYGA to the SPIA.
"You can have your cake and eat it too, you can protect the principle, you can peel off interest if needed during that duration of the MYGA, and at the end of that term, you have full control of the asset." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The four main concerns that annuity addresses
- Why you should stay away from fancy annuities
- Things to consider when buying annuities
Key Takeaways:
- Annuity contracts are designed to address four key concerns: principal protection, lifetime income, legacy planning, and long-term care. However, not all annuities are created equal.
- Fancy annuities often come with a host of fees and complicated rules that can make them difficult to understand and manage. On the other hand, contractual annuities offer the same guarantees without the added complexity, providing the peace of mind and financial security you need without the headaches.
- When considering an annuity, it's essential to weigh your options carefully and choose a product that aligns with your goals and values. By opting for a contractual annuity, you can enjoy the benefits of principal protection, lifetime income, legacy planning, and long-term care, all while keeping things simple and easy to understand.
"I used to work with Dean Witter, Morgan Stanley, Paine Webber, UBS, where that was market-driven stuff. If you're going to be fancy, be fancy over there because you have real possibilities of real returns. With annuities, they're contracts. Never forget that. You cannot have your cake and eat it too." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Dana Anspach discuss:
- Juicing your retirement money
- How can you know if you’re “retirement-ready”
- What are some things you have to consider when setting up your retirement plan
- The four percent rule
Key Takeaways:
- Don’t underestimate what more you can juice from your retirement plan. You might very well end up with hundreds of thousands of dollars by the end of it.
- You need to know what the risk factors are in the decumulation phase.
- Calculating the bigger picture of your retirement will help you make decisions that increase your probability of success and have peace of mind in the future.
- The reality is that you can’t spend just a solid percentage in your retirement fund, there are circumstances that would have to be accounted for - like needing to buy a car or having a health issue in the family.
"People are so focused on accumulating assets, which is relatively easy compared to the math you have to solve when you start drawing money out.” — Dana Anspach
Connect with Dana Anspach:
Website: https://controlyourretirementdestiny.com/ | https://www.sensiblemoney.com/
Facebook: https://www.facebook.com/SensibleMoneyUS
Podcast:
LinkedIn: https://www.linkedin.com/in/danaanspach
Twitter: https://twitter.com/SensibleMoneyUS | https://twitter.com/moneyover55
Books: https://www.amazon.com/Dana-Anspach/e/B00GL9WC82%3F
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Annuity solutions to retirement problems
- The four things that annuities solve for
- How annuities can give peace of mind, flexibility, and freedom
Key Takeaways:
- Retirement can be a daunting prospect, with the uncertainty of how long your savings will last and the fear of running out of money. However, annuities offer a solution to these concerns by providing contractual guarantees.
- Annuities can solve for principal protection, ensuring that your initial investment is safe. They also provide income for life, allowing you to have a steady stream of income throughout your retirement years. Additionally, annuities can help leave a legacy for your loved ones and even cover long-term care expenses.
- By creating an income floor with annuities, retirees can have peace of mind knowing that their basic expenses are covered. This allows for greater flexibility and freedom in spending during retirement.
"Contractual guarantees matter, and contractual guarantees change lives." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- What annuity doublers refer to
- The true story of annuity doublers
Key Takeaways:
- Annuity “doublers” isn’t as lucrative as it seems. You become eligible for enhanced payment if you are found to be unable to do the five daily functions of life.
- The additional value given in enhanced payments is subtracted dollar for dollar from the accumulation value. So in essence, you’re not getting increased payments, you’re just getting your money back quicker as you get sicker.
- When considering buying annuities remember that insurance companies will never give away money for free. If an agent’s pitch sounds too good to be true, it is every single time.
"You should never ever buy a lifetime Income Rider for the doubler because all that means is when you get sicker, you get your money back quicker." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and David Blanchett discuss:
- People’s irrational preference
- A gap between perceived and actual ability
- Is cryptocurrency going to last?
- Investing when there are low yields
Key Takeaways:
- In theory, people should be indifferent between spending down their portfolio and living off of it - but investors aren’t always rational, they have a strong preference towards not depleting their portfolio, and they want to live off of the income.
- As you age, your probability of making a poor decision increases. At the same time, the gap increases between your perceived ability to make good decisions and your actual abilities.
- Blockchain technology is real, it has some potential public use but the value of cryptocurrency is effectively speculative and most investors are young people who have never seen market downturns.
- Don't focus on the fact that it could drop in value, focus on how it does in creating sustainable income.
"The best thing you can do is to make 'easy buttons' and a way to enjoy retirement where you're not stressed out all the time when the market goes down." — David Blanchett
Connect with David Blanchett:
Website: https://www.davidmblanchett.com/
LinkedIn: https://www.linkedin.com/in/david-blanchett-b0b0aa2/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The four primary annuity types for lifetime income
- There’s no ROI until you die with lifetime income annuities
- Two important questions to consider when buying annuities
Key Takeaways:
- There are four primary annuity types providing lifetime income: Single Premium Immediate Annuities, Deferred Income Annuities, Qualified Longevity Annuity Contracts, and Income Riders attached to products like Index Annuities and Variable Annuities.
- Lifetime income from annuities is a combination of return of principal plus interest, with the annuity company contractually obligated to pay as long as the buyer is breathing.
- When you're buying lifetime income, always ask two questions: what do you want the money to contractually do and when do you want those contractual guarantees to start?
"Lifetime income stream is not an investment. This is a contract; a transfer of risk contract. I'm transferring the risk to solve for longevity risk - the fear of outliving your money." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The pricing mechanism of annuity products
- Annuities are commodity products
- Buy only the products that you understand
Key Takeaways:
- Annuity pricing is primarily based on life expectancy, with interest rates playing a secondary role. Another key factor in annuity pricing is that annuity prices change based on capacity.
- Focus on the contractual guarantees when purchasing annuities, they are commodity products. So shop all carriers and find the highest contractual guarantee that is most suitable for your goal.
- Annuity products have the potential to become very complex. If you can’t explain it to a nine-year old, that means that you don’t understand it. If you don’t understand it, that means that you shouldn’t buy it.
"When you're buying a lifetime income product, understand that life insurance companies have the big buildings for a reason, because they know when we're going to die and they're going to price things based on your life expectancy." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Roger Whitney discuss:
- The two retirement crises
- Balancing on the teeter-totter
- Before going into fancy tactical stuff
- Focusing on what you can control
Key Takeaways:
- There are two retirement crises: one is when people don’t have enough money to pay the bills when they can’t work anymore. The other crisis is for people with many resources and options but doesn’t know the right thing to do.
- On the one hand, you should start having your best life today, and on the other hand, you also want to make sure that you’ll be alright when you live until 80 or 90. There’s tension between those two things, you’re standing in the middle of it all, and you have to cover yourself on both accounts.
- Start with what you want, then create a strategy that will make that feasible. Make it resilient so that you don’t get knocked off course and get too fancy tactics.
- Don’t waste your life trying to predict the future or reacting to every event. Instead, focus on things that will be useful to you, like building functional health - health that will enable you to spend time with family freely.
"The majority of planning which feeds the mindset of this very uncertain world is always gonna default to denying today, and that’s not right because tomorrow isn’t promised to anyone. You gotta be a good steward. " — Roger Whitney.
Connect with Roger Whitney:
Website: https://www.rogerwhitney.com/
Facebook: https://www.facebook.com/pg/retirementanswerman/posts/
LinkedIn: http://www.linkedin.com/in/rogerwhitney
YouTube: https://www.youtube.com/channel/UC0gvNDYjMGdkO8OiNZu9jug
Twitter: https://twitter.com/roger_whitney?lang=en
Book: https://www.rogerwhitney.com/the-book
Podcast: https://www.rogerwhitney.com/blog
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Focusing on guarantees
- The best annuity
- Finding the annuity best suited for you
Key Takeaways:
- Annuities are financial products that can provide a steady stream of income during retirement, but they come with both benefits and limitations. It's essential to approach annuities with a clear understanding of their purpose and to focus on the contractual guarantees they offer, rather than potential returns.
- When considering annuities, it's important to recognize that the best options are often Social Security and pensions.These provide reliable income streams that can form the foundation of a secure retirement.
- Avoid being swayed by hypothetical or theoretical scenarios presented by agents or advisors. Instead, compare each annuity product to determine which one best aligns with your retirement goals and needs.
"When you get to the commercial side of annuities, there is no perfect annuity even though they're all pitched as such. They all have limitations and benefits. They all have good and bad." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Don’t time the market when buying annuities
- The cost of waiting for the perfect moment
Key Takeaways:
- Don’t time the market when buying annuities. Instead of trying to find the perfect moment, determine whether you actually need an annuity by asking yourself what you want the money to do and when you want the guarantees to start.
- Delaying payments may result in higher guaranteed income, however, you have to look at the big picture by factoring all the payments you will miss while waiting for that ideal amount.
"I know after decades in this business, you cannot time it. There is no sweet spot. There is no arbitrage moment, and there is a cost of waiting when you're trying to be that person. So do not be that person." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Steve Parrish discuss:
- People don’t understand annuities
- Preparing for diminished capacity
- Life expectancy is good and getting better
- Managing your retirement plan
Key Takeaways:
- Annuities are not an investment, it’s a form of insurance that makes investments even better.
- Address problems in advance while you still can. Think about how your bills will be paid, how your money will be invested, and how it can be protected from being abused by others when the time comes that your capacity is diminished.
- Plan to live past the life expectancy age - especially these days where technology was forced to advance to cope with the pandemic.
- Retirement is not just an event, it’s a change in life. Think of the behavioral and emotional aspects of it, not just the money. But when it comes to money, keep these three things in mind: your social security, medicare, and your benefit pension plan.
"Guess who the last person would be that knows that you have diminished capacity - you" — Steve Parrish
Connect with Steve Parrish:
Blog posts: https://www.forbes.com/sites/steveparrish/?sh=61590d633079
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Be strategic and efficient when purchasing annuities
- Reverse engineering annuity quotes
- Maximizing retirement income
Key Takeaways:
- When it comes to purchasing annuities for retirement income, it's essential to be strategic and efficient with your money. This is why you should aim to use the least amount of money possible to meet your specific income goals.
- Rather than simply accepting the first quote you receive, reverse engineer quotes using specialized calculators at www.stantheannuityman.com/annuity-calculators. By doing so, you can compare different carriers and find the one that is best suited for you.
- The key is to be strategic and efficient with your money and to work with a trusted expert who can guide you through the process. With the right approach, you can maximize your retirement income and enjoy a secure and comfortable future.
"Use as little amount of money as possible to solve for the goal." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The value of annuities for lifetime income planning
- Laddering strategy with annuities
- Placing an annuity inside a trust
Key Takeaways:
- When it comes to planning for lifetime income, annuities can be a valuable tool. However, it's essential to approach annuities with strategies that allow for flexibility and the ability to adapt to changing circumstances.
- By purchasing multiple annuities with different start dates, you can create a steady stream of income that aligns with your needs over time. This approach, called laddering, allows you to adjust your income as your requirements change, providing a level of flexibility that a single annuity may not offer.
- By placing an annuity inside a trust, you can maintain control over the asset while still benefiting from the lifetime income it provides. This strategy can be particularly useful for those who want to ensure their assets are managed according to their wishes, even if they become incapacitated.
"It's a keep your powder dry strategy, meaning that you can go into this with a plan in place for future income needs in the future. You know exactly to the penny what that's going to be. But if something changes between now and then, you can get all your money back because the underlying value walk away money is with that Indexed Annuity, which is a Fixed Annuity." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Gary Baker discuss:
- The Secure Act's role in making annuities more accessible within 401(k) plans
- Lifetime guaranteed income options within 401(k) target date funds
- The widespread inclusion of lifetime income options
- How annuities can alleviate pressure on Social Security
Key Takeaways:
- The retirement landscape is evolving, and with the introduction of the Secure Act, annuities are becoming more accessible to a broader market through 401k plans. Employers can now offer annuities as an investment option, providing employees with the opportunity to secure guaranteed lifetime income.
- There are a lot of various options for integrating annuities into target date funds, including Variable, Indexed, and Fixed Annuities with income benefits. However, the adoption rate of these options remains low due to implementation challenges for small employers and the need for more education and support.
- Fee-based advisors are also starting to incorporate annuities into their portfolios, recognizing the demographic tidal wave of retirees seeking guarantees. Advancements in technology have made annuities more manageable within their existing practices, allowing them to better serve their clients' needs.
- As the demand for lifetime income options continues to grow, options too will become more commonplace in defined contribution plans within the next decade. This shift will positively impact the country and alleviate pressure on Social Security.
"Financial advisors should know all the tools available, and then, depending upon the client’s specific situation, feel comfortable and put in the right spot that's in their best interest and the right thing to do." — Gary Baker
Connect with Gary Baker:
Website: https://www.cannex.com
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Annuities are contracts
- The perfect time to buy an annuity
- You can’t time contracts
Key Takeaways:
- There is no "sweet spot" to purchase annuities, as all types have contractual guarantees that should be analyzed. Remember that annuities are contracts, not investments.
- The perfect time to buy an annuity is when the contractual guarantees make sense to you and when they fit that gap for principal protection, income for life, legacy, and long-term care.
- Nobody knows where interest rates are going to go and that is especially true with annuities since the pricing mechanism is primarily based on life expectancy.. Annuities are contracts, you can’t time contracts. You buy contracts for the guarantees.
"Nobody knows when the bell is gonna ring at the top or the bottom. Nobody can time it, especially with annuities." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- What annuities solve for
- Transfer of risk
- The three phases of retirement
Key Takeaways:
- Annuities solve for PILL: Principal protection, Income for life, Legacy, and Long-term care. There’s no G for growth, or R for Returns. If you want growth and returns, do not buy an annuity of any type.
- Annuities are bought for transferring risk. When you buy an annuity contract for lifetime income, the company will be on the hook to pay as long as you’re breathing.
- There are three phases of retirement: go-go, slow-go, and no-go. If you get to slow-go and no-go, you're going to need a long-term care confinement care type of transfer risk cover.
"If you're not going into the annuity contract to transfer risk. Don't buy it." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Jamie Hopkins discuss:
- ROS - Return on Sleep
- From an accumulation to a decumulation mindset
- Living your retirement meaningfully
- Changing your relationship with money
Key Takeaways:
- People often don’t care about optimal, people care about being happy. Giving people a good retirement experience, a Return On Sleep, is better than giving optimal results.
- Point your focus towards what you’re planning to work towards or what you want to acquire - accumulating money isn’t going to do you any good if you don’t convert it into anything that will make your retirement a joyful experience.
- If you go into retirement and end up not having any passion for anything or not having anything you care about, you’re not gonna have a great retirement - whatever it might be, find that piece that will make your retirement meaningful for you. That’s true wealth.
- Think about rewiring your preconceptions around money and wealth - it takes more than planning, it takes coaching and being aware of the misconceptions that you hold.
"Would you give up all your money if it means that you’ll be happy for the rest of your life? Most people would say yes - that’s what we’re aiming for. Dollars are a means to an end." — Jamie Hopkins
Connect with Jamie Hopkins:
Website: https://www.jamiehopkins.com/
LinkedIn: https://www.linkedin.com/in/jamie-hopkins-esq-llm-cfp%C2%AE-chfc%C2%AE-clu%C2%AE-ricp%C2%AE-022a502a/
Twitter: https://twitter.com/RetirementRisks
Book: https://www.jamiehopkins.com/book/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The best inflation annuity on the planet.
- The second annuity you already own
- RMDs are an annuity payment
Key Takeaways:
- Annuities that adjust for inflation offered by the private sector have their initial payments drastically lowered to make up for the index increase. You don’t need to get that because you already own the best inflation annuity on the planet: Social Security.
- The second annuity you might already own is attached to your Individual Retirement Account. A 401k, 403b, or 457 are tax-deferred types that you’re eventually going to roll into an individual IRA.
- Your Required Minimum Distribution is also an annuity. It creates an annual lifetime income stream. As long as you have IRA assets, you’re going to have to take RMDs.
"You definitely own one [annuity], you most likely own two and you could own three - so what does that mean to you? That income floor takes you through chapter two of your life." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- What retirement is all about
- The ducks that you may already have
- Annuity income ducks
Key Takeaways:
- Retirement, or chapter two of your life, is the time that you need money hitting the bank account so that you can go live your life. This chapter is going to be all about you, about your lifestyle, and about reclaiming your health.
- The first income duck you have is the best inflation annuity on the planet: Social Security. If you have a pension from a company or the government, that’s another income duck as well. Legacy stocks and triple-A municipal bonds that pay tax-free income are also income ducks.
- Immediate Income Annuities, Deferred Income Annuities, and Qualified Longevity Annuity Contracts are all lifetime income products. Multi-Year Guarantee Annuities where you can just peel off interest and not touch the principal are also annuity income ducks.
"The mother duck is Social Security. Pension payments, annuity type payments, bond payments, CD payments, Multi-Year Guarantee Annuity interest payments, those types of things are the ducks behind them." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Marcia Mantell discuss:
- The value of simplicity in understanding financial concepts
- Getting ready for the emotional aspect of retirement
- The key to financial success in retirement
- The importance of creating an estate plan
Key Takeaways:
- If you can’t explain a concept or product simply to somebody who doesn’t live in your industry, then you don’t understand that concept or product enough.
- You are going to retire someday, you have to be ready for not only the financial aspect but also the emotional aspect of retirement. This includes the loss of structure and social interactions. You will need to take the lead in creating new routines, new structures, and connections in chapter two of your life.
- The key to financial success in retirement is knowing how much you spend. The terms “essential expenses” and “discretionary expenses” simply mean “how much you have to spend” and “how much you want to spend.” Focus on having a good estimate of how much you spend each year and start there.
- Everyone who’s still living needs to create an estate plan. Make your own funeral plans and decisions. Leave your children or family with an inheritance and a legacy rather than with financial and emotional burdens.
"The key to financial success in retirement, in my humble opinion, is not what products you have or how great your investment strategy is. It's knowing how frickin much you spend." — Marcia Mantell
Connect with Marcia Mantell:
Website: https://mantellretirementconsulting.com/about/meet-marcia-mantell/
LinkedIn: https://www.linkedin.com/in/marciamantell/
Twitter:https://twitter.com/MarciaMantell
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The standard of a fiduciary
- Your retirement is not a game
- Annuities as guarantees and as commodities
Key Takeaways:
- Be wary of people in the annuity industry who sell one product to every type of person. In most cases, the product they’re selling is the highest commission product. The annuity you buy has to be aligned with the goal you want to set for chapter two of your life.
- Some advisors look at annuities like it’s a game, thinking only about making the most amount of money by selling the most amount of policies that they can to anybody they meet. Meanwhile, you’ve worked your whole life to get to your chapter two. Your retirement is not a game.
- Annuity policies are contracts so you should shop all carriers for contractual guarantees only. When you do that, you completely turn the products into commodities, which means we can shop all carriers for the highest contractual guarantee for your specific situation.
"You have to fully understand that this is not a game. Annuity policies are contracts… shop all carriers for the highest contractual guarantee for your specific situation." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Buying contractual guarantees
- Keeping it simple with annuities
- Annuities that adjust for inflation
Key Takeaways:
- Buy annuities only for their contractual guarantees. Don’t buy an annuity for hypothetical, theoretical, back-tested returns. Don’t buy an annuity for the upfront bonus. Buy an annuity for what it will do, not what it might do.
- Annuities are supposed to be simple. You should understand your annuity contract enough to be able to explain it to a nine-year-old.
- Annuity companies don't give away Cost of Living Adjustments or potential index increases, and instead severely lower the initial payment compared to the same annuity without those potential increases.
"Annuity decisions should be simple and contractual, they have to be both. They can’t be one or the other." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Andy Panko discuss:
- How advisors should construct their fees
- The complexity of decumulation
- Making the plan as good as it can be
- Cryptocurrency is a lottery ticket
Key Takeaways:
- The work isn’t linear to the asset size; advisors shouldn’t make more money just because assets go up. In the same way, advisors shouldn’t be paid less just because the markets go down. They’re still doing the same amount of work and providing the same services.
- Investment management, even good investment management, has become increasingly cheap, easy, and commoditized to do and do well. Decumulation is much more complex.
- Try to make the plan as good as it can be initially, accounting for unpredictable events. So try to structure your plan as best as possible to account for times of distress. Get all things working cohesively - it’s not just investments, insurance, real estate - it’s everything, including guaranteed lifetime income.
- Cryptocurrency has zero intrinsic value. Its value is 100% on simple auction market pricing; it’s only worth as much as what someone is willing to pay for it. You can invest a small portion into it, but only if you’re comfortable that the value could go to zero. Treat it like a lottery ticket.
"Most people can do accumulation well; it’s the decumulation where things get a little more tactical and complicated…" — Andy Panko.
Connect with Andy Panko:
Website: https://tenonfinancial.com/
Facebook: https://www.facebook.com/tenonfinancial
YouTube: https://www.youtube.com/retirementplanningdemystified
LinkedIn: https://www.linkedin.com/in/andypanko/
Twitter: https://twitter.com/tenonfinancial
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Don’t buy the dream
- Backtested numbers are not guaranteed
- What an annuity is for
Key Takeaways:
- Do not buy hypotheticals, dream sales pitches, or back-tested returns. Do not buy the annuity dream because you're going to own the contractual reality.
- There’s no such thing as a “guaranteed and back-tested” return. To say that it’s back-tested means that there are no guarantees. Buy an annuity for what it will do, not what it might do.
- If you want market returns, don’t buy an annuity of any type. Don’t buy a packaged product or anything that limits the upside. Buy an annuity only for Principal protection, Income for life, Legacy, and Long-term care.
"I don't like the word hypothetical. I like the word guaranteed. You need to like the word guaranteed. You need to shun anything hypothetical. Walk away from the unicorns-chasing-the-butterfly sales pitch. You can’t lock in a hypothetical, but you can lock in a contractual guarantee." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Annuities are contracts
- How Indexed Annuities should be used
- Don’t buy an annuity for market returns
Key Takeaways:
- To say that something is “guaranteed and backtested” means that there is nothing guaranteed at all. Annuities are contracts, buy them for what they will do and not what they might do.
- Indexed Annuities have the potential to go down in value, but they can be used as an efficient delivery system for guaranteed lifetime income through an income rider attachment.
- If you want market returns, never buy an annuity. Annuity solves for four things: Principal protection, Income for life, Legacy, and Long-term care.
"Do not buy the annuity dream because you're gonna own the contractual reality." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Terry Savage discuss:
- 401k and annuities
- What does it mean to be a fiduciary?
- Annuities are commodity products
- Always have some chicken money
Key Takeaways:
- When you are in the accumulation phase, there should be no limitations at all on the upside. You’re better off focusing on accumulation during the 401k time period and then at the end pivoting to an immediate annuity for a lifetime income stream.
- Being a fiduciary means more than just having a plaque on the wall. Anyone in the financial business should be putting their client's best interests ahead of themselves every single time.
- People need to realize annuities are commodity products. Not one company is better than the other. Not one product is better than the other. These quotes change like a gallon of milk every seven to 10 days so you have to quote for the highest contractual guarantee.
- Everybody should have some chicken money. The top four chickens are treasuries, CDs, money market, and MYGAs which are the annuity industry’s version of a CD. These are all for principal protection, no annual fee, guaranteed interest rates for your chicken money.
"There is one annuity that you might have that will keep up with inflation and it’s called Social Security." — Terry Savage
Connect with Terry Savage:
Website: https://www.terrysavage.com/
YouTube: https://www.youtube.com/user/TerryTalksMoney
LinkedIn: https://www.linkedin.com/in/thesavagetruth/
Twitter: https://twitter.com/Terrytalksmoney
Facebook: https://www.facebook.com/The-Savage-Truth-190870517609983/
New Book Link: https://www.amazon.com/gp/product/1119645441/ref=pe_2313400_441222210_em_1p_0_lm
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The four lifetime income products
- How annuities are priced
- The simplicity of SPIA
- Getting the highest guarantee
Key Takeaways:
- There are four lifetime income products: Single Premium Immediate Annuities, Deferred Income Annuities, Qualified Longevity Annuity Contracts, and Income Riders that can be attached to Variable Annuities and Indexed Annuities.
- Annuities are priced primarily on your life expectancy at the time you start the payment. Interest rates play a secondary role.
- Deferred Income Annuities are in essence just a Single Premium Immediate Annuity that is deferred past a year. A SPIA has no moving parts, no market attachments, and no annual fees. It is a straight transfer of risk.
- The highest possible payments you can have from an annuity are from a life-only annuity. This is the annuity for people who don’t want to give to any beneficiaries. Companies often issue these without the option to change the start date, but you can change the start date if the contract has a cash refund or period certain attached to it.
"That income for life transfer risk strategy with annuities, typically four primary types SPIAS, DIAS, QLACs, and Income Riders. We can structure it so that you have the ability to pivot and change that income start date." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- State guaranty funds
- The true safety of the industry
- Life insurance companies are more regulated
- Assigning unused money to beneficiaries
Key Takeaways:
- If you look at the state guaranty fund, each state has a specific rule in place to protect you and your money in case something happens to the carrier.
- You should be buying the claims-paying ability of the life insurance company from the standpoint of safety. The true safety of the annuity industry is the industry policing itself.
- Life insurance companies are not smarter than banks, they’re just more regulated. The company is handcuffed from making financially stupid decisions.
- You can structure an annuity so that 100% of any unused money goes to your family or beneficiaries.
"You can protect yourself and your hard-earned money in a myriad of ways. You can protect it by buying very good companies, by buying underneath the state guarantee fund within your state, and by structuring the policy so that 100% of any unused money goes to your family or beneficiaries." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Christine Benz discuss:
- Why Christine is so passionate about financial education and retirement portfolio planning.
- Why decumulation is not bad (and when it is a good thing).
- Retirement blindspots to be aware of.
- Staying mindful of additional, variable costs in your spending plan.
- Bucket approach investing and portfolios.
Key Takeaways:
- Your portfolio doesn't know whether your withdrawals are coming from income or from selling appreciated securities, what matters is that you are not taking out too much.
- People tend to overestimate our ability and desire to continue working and, often, retire earlier than they originally expected to.
- There is power in diversification in your income portfolios.
- The products under the annuity umbrella are incredibly varied. The type of annuity that is best for you depends on what your needs are.
"If you're looking for something that will zig when your stocks zag, you probably want to ensure that your portfolio includes that cash and treasury bonds." — Christine Benz
Connect with Christine Benz:
Website: https://www.morningstar.com/
Podcast: https://www.morningstar.com/podcasts/the-long-view
LinkedIn: https://www.linkedin.com/in/christine-benz-b83b523/
Twitter: https://twitter.com/christine_benz
Book: Morningstar’s 30 Minute Money Solutions: https://www.amazon.com/Morningstars-30-Minute-Money-Solutions-Step/dp/0470918136
Book: Morningstar Guide to Mutual Funds
https://www.amazon.com/Morningstar-Guide-Mutual-Funds-Strategies/dp/0470137533
Christine’s Article Archive: http://www.morningstar.com/articles/author/30-christine-benz.aspx
Reference:
Open Social Security: http://opensocialsecurity.com/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The Income Rider and the accumulation value
- Two numbers you need before you transfer to SPIA
- Calculating a SPIA quote
- When you should transfer to a SPIA
Key Takeaways:
- The Income Rider is an attachment to a policy that guarantees a lifetime income stream but it’s a separate calculation from the accumulation value. The accumulation value in simple terms is the real money.
- Take the accumulation value of the policy and ask the company to give you two guaranteed contractual numbers: first is the Income Rider number of what the lifetime income stream would be, and second, the annuitization number if you took that accumulation value and converted it to a SPIA.
- After requesting those two numbers, you can run a SPIA quote using the calculator found at this link: https://www.stantheannuityman.com/annuity-calculators
- You must only transfer from an Income Rider to a SPIA if you will be given a higher contractually guaranteed amount. Do a comparison first before transferring. Stay with your current policy if a transfer wouldn’t provide a higher contractual guarantee.
"Stay where you are and turn on the Income Rider when you need income. But there are going to be situations like what John Lenz ran into where we can beat the Income Rider using the accumulation value in a SPIA, quoting all carriers." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Swallowing the food but not the pitch
- Annuities are never one-size-fits-all
- Focusing on contractual guarantees
Key Takeaways:
- If you ever get invited to an annuity “seminar”, then remember to swallow the food but not the pitch. Don’t be swayed by misleading terms and enticing promises. When it comes to annuities, always focus on the contractual guarantees.
- When it comes to annuity companies and products, there is no “best” product and no “best” company that is applicable to everyone and all situations. Annuities are never a one-size-fits-all, you have to get the product that has the most appropriate contractual guarantees for the goal or need you are solving for.
- Don’t be fooled by the expensive steak or bad chicken dinner seminars that pitch hypothetical, theoretical, or backtested numbers. If you want to buy an annuity, ask yourself these two questions: “What do you want the money to contractually do” and “when do you want those contractual guarantees to start?”
"If it sounds too good to be true, it is with annuities every single time without exception." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Chuck Jaffe discuss:
- Politics and economy
- Looking into how inflation affects you
- How Indexed Annuities should be used
- The question for cryptocurrency
Key Takeaways:
- Politics don’t create the economy. There are a lot more factors that go into it than just who is in power. Economic forecasts sometimes become inaccurate because there is a huge disconnect between how we feel and how we’re doing.
- Don’t let the news dictate what you truly feel. Try to honestly assess how inflation is affecting your life because inflation is not that bad for those who have and are much worse for people who have not.
- Indexed Annuities are often pitched in misleading ways but they are good products if the consumer is taught their true features and function. They can be used as a great delivery system for income rider guarantees when future income is the goal of the client and it beats the deferred income annuity quote.
- The biggest question we must ask about cryptocurrency is this: “What problem does it solve?” The value of cryptocurrency is determined by what the market makes of it. It doesn’t have any value yet except that. Blockchain technology is much more worthy of investment.
"Keep in perspective where money is supposed to be. You didn't make it to save it. You didn't make it to be buried. The richest man in the graveyard is not the happiest man before he got there." — Chuck Jaffe
Connect with Chuck Jaffe:
Website: http://moneylifeshow.com/
Podcast: https://moneylifeshow.libsyn.com/
Twitter: https://twitter.com/ChuckJaffe
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Creating a solid income floor for retirement
- Considering your income
- Many ways to create income
Key Takeaways:
- Going into chapter two of your life, you have to do your own thing. Stop keeping score. You’ve already won the game, you already have enough money, so why are you still playing?
- It’s important to have non-correlated income sources for your retirement such as pensions, rental properties, and annuities in order for you to create a solid income floor that’s not affected by market fluctuations.
- Factor in how much income you need in your retirement, what you want to do with your money, how you want the money to work, what kind of risks you want to shoulder, and what risks you want to transfer.
- Interest rates are at a point at the time of this taping where people can protect the principal and take interest off of the top. This way, you’ll create your income floor without putting your capital at risk.
"If there's a gap in your floor, what are you going to do? You're not just going to leave the gap, right? If you have a gap in your income floor, you're going to fill it. You're going to fill it with as little amount of putty or fake wood as you can. With annuities, you do the same thing." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Lifetime income and principal protection
- Return of your money
- Peeling of the interest to solve income needs
Key Takeaways:
- Annuities aren’t only for lifetime income, some products just protect the principal like a MYGA or a Fixed Annuity.
- With lifetime income, annuity companies are on the hook to pay a return OF your principal plus interest as long as you are breathing.
- Will peeling off the interest, never touching the principal, and getting a return ON your money solve your income needs? MYGAs give you the option to lock in interest rates for one year up to ten years.
"If you choose the return ON then all we're going to have to do at the end of the maturity of that MYGA is roll it to another MYGA and hope that rates are at a good level. If rates go down, we can always transfer that [MYGA] to an immediate annuity for lifetime income. So you can play both sides a little bit." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Planning with simplicity
- Annuity products overview
- Consumer-focused future of annuities
- Tuning out the noise
Key Takeaways:
- Lifetime income is priced primarily on your life expectancy and interest rates play a secondary role in pricing. Shop all carriers for the highest contractual guarantee, don’t gamble your retirement on hypothetical and theoretical numbers. Seek simplicity in planning.
- Indexed annuities are going to keep getting pitched, and often through misleading and hyperbolic statements, by sales agents because of the high commission. Indexed annuities aren’t bad products, they are great delivery systems for lifetime income through the attachment of an income rider.
- Companies must realize the importance of putting consumers first and giving them the power to make the choices that they want to make through education and other helpful resources. Annuities should be bought and not sold, agents have the responsibility to make sure the client understands their contract fully.
- Tune out the noise of the media and look into your life instead. Think about things that matter to you, things that make you happy, and focus on making more time for that. Eliminate the things in your life that are not adding to your joy.
"If you're in chapter two of your life in retirement, I want you to maximize the day. I want you to start structuring your day for fun and for relaxation and for reflection." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Annuities solve for PILL
- Two questions that make annuities simple
- Commoditizing annuities
Key Takeaways:
- Annuities are simple; they’re a transfer of risk contract that primarily solves four things: principal protection, income for life, legacy, and long-term care. You don't need an annuity if you don’t need to solve for any of those four items.
- You need to answer two questions when you consider buying annuities: “What do you want the money to contractually do?” and “Where do you want those contractual guarantees to start?”
- When you only focus on the contractual guarantees of the contract, it commoditizes the annuity type. Then, you can shop all carriers for the highest contractual guarantee for your specific situation.
"What do you want the money to contractually do, and when do you want those contractual guarantees to start? Your answers to those two questions determine the product that will provide the highest contractual guarantee for your specific situation. That's simple, isn't it?" — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Annuities are DIY products
- Focus on the contractual guarantees
- Commoditization of annuities
Key Takeaways:
- Annuities are do-it-yourself products that don’t need any management fees. If an agent asks for management fees, you must ask them to explain why they included that charge.
- You own an annuity for what it will do, not what it might do. The “will do” are the contractual guarantees of the policy. Never buy an annuity for hypothetical, theoretical, backtested, or projected return scenarios.
- When annuities are commoditized, you can shop for the highest contractual guarantee, which makes it perfect for DIY individuals.
"All annuity types are for do-it-yourselfers. If you want lifetime income, then you answer two questions, what do you want the money to contractually do when you want those contractual guarantees to start." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and GUEST discuss:
- Saying no to DIY retirement
- What the right age for retirement is
- How annuity addresses inflation
- Securing guaranteed lifetime income with annuities
Key Takeaways:
- Retirement is not a DIY project, do it with a professional.
- The age for retirement would not be the same for many. If you want to get the optimal age, you have to spend some time calculating all the factors that go into it.
- Be creative in doing something that can help your retirement. It’s okay if you have to do a side hustle or work longer.
- Having a huge income guaranteed allows you to make riskier and therefore more rewarding investments.
- When the account is drawn down to zero, the annuity company is still on the hook to pay.
"They found that the happiest people in retirement were those people who were surrounded by their families and friends, and had guaranteed paychecks every single month." — Tom Hegna
Check out Tom’s Books here: https://tomhegna.com/shop
Connect with Tom Hegna:
Website: https://tomhegna.com/
LinkedIn: https://www.linkedin.com/in/tomhegna
Facebook: https://www.facebook.com/TomHegnaSpeaks/
Twitter: https://twitter.com/tomhegnaspeaks
Pinterest: https://www.pinterest.ph/retirehappynow/
Youtube: https://www.youtube.com/c/tomhegna
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Protecting your beneficiary from dumb choices
- How Stan lovingly handcuffs his beneficiaries
- Handcuffing your loved ones is good for them
Key Takeaways:
- Lovingly handcuffing your beneficiaries with annuity guarantees protects them from making dumb decisions with lump sums.
- Stan has written in the trust that when he dies, there will be a lifetime income annuity purchase for each of his daughters, guaranteed to pay them for the rest of their life as long as they are breathing.
- Your beneficiaries might not react positively to you giving them income instead of a lump sum, but handcuffing them contractually is the right thing to do and it will be good for them in the long run.
"Death is not a good strategy, because you can only use it once. But wouldn't it be good to know regardless of what happens, that they're taken care of? And that lifetime income stream is going to be in place?" — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Why would you want to stop taking in income?
- Three types of irrevocable income lifetime income teams
- Light-switch Annuity Products
Key Takeaways:
- There’s a myriad of reasons why you would want to stop taking income, and there are annuity reasons that allow for this. One reason could be if tax laws change in the future and you want to shut down the income stream to not get taxed, or when you want the income to accumulate for your death benefit.
- The three types of irrevocable income lifetime income streams are Single Premium Immediate Annuity, Deferred Income Annuity, and Qualified Longevity Annuity Contracts.
- A Multi-Year Guaranteed Annuity is the annuity industry version of a CD. It allows you to take out interest while keeping the capital intact, and it’s a light-switch annuity product. Another light-switch product is an income rider attached to an indexed annuity.
"There are annuities that aren't light switch annuities: SPIAs, DIAs, and QLACs - but there are annuities that are light switch for income, MYGAS, and then income riders which are lifetime income products." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Michael Finke discuss:
- Annuities are more attractive today
- Protecting your future lifestyle
- Cutting little slices on the birthday cake
- There’s no perfect product to solve for inflation
Key Takeaways:
- At the time of this episode’s taping, near-retirees can lock in 5.2% on five-year MYGAs for the next five years; however, it may go up or down.
- When buying an annuity, you're essentially buying yourself a minimum standard of living forever, no matter how long you live. You have to choose if you want to shoulder the risk or transfer it. Your future lifestyle is at stake.
- It’s not going to be easy, but you must first recognize that you’re not going to live forever. You have to decide how you could spread out your savings to accommodate your lifestyle until you die or if you want to spend more money to have less worry.
- If you can be more flexible, then inflation’s impact won’t be that big of a deal. Also, there’s no perfect product to solve for inflation. There are options that could help you have some stability through it, like social security and I Bonds.
"If we model out 1000 different potential retirements, the ones who will have an annuity will, on average, be happier, but the ones with an investment portfolio might have a slightly higher probability of success. But there is no information about what failure means." — Michael Finke.
Connect With Micheal Finke:
Website: http://www.michaelfinke.com/
LinkedIn: https://www.linkedin.com/in/michael-finke-8134808/
Facebook: https://www.facebook.com/mfinke
Twitter: https://twitter.com/FinkeonFinance
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Annuities for your spouse and loved ones
- Throwing darts at death
- Planning for cognitive decline
- Filling in financial gaps
Key Takeaways:
- Using a trust, you can set up an immediate annuity purchase to trigger when you pass away to provide lifetime income for your spouse using a designated lump sum. You can use annuities to lovingly handcuff your young beneficiaries, providing them with guaranteed income instead of a lump sum.
- Buying an income rider, deferring it out, and setting it up as a joint-life policy is like throwing darts at death because you don’t know when you’re going to die. Death is not a good strategy.
- The problem with planning for something for your spouse in case of cognitive decline is that you don’t know when you have cognitive decline, especially if you are already in cognitive decline.
- You can set up a plan that will fill in financial gaps that your spouse can enjoy when you pass away, and it can be set up so that your death triggers it. However, you can also throw some calculated, contractual darts if that’s what you prefer.
"Now, while you're alive, if there's something like a pension or something that's going to be reduced upon your death, we should start planning upon your death to replace that gap for your spouse. That can be done at the time of your death - it can be triggered by your death. Or we could throw some calculated contractual darts. " — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- What are MYGAs and SPIAs?
- Annuities are contractual commodities
- MYGA to SPIA
Key Takeaways:
- A MYGA, Multi-Year Guaranteed Annuity, is the annuity industry's version of a CD. The good news about MYGAs is that the interest rate is locked in and non-callable. This means that when interest rates go down, you’re going to be locked in.
- Annuities are contractual commodities, meaning that when you're buying them for the contractual guarantees, you can shop all carriers for the highest contractually guaranteed payout for your specific situation based on how you structure them.
- Through MYGAs, you can protect the principal, peel off interest, and retain liquidity. After the duration of the MYGA, we can then shop all SPIA carriers and transfer the MYGA to the SPIA.
"You can have your cake and eat it too, you can protect the principle, you can peel off interest if needed during that duration of the MYGA, and at the end of that term, you have full control of the asset." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In case you missed it, I have decided to circle back to one of my Fun With Annuities episodes that just cannot be missed. This one has annuity gold, and it is definitely a must-listen.
In this episode, The Annuity Man and Moshe Milevsky discuss:
- The problem with annuities
- What’s a tontine?
- How income increases with tontines
- The gap between healthspan and lifespan
Key Takeaways:
- The point of annuities is to generate predictable income even when you can no longer make decisions yourself due to cognitive decline. That’s why agents have to make sure the clients understand and continue to understand what they are buying and what contractual guarantees they have in place.
- A tontine is one of the many strategies people use to finance themselves in retirement in which the longest-living people get the most income while the people who didn’t live a long time get a smaller amount of income.
- Tontines increase the income for all living people involved as time passes because the same income amount is being split within a group that gets smaller as members pass away. The mortality rate becomes a real interest rate - this is most interesting in the current inflationary times.
- Money alone doesn’t solve your problems; just throwing money at a problem won’t make it go away. You need to do something with it to solve your problems, and one of the biggest problems in aging is the gap between health span and lifespan.
"When you have a product that is meant to help people that are eventually going to cognitively decline, there's a higher burden of care there because you got to make sure that they understand what they're buying and they continue to understand what they're buying. " — Moshe Milevsky.
Connect with Moshe Milevsky:
Website: https://moshemilevsky.com/
Twitter: https://twitter.com/RetirementQuant
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Claiming your social security
- You can’t time annuities
- Three phases of retirement
Key Takeaways:
- Social security payments get higher if you wait until 70 because you’re older which means that your life expectancy is less, meaning that there are fewer projected payments. Fewer payments mean that those payments will be higher. It’s simple, but that doesn’t mean that that is always the better choice.
- You can’t time it with annuities, you can’t time it with lifetime income. Annuities are priced primarily based on your life expectancy. However, this doesn’t mean that you should wait until you are seventy before you get a lifetime income.
- There are three phases of retirement: go-go, slow-go, and no-go. Go-go when you are still rolling, slow-go is when you start to feel slow down, and no-go is when you have severely decreased physical and mental faculties. Make your decisions based on what phase you’re in and what your goal is.
"There are no sweet spots with annuities. There's no arbitrage moment with annuities. The older you are, the higher the payment for lifetime income when you're looking at life to make them it's that simple." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Owning an annuity for what it will do
- Annuities are a commodity product
- Don’t swallow the pitch
Key Takeaways:
- You should own an annuity for what it will do, not what it might do. When you strip down annuities to the contractual guarantees, only then will it become commoditized.
- Annuities should be quoted from multiple carriers to get the most favorable contractual guarantee for the client. That’s the way it should be. Take note that quotes often change as carriers adjust their bid.
- Annuities that adjust for inflation are structured where the insurance company lowers the payment to make up for the potential increase. Don’t be swayed by sales pitches. Focus on the guarantees.
"Once we strip it down to the contractual guarantees, then they're immediately commoditized for us to then go quote for the highest contractual guaranteed number. That's how simple this is. That's how simple the annuity industry could make this." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
The holidays are here, and so is this fan-favorite throwback! Take a trip down memory lane with this re-uploaded video - the perfect way to celebrate the break.
In this episode, The Annuity Man and Wade Pfau discuss:
- Retirement Income Style Awareness (Risa) framework
- Wade’s different viewpoint on retirement
- 4% rule of thumb and its limitations
- The truth about retirement planning strategies
Key Takeaways:
- Understanding one's preferred retirement income strategy via the Retirement Income Style Awareness (Risa) framework. It assesses different retirement strategies that align with the retiree’s needs and goals, such as total return investing, time segmentation or bucketing, and essential versus discretionary expenses.
- Go beyond viewing retirement as mere cessation from work and consider it as attaining fiscal independence to pursue passions and goals without dependency on income from employment. Read Wade Pfau’s article on the 4% rule of thumb and its limitations. Additionally, explore the potential benefits of annuities as a tool for sustaining retirement spending over a long retirement.
- Explore the broader international experience in financial markets and retirement planning to better understand the uncertainties and challenges involved. Consider the impact of low interest rates on bond returns and the need for diversified retirement income strategies.
“We need to figure out what retirement strategy works for each individual because what works for one person may not work for another. It's about finding the style that resonates with you.” - Wade Pfau
Connect with Wade Pfau:
Website: retirementresearcher.com
LinkedIn: https://www.linkedin.com/in/wpfau/
Twitter: WadePfau
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Explain your annuity to a nine-year-old
- Why annuities seem complicated
- Ask for contractual guarantees
- Don’t buy an annuity for market return
Key Takeaways:
- You should be able to explain the annuity that you’re getting ready to buy or considering buying to a nine-year-old. You should be able to explain the annuity type, how it functions, how it works, and what are the limitations and benefits of it.
- Annuity contractual guarantees are simple and easy to understand, they're not complicated. It is the sales pitch given by agents and advisors that makes them complicated.
- If someone is pitching you something that sounds too good to be true then it is, without exception. Ask the agent to show you contractual guarantees. Ask them what would be the worst-case scenario.
- If you're looking for real market returns, then don't buy an annuity go in the markets so you can get real upsides.
"Annuity contractual guarantees are simple and easy to understand. It's the non-guaranteed part that gets people confused and making bad decisions. Make your decision on what an annuity will do, not what it might do." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Marrying the lifetime income
- Dating the rate
- MYGAs are not callable
Key Takeaways:
- Buying an annuity for lifetime income is like marrying a company. When marrying an annuity company for lifetime income, the company has to be A+ or better, except for a few exceptions.
- A MYGA is the annuity industry’s version of a CD. With MYGAs, you’re locking in a guaranteed interest rate for a specific period of time that you choose. You control the money; it can all be sent back to you or be moved to another one.
- Multi-year guaranteed annuities are not callable. This means the life insurance company can't call that money back in if interest rates go down. Check today what the rates are, and you’ll see a lot of good yield numbers.
"You're dating the rate; you're marrying that lifetime income.”
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and John Lenz discuss:
- Don’t lose track of your renewal rate
- Laddering Multi-Year Guarantee Annuities
- Reasons for buying a QLAC
- Suitability regulations
Key Takeaways:
- Insurance companies are for-profit institutions. Historically, insurance companies have renewed annuities at a lower rate than new money rates, but not everybody, and not all the time. Don’t lose track of your renewal rate; keep the company honest.
- Nobody can predict interest rates. Given everything we don't know, having a MYGA ladder is not a bad idea. Currently, we're at interest rate levels that if you have enough money, you can live off the interest and lock it in long-term.
- Tax savings shouldn’t be the primary reason why someone buys QLACs. Buy QLACs if you want lifetime income, joint lifetime income, or if you want to combat inflation. Tax savings are a benefit of buying a QLAC, but it should be the tertiary reason for doing so.
- Suitability is a term that says the annuity that your agent is proposing to you is suitable for you based on a number of things: your age, your liquidity, your understanding of your money, your net worth, your income, and your expenses.
"You got to advocate and go out there and make sure your money is not sitting around making somebody else profit instead of you" — John Lenz.
Connect with John Lenz:
Website: https://www.lenzfinancial.com/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Making money from the sidelines
- The trifecta of principal protection
- Nobody knows where interest rates are going to go
Key Takeaways:
- In the past decade, you wouldn’t make much money if you went to the sidelines. CDs, money markets, treasuries, and MYGAs weren’t paying that much. However, until a few months ago, when interest rates moved significantly, you could now go to the sidelines and make money contractually.
- The principal protection trifecta are CDs, treasuries, and multi-year guaranteed annuities. MYGAs are fixed-rate, not indexed nor variable. This means they give a guaranteed interest rate for a specific period of time.
- Nobody knows where interest rates are going to go. Stop trying to thread the needle, stop trying to look for an arbitrage moment, and stop trying to wait for the bell to ring - it doesn't ring at the top or the bottom.
"If you want to go the sidelines, go! There's no reason to hesitate to go because you can get great contractual guarantees. And if you want to go back into the markets, go back in when your neighbor walks out the door and vomits after seeing the market losses." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Debunking generalizations about annuities
- Most annuity types have no fees
- Are all annuities a bad deal?
- What all annuities really are
Key Takeaways:
- Making sweeping generalizations about annuities is as stupid as saying all restaurants are bad or all shoes are expensive. Anyone who says all annuities are bad should not claim their social security or pension from the government because those two are annuities.
- Most annuity types have no expenses. Single premium immediate annuities, deferred income annuities, qualified longevity annuity contracts, multi-year guarantee annuities, and even index annuities when you don't attach income riders don't have any fees.
- How can all annuities be a bad deal when you can receive guaranteed income as long as you are breathing? You can even structure the contract so that the annuity company gives the money to your beneficiaries when you die.
- All annuities are good, suitable, and appropriate if an agent takes the time to have a full conversation with you to see if the annuity will fit your needs. All annuities are contractual and should be purchased for their contractual guarantees.
"All annuities are not for everyone. All annuities are contractual. All annuities are and should be shopped with all carriers for the highest contractual guarantee for your specific situation that you're trying to solve for." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Jack Lenenberg discuss:
- Standalone traditional long-term care
- Asset-based long-term care
- The perfect time to buy long-term care
- Long-term care and self-insurance
Key Takeaways:
- A standalone, traditional long-term care insurance works just like health, auto, or homeowner insurance. You own a policy, and if you need long-term care, the company will pay the benefits, and you will stop paying premiums. It is, however, difficult to get underwritten since the more they look into your medical history, the less likely it is that you’ll get approved for coverage.
- The second type of long-term care policy is the asset-based policy, where the asset is either a life insurance policy or an annuity. The costs are fixed, premiums do not change, and there is a return of premium if you do not need care until death. The underwriting is easier since it is only a telephone interview, which means you have control of the narrative.
- The perfect time to buy long-term care insurance is when you are concerned about not burdening your family with issues that will come when you lose your health. Buy long-term if you are healthy enough and have the resources. Don’t wait for illness to come, because it would be too late by then.
- Long-term care is a transfer of risk. If you want to try and “self-insure”, then look into the costs of healthcare today and consider just how\
- the costs would be when you eventually end up needing long-term care. The earlier the people plan, the better.
“If you're healthy enough to get a policy and you have the resources - by all means, that is the perfect time to buy your coverage. You cannot wait until the accident has happened to try to throw on your seatbelt.”
Connect with Jack Lenenberg:
Website: https://longtermcareinsurancepartner.com/ or https://ltcpartner.com/
LinkedIn: https://www.linkedin.com/in/jacklenenberg/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- When is it a good time to buy an annuity?
- Are annuities for market growth?
- Annuity sales tactics to be wary of
Key Takeaways:
- Annuities aren’t for everybody. If you need to transfer risk, need contractual guarantees, or solve for principal protection, income for life, legacy, or long-term care, then it’s a good time to buy an annuity.
- If your goal is market growth, then an annuity is not for you. Annuities are not market-growth products. When buying an annuity, you’re buying a contract, which means you’ll own it for what it will do, not what it might do.
- Don’t buy an annuity because someone promised “market upside with no downside”, “principal protection with market participation”, or that they’ll give you an upfront bonus. These common sales tactics mislead the buyer into buying the dream but owning a contractual reality far from what was pitched.
"Is it a good time to buy an annuity? The answer to that is, do you need to transfer risk? Do you need contractual guarantees? Do you need to solve for principal protection? Income for Life legacy or long term care?" — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Solving for longevity risk
- Four products for lifetime income
- Focusing on guarantees
Key Takeaways:
- There is no ROI until you die. Up until then, it’s a transfer of risk to the annuity company to solve for longevity risk. The longevity risk is the fear that you’ll outlive your money. An annuity will pay as long as you’re breathing, even if you are on a ventilator.
- The annuity industry has four major types: Single Premium Immediate Annuities, Deferred Income Annuities, Qualified Longevity Annuity Contracts, and Income Riders. All four provide a lifetime stream as long as you are breathing or if you set it as joint-life, as long as you or your spouse is breathing.
- Forget all the shiny things that agents try to make you fixate on. Focus on the guarantee that you will get paid as long as you’re breathing. You could also structure the contract so that your money goes to your beneficiaries when you die.
"The good thing about turning on lifetime income stream and transferring that risk to an annuity company to pay for as long as you're breathing or on a ventilator is that it's turnkey. And there will come a point if we live long enough that we will need that income to be turnkey." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Annuities are not complicated
- Understand what you are buying
- Trusting true fiduciaries
Key Takeaways:
- Annuities are simple if you focus on the guarantees. It’s agents who are focused on self-interest that pitch products that make annuities too complicated. Often, they entice their clients with misleading backtested numbers and value-less upfront bonuses that seem like “free money.”
- If you can’t explain the strategy or the sales pitch to a nine-year-old, do not buy it. There is no urgency for you to buy an annuity; the only urgent and important thing is for you to understand what you are getting into.
- The longer the surrender charge and the more complex the strategy, the higher the built-in commission is for the agent. Putting the client’s interest first should be the basic requirement to be an agent. However, that is not the case most of the time. Sadly, even some that claim to be a fiduciary
"This is a simple, simple industry with simple, simple solutions. The people that are making it complex are the agents and advisors selling the products in a complex way, instead of stripping it down to the basics." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Products that adjust for inflation
- Thinking rationally about inflation
- Reverse-engineering annuity
Key Takeaways:
- Many bad sales pitches out there mention a way to beat inflation using indexed products that adjust for inflation. What really happens is that the annuity company severely lowers the initial payment to make up for any potential increase.
- Think rationally about inflation. It’s customizable to everybody, meaning not everyone is affected the same way. Some are not even affected at all.
- Start with the goal or the need. How much more do you need in order to live the life that you want? To solve for that difference, you’ve got to shop all carriers and see which offers the highest contractual guarantee that will fit the goal or the need.
Just hold until you need to fill that gap of income for inflation. Don't be proactive; don't throw darts at it. But if you do want to throw darts - let's buy income that starts at a future date." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- What is an income rider?
- Buying based on your goal
- Addressing inflation with DIAs and Income Riders
Key Takeaways:
- An income rider is an attachment to a policy; you can’t buy a standalone income rider. The only number that you have to focus on when you’re pitched an income rider is the contractually guaranteed payout number.
- When it comes to annuities, one is never better than another. They all have a benefit depending on what your personal goal is. You should shop for both Income Riders and DIAs if your goal is income in the future.
- Both income riders and DIAs do not address inflation properly. You can attach a cost of living adjustment increase to a deferred income annuity, but the annuity company severely lowers the payment to make up for that cost of living adjustment increase.
"Income riders versus DIAs… they both do the same thing. They both get to income later, contractually, they just take two different contractual paths to get there, but they're both great strategies, but not one is better than the other." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Bill Black discuss:
- The problem with indexed policies that agents don’t often talk about
- Backtested numbers in the life insurance side
- Insurance is not an investment
- How do hybrid life insurance policies work
Key Takeaways:
- An indexed policy is a loan, which is supposedly non-taxable. However, people aren’t told that interest is being paid out of the cash value of the policy and when it gets overwhelmed, the policy collapses under its own weight and becomes a forgiven loan. Forgiven loans are taxable as ordinary income in the year of that forgiveness.
- When buying an indexed policy whether in life insurance or in an annuity, it’s best to get experts involved in the process. Don’t swallow the pitch, don’t trust backtested numbers. Trust experts who will inform you of both the limitations and benefits of a policy.
- Life insurance is not necessarily an investment. When you buy retail policies, you buy them for risk coverage and liquidity. Consider the policies where you can pay the smallest amount of premium possible while getting the most coverage.
- If you buy a life insurance policy with a survivor benefit and you end up not using your available long-term care coverage, your beneficiary gets the survivors benefit.
"Historical returns have nothing to do with future expectations." — Bill Black
Connect with Bill Black:
Website: http://www.whbco.com/
LinkedIn: https://www.linkedin.com/in/whblack/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Acknowledging your wealth
- The scars of scarcity
- Should you be worried about inflation
- Setting up contractual guarantees
Key Takeaways:
- Be rational about the wealth that you have. Don’t say you’re not rich if you are not one of the 40% of Americans today who have $400 to their name and are struggling. Acknowledge the wealth that you’ve earned.
- Many people have what can be called the “scars of scarcity.” Experiencing poverty in one’s youth or growing up amid an economic crisis tends to leave scars in the mind of a person. People with the scars of scarcity tend to be needlessly cautious about spending a little extra money on things like food, travel, or other things.
- Inflation affects those who are on the low end of the country. If you are rich and worried about inflation, then you are not doing the math. A hike in the price of gas or eggs isn’t going to affect you; it’s going to affect the other 60% of people in America.
- With annuities, you can set things up contractually so that there’s a lifetime income stream that you can never outlive, or you can just live off the interest and never touch the principal.
"I need you to start acting rich. Put that team of advisers around you because you are rich, whether you think you are or not. Start acting a little bit more annuity rich, meaning put guarantees in place so you can go live your life and not worry about it." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Traditional laddering with MYGAs
- What is “reversing”?
- Traditional laddering and reversing
Key Takeaways:
- You do a traditional 3-year, 4-year. 5-year ladder if you are hoping that rates will go higher. It’s a strategy you use when you want to have money as the rates are rising so that you can attach yourself and lock yourself in with those higher rates.
- Reversing is the opposite of laddering; you lock in the MYGA for 10, 9, 7, or 10, 7, or 5 years because the rates are falling. This is also a great strategy to use with MYGAs since MYGAs are not callable, the rates are locked in.
- If you are undecided whether you should ladder or reverse, you can put half your money in one and half in the other to get a more balanced outcome. What’s important is that you should have some of your money be not callable.
"A lot of times when Powell raises interest rates, the annuity industry yawns. You can't time it; there’s no sweet spot. There's no arbitrage moment." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Why QLACs should be number one
- Three reasons to buy a QLAC
- The downsides of a QLAC
Key Takeaways:
- If agent commission didn’t come into play, QLACs would be the number one best-selling annuity product. It’s simple, pro-consumer, and works; it’s a product that focuses on the “will do” and not the “might do.” It’s a guaranteed lifetime income rolled from your IRA, and can be deferred as far out as age 85.
- There are primarily three good reasons to buy a QLAC. First, you’ll get future income to combat inflation. Second, you can add your spouse as a joint annuitant, which means that they too get paid as long as one of you is breathing. Third, you can have tax savings. The amount that you put into a QLAC is not included in your required minimum distribution calculations.
- The downsides of a QLAC are that it’s irrevocable, there’s no trackable interest, and there’s no market attachment. The latter “downside” isn’t much of a downside at all. Being detached from the market means it’s not affected by market fluctuations.
"With QLACs, SPIAs, and DIAs, there's no annual phase. There's no market attachment; it’s a straight transfer risk. You're saying to the issuing QLACcompany, here's the money, and you are on the hook to pay me, or me and my wife, or me and my husband forever as long as one of us is breathing, but you don't get to keep a penny. " — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Transferring risk through annuities
- Single Premium Immediate Annuities
- Annuities are commodity products
- Structuring annuities to combat inflation
Key Takeaways:
- Annuities are transfer of risk products. You are transferring the risk to the annuity company to pay as long as you’re breathing. Through annuities, you can create an income floor that you can never outlive.
- A SPIA or Single Premium Immediate Annuity is when you want income to start as soon as 30 days from the issuance of the policy to as far out as a year. There are no moving parts, no market attachments, and no annual fees. It is a very simple transfer of risk.
- SPIAs, DIAs, QLACs, and Income Riders are all going to pay as long as you are breathing, all four can be set up so that 100% of the unused money is going to go to the beneficiaries instead of the annuity company. There is no “best” when it comes to these commodity products. The best is the one that gives the highest contractual guarantee.
- You can attach increases to annuity products that increase to hopefully combat inflation. However, annuities decrease the initial payments to make up for that increase whether potential or contractual. It sounds good in theory, but mathematically, it typically doesn’t hold up.
"The COVID wake-up call for all of us is ‘go live your life’ and because of that you need to look at how you create your own personal pension." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- An advisor who’s an annuity hypocrite
- Annuities you might already own.
- “All annuities are ____”
Key Takeaways:
- An advisor who says, “never buy an annuity” or “all annuities are ___” is an advisor that has lost all credibility. Don’t trust a hypocrite advisor.
- It’s highly likely that you already own an annuity. Some examples of an annuity you might already own are these: Social Securities, RMDs, and IRAs.
- One cannot broad brush the whole annuity industry. Saying all annuities are bad is like saying all restaurants are bad, or all shoes are bad, or all cars are bad. Some annuities are not beneficial, but you own an annuity for its contractual guarantees.
"Annuities aren't for everyone but a lot of people are benefiting from the contractual guarantees and the transfer of risk." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The Annuity PILL
- Do you need an annuity?
- Is your money safe?
- Overcoming FOMO
Key Takeaways:
- You own an annuity for what it will do, NOT what it might do. Remember the PILL acronym: principal protection, income for life, legacy, and long-term care.
- It's very simple to determine if you need an annuity period, and it comes down to two questions: What do you want the money to do contractually? And when do you want those contractual guarantees to start?
- The business model of insurance companies is calculated based on life expectancy. It is a confidence product and is highly regulated - even more regulated than banks.
- The biggest psychological hurdle to buying an annuity is the fear of missing out. You need to overcome the fear of missing out on market returns and replace it with the fear of missing out on your chapter two, where you should live the life you have earned.
"There's no urgency. Do not be forced or pressured to sign anything. You sign what you want to sign when you want to sign it, period—no exceptions." — Stan The Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- What a MYGA isn’t and what it is
- What is a call feature?
- Locking in interest in MYGAs
Key Takeaways:
- A MYGA is the annuity industry’s version of a CD. It’s a Multi-Year Guaranteed Annuity. It’s not an income annuity, and it’s not annualization. It’s when you give the money to the insurance company, and they contractually guarantee an annual yield for the duration you choose.
- In simple words, a call feature is if interest rates go down after you purchase a high-yielding bond or CD; some provisions allow the issuing entity to call that money back when the banks cannot give you the interest you wanted to get.
- If the duration you want to lock in is less than three years, then you probably should look at CDs and treasuries. If the duration you want to lock in is three years and more, MYGAs will offer a higher contractual yield.
"MYGAS are not callable. They are guaranteed for the term that you lock in. So if you lock in a 10-year term and interest rates go drastically down, the annuity company can't call that back in. They can't pull the rug out from under you contractually. They have to honor that contractual yield that you've locked in for that long term." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Annuities that increase with inflation
- The role of interest rates on pricing
- For products that adjust for inflation
- Reverse-engineering your income floor
Key Takeaways:
- Annuities don’t give things away for free. A product that magically increases with inflation doesn’t exist.
- Lifetime income is primarily priced based on your life expectancy at the time you take the payment. Interest rates play a minor role.
- For products that have a potential or contractual increase for inflation, the annuity company will severely lower the initial income as compared to the exact annuity without the increase.
- Don’t focus on things that you can’t control. Focus on building up an income floor that suits your needs. Compute for the number you’ll need to cover your expenses; we can reverse-engineer a product for that.
"It's math to the annuity companies. It should be math to you. If it sounds too good to be true, it is every single time. " — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Kerry Pechter discuss:
- Recommended readings for retirees
- The many types and applications of annuity products
- Pulling back the curtain on annuity systems
- Two products that Kerry likes
Key Takeaways:
- If you buy an annuity book, start with “Annuities For Dummies” because it’s a primer, a foundational book, and much more. Issues of the Retirement Income Journal are also another must-read.
- Whatever comes after the phrase “all annuities are…” is always false, as you can’t broadly categorize all annuities. They are like restaurants, shoes, or cars; you can’t say they are all bad. Every type of annuity has a different purpose and a different application.
- Choose a company that puts its policyholders first. You don’t want to be second in line or third in line to management and the shareholders regarding retirement.
- Kerry shed light on two products that people might want to look into to see if it fits their retirement plan: the variable income annuity and the fixed rate annuity with long-term care.
"Annuities are a bunch of products that have as much that are unalike as they are alike. Each one is a tool for particular kinds of people in particular kinds of life for different kinds of risk management." — Kerry Pechter.
Connect with Kerry Pechter:
LinkedIn: https://www.linkedin.com/in/kerry-pechter-1b05705/
Book: https://www.amazon.com/Annuities-Dummies-Kerry-Pechter/dp/1394168586
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Better to be told than sold
- There is no urgency to buy
- Stop selling and start telling
Key Takeaways:
- Ask yourself, do you need to be sold or told? Do you want to be told facts? Or do you want to be sold or convinced to buy a product that may not even suit your goals?
- There is never an urgency to buy an annuity. The only urgency is for the client to completely understand what they are buying and what contractual guarantees they are getting into.
- For all the annuity agents out there, stop selling and start telling. People don’t want to be sold. What they want and need is for someone to give them accurate and relevant information that will help them make a decision that’s beneficial for them.
"You buy an annuity for what it will do, not what it might do, and the will do are the contractual guarantees of the policy. You buy annuities for the contractual guarantees only." — Stan The Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Looking for the sucker
- Too good to be true
- No perfect annuity
Key Takeaways:
- There’s a saying in Vegas that if you don’t know who the sucker at the table is, then it’s you. The same goes for annuity pitches. You have to be on your guard and be aware of what a person’s intention is when presenting a product.
- Don’t believe sales pitches that are too good to be true. Annuity companies aren’t giving out free money with upfront bonuses. Always remember that backtested numbers don’t mean anything.
- If someone tells you that they’ve looked at all the annuities and decided that the particular one they’re saying is the best, then know that they’re either lazy, dumb, full of crap, or may want to go on a trip with their partner on the weekend from the commission they’ll get from selling you a product you don’t need.
"Stop looking for the perfect annuity product. It doesn't exist." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The Annuity PILL
- Choosing an annuity carrier
- Putting the client’s best interest first
- The future of the annuity industry
Key Takeaways:
- The acronym PILL stands for Principal Protection, Income for life, Legacy, and Long-term care. If you don’t need to contractually solve for one or more of those items in the PILL, then you don’t need an annuity of any type. Never buy an annuity for market growth.
- Once you’ve determined what you want the money to contractually do and when you want the guarantees to start, we’ll shop all carriers, listing all the top contractual guarantees offered. Annuities are commodity products.
- Some carriers should not be recommended even if they offer the highest contractual guarantees. These carriers either do not or do not have the capability to put the client’s best interest first.
- There are some processing issues, hiring issues, and workforce issues, but all will be solved. It’s going to be a bumpy ride, but the industry is on the way to fixing problems and improving systems.
"My grandfather always told me, ‘If you tell the truth, you don't have to remember anything.’ That is our business model." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Automating your income
- Establishing an automated income stream
- Reverse-engineering your income goal
Key Takeaways:
- Automating your income is about creating more income floor to add to your lifetime income stream with Social Security which increases with inflation. This is where annuities come into play since that’s what they’re put on this planet to do.
- Establish a good lifetime income stream that will provide for your spouse or family. Keep it simple, and make it automated, so they wouldn’t have to worry about a single thing when you’ve either passed or reached a decline in your cognitive faculties.
- By reverse-engineering your income goal, you can solve for the least amount of money you’ll need to solve for that income goal contractually. Don’t worry about inflation, focus on computation and guarantees.
"Automate your income so you don't have to worry about that monthly income. Now that you need to, you can just go live your life." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- How are six-pack abs and market returns similar?
- How to have six-pack abs and market returns
Key Takeaways:
- Six-pack abs are similar to market returns. In both of them, you have to have realistic expectations and be wary of people that pitch you instant and easy gains.
- Getting six-pack abs or market returns isn’t going to be easy, and it won’t be instant. It will take discipline, consistency, commitment, and patience. You would have to work hard every day, be disciplined, and stay the course.
"If you're saying market returns, or six-pack abs, or both, it's a long-term play. You know that there are no quick fixes. There's no too good to be true. There's no perfect product." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Adam Van Wie discuss:
- Expectations versus reality
- The future of work
- Millionaire next door
- Inflation is customizable
Key Takeaways:
- Right now, there’s a bit of a disconnect between the market and people’s expectations. This happens more often than you think, as people tend not to think outside their current situation. The market is looking ahead, and it's telling us that things are looking better on the horizon.
- The COVID response changed how people work and think about work, and I think you see it reflected in the younger people's attitudes. On the horizon, we could see the power shifting back towards the employers.
- The media depicts people with high net worth and clumps them together as the “evil rich.” In reality, most wealthy people earned that wealth through working hard, saving, scrimping, and being wise about their money.
- Inflation is customizable, meaning it affects everyone differently. Inflation always hits the low end of society the most. If you’re categorically one of the “evil rich,” you can afford not to worry about inflation.
"You have to have a plan; you have to stay the course. Don't be reactive, don't try and time the market. You will end up hurting your own results, and you won't get anything positive out of it. Don't be that guy. " — Adam Van Wie.
Connect with Adam Van Wie:
Website: https://vanwiefinancial.com/
Facebook: https://www.facebook.com/vanwiefinancial/
Instagram: https://www.instagram.com/vanwiefinancial/
LinkedIn: https://www.linkedin.com/in/adamdvanwie/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Types of advisors you should avoid
- Things that discredit a financial advisor
- Don’t let an advisor bully you
Key Takeaways:
- There are a lot of great financial advisors who utilize empathy to serve your best interests. However, some believe they control the money and that clients should not question them. The latter tends to talk down to their clients, and if that’s happening to you, you need to find another advisor.
- If your advisor or financial planner shoots down annuities and says stuff like, “All annuities are expensive” or “All annuities are bad,” and they believe that you shouldn’t own an annuity, then you should consider their credibility lost.
- Don’t let an advisor bully you, don’t allow them to act like they own your money or that you should be thankful to them for managing your money. Don’t let an advisor berate you or look down on you. Find an advisor who gives the best advice they can give but still respects your decision.
"Don't allow a person to bully you on something that makes sense or to bully you and act like it's their money, and they're managing it, and you should be happy that they're managing it." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The Annuity PILL
- Upfront bonuses
- Keep it short and simple
- Transferring your annuity to another company
Key Takeaways:
- PILL stands for principal protection, income for life, legacy, and long-term care. When buying annuities, you should look for guarantees and not market growth or potential. Don’t let anybody sell you an annuity for market growth.
- Upfront bonuses are typically attached to index annuities, and it’s being pitched to unsuspecting people as the annuity company giving them free money. There’s no such thing; upfront bonuses are candy for the stupid.
- Keep the maturity short. If an advisor is pitching you 10-year surrender charge products, for example, ask them if they have a five-year version. Keep it simple. Don’t buy a product if you can’t explain it to a nine-year-old. Make sure you understand exactly what you’re contractually getting into.
- If an agent approaches you or someone in your family who already has an annuity and wants you to transfer to a better annuity company, that’s a semi-red flag. The receiving annuity company has to have a contractually guaranteed better deal for the person that’s moving their annuity.
"Principal protection, income for life, legacy, and long-term care. In my world that I think the annuity industry should live in, those are the four things that annuities should be sold for, not market growth." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Larry Kotlikoff discuss:
- Your ability to affect your social security
- Mistakes that people make with social securities
- Two ways economics deals with uncertainty
Key Takeaways:
- You have the ability to make your retirement benefit bigger or smaller by making decisions. Delaying your claim will increase the amount provided by your benefits.
- Delaying your claim makes more sense. If you die tomorrow, you won’t need any money. The real risk isn’t in dying early, it’s in living a long time and not having enough to sustain yourself.
- A Certainty Equivalent Analysis is a way to deal with economic uncertainty by making very conservative assumptions to adjust for risk. The other way is to go along and adjust in light of what happens.
"The fact of the matter is, if you die tomorrow, you're gonna be in heaven, you're not going to need money, you're not gonna be kicking yourself. The real danger is if you live to 100 and you're starving, eating cat food. " — Larry Kotlikoff.
Connect with Larry Kotlikoff:
Website: https://kotlikoff.net/ | https://maximizemysocialsecurity.com/
Facebook: https://www.facebook.com/laurence.kotlikoff
LinkedIn: https://www.linkedin.com/in/laurencekotlikoff
Twitter: https://twitter.com/kotlikoff?lang=en
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Lengthening your healthspan
- Taking care of both your healthspan and lifespan
- Committing to focus on what matters
Key Takeaways:
- Go after your bucket list items before you can’t function anymore; life is all about healthspan. Your healthspan is the period of your life where you still feel good and healthy enough to be capable of doing what you want. At the same time, focus on lengthening your healthspan through exercise and healthy eating.
- In combination with lifetime income streams, you can focus on healthspan while guaranteeing income for your lifespan. Lifespan has to be in place contractually so we can focus on health span.
- You’ve got to pivot, put your foot on the ground and decide to get healthy again. Focus on your health, your wellness, and your family. Do what you need to do healthspan-wise to get your life in order.
"Do what you need to do healthspan-wise to get your life in order. Put the lifetime income or principal protection guarantees in place to cover that." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Avoiding too-good-to-be-true products
- What are backtested numbers?
- Choosing contractual guarantees
- How the annuity industry can fix the problem
Key Takeaways:
- Be wary of agents that sell misleading, too-good-to-be-true products. Don’t buy a product with “market upside with no downside, upfront bonus, and principal protection.”
- Backtested numbers are misleading and theoretical, and they shouldn’t be allowed in selling annuities. They are pitched as a product that would make you rich today if you’d bought it ten years ago. For example, some products are only ten months old but are pitched with a 10-year calculation.
- A lot of people who have bought into these misleading products pitched by bad agents heavily regret it now. Lawyers are already suing annuity companies for backtested numbers, so this misleading practice will hopefully be gone in the future. For now, make sure what you are buying provides contractual guarantees.
- The annuity industries don’t have any deceptive intentions when they release a product. The problem is that they don’t have any control over how the agents are presenting it. It is the agents who mislead, exaggerate, or outright lie, in order to make a sale and not the companies.
"Do not put any faith or credence or credibility in any backtested number. All those backtested numbers don't come true ever." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, Stan The Annuity Man discussed:
- Lifetime income with SPIAs
- DIAs are SPIAs that you defer
- What counts as qualified money in QLACs?
- What an Income Rider is and what it isn’t
- Index Annuities are the annuity industry’s version of a CD
- Variable Annuities, charitable gift annuities, and buffer annuities
Key Takeaways:
- A Single Premium Immediate Annuity (SPIA) can be structured however you want that pension payment to function while you're alive and whatever you want the money to do when you're dead. If it's an Immediate Annuity, there are no moving parts, annual fees, or market attachments. It’s a straight transfer of risk.
- A Deferred Income Annuity (DIA) is an Immediate Annuity that you defer. A Single Premium Immediate Annuity past 13 months turns into a Deferred Income Annuity.
- A Qualified Longevity Annuity Contract (QLAC) is a DIA that you can use with qualified money. Qualified money means IRA, not Roth IRA, but traditional IRA. Some 401k’s are also now offering QLACs.
- An Income Rider is not an annuity, it’s an attachment to a Variable or Index Annuity that provides guaranteed income. An Index Annuity is the most cost-effective and efficient delivery system for an Income Rider. An Income Rider is non-transferable, cannot be cashed in, and can’t be peeled off of, it also comes with a fee.
- MYGAs are the annuity industry’s version of a CD. If your time horizon is three years or more, historically, Multi-Year Guarantee Annuities give you a higher contractual annual yield than a CD.
- Fixed Index Annuities were created In 1995, to compete with CD returns, giving you the potential to earn a little bit more than CD returns. If you do get a gain, it's locked in permanently and there is principal protection. But the bad news with a lot of Index Annuities at the time of this taping is that annuity companies can change the rules at their discretion every single year when the index option matures.
- Variable Annuities are a security that is essentially a bunch of mutual funds wrapped with a life insurance wrapper, which means it would grow tax-deferred, and you could have tax-deferred mutual fund type growth.
- A charitable gift annuity is a lifetime income stream typically either starting immediately or down the road. When you die, the charity keeps the money that's left in the account, and they get to hold it while they're paying you back the money based on your life expectancy.
"There's a lot of annuity products out there. Not all of them are great. Not all of them are perfect, but all of them are contractual. So you have to look at the contractual guarantees of the policy. I always tell people don't buy the dream, because you're gonna own the contractual reality." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- How do life insurance companies price annuities?
- Nobody knows where interest rates are going
- Annuities are commodity products
Key Takeaways:
- MYGAs, the annuity industry’s version of a CD, has become very popular because the guarantees contractually are very attractive if your time horizon is more than three years. You’d be better off buying CDs and treasuries for less than three years.
- Nobody knows where the interest rates are going, but right now, the interest rates are very fair and the highest that we’ve seen for a long time. The annuity industry does watch the interest rates but does not price their annuities primarily on it.
- Annuities are commodity products, meaning that you have to shop all carriers for the highest contractual guarantee. Also, the guarantees change based on the capacity and the money coming into the carrier.
"Knowing that the bell doesn't ring at the top or the bottom, knowing that you can't time it. Are those guarantees… fair? Do they help you reach your goals? That's a yes or no answer." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The right product for the right situation
- What is lifetime income?
- Income from interest
Key Takeaways:
- An agent selling an annuity product as a one-size-fits-all product is like a doctor prescribing one medication for everyone. There is a right product for the right circumstance, and if a person doesn’t need an annuity, they shouldn’t be sold one.
- Lifetime income is a transfer of risk pension product that an annuity company is contractually obligated to pay as long as you or your spouse are still breathing. It is priced primarily on your life expectancy, and interest rates play a secondary role.
- A multi-year guaranteed annuity is the annuity industry’s version of a CD. You can purchase a MYGA, never touch the principal, never pay a fee, just peel off interest, and then live off that.
"with annuities at this point in time at the time of this taping, and I hope it continues. You have two choices: lifetime income or interest income - it's all about money coming in establishing that income floor. " — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Branislav Nikolic discuss:
- Why you should be cautious of backtested numbers
- Being a smart and cautious consumer
- The importance of transparency and consumer-advantage
Key Takeaways:
- Backtested numbers are based on hindsight. The numbers may go flat or go down, but they will not skyrocket, as shown in the projection. Be cautious of people showing you backtested numbers. These numbers are not real; they are hypothetical.
- If your agent offers market-rate returns with principal protection, ask them to detail how exactly they can do that, and when they start showing backtested numbers, dismiss them outright.
- The future of annuities should be that the industry would shift to a more pro-consumer model and that clients will be able to buy direct and that they’ll be able to completely understand what they are getting into.
"I go back to the word of the day, ‘caution.’ I would caution against using the last ten years as an indication of a performance of any kind. Inside of annuity or outside of annuity." — Branislav Nikolic
Connect with Branislav Nikolic:
Website: https://www.cannex.com/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Buying an annuity that you understand
- Annuities aren’t one-size-fits-all
- How to know if you understand a product
Key Takeaways:
- When buying an annuity, remember that if a product sounds too good to be true, it is every single time. There are also annuities that are more complex and most agents cannot explain it well, let alone even comprehend it themselves.
- Currently, the annuity industry has an unbalanced way of compensation for different types of products. Agents get a higher commission for selling a certain type of product. The problem is that annuities aren’t one-size-fits-all. It takes some consideration to determine a person’s needs and what product would solve that.
- Buy products that you understand. A good indicator that you do understand something fully is if you can explain it to your spouse, family, or friends and have it make sense to them.
"You have to be able to understand what you're buying, and you have to be able to go into a second-grade class and explain it to them." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- What is a life-only lifetime income stream?
- How you can choose where your money goes when you die
- The many ways that you can structure an annuity
Key Takeaways:
- People who complain that annuities are bad because the money goes poof when the policyholder dies are talking about one type of annuity that’s structured in one specific way: a life-only lifetime income stream. There are 40-plus different ways to structure an annuity.
- Annuities can be structured so your money doesn’t go to the annuity company when you die. They’ll be on the hook to pay as long as you’re breathing, and the money will go to whichever beneficiary you want it to go to.
- It is up to you if you want the money in your annuity to disappear when you die. Someone who doesn’t have any meaningful ties to their family, can just get a life-only lifetime income stream and enjoy high payment for themselves.
"The bottom line is when you set up lifetime income with annuities - and there are many different types - they all can be structured so that not one penny is going to be kept by the annuity company, even though they're on the hook to pay." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Owen Schrum discuss:
- The interconnectivity of financial structures
- How a hard recession could be avoided
- Annuity companies are more regulated than banks
- Positive trends in the economy
Key Takeaways:
- Inflation, the debt limit, the Federal Reserve, and the markets are not standalone. They are all directly connected and related. Being careless with one part can cause the whole thing to collapse.
- If the chairman of the Federal Reserve says that they’re considering lowering the rates based on the numbers that they have, then it might prevent a hard recession. The market will take care of the rest.
- Annuity companies and banks buy the same bonds, but the difference is that annuity companies are not forced to sell them. There can be no run-on annuities because they have regulations that prevent that.
- Inflation is getting back under control. Also, despite inflation being 10%, both small and large businesses’ earnings held up better than people thought they could.
"Not one of those things are standalone items, particularly inflation and interest rates. They are all directly related. It's like some big puzzle, you pull out one log, and the whole thing may collapse." — Owen Schrum.
John Mack talks to Wharton class about Morgan Stanley default: https://www.youtube.com/watch?v=R9sQtmPAYO0&ab_channel=KnowledgeatWharton
Connect with Owen Schrum:
Website: https://www.schrumpw.com/
LinkedIn: https://www.linkedin.com/in/owen-schrum-24319417/
Twitter: https://twitter.com/SchrumOwen
YouTube: https://www.youtube.com/channel/UCbT6r4ywyZ98UsbrHm_m_zg
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The difference between lifespan and health span and the ultimate currency
- Don’t waste your time
- How annuities can help you maximize your time
- The purpose of life
Key Takeaways:
- Lifespan is how long we're going to live. Health span is how long we're going to live well. Time is the ultimate currency. The time that we’re given is all we have, we can’t get more of it, and it’s finite.
- If time is the ultimate currency, contemplate how you use it. What areas of your life are you wasting your time? How do you think you can use your time better?
- Annuities are lifestyle products. They enable you to live the life that you want as long as you’re breathing. Annuities allow you to maximize your time.
- The purpose of life isn’t market growth or making more money. The best use for your time is to spend it on what really matters: family, friends, health, and religion if it’s important to you.
"Time is the ultimate currency. You can't trade time; there’s no shorting, there's no arbitrage. Time is what it is, and we don't know how much there's going to be for each one of us. Let's maximize that, let's get a good return on investment on time." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- A simulation doesn’t provide contractual guarantees
- Contractual guarantees for your chapter two
- You’ve more than earned the right to finally live your life
Key Takeaways:
- Don’t fall for what a Monte Carlo simulation shows; it doesn’t prove anything. Ask them if any of it is contractually guaranteed, and you’ll hear from them yourself that, at the end of the day, it’s all hypothetical.
- When you’re in chapter two of your life, you don’t need to track the markets as you’ve always done. You don’t want to have to worry if the market goes down or if inflation goes on forever. What you need is contractual guarantees.
- You’ve worked hard for the money, saving and watching the ups and downs of the market. You’ve earned your right to have contractual guarantees and an income floor. You’ve earned the right to finally live your life.
"Stanicarlo simulations aren't simulations. Stanicarlo simulations are contractual guarantees. Why is that important? Because annuities are contractual guarantees. You're on them for what they will do, not what they might do. Period. End of story."
— Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Martin Parlato discuss:
- Why it’s important to appoint the qualified
- Cryptocurrency is “craptocurrency”
- On Facebook, TikTok, and Twitter
- Don’t get fancy, and don’t panic
Key Takeaways:
- A person’s identity or politics is entirely irrelevant compared to how competent they are for the job they are given; that’s what matters. People who are appointed to powerful positions should be qualified.
- Cryptocurrency is still “craptocurrency” for Marty. He doesn’t follow it, use it, or believe in it. The government doesn’t seem to have any plans to regulate cryptocurrency, and it’s harming people who see it as a way to get rich quickly and lose a lot of money.
- The government won’t be able to break up Facebook or TikTok because, ultimately, people love these apps, and many politicians use them for their re-election.
- From an investment standpoint, don’t get fancy. Invest in products that you understand. Don’t panic; invest for the long term.
"No two of my clients have the same portfolio, and why would they? They all came on at different times. They have different goals and aspirations. So you can't make a blanket assumption of what our returns are. But they're very significant." — Martin Parlato.
Connect with Martin Parlato:
Website: https://www.lighthouseretirement.com/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Lifestyle income guarantee
- Making time for what truly matters
- What’s your lifestyle number?
Key Takeaways:
- Annuities are the only category that provides income as long as you are breathing. There’s no ROI until you die. Since retirement is all about lifestyle, you’ve got to retire from the markets and put guarantees in place to sustain the life you want as long as you are breathing.
- Life is fleeting. Spend your precious days on things that are meaningful. Chapter two isn’t the time for stressing about politics or markets; it’s the time for you to be in the space of what truly matters, which is your life and your family.
- Your income floor is the amount of money you need to hit to pay the monthly bills, and your lifestyle income is the amount of money you need to live your life. If you’ve got your income floor covered, decide what your lifestyle income guarantee will be.
"That same vigor, that same patriotism, that same inner drive that you have for others and your family, I need you to have it for you. That's where lifestyle income guarantees come in." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discusses:
- Not everyone needs an annuity
- MYGA to SPIA
- Who should get a deferred income annuity?
- The highest contractual guaranteed income rider
Key Takeaways:
- Many of you out there don’t need an annuity right now, but when you need income, buy an immediate annuity by shopping all carriers and looking for the highest-yielding guarantee.
- The second way is called MYGA to SPIA. This is where you buy a five-year MYGA which gets a guaranteed interest rate. Then, at the end of the term, shop all immediate annuity carriers and do a non-taxable transfer into the highest-paying immediate annuity.
- Getting a deferred income annuity is the best for people who couldn’t care less about markets and want to lock and load a lifetime income stream with an option to ladder it.
- An indexed annuity or variable annuity, in most cases, has the highest contractual guaranteed income riders. You can’t cash it in, transfer it or send it back, but the income rider can still be toggled on or off depending on your preferred timing. If you need a bit more flexibility in your time, maybe an index annuity with an attached income rider fits you.
"There's four ways to get there using annuities. None of the four are better than the other. — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Terry Savage discuss:
- Responding to current financial issues
- The bulls, the bears, and the chickens
- Should you wait before taking social security?
- The biggest legacy you can leave
Key Takeaways:
- Don’t panic at every scary event that you hear from the news. Recognize America’s history of resiliency and the crises the country has gotten through. Also, check for yourself if and how current financial issues affect you personally before reacting to them.
- In every stage of your life, you should divide the markets into the bulls, the bears, and the chickens. You should always have chicken money, it is the alternative to risk. Having discretionary funds that help you sleep at night is nothing to be ashamed of.
- If you have the financial ability to do so, consider waiting before taking Social Security until age 70. That’s because there’s roughly an 8% increase in your benefit per year in the years after your full retirement age.
- Your biggest responsibility isn’t the decisions you make or who you vote for, though those are really important. Your biggest responsibility is to pass down real history and to share the value of the American free enterprise capitalistic system to the younger generation.
"Self-discipline is the essence of all decision-making. You don't want to be making decisions out of panic. You need to set money aside and decide where it's going. Peace of mind is priceless." — Terry Savage.
Connect with Terry Savage:
Website: https://www.terrysavage.com/
YouTube: https://www.youtube.com/user/TerryTalksMoney
LinkedIn: https://www.linkedin.com/in/thesavagetruth/
Twitter: https://twitter.com/Terrytalksmoney
Facebook: https://www.facebook.com/The-Savage-Truth-190870517609983/
New Book Link: https://www.amazon.com/gp/product/1119645441/ref=pe_2313400_441222210_em_1p_0_lm
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Will there be a “run” on an annuity company?
- How annuity companies manage bonds
- There’s no run on lifetime income
Key Takeaways:
- Annuity companies are not smarter or better than banks; they are just more regulated. They also put things in place so there can’t be a run on the annuity company.
- Annuity companies and banks are buying the same investment-grade bonds. However, unlike banks, annuity companies don’t have to sell them, so they hold on to them.
- Contractual lifetime income is irrevocable, the annuity company is on the hook to pay as long as you are breathing, and when you die, 100% of any unused money goes to your beneficiaries. The income stream amount is a combination of a return of principal plus interest.
"The bottom line: the annuity industry has put in place features to not only protect you, the consumer, which is their ultimate goal period but to protect the industry as well." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- What does it mean to live off the interest?
- Living off guaranteed interest
- When interest rates go down
- If you can’t live off of the interest
Key Takeaways:
- At the time of this taping, some money markets are 4, some CDs at five, and some MYGAs at five and a half. A lot of you out there have enough funds that whatever interests you can take off of those products is sufficient, and you never have to touch the principal.
- There's no guaranteed return with index annuities, variable annuities, or buffer annuities. That doesn’t mean they’re bad products, but if you can live off of a guaranteed interest, why not do that?
- When you lock in at a certain interest, it doesn’t matter if the interest rates go down in the market - you’ll benefit from what is contractually guaranteed.
- Suppose we can prove mathematically that we can’t hit your goal from living off of the interest. In that case, that’s when we’ll look for contractual guarantee products for lifetime income because they’ll provide a higher payback of your money.
"You're going to ride that peeling off the interest as long as you can. You're gonna ride that train of never touching the principal and never paying a fee as long as you can, and if rates go down, then we will pivot " — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The state of the annuity industry
- Changes that are needed in the annuity industry
- Things that the annuity industry needs to get rid of
- Live your life and stop worrying so much
Key Takeaways:
- The annuity industry is thriving. Companies show that they are going in the direction of utilizing technology to make it easier for consumers to purchase and access annuity services.
- Annuities are meant to be bought and not sold. Companies must incentivize agents to provide services to help consumers make the best decision for themselves and not for the agents by making all annuity types have the same compensation level.
- Annuity companies should strive to become more pro-consumer. The first step towards that is to get rid of backtested numbers which are misleading and fictitious from so many angles. They should also get rid of upfront bonuses.
- Live your life. Stop worrying so much. Enjoy what you have done, and be proud of what you’ve got. Money doesn’t solve problems or eliminate misery, but family and health do, and so does having a passion for something and communicating with others.
"Everyone says ‘no one wakes up in the morning and just wants to buy an annuity.’ I have to disagree with that. I think that people that are looking for annuities are looking for a place where they can go get educated, look at the best quotes and then make a decision on their terms and their timeframe." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Why we should get rid of backtested numbers
- What an index annuity is and isn’t
- Don’t be the sucker at the table
Key Takeaways:
- Backtested numbers capitalize on some of our most unwanted feelings such as regret and the feeling of missing out. We have to see those as what they really are: backtested numbers are garbage and should be illegal.
- An index annuity is not a market product, and it’s not a security. It is a fixed annuity and an efficient delivery system for an income rider guarantee.
- Don’t be the sucker at the table. If you get pitched a backtested number plus a “generous” upfront bonus, that’s how you know that they’re in it to get a commission out of you.
"It could work in your favor, or It might not, but it's not free money. Annuities are for-profit businesses. Don’t buy the dream because you're going to own the contractual reality." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Smart people fall for schemes too
- Don’t trust the pitch
- Buy an annuity for what it will do
- Annuities are great products
Key Takeaways:
- People that are smart fall for Ponzi schemes. Be wary of “secret” products that nobody or not many people know about. If you are shown backtested return numbers, that’s garbage. Those returns are not going to happen.
- Some of the annuity products pitched out there allow the annuity company to change the rules on how gains are calculated, and they can change those rules at their discretion.
- Buy an annuity for what it will do, not what it might do. If you buy the dream, you’ll own the contractual reality. When you realize what happened, it might already be too late to take it back.
- Annuities are great products, and they solve for many different things. Some solve for lifetime income, some for principal protection, and some for legacy or long-term care. They solve for specific goals contractually.
"If it sounds too good to be true, it is every single time." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and John Lenz discuss:
- Required capital level of annuity companies
- Market value adjustment, surrender penalty, and pivoting with annuities
- What state-guaranteed funds are for
- Exposure and liabilities in the insurance industry
Key Takeaways:
- When the annuity company invests their client’s money, they make sure to add capital over and above the asset to provide a safety net. That’s called a required capital level; insurance companies add multiples of that.
- The market value adjustment and the surrender penalty help protect the insurance company and its policyholders. However, you could buy an annuity without market value adjustment and guarantees a full refund.
- State guaranteed fund was an attempt by the insurance industry to create another additional layer of security for the policyholder. In an unusually catastrophic event where all redundancies had been found insufficient, the state insurance commissioner can order the company to be rehabilitated and strengthened.
- Reinsurance is complicated; an insurance company will take part of their liabilities and transfer those to another company. Most importantly, the company that issues the policy is still on a hook even if they reinsure.
"There are layers of redundancy to try to keep insurance companies healthy, and it really works." — John Lenz
Connect with John Lenz:
Website: https://www.lenzfinancial.com/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- What are MYGAs?
- How MYGAs work
- Locked in MYGAs
Key Takeaways:
- MYGAs or fixed-rate annuities are the annuity industry’s version of a CD. The advantage is that you have full control over it, and you can transfer it back to where it came from or roll it to another one.
- There is no trigger function on MYGAs. The way it works is that you give the life insurance company that issues annuities a lump sum of money and they guarantee an interest rate for a specific period of time.
- Some MYGAs allow you to lock in the money for a specific period of time, which is the better choice if you just want the interest to compound and you don’t plan on touching it.
"A push comes to shove MYGA… Push comes to shove, it allows you to take money out if you need it but you don't have to. But if push comes to shove, you can." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Surfing beside a cruise ship
- Who wins in the markets?
- What should be your focus in your “chapter two?”
Key Takeaways:
- Investing in the markets is like surfing beside a cruise ship. There are times that you will catch a wave and you'll just surf and it'll be fantastic, but there are also times you’ll get sucked under the boat.
- Big-money institutions win in the markets, they trade fast and trade constantly. The market is stacked against individual investors.
- There’s nothing wrong with playing the markets and taking a little risk. However, when you’re in chapter two, your focus should solely be on putting guarantees in place in order for you to enjoy your life’s work.
"There's no need to roll the dice with a running start. There's no reason for that. You don't have to do that anymore. You need to focus on yourself, you need to take some risk off the table" — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Jay Zawatsky discuss:
- The origin of the United State’s debt pile
- Why we need to increase the amount and affordability of energy
- Hydrogen is the key to energy dominance
- The problems that hydrogen solves
Key Takeaways:
- Lifespans have increased for workers that pay into the social security system. Therefore, according to the trustees of the Social Security system, it’s projected that they will be unable to pay the full benefits by 2034. This doesn’t mean that people won’t get any amount, just not the full amount unless there are major changes made in the system.
- If we want to undo the debt pile, we have to increase productivity. That means that we also need to increase the amount and affordability of energy since without energy, nothing gets done.
- Our country’s focus shouldn’t be on welfare-warfare but on energy dominance. To do that, we’ve got to use a more viable source of energy in the form of hydrogen. It can be extracted from water through electrolysis and it burns just like natural gas.
- Hydrogen solves a lot of problems. For those worried about global warming, hydrogen doesn’t create any carbon dioxide - it’s just water back to water. It’s also done without subsidies, so it doesn’t cost the taxpayer anything.
"The only way to save America is to re-energize America. And the only way to do it is with hydrogen, because it solves all the problems that we have" — Jay Zawatsky
More from Jay Zawatsky:
Published articles in The National Interest magazine: https://nationalinterest.org/commentary/how-energy-made-the-modern-world-6924
https://nationalinterest.org/commentary/energy-the-debt-conundrum-6926
https://nationalinterest.org/commentary/new-energy-era-6928
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Pivoting doesn’t mean slowing down
- Why pivoting to retirement is hard
- Cherish your chapter two
Key Takeaways:
- Retirement doesn’t mean that you’re slowing down, it just means that you’re going to pivot to chapter two of your life where you are hopefully spending time doing the things that you love to do.
- It’s hard to pivot and actually take care of yourself. You’ve gotten used to pushing yourself past your limits, putting your family first, and letting them have the good stuff while you try to take as little as possible from your hard work. That ends in chapter two because it would all be about you and your spouse.
- Chapter two may just be a year or two or 10 or 15 years or more. The point is, we don’t know when we’ll pass, so it’s important to cherish your chapter two.
"Chapter two is about you. And Chapter Two needs to be a daily ascent to the mountain of fun, a daily journey to take care of yourself, a daily checklist of things you want to do. However frivolous and crazy, they might seem, annuities can get you there." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The four words you must focus on
- The difference between a CD and a MYGA
- Seize the day with these interest rates
- What should you do when the rates go down?
Key Takeaways:
- In the current interest-rate environment that we’re in, between CDs, treasuries, and multi-year guaranteed annuities, allow many of you out there to live off of contractually guaranteed interests.
- MYGAs are the annuity industry’s version of a CD. The difference between a Maiga and a CD is that in a non-IRA account, the Maiga interest grows and compounds tax-deferred. Also, CDs are issued by banks and brokerage firms, while MYGAs are issued by insurance companies that issue annuities.
- Seize the day with these interest rates. No one knows where they’re headed, but right now, at the time of this episode’s taping, they’re in a really good place.
- Don’t try to predict the future. Live for today and take the contractually guaranteed rates that are available. If they go down in the future, then you may think about how you could pivot by buying an immediate annuity to make up for that loss.
"if you have an asset base where you can combine annuities, MYGAS, CDs, and treasuries and live off the interest, why wouldn't you? Why wouldn't you do that?" — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Mark Iwry discuss the following:
- What is a QLAC?
- One of the best features of a QLAC
- Structuring a QLAC with cash refund
- Why QLACs aren’t popular
Key Takeaways:
- A QLAC or a Quality Longevity Annuiy Contract is a deferred annuity that’s helpful for people trying to save for retirement and want security in retirement in the form of a guaranteed lifetime income. You don’t have to worry about Required Minimum Distribution rules when you buy deeply deferred annuities.
- One of the best things about the QLAC is that it allows you to take your personal IRA and attach your spouse as a lifetime income participant. Meaning when you pass away, your spouse will benefit.
- QLACs can be structured with cash refund, which means that the annuity company will not keep your money when you die even though they are on the hook to keep paying you while you are breathing.
- The reason why QLACs are unpopular is because it’s such a simple and straightforward product that it isn’t as profitable for the company as it is for their other products. There’s no room for agents to attach bells and whistles that cost their clients extra.
"People need health security, and they need retirement security. We have social security, and we have Medicare to take care of those two things. On top of Social Security, we've got our private pension system, and on top of Medicare, we've got our private health care system. " — Mark Iwry
Connect with Mark Iwry:
LinkedIn: https://www.linkedin.com/in/mark-iwry-8b6682/
About Mark: https://www.hks.harvard.edu/alumni/connect/community-stories/mark-iwry-mpp/jd-1976-dedicated-helping-americans-achieve-financial-security
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Social security is an annuity
- Why you can’t hate all annuities
- Structuring annuities
- Having contractual guarantees in place
Key Takeaways:
- If annuities are all bad, then nobody should claim their pensions. Social security is an annuity, one that you already own.
- You can’t “hate all annuities”; it’s like saying you hate all restaurants. There are many different ways to structure an annuity, each serving a different purpose. Anyone who says they hate all annuities doesn’t know what they are talking about.
- The annuity company doesn’t have to take the money when you die. You have the choice to structure it so that it goes where you want it to go when you pass away.
- Would you rather take a 7-8% return and shoulder the risk, or would you rather have a contractually guaranteed 5% and transfer all the risk to the annuity company? When you’re getting ready for retirement, you need to already have contractual guarantees in place so that you can just live for the day.
"Annuities are not for everyone. But annuities are good. Annuities are contractual. Annuities are transfer of risk products. " — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Threading the needle with volatility
- Freedom from volatility
- Annuities are the haystack
- Time to secure guarantees
Key Takeaways:
- Threading the needle to get market returns makes you dependent upon so much unknown. You’re dependent on world markets, geopolitical events, and meltdowns that are impossible to predict.
- A lot of people can retire from their jobs and the market, and they should; those who can’t yet should make it a goal to do that and be free from being dependent on volatility.
- There’s no threading the needle for principal protection; there’s no finding the needle in a haystack for lifetime income. You don’t need to find a needle; you need the haystack. Use an annuity to have the highest contractual guarantee.
- What phase of your life are you in right now? If you’re in the no-go stage, then it’s time to stop losing sleep over the markets, and it’s time to secure guarantees.
"Investing in markets a lot of times is like surfing the side of a cruise ship. Sometimes you’re going to catch a wave right beside that cruise ship, but a lot of times, you’re going to get sucked under the boat." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Pam Krueger discuss:
- Should you trust people not held to a fiduciary standard?
- The advantage of buying a registered advisor
- The mark of a great financial advisor
- Two questions you must ask your advisor
Key Takeaways:
- There are a lot of self-described advisors working at brokerage firms or insurance companies. They are not necessarily bad people or bad advisors but work for a business model that has consciously chosen not to be held to the legal fiduciary standard.
- Hiring an advisor who is held to a fiduciary standard is advantageous to a client. Anytime the client feels that the advisor has mismanaged their finances, the burden of proof will be on the advisor.
- Humility is the x-factor in an advisor. A good advisor is not in it just to live off of their client’s money, but to offer their expertise for the client’s good.
- Ask them first who are their typical clients and what they do for them. Then, ask them how their clients pay them. Relax and take your time, but go straight into business.
"Fiduciary is not a frame of mind. Fiduciary is not a mood you're in. A fiduciary standard is a legal standard." — Pam Krueger
Connect with Pam Krueger:
Website: https://wealthramp.com/ | https://www.pamkrueger.com/
LinkedIn: https://www.linkedin.com/in/pamkrueger/
Twitter: https://twitter.com/PamkruegerTV
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- There are no U-Hauls behind hearses
- Why aren't you spending your money?
- Fly first class, or your kids will
- The millionaire next door
Key Takeaways:
- The phrase “there are no U-Hauls behind hearses” means that you don’t get to keep anything you’ve amassed when you’re dead. It will hopefully be a wake-up call for many to live life for the day and spend the money that they’ve earned on themselves.
- Ask yourself what really is the reason why you’re not spending your money on what you want. Bring some self-awareness through that question and challenge those thoughts with math and rationality. Challenge it with math and rationality.
- Either fly first class or your kids will. If you don't have kids, it's a no-brainer, spend your money and leave whatever's left to charity. If you have any legacy goals or family members you want to leave the money to, you can do that.
- The millionaire next door is you. You weren’t given your money based on a lottery, genetic, or otherwise. You worked hard forever, and now you can afford the things you want. Check the price, see if it’s worth it, and buy it.
"All I'm asking you to do is upgrade your life because you've earned it and deserve it." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- People who grew up poor see money differently
- The difference is in the perspective
- Checking the background of your advisor
- Your retirement is not a game
Key Takeaways:
- People who experience poverty see money differently and often have a healthy respect for it. It would hurt them personally to see money lost, even when it’s another person.
- A person who grew up rich isn’t necessarily going to be a bad financial advisor. However, there is a huge difference in perspective. People who grew up poor don’t see money as replaceable. Your money should be a big deal for your advisor as it is for you.
- Don’t be afraid to ask questions about your advisor’s background. It’s your money, not theirs, so you’ve got to ensure that the right people will steward your money.
- Do not let people treat your money and retirement like a game. Have them treat it personally, own it, and feel horrific if something bad goes wrong with your money.
"Financial advice is not a game. The markets are not a game. Your retirement is not a game. Your lifestyle is not a game. Do not let people treat it like a game." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Terry Savage discuss:
- The national debt will not default
- Speculating on bitcoin
- Inflation, debt, and layoffs
- An annuity is not an investment
Key Takeaways:
- Stop panicking. The national debt will not default. Think rationally about this instead of listening to bad opinions on television. There’s no financial strategy for the end of the world, so it’s not really worth thinking about. Live your life.
- If you want to be a speculator, you might as well speculate on soybean futures or go to a casino and find your game of choice. A lot of people get burned by betting on bitcoin. Invest legitimately and rationally.
- When there are huge layoffs, two things happen. First, companies discover how they can do things more efficiently. Second, those laid off realize they can compete with the company that just fired them. That’s the beauty of capitalism.
- Do not make the mistake of thinking that an annuity is an investment. You’re going to be pitched the dream, don’t buy it because the contractual realities will hit you hard.
"Beware of debt. Show some responsibility. Talk to anyone you can around you." — Terry Savage.
Connect with Terry Savage:
Website: https://www.terrysavage.com/
YouTube: https://www.youtube.com/user/TerryTalksMoney
LinkedIn: https://www.linkedin.com/in/thesavagetruth/
Twitter: https://twitter.com/Terrytalksmoney
Facebook: https://www.facebook.com/The-Savage-Truth-190870517609983/
New Book Link: https://www.amazon.com/gp/product/1119645441/ref=pe_2313400_441222210_em_1p_0_lm
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Locking in for three years and over
- The top three safest money
- When to go for CDs and treasuries
Key Takeaways:
- Ask yourself how long you want to lock the money in for. MYGAs provide the highest contractual guarantee if it’s three years and over compared to CDs and treasuries.
- The safest money out of all three would be treasuries, the second safest money is CDs, and the third safest would be MYGAs. Buy treasuries only from treasurydirect.gov.
- If you’re going to lock in money for three years and in, the better option would be to go for CDs and treasuries because if it’s less than three years, MYGAs historically will not provide the highest contractual guarantee.
"Three years and in CDs and treasuries three years and out multi-year guarantee annuities." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- You can afford the drink
- Stop making table lemonade
- Math is the medicine
- Taking baby steps
Key Takeaways:
- You can afford the drink so go ahead and buy it. Don’t let the scars of scarcity control your life’s decisions. Live your life.
- Stop making table lemonade. Practices you’ve acquired while trying to survive scarcity are no longer necessary where you are now.
- Take a rational accounting of how much you really have, and don’t base your spending decisions on what you feel. Math is the medicine that counteracts the scars of scarcity.
- You’ve been generous to other people, but you have not been generous to yourself. Change your habits and realize you have enough money to live your life.
"We all have had friends that have died prematurely. It should be a real wake-up call for you to buy the drink and not make the table lemonade." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Bob Carlson discuss:
- Changes in 401k and IRA provisions
- Why you should spend time on income taxes
- Generating guaranteed lifetime income
- Be prepared to adapt your plan
Key Takeaways:
- The Secure Act 2.0 gives provisions that are designed to make employer retirement plans more available and to get more employees participating in the plans. The required minimum distribution’s beginning age has also been bumped to 75, and catch-up contributions are being increased for IRAs and 401ks.
- People don’t spend enough time on their income taxes. People shouldn’t forget that not everyone pays lower taxes when they retire, some will be in the same bracket, and Congress avoids tax increases but has added provisions that, in effect, work like stealth taxes.
- Accumulate as big of a balance as possible, then find a way to turn it into cash flow for your retirement phase. Generate guaranteed lifetime income through social security or employer pension, then start looking at putting money into SPIAs or MYGAs to generate that income gap.
- Be prepared for change. Know that your retirement plan is not set in stone; it’s something that you have to review regularly. See where your assumptions are wrong, where you've changed, where the tax law and other things outside your purview have changed, and adapt your plan to that.
"Anticipate change, be prepared for it. Know that your retirement plan is not set in stone. It's not a roadmap; it’s something you have to review regularly. " — Bob Carlson.
Grab a copy of Bob Carlson’s, The Essential Guide To Retiring In the 2020s by clicking on this link: https://www.amazon.com/Retirement-Watch-Essential-Guide-Retiring/dp/1684513332
Connect with Bob Carlson:
Website: https://www.retirementwatch.com/
Facebook: https://www.facebook.com/RWcommunity
Twitter: https://twitter.com/RetirementWatch
Most Recent Book: https://www.amazon.com/Wheres-My-Money-Secrets-Security-ebook/dp/B0853F3R7R
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The fear of running out of money
- Solving the fear of running out
- Is FORO more important the FOMO?
- Using math to address FORO
Key Takeaways:
- Most of us didn’t grow rich. We saw what it was like to live in scarcity, and today, many of us still carry those scars. Despite having millions or a portion of that, some people might still feel poor and fear running out of money.
- If you’re worried about running out of money or won’t have enough in your retirement, consider looking into strategies that provide guaranteed lifetime income.
- The fear of running out is more important to address than the fear of missing out, especially for chapter two of your life. In addressing FORO with annuities, we’re solving for lifetime income or protecting the principal and peeling off the interest.
- One more way to address FORO is to do some math and remove the emotionally-charged memories from the equation. Annuities are math; they’re not hypotheticals.
"The fear of running out can be solved with annuities in combination with the best annuity you have on the planet, which is Social Security and principal protection products and contractual guarantees. We can solve for the scars of scarcity." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Income gap-filling strategies
- The period certain immediate annuity
- Multi-Year Guaranteed Annuities
- When should you take social security?
Key Takeaways:
- Social security is the best inflation annuity on the planet. If you’re looking for strategies to fill the income gap between ages 63-70, 65-70, or 62-70, there are two contractual ways to do it.
- Buying a period certain immediate annuity means that the annuity company, instead of paying you for a lifetime like most people buy immediate annuities for, you will be paid monthly for however many years you’d choose. It could be five years, seven years, or ten years, depending on the carrier.
- The other way to do this gap filling is with a MYGA, a fixed rate annuity, the annuity industry’s version of a CD. It would require you to have a little bit more money to pull this off, but if you could, the strategy revolves around never touching the principal and just living off the interest.
- You are the one who decides when to take social security. You can take it early or at the recommended age of 70, but you would have to factor in the 60 months of payments you miss while waiting for that higher rate.
"I'm hitting you in the forehead with the factual two by four of hey, it might be time to take care of you. It might be time to turn on the income; it might be time to go live your life, it might be time to stop trying to squeeze oil out of the brick." — Stan The Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Jay Zawatsky discuss:
- The definition of good money
- Why both fiat and bitcoin is bad money
- Retiring with gold and silver
- Jay’s personal investment strategy
Key Takeaways:
- If you have money that can store the value of your labor and preserve its purchasing power over long spans of time, then it is good money. Throughout history, only one checked the box for both of those, and that’s gold.
- Any currency that can be created ex nihilo (out of nothingness) is bad money, and unfortunately, we’re plagued with a lot of it. Bitcoin and other cryptocurrencies count as bad money, but it might surprise you that the U.S. dollar and other fiat currencies also count as bad.
- Purchasing gold and silver is a good way to enter your retirement with good money. The ideal strategy is to own physical bullion in an offshore account held by a private entity, however, one can always start by owning silver coins.
- Having at least 10% or 15% percent of your assets invested in gold and silver is a good practice if you want to protect yourself in the case of calamity or inflation. However, even if nothing catastrophic happens, gold still retains its value.
- Jay’s barbell approach has two sides: one is gold and silver, while the other is cash and cash equivalents. Meaning treasury bills and MYGAs.
"Good Money is money that acts as both a battery and a time machine." — Jay Zawatsky
Resources Recommended by Jay Zawatsky:
- Whatever Happened to Penny Candy? by Richard Maybury https://www.amazon.com/s?k=whatever+happened+to+penny+candy
- The Law, by Frederic Bastiat http://bastiat.org/en/the_law.html https://cdn.mises.org/thelaw.pdf (FREE)
- I, Pencil, by Leonard E. https://fee.org/resources/i-pencil/ (FREE)
video version: https://www.youtube.com/watch?v=IYO3tOqDISE
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The free look time period
- Shopping for the highest guarantee
- What annuity businesses should do
Key Takeaways:
- Interest rates are moving significantly, but no one can truly know where it goes. However, annuities have a policy in place where people are given a time period where they can pivot or take their money back.
- You can go into an application, lock in the highest guarantee that exists at the moment, and in the future, if a different carrier offers a higher rate, you can pivot to that instead.
- Annuities are a commodity product. Pivoting people’s money to get the best rate available at the moment is something that all annuity businesses should do for their clients.
- Before signing a deal with an advisor, ask them if they are willing to pivot as many times as necessary to get the best rates.
"We're going to pivot as many times as needed to get you that guarantee. Know that you're not stuck with a rate that might be lower than a rate two weeks later. In a commoditized world of annuities. That’s the least we can do, and the fact that we're the only ones doing it is sad." — Stan the Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Everyone goes through cognitive decline
- Considering cognitive strategies
- Transferring risk through annuities
- Why you should plan for cognitive decline
Key Takeaways:
- It doesn’t matter how sharp or healthy you are right now, everyone will go through cognitive decline eventually.
- Start considering cognitive strategies from a turnkey standpoint, whether it's for you, or whether it's for your spouse, or both, especially if you are already in the “slow-go” phase of retirement.
- Annuities are transfer of risk products. They sell for four things, principal protection, income for life, legacy, and long-term care. If you don't need to solve for those contractually, you don't need an annuity.
- We all know somebody who either had a stroke, an accident, or a fall, and suddenly they can’t make those kinds of decisions anymore. It’s a horrible thing to happen to somebody, don’t let it be your horror story. Plan for cognitive decline.
"Protecting the principle is a cognitive strategy. Lifetime Income is the ultimate cognitive strategy. Obviously, long-term care [is a] cognitive strategy." — Stan The Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Steve Parrish discuss:
- Why we need simple retirement solutions
- Transitioning from accumulation to decumulation
- How inflation affects insurance companies
- The benefits of delaying your social security
Key Takeaways:
- There’s a huge need to decrease the complexity surrounding retirement. Retirees or pre-retirees today are already worrying about the economy, laws and proposed laws, misleading advertisements, and the fact that they’re not as sharp as they used to be.
- Accumulation is all about maximizing your returns for a minimum amount of risk. When you’ve crossed the line of retirement, the risk becomes you run out of money before you run out of oxygen. You would want to have money to live off of in your second chapter; that should be your focus.
- Insurance companies are good investors in bonds. As interest rates go up, the rate gets higher on bonds, which gives the insurance companies more to work with. Inflation is helping insurance companies.
- Delaying your claim of your social security until 70 has some benefits. You can fill in the difference with annuities and other strategies. Social security is a great gift, but take it in the future. That will help greatly with flexibility in what you can do with annuities.
"The fact is that more of us worry or know about situations of people living too long rather than dying too soon. I see annuities simply as longevity insurance." — Steve Parrish
Connect with Steve Parrish:
Articles: https://www.forbes.com/sites/steveparrish/?sh=685dc0883079
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Shopping for annuity products
- Marrying the company for lifetime income
- Avoid “one-size-fits-all” annuity products
- Buy annuities for the guarantees
Key Takeaways:
- Buying annuities is like shopping for a plane ticket. Annuities are commodity products; you shop all carriers for the highest contractual guarantee.
- With lifetime income products, the Annuity company will pay you as long as you breathe. You can also structure the contract in a way where if something happens to you, 100% of your money goes to the beneficiaries.
- Annuities need to be structured differently for different intentions. There’s no one-size-fits-all annuity product.
- Always make decisions based on contractual guarantees, not on anything potential, projected, backtested, or theoretical.
"All types of annuities are commodities; you own them for what they will do, not what they might do. Always make your decision on the contractual guarantee." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Should you worry about inflation?
- Annuity companies don’t give anything for free
- Inflation will not change your lifestyle
Key Takeaways:
- Stop complaining about inflation when it doesn’t affect you or about increasing prices when you can afford it.
- Annuity companies don’t give anything away. If there's a potential increase in your income, then the annuity company will severely and drastically lower the initial payment to compensate for that potential increase.
- The people that are really affected by inflation are the 60% of Americans who live paycheck to paycheck. Inflation is not going to change your lifestyle, and that’s a fact. You’ve scrimped, saved, and worked hard all your life, enjoy your life now.
"For people that are looking to place their money in annuities and investments and have nest eggs, 401 k's, and hundreds of thousands… do not bring up inflation with me. I will blast you - in a nice way. I will wake you up to reality." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Mr. FIA-X discuss:
- Questions to ask your annuity agent
- Backtested numbers are garbage
- Index Annuities are not bad products
- When building for accumulation
Key Takeaways:
- Ask what the participation rate is and when it can change. Annuity companies can change the rules, as they need to have some way to protect themselves. It’s important to know those rules. Next, ask the agent to explain the index, what’s in it, and the math behind it.
- You need to know when the index rate went live or when it can be tracked. Everything prior to the live date is BS; your annuity will not function like the back-tested illustration they show you.
- Index annuities hold contractual guarantees too. However, agents make a lot of money from selling index annuities, so some will say anything they need to to get clients to buy.
- If your goal is accumulating wealth, invest in the S&P500, never look at it, and keep contributing.
"[On backtested numbers] You know the old saying ‘past performance is not indicative of current results’. They didn't even have a past performance. It was a made-up performance." — Mr. FIA-X.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Think again, would more money change your life?
- Peeling off the interest
- Are you really affected by inflation?
- Live your life now
Key Takeaways:
- Why do you still keep money in the markets when you’ve won the game? Think about it, would more money really change your life? If the answer is no, then why are you putting your money at risk?
- Treasuries, CDs, Fixed-Rate Annuities, and MYGAs are at a level where you can just peel off the interest, never touch the principal and never pay any fees.
- 60% of adults have less than $400 to their name. Those people are the ones really affected by inflation, not millionaires like you.
- If you need more money, go get it. But for those who don’t need it, why are you still trying to chase more? You don’t need to put your resources into volatility, what you need to do is to live your life now.
"Why are you putting all or a portion of your hopes and dreams in potential returns? Keyword: ‘potential.’ The only potential in your life should be the potential for you to live your life on your own terms because you've earned it. The potential is doing things for you." — Stan The Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Are your plans volatile?
- The Safe Money Trifecta
- Managing your volatility
- Can you afford volatility?
Key Takeaways:
- Your retirement plan is volatile if it’s at the whims of the markets and current global circumstances. You can take out the volatility from your plans by introducing contractual guarantees.
- Remember the Safe Money Trifecta: CDs, Treasury Bonds, and Multi-year guaranteed annuities.
- It’s alright to be in the market as long as you keep the proportions in a way where you don’t have to keep actively checking your money or lose sleep at night.
- Be honest with yourself. Do you honestly think you can handle losing everything to volatility? Not just financially or in your daily life, will you be able to handle that emotionally or psychologically? Is your future worth the risk?
"The point is you don't have to follow the crowd. Be a contrarian. Think for yourself, make a decision on chapter two of your life." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Marcia Mantell discuss:
- The good news that came with inflation
- What inflation really does
- Medicare Advantage or Medigap
Key Takeaways:
- Social security got a large boost. On the one hand, we’re all lamenting inflation, but then those who are getting social security or are waiting to claim will get the benefit of an 8.7% increase.
- Inflation makes us rethink priorities. It makes us have to reset our budgets and be more mindful about what we buy.
- To know whether Medicare Advantage is better for you or Medigap, you must decide what’s important to you. Medigap is about maximizing flexibility and having a steady budget throughout your retirement years. Medicare advantage is if you’re fine doing co-pay and being in a network.
- You can either get a financial advisor or do a lot of reading. There is a ton of information available; the challenge would be sorting out which information matters to you.
"You do need a financial advisor. The good news is there is tons of information out there. The bad news is there's tons of information out there; how do you sort through it?" — Marcia Mantell.
Connect with Marcia Mantell:
Website: https://mantellretirementconsulting.com/about/meet-marcia-mantell/
LinkedIn: https://www.linkedin.com/in/marciamantell/
Twitter:https://twitter.com/MarciaMantell
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Annuity fake news
- Too good to be true
- What’s at risk
- Fake news on two sides
Key Takeaways:
- If someone tells you all annuities are all bad, it’s either they’re lying to you or that they don’t know what they’re talking about.
- “Market upside with no downside” plus a shiny upfront bonus sprinkled on top to “make up for the losses”? It’s a trap! Index annuities are great CD products and a great delivery system for income riders, but it’s not a miracle solution.
- Don’t make a decision that will jeopardize your retirement based on fake annuity news. Know the facts. Don’t buy the pitch; buy an annuity for what it will contractually do.
- Fake annuity news exists on both sides of the spectrum. Some advisors are ignorant about annuities, and then some sociopathic agents will tell you what you want to hear to get you to sign the paper.
"If it sounds too good to be true, it is every single time. If it sounds too bad, that’s fake too. ‘All annuities are expensive,’ ‘all annuities are bad’ - all this stuff you hear, that's fake annuity news." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- How different your life could be with more money
- Retiring from work and the markets
- Investing safely and smartly
- Living off of guarantees
Key Takeaways:
- People in the news and most financial advisors will tell you always to keep money in the markets, but you have to ask yourself this: will more money make your life any different?
- If you love the ups and downs of the markets and treat it like a passion or a hobby, then it’s alright to stay in it, but most people out there should be retiring both from work and the markets.
- When you invest money in the market, invest an amount that you won’t care about, something that won’t keep you up at night or upset your plans if you lose.
- Remember the trifecta of safe money: MYGAs, CDs, and treasuries, which you can get at treasurydirect.gov. These three provide guaranteed annual interest rates, and you can live off of these guarantees.
"Retire from your job, retire from the markets. Live your life. There are no U-Hauls behind hearses; you can’t take it with you." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Michael Finke discuss:
- Annuities are more attractive today
- Protecting your future lifestyle
- Cutting little slices on the birthday cake
- There’s no perfect product to solve for inflation
Key Takeaways:
- At the time of this episode’s taping, near-retirees can lock in 5.2% on five-year MYGAs for the next five years; however, it may go up or down.
- When buying an annuity, you're essentially buying yourself a minimum standard of living for ever, no matter how long you live. You have to choose if you want to shoulder the risk or transfer it. Your future lifestyle is at stake.
- It’s not going to be easy, but you must first recognize that you’re not going to live forever. You have to decide how you could spread out your savings to accommodate your lifestyle until you die or if you want to spend more money to have less worry.
- If you can be more flexible, then inflation’s impact won’t be that big of a deal. Also, there’s no perfect product to solve for inflation. There are options that could help you have some stability through it, like social security and I Bonds.
"If we model out 1000 different potential retirements, the ones who will have an annuity will, on average, be happier, but the ones with an investment portfolio might have a slightly higher probability of success. But there is no information about what failure means." — Michael Finke.
Connect With Michael Finke:
Website: http://www.michaelfinke.com/
LinkedIn: https://www.linkedin.com/in/michael-finke-8134808/
Facebook: https://www.facebook.com/mfinke
Twitter: https://twitter.com/FinkeonFinance
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and GUEST discuss:
- CDs and MYGAs
- I-bond no-brainer
- The safest product in principal protection
- How safe are MYGAs?
Key Takeaways:
- Here’s how CDs (Certificate of Deposit) work: you give the bank money, they protect the principal, and you don’t have to pay any fees. You can take the interest if you want to at the end of the term and do what you want with your money. MYGAs are basically the annuity industry’s version of a CD.
- Treasury bonds are a no-brainer. Go to treasurydirect.gov to buy them for yourself. The only downside of treasury bonds is that there’s a limitation on how much money you can put in it.
- Of these three safe principal protection options, treasury bonds are the safest because the government can tax or confiscate money in order to pay it, and they will. The second safest one is CDs since they are government-based as well.
- MYGAs are safe products to invest in, and their safety is based on the annuity company’s ability to pay. They are commodity products, and the money you’ll get from them can be used to buy another MYGA from another company. However, you can’t put all your money on annuities; you got to spread it around.
"This trifecta is a contractual guarantee: CDs, Treasury's, Multi-Year Guarantee Annuities. You’re owning these because of what they will do, not what they might do. You're buying the yield. The yield is contractual." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Dating your annuity company
- Marrying your company for lifetime income
- What do you want your money to do contractually?
- Dating MYGAs to peel of interest
Key Takeaways:
- Dating a company means that we’re only going to be there for a specific duration. With multi-year guarantee annuities and fixed-rate annuities, you give the annuity company your money for a specific period of time,
- If you’re signing up for a lifetime income product with an annuity company, you’ll be there for life, so you have to make sure they can back up the contractual guarantees they claim.
- If you’re marrying the annuity, get lifetime income products where the annuity company will pay you a guaranteed amount as long as you’re breathing.
- If you have enough money to peel off the interest and never touch the principal, then you can date the MYGAs and ladder them into a two-three-four year ladder or three-five-seven year ladder.
"We’re either marrying or dating the annuity, and it depends on the type. With the lifetime income products, we're marrying them. With short-term, multi-year guarantee annuities, we're dating them." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Rick Ferri discuss:
- The Bogle-Head philosophy in investing
- Access to good financial advice
- The urgency of getting serious with retirement
- Implementing a plan for your own life
Key Takeaways:
- Keep it simple, keep it low cost, and keep it low tax. Use index funds when you can because the performance of active funds that are trying to outperform the indices is not very good, and this historically goes back 100 years.
- People don’t really have a lot of access to good financial advice as there aren’t a lot of advisors willing to get paid just for giving advice. To enhance your financial literacy, you have to find real advisors, surround yourself with a community, or educate yourself through the abundance of free information available right now on the internet.
- If you’re getting ready to retire in the next few months or so, you’ll need to make a decision. You need to learn and understand everything you have to make an informed decision about your retirement day.
- The world economy might go through a lot of slow pain, but what’s important is that you have a plan you can implement for your own life. Keep it simple, as always. Fluctuations will always be there; you have to look through to the other side.
"Come up with a sense of a plan. Implement it. Keep your costs down. Keep your taxes down, stay the course, and you'll be fine. That's it. Don't worry about the day-to-day fluctuations there. They’re always there, they’ve always been there, and they're always going to be there." — Rick Ferri.
The John C. Bogle Center for Financial Literacy: https://boglecenter.net/
Connect with Rick Ferri:
Website: https://rickferri.com/
Facebook: https://www.facebook.com/TheIndexer/
LinkedIn: https://www.linkedin.com/in/rick-ferri-b6994010/
Twitter: https://twitter.com/Rick_Ferri
Books: https://www.amazon.com/Richard-A.-Ferri/e/B001IGJTE8%3F
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Market dreams kill retirement plans
- It’s time for you to live your life
- Do you have a plan in place?
- Chasing the markets is nonsense
Key Takeaways:
- Advisors are telling people to stay the course but that’s easy to say when it’s not their money that’s on the line. Market dreams and market addiction to growth is killing retirement, it's killing people's retirement plans.
- If you are transitioning to chapter two of your life, then you have already laid it all on the line. You’ve scrimped and saved and won the game, now it’s about you. It’s time to live your life for yourself.
- Establish an income floor and have a plan in place in the case that you lose cognitive ability or if you die. Don’t leave the burden to your spouse who might not care about the markets as much as you do. That will just leave them open to getting manipulated by financial advisors.
- Stop the nonsense of chasing the markets. Is it really worth it to risk your retirement when things go south? Do you really want to lose 10% or 20%?
"The advisor is not your friend. It's not their money. It's your money. Stay the course for what? Life is fleeting." — Stan The Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Annuities have a lot of types
- Protecting the principal
- Buying an annuity can be your last resort
- You need a contractual guarantee
Key Takeaways:
- There are many types of annuities. There are Multi-Year Guarantee Annuities which is the industry's version of a CD. There are indexed annuities, variable annuities, Deferred Income Annuities, Qualified Longevity Annuity Contracts, and Single Premium Immediate Annuities. There are also buffer annuities, income rider attachments, and all kinds of different machinations out there.
- Interest rates have reached a point where you can buy a fixed-rate annuity, CDs, or whatever gives a fair interest rate. If you have enough money, you can just protect the principal and peel off the interest rate from that guarantee without touching the principal.
- If you’ve got a large enough lump sum that you can peel off the interest and live off that, then you don’t need an annuity. It can remain as a last resort if the markets go drastically downward.
- When you’re doing principal protection, peeling off the interest, you need a contractual guarantee. Index annuities are used primarily as a very efficient and cost-effective delivery system for income riders for future income needs, but they don’t guarantee a return.
"Buying an immediate annuity, or buying a deferred income annuity, might be a last resort if you can live off the interest from the principle that you have." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Branislav Nikolic discuss:
- Always look for the better deal
- Annuities are not an investment
- Clearing the market before buying
- Don’t buy the hope; buy the guarantee.
Key Takeaways:
- Don’t let someone show you just one product; shop them all because there’s always one better annuity than the others. You should constantly look for that to get the most optimal guarantees.
- Annuities are math. Know the benefits and the contractual guarantees and recognize that it’s not an investment but a transfer of risk.
- You should always be looking. What was good yesterday or the day before may not be good tomorrow. The message is six months from now, do your quoting again, see who's the best today and right, and go with it. You, as a consumer, will benefit from clearing the market before buying.
- Don’t buy the hope; buy the guarantee. Buy an annuity for what it is and should be, guaranteed income for life or as a tax-deferred investment vehicle.
"To emphasize, annuities are not wealth maximizing. You’re not buying insurance to be better off; you’ll be better off in the case of an event. And then obviously, understanding that it's not all or nothing, that this is part of a bigger picture of having a portfolio of things that work for you, as opposed to just portfolio stocks and bonds." — Branislav Nikolic.
Connect with Branislav Nikolic:
Website: https://www.cannex.com/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
Do interest rates affect annuities
How capacity affects annuities
Tuning out the noise of the media
Asking the right questions
Key Takeaways:
Annuity companies watch the Fed, but their decisions don’t drive the train; capacity does. Interest rates do affect annuities a little bit, but it’s not linear.
When annuity companies are getting in more money than they know what to do with or are filling a specific tranche or age range or product that they put out, then they're going to lower those contractual guarantees to not attract more money.
Don’t get fixated on what the media is telling you. Tune out the noise and instead look at the money that you have, see if you can either live off the interest or if you have to convert some of it to a lifetime income stream using as little money as humanly possible.
Nobody can really know where the interest rates are going. You only need to figure out whether the current rates or guaranteed payout levels satisfy the goal of what you’re trying to achieve. If it’s a yes, then pull the trigger.
"Your best bet is to turn the television off, not listening to that nonsense, and just look at the contractual guarantees that are available out there." — Stan the Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Martin Parlato discuss:
- Where is inflation
- Cryptocurrency is a joke
- How to fix the supply chain
- What should the government be doing?
Key Takeaways:
- Where can you see inflation personally affecting your life? Does inflation impact you, or are you just listening to the media too much? The real problem is the huge supply chain issue made worse by the government incentivizing unemployment.
- Cryptocurrency isn’t going to save the economy. In fact, when the autopsy is done, you might even find that crypto has a lot to do with it.
- The supply chain issue has a simple solution: to get people to work again. People need to make more of everything that we consume.
- The smart thing for the government is to stimulate our economy, foster full employment, and try to build up control of industries. They have to stop making decisions that will cause the country to self-destruct.
"The supply chain is broken. We need somebody to go make more of everything that we consume… more of everything." — Martin Parlato
Connect with Martin Parlato:
Website: https://www.lighthouseretirement.com/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The good and the bad of taxes
- Skating behind the puck with taxes
- Does inflation really affect you?
- Choosing simple solutions for retirement
Key Takeaways:
- It’s important to pay your taxes. Your money goes into good things like infrastructure, security and other things. However, it does get a little predatory, politicians play games with it, and you don’t know when the rules are going to change.
- None of us know what’s going to happen with tax policy in the future. So why would you plan around it? It’s like skating behind the puck when you should be skating where the puck is going to be. You can’t do that with the IRS.
- If you have millions and millions of dollars but you’re talking about how inflation affects you, then you’re just parroting what the media says. You’re not really being honest with yourself if inflation does affect your life or not.
- Don’t let the taxman live in your head for free. If you’ve won the game, then the solution for your retirement is very simple. Don’t complicate your plans because of taxes.
"Stop living your life by the tax code, stop doing financial planning by the tax code, stop it. Go live your life. You're driving yourself crazy." — Stan the Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The good and the bad of taxes
- Skating behind the puck with taxes
- Does inflation really affect you?
- Choosing simple solutions for retirement
Key Takeaways:
- It’s important to pay your taxes. Your money goes into good things like infrastructure, security and other things. However, it does get a little predatory, politicians play games with it, and you don’t know when the rules are going to change.
- None of us know what’s going to happen with tax policy in the future. So why would you plan around it? It’s like skating behind the puck when you should be skating where the puck is going to be. You can’t do that with the IRS.
- If you have millions and millions of dollars but you’re talking about how inflation affects you, then you’re just parroting what the media says. You’re not really being honest with yourself if inflation does affect your life or not.
- Don’t let the taxman live in your head for free. If you’ve won the game, then the solution for your retirement is very simple. Don’t complicate your plans because of taxes.
"Stop living your life by the tax code, stop doing financial planning by the tax code, stop it. Go live your life. You're driving yourself crazy." — Stan the Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Terry Savage discuss:
- Preparing for recession
- The wildcard in economy
- The two most interest things in the market
- Living off of the interest
Key Takeaways:
- People are not prepared for the kind of recession we might be facing. The Feds will not let the government buy us out of this recession, even though it's a political year because of the mounting national debt.
- The wildcard in all of this is in employment. We haven’t seen unemployment go up yet, but there is a greater amount of people either quitting or soft-quitting, which is when people don’t quit but aren’t working that hard.
- The two most interesting things about the market are Bitcoin and gold. Blockchain, the technology behind cryptocurrencies, is going to revolutionize our lives but it’s not going to be a refuge from the U.S. dollar.
- The goal is for you to never have to touch the principal and just live off of the interest. That’s the dream. Establish your income floor and see if you can buy products that will create interest.
"The problem is it's not just financial inflation. It's emotional. It's in the DNA; it’s in the cells. And you don't have to be a Ph.D. economist; you can be an ordinary person to understand the impact. That inflation mentality is what has to get broken." — Terry Savage
Connect with Terry Savage:
Website: https://www.terrysavage.com/
YouTube: https://www.youtube.com/user/TerryTalksMoney
LinkedIn: https://www.linkedin.com/in/thesavagetruth/
Twitter: https://twitter.com/Terrytalksmoney
Facebook: https://www.facebook.com/The-Savage-Truth-190870517609983/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Terry Savage discuss:
- Preparing for recession
- The wildcard in economy
- The two most interest things in the market
- Living off of the interest
Key Takeaways:
- People are not prepared for the kind of recession we might be facing. The Feds will not let the government buy us out of this recession, even though it's a political year because of the mounting national debt.
- The wildcard in all of this is in employment. We haven’t seen unemployment go up yet, but there is a greater amount of people either quitting or soft-quitting, which is when people don’t quit but aren’t working that hard.
- The two most interesting things about the market are Bitcoin and gold. Blockchain, the technology behind cryptocurrencies, is going to revolutionize our lives but it’s not going to be a refuge from the U.S. dollar.
- The goal is for you to never have to touch the principal and just live off of the interest. That’s the dream. Establish your income floor and see if you can buy products that will create interest.
"The problem is it's not just financial inflation. It's emotional. It's in the DNA; it’s in the cells. And you don't have to be a Ph.D. economist; you can be an ordinary person to understand the impact. That inflation mentality is what has to get broken." — Terry Savage
Connect with Terry Savage:
Website: https://www.terrysavage.com/
YouTube: https://www.youtube.com/user/TerryTalksMoney
LinkedIn: https://www.linkedin.com/in/thesavagetruth/
Twitter: https://twitter.com/Terrytalksmoney
Facebook: https://www.facebook.com/The-Savage-Truth-190870517609983/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- You might already have lifetime income
- The most stupid reason to hate annuities
- The many ways to structure annuities
- Covering your basic expenses
Key Takeaways:
- There’s a high probability that you already have lifetime income insurance in the form of Social Security, IRA, or a 401k. The real question isn’t if you have lifetime income insurance but if you need more.
- Hating annuities because you believe that when you die, the money goes to the annuity company is one of the most uninformed statements of all time. There are at least four ways to get lifetime income from an annuity. There are also many types of annuities and many ways to structure an annuity to fit your specific need.
- You can structure an annuity where the annuity company will be contractually obligated to pay as long as you or your spouse is still living. You can also get lifetime income insurance by just protecting the principal and peeling off interest through Multi-Year Guaranteed Annuities.
- If you are facing retirement, remember first to cover your basic expenses with lifetime income insurance. Put your money in the market if you want; you’ll be fine as long as you are covered by contractual guarantees.
"There are no U-hauls behind hearses; live your life right now. And that might mean lifetime income insurance, fill in that income floor. " — Stan The Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- You might already have lifetime income
- The most stupid reason to hate annuities
- The many ways to structure annuities
- Covering your basic expenses
Key Takeaways:
- There’s a high probability that you already have lifetime income insurance in the form of Social Security, IRA, or a 401k. The real question isn’t if you have lifetime income insurance but if you need more.
- Hating annuities because you believe that when you die, the money goes to the annuity company is one of the most uninformed statements of all time. There are at least four ways to get lifetime income from an annuity. There are also many types of annuities and many ways to structure an annuity to fit your specific need.
- You can structure an annuity where the annuity company will be contractually obligated to pay as long as you or your spouse is still living. You can also get lifetime income insurance by just protecting the principal and peeling off interest through Multi-Year Guaranteed Annuities.
- If you are facing retirement, remember first to cover your basic expenses with lifetime income insurance. Put your money in the market if you want; you’ll be fine as long as you are covered by contractual guarantees.
"There are no U-hauls behind hearses; live your life right now. And that might mean lifetime income insurance, fill in that income floor. " — Stan The Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Bill Black discuss:
- Who needs long-term care?
- Transferring wealth to your heirs tax-free
- Maximizing your death
- What good insurance companies do
Key Takeaways:
- If you live long enough where you aren’t able to feed, bathe, transport, or dress yourself anymore, you’re going to wish you had long-term care set in place.
- Long-term care benefit is tax-free, and so is the death benefit. You can set it up so that if you don’t spend the benefit or only spend some of it, the rest will go to your beneficiaries or heirs. Even if you don’t use it, your heirs will still benefit from it.
- Death is a one-time strategy, so maximize it. Get insurance so that when you go, you’ll cover your heirs with a tax-free transfer of wealth instead of leaving them a financial burden.
- Good insurance companies don’t take any money until they are ready to offer their policy to you. That way, there wouldn’t be any burden or pressure on the client. You’ll only pay whenever you decide you’re happy with the contract.
"The percentage of the people that are going to need long term care is somewhere around 60-70%... long term care [is] you can't do two out of the six activities of daily living, you can't feed yourself, you can't bathe yourself, you can't transport yourself, you can't dress yourself." — Bill Black
Connect with Bill Black:
Website: http://www.whbco.com/
LinkedIn: https://www.linkedin.com/in/whblack/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Bill Black discuss:
- Who needs long-term care?
- Transferring wealth to your heirs tax-free
- Maximizing your death
- What good insurance companies do
Key Takeaways:
- If you live long enough where you aren’t able to feed, bathe, transport, or dress yourself anymore, you’re going to wish you had long-term care set in place.
- Long-term care benefit is tax-free, and so is the death benefit. You can set it up so that if you don’t spend the benefit or only spend some of it, the rest will go to your beneficiaries or heirs. Even if you don’t use it, your heirs will still benefit from it.
- Death is a one-time strategy, so maximize it. Get insurance so that when you go, you’ll cover your heirs with a tax-free transfer of wealth instead of leaving them a financial burden.
- Good insurance companies don’t take any money until they are ready to offer their policy to you. That way, there wouldn’t be any burden or pressure on the client. You’ll only pay whenever you decide you’re happy with the contract.
"The percentage of the people that are going to need long term care is somewhere around 60-70%... long term care [is] you can't do two out of the six activities of daily living, you can't feed yourself, you can't bathe yourself, you can't transport yourself, you can't dress yourself." — Bill Black
Connect with Bill Black:
Website: http://www.whbco.com/
LinkedIn: https://www.linkedin.com/in/whblack/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Addiction to the stock market
- Taking an inventory of your life
- Leave it and live your life
- How to know if you’ve won the game
Key Takeaways:
- There are two main reasons why people become addicted to the stock market, and that’s fear and greed. People love getting returns, and they hate the feeling of missing out.
- Think deeply and check your situation if you’re affected by inflation. The prices will be higher, but if it doesn’t disrupt your lifestyle, it’s time for you to stop looking for a product that can solve inflation.
- Stop being overly conscious about prices, politics, and the market. Leave it behind and live your life.
- Take the total of your money, including all your income streams, pensions, and social security. Do you think it’s enough income floor for you to live comfortably for the rest of your life? If you can, then you have what it takes to cross the finish line because you’ve won the game.
"Can you cross that retirement finish line? Can you pivot to chapter two of your life? Can you do things that are solely about you and not others? You know you've been working for others your whole life…" — Stan The Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Addiction to the stock market
- Taking an inventory of your life
- Leave it and live your life
- How to know if you’ve won the game
Key Takeaways:
- There are two main reasons why people become addicted to the stock market, and that’s fear and greed. People love getting returns, and they hate the feeling of missing out.
- Think deeply and check your situation if you’re affected by inflation. The prices will be higher, but if it doesn’t disrupt your lifestyle, it’s time for you to stop looking for a product that can solve inflation.
- Stop being overly conscious about prices, politics, and the market. Leave it behind and live your life.
- Take the total of your money, including all your income streams, pensions, and social security. Do you think it’s enough income floor for you to live comfortably for the rest of your life? If you can, then you have what it takes to cross the finish line because you’ve won the game.
"Can you cross that retirement finish line? Can you pivot to chapter two of your life? Can you do things that are solely about you and not others? You know you've been working for others your whole life…" — Stan The Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Mr. FIA-X discuss:
- Don’t sign up for “free” stuff
- Upfront bonuses are not real money
- What good advisors do
- There’s never an urgency to buy an annuity
Key Takeaways:
- If you’re signing up for a free report, a free gift, or free whatever, then expect that you have to give up your personal information and therefore your most valuable asset which is time. They will sell you as leads to companies who will not stop calling you until they get their value for their money.
- Don’t fall for upfront bonuses! That bonus will go to your income value, which essentially means that it’s not real money. Also, they’ll charge a fee so that they can invade your principal, which will be taken out of your real money.
- Annuities are great, but they’re not a cure-all, solve-all- problems product. Not everybody needs an annuity. Not everybody needs a stock market. Everyone has different unique needs. A good advisor will first find out what your need is.
- Don’t sign something that you can’t understand or the agent can’t explain. Especially avoid signing if the agent tries to rush you into doing it. There’s never an urgency to buy an annuity, the only urgency is for you to understand fully.
"I'm a big believer that annuities are about safety, security, and eventually to establish an income that your clients cannot outlive." — Mr. FIA-X
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Mr. FIA-X discuss:
- Don’t sign up for “free” stuff
- Upfront bonuses are not real money
- What good advisors do
- There’s never an urgency to buy an annuity
Key Takeaways:
- If you’re signing up for a free report, a free gift, or free whatever, then expect that you have to give up your personal information and therefore your most valuable asset which is time. They will sell you as leads to companies who will not stop calling you until they get their value for their money.
- Don’t fall for upfront bonuses! That bonus will go to your income value, which essentially means that it’s not real money. Also, they’ll charge a fee so that they can invade your principal, which will be taken out of your real money.
- Annuities are great, but they’re not a cure-all, solve-all- problems product. Not everybody needs an annuity. Not everybody needs a stock market. Everyone has different unique needs. A good advisor will first find out what your need is.
- Don’t sign something that you can’t understand or the agent can’t explain. Especially avoid signing if the agent tries to rush you into doing it. There’s never an urgency to buy an annuity, the only urgency is for you to understand fully.
"I'm a big believer that annuities are about safety, security, and eventually to establish an income that your clients cannot outlive." — Mr. FIA-X
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Short term options available in MYGA’s
- There’s no garbage in MYGAS’s
- MYGA’s and CD products
- Making yield great again
Key Takeaways:
- There are good contractual yields available in MYGAs. They’re available in short term options of two year, three year, five year, or even seven year locked in periods.
- In MYGAs, there’s no annual fees, no market attachments,no moving parts, no upfront bonuses, and no participation rates. In other words, there’s no garbage.
- MYGA’s offer a higher contractual guarantee than CD’s. Why? It’s because life insurance companies that issue annuities have multiple pricing mechanisms to price off of.
- Multi-Year Guarantee Annuities or the annuity industry’s version of a CD is making yield great again. If you’ve already won the game, then you have the option to put your money in a MYGA, never touch the principal and peel off the interest for the income that you need.
"Yield is back! Yield can provide the comfort, security, the interest, the income needed - without touching the principle. It’s MYGA." — Stan The Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Short term options available in MYGA’s
- There’s no garbage in MYGAS’s
- MYGA’s and CD products
- Making yield great again
Key Takeaways:
- There are good contractual yields available in MYGAs. They’re available in short term options of two year, three year, five year, or even seven year locked in periods.
- In MYGAs, there’s no annual fees, no market attachments,no moving parts, no upfront bonuses, and no participation rates. In other words, there’s no garbage.
- MYGA’s offer a higher contractual guarantee than CD’s. Why? It’s because life insurance companies that issue annuities have multiple pricing mechanisms to price off of.
- Multi-Year Guarantee Annuities or the annuity industry’s version of a CD is making yield great again. If you’ve already won the game, then you have the option to put your money in a MYGA, never touch the principal and peel off the interest for the income that you need.
"Yield is back! Yield can provide the comfort, security, the interest, the income needed - without touching the principle. It’s MYGA." — Stan The Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Ellie Saul discuss:
- Medicaid is better than selling your soul to lead selling companies
- The three benefits that the non-inflation bill does for Medicare beneficiaries
- Looking out for yourself by doing your own research
- Don’t surrender your rights
Key Takeaways:
- If you need money back and you can’t afford your premiums, then opt in for Medicaid instead of giving your information to a company that promises to give you money for buying their insurance. They’re selling your information as leads to insurance companies, and they will not stop calling you. Remember that if it sounds too good to be true, it is.
- Here’s how the non-inflation bill benefits Medicare beneficiaries: one, it lowers the difference between your income for getting help which means medicare beneficiaries can make more and still get extra help for prescription medication. Second, there is now a maximum out-of-pocket limit for prescription drugs, specifically for Medicare beneficiaries. Third, Medicare can now negotiate pricing with drug manufacturers.
- For-profit companies are always looking out for their own interest, and educational meetings are not profitable for them. That’s why you have to do your own research. You have access to real information, but it’s going to be a bit like a treasure hunt.
- If you are anywhere close to Medicare age, statistically, you’ll live longer than anyone has ever lived. Turning 65 is legally referred to as a change of life event. Don't surrender your rights just because of the fear of missing out.
"I want my insurance company to pay more for my care than for their CEOs. And that doesn't happen in the marketplace. But with Original Medicare, there's this one beautiful little part where we get more than we give at some point." — Ellie Saul
Connect with Ellie Saul:
Website: https://www.mamabearmedicare.com/
Instagram: https://www.instagram.com/mamabearmedicare/
Facebook: https://www.facebook.com/MamaBearMedicare
YouTube: https://www.youtube.com/channel/UCWCg5pmr76wwEYSMRQUXblQ
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Ellie Saul discuss:
- Medicaid is better than selling your soul to lead selling companies
- The three benefits that the non-inflation bill does for Medicare beneficiaries
- Looking out for yourself by doing your own research
- Don’t surrender your rights
Key Takeaways:
- If you need money back and you can’t afford your premiums, then opt in for Medicaid instead of giving your information to a company that promises to give you money for buying their insurance. They’re selling your information as leads to insurance companies, and they will not stop calling you. Remember that if it sounds too good to be true, it is.
- Here’s how the non-inflation bill benefits Medicare beneficiaries: one, it lowers the difference between your income for getting help which means medicare beneficiaries can make more and still get extra help for prescription medication. Second, there is now a maximum out-of-pocket limit for prescription drugs, specifically for Medicare beneficiaries. Third, Medicare can now negotiate pricing with drug manufacturers.
- For-profit companies are always looking out for their own interest, and educational meetings are not profitable for them. That’s why you have to do your own research. You have access to real information, but it’s going to be a bit like a treasure hunt.
- If you are anywhere close to Medicare age, statistically, you’ll live longer than anyone has ever lived. Turning 65 is legally referred to as a change of life event. Don't surrender your rights just because of the fear of missing out.
"I want my insurance company to pay more for my care than for their CEOs. And that doesn't happen in the marketplace. But with Original Medicare, there's this one beautiful little part where we get more than we give at some point." — Ellie Saul
Connect with Ellie Saul:
Website: https://www.mamabearmedicare.com/
Instagram: https://www.instagram.com/mamabearmedicare/
Facebook: https://www.facebook.com/MamaBearMedicare
YouTube: https://www.youtube.com/channel/UCWCg5pmr76wwEYSMRQUXblQ
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Choosing brutally factual service
- Listening to the facts.
- On your own terms and timeframe.
- Annuities should be bought, not sold.
Key Takeaways:
- When you go to see your cancer doctor, you don’t want him to be your friend, you want him to be brutally factual. You need him to tell you the risks and the actions that you need to take. That’s the kind of service you also need when it comes to buying annuities.
- There’s so much noise out there in the industry, all you really need are the facts.
- People who buy annuities must make their decisions on their own terms and on their own timeframe.
- An annuity product is either attractive to the client or not. There isn’t any need to make it fancy or make it look good. Annuities should be bought and not sold.
"You don’t need any more friends; you just need the facts." — Stan The Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Elliot Raphaelson discuss:
- Making sure you get your full benefits
- Eligibility in Medicare
- Getting educated through books, experts, and classes
- The good and the bad of I Bonds
Key Takeaways:
- Turning 65 doesn’t automatically mean that you’ll get your full benefits. You have to verify what your full retirement age is and plan accordingly.
- Age 65 is the point at which you are eligible for Medicare. You’ll get Part A at no cost. You’ll get Part A at no cost. If you work the sufficient amount under Social Security, you’ll automatically get Part A at no cost. Part B, which involves medical expenses, is not automatic. That means you have to pay for that.
- Education is the best way to get the most benefits and the least problems. Read books, listen to experts, or try to attend classes that deal with finance topics you might be interested in. Do your own research, and don’t get swayed by the media.
- I bonds are a great way to earn interest on your money in inflationary times. However, you must consider the three disadvantages. First, you can only put a maximum of $10,000. Second, you have to hold it for at least one year, or else you’ll lose three months’ interest. Third, you can’t put it in an IRA.
"I think it's important that people invest from a long-term perspective, and they need a diversified portfolio; you don't want to have all of your eggs in one basket. If you're young, start investing early." — Elliot Raphaelson.
Resources:
- Medicare and You: https://www.cms.gov/Outreach-and-Education/Outreach/Partnerships/MY
- “Get What's Yours for Health Care” by Philip Moeller: https://www.amazon.com/Get-Whats-Yours-Health-Care/dp/1982134259
- “How to Make Your Money Last” by Jane Bryant Quinn: https://www.amazon.com/Make-Your-Money-Last-Indispensable/dp/1982115831
- “The New Retirement Savings Time Bomb” by Ed Slott: https://www.irahelp.com/
- “The Truth About Crypto” by Ric Edelman: https://www.amazon.com/Truth-About-Crypto-Easy-Understand/dp/1668002329
- “Retirement Planning Guidebook” by Wade Pfau: https://www.amazon.com/Retirement-Planning-Guidebook-Navigating-Important/dp/194564009X
- Purchasing I Bonds: https://treasurydirect.gov/
Connect with Elliot Raphaelson:
Articles, “The Savings Game”: https://tribunecontentagency.com/premium-content/business/personal-finance/the-savings-game/
Amazon: https://www.amazon.com/Elliot-Raphaelson/e/B001KE4AM4%3F
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- What chapter two is all about
- It’s okay to miss out
- Life span and health span
- The scars of the middle class
Key Takeaways:
- When you go to chapter two of your life, it’s all about lifestyle; it’s all about contractual guarantees. Whether you want to protect the principal and never lose a penny or if you want a lifetime income stream that you could never outlive as long as you’re breathing. That’s the reality of chapter two; it’s one of those two or both.
- It’s okay to miss out. There’s always going to be the “next Apple,” the “next Tesla”, or the “next Bitcoin,” but you don’t always have to be chasing the trend for fear of missing out. As you get close to your chapter two, focus on guarantees, health and lifestyle.
- There’s a difference between lifespan and health span. You might still have long to live, but you may not have a long health span where you are able to do the things that you’ve always wanted to do. Check the boxes now while you can; that’s what’s important.
- The fear of missing out and other mental hurdles are scars from being a part of the middle class. Ask yourself, at what point in life will you finally say, “we can afford that” or “I’m going to buy that thing?”. We’re not going to be here forever.
"Live your life. Forget missing out. Forget all of that stuff; it’s about you. You need to be selfish with your time, with your life, with your family. We could be gone tomorrow. I’m begging you to live your life. Put the contractual guarantees in place so that you don’t have to worry about anything." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Owen Schrum discuss:
- How cryptocurrency flopped with the market crash
- Risk is personal, so is inflation
- Are we going through a recession right now?
- Avoiding the emotional aspect of investing
Key Takeaways:
- Cryptocurrency is supposed to be the new currency but when the market collapsed, Crypto collapsed along with it. This just proves that crypto is really a risk asset with no implied value.
- Risk is personal, it means something different to different people. In the same way, the way in which you experience inflation is personal too. Invest in real assets, that’s the way you could beat inflation.
- There are many factors that define if the economy is going through a recession. We are not going through a recession right now. Not yet, but maybe in a few years time.
- Don’t get distracted by emotions when it comes to investing and financial management. Don’t join the herd that’s panicking from all the news. Instead, evaluate and rebalance your portfolio as you need.
"Unfortunately, the best way to beat inflation is to have assets. You want to own real assets… Real assets do better during inflationary times; financial assets, not so much so - they tend to do poorly and don’t keep up with inflation." — Owen Schrum.
Connect with Owen Schrum:
Website: https://www.schrumpw.com/
LinkedIn: https://www.linkedin.com/in/owen-schrum-24319417/
Twitter: https://twitter.com/SchrumOwen
YouTube: https://www.youtube.com/channel/UCbT6r4ywyZ98UsbrHm_m_zg
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- What “zero is your hero” means
- Dirty tactics that agents use to sell annuities
- A more rational alternative CD product
- Zero is not your hero
Key Takeaways:
- The phrase “zero is your hero” means that when the market goes down, you will not lose any money. In this world that we live in, you should always be getting some interest on your money.
- Be wary of these two dirty tactics agents use to sell annuities: back-tested numbers and upfront bonuses. Don’t base your decision on the past; base it on the future. Don’t buy a product for the upfront bonus. Also, there’s no such thing as a “market upside with no downside.”
- Instead of buying a product where you’re locked in seven to ten years, why not buy a MYGA? It’s a CD product where you can lock in on shorter terms of one, two, three, four, or five years.
- Zero is not your hero. If zero is your hero, you might as well dig a hole and put all your money in it. If anyone tells you that zero is your hero, just tell them to shut up. Be rational, don’t buy the dream.
"Zero is not your hero. We are in inflationary times. I don’t care if we’re in inflationary times or not; you need your money to grow. Period. " — Stan the Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Tom Hegna discuss:
- There are no second chances in retirement
- Why the bond market is down right now
- Annuities should be bought and not sold
- Investing wisely into cryptocurrency
Key Takeaways:
- When it comes to retirement, there’s no dress rehearsal; there are no second chances. We need to get it right the first time. That’s why you must have at least your basic living expenses covered with a guaranteed lifetime.
- Inflation is at 9%, yet we got a 30-year bond under 3%. That could mean that the bond market, the smartest market in the world, sees something really bad on the horizon.
- People don’t think about what would happen if they died or if the market stays down; somebody needs to stimulate them. However, it remains true that annuities should be bought and not sold.
- Put only 1% of your portfolio into cryptocurrency. It won’t hurt a bit if it goes to zero, it won’t hurt a bit, but if it gets huge, it’ll help a lot.
"Retirement is about income; it’s not about assets. As a minimum in retirement, you should cover your basic living expenses with guaranteed lifetime income… " — Tom Hegna.
Connect with Tom Hegna:
Website: https://tomhegna.com/
LinkedIn: https://www.linkedin.com/in/tomhegna
Facebook: https://www.facebook.com/TomHegnaSpeaks/
Twitter: https://twitter.com/tomhegnaspeaks
Pinterest: https://www.pinterest.ph/retirehappynow/
YouTube: https://www.youtube.com/c/tomhegna
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Buying the dream, owning the reality
- The fear and greed pitch
- Simple is always better
- Focus on the lifestyle
Key Takeaways:
- If you’re looking for the perfect product, eventually, you’ll find a person who’ll say they have it and sell it to you. You’ll buy the dream, but you’ll own the contractual reality.
- It’s easy to sell fear and greed. Everybody has that knee-jerk reaction and wants to have more or not to lose any. That’s the fear and greed pitch.
- If you have some doubts about whether you understand a product fully or not, then don’t buy it. Only buy into things that you completely understand.
- Forget the fear and greed; focus on the lifestyle. What are your goals? What would you like your future to look like? What contractual guarantees do you need for your life to be that way? Those are the questions you need to be asking.
"Fear and greed always lose to contractual and simple. If you just keep it contractual and simple when you’re looking at annuities, you’re going to win, and you’re going to be happy, and you’re going to be ecstatic with what you get." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man, Steve Vernon and Naomi Karp discuss:
- Safeguarding from financial exploitation
- The Money Path: six steps to protect yourself
- Things to consider when getting multiple advocates
- Easing someone else into planning for cognitive decline
Key Takeaways:
- Financial exploitation is something you need to safeguard your future self against because as you age, it’s only natural that you’d be more vulnerable to making mistakes. Keep in mind that 5% of financial exploitation is done by someone a person knows and trusts.
- First, choose a trusted financial advocate. Second, organize your financial information. Third, start a conversation with your advocate. Fourth, explain your situation, goals, values and expectations. Fifth, officially appoint your advocate under a power of attorney. Sixth, acknowledge the signs in advance.
- When choosing multiple advocates for your finances, set it up so that decisions won’t require the sign-off of multiple people. You can also set up an accountability system to make sure your advocates are doing it right. There needs to be communication in order to avoid conflict.
- Getting your parents to agree to planning for cognitive decline might require that you give them a gentle nudge through asking questions. Remember that asking questions is far more engaging than direct statements.
"You get to your late 70’s - 90’s, let’s just be frank, you’re quite not as sharp as you used to be. It is the case that you are more vulnerable to making mistakes or being exploited by unscrupulous relatives or friends. The best time to plan for that is when you still have all your wits intact and to put safeguards in place later to be triggered when you might need them." — Steve Vernon
"You wanna be proactive now because if you get to a point where you are - already having cognitive challenges whether it be mild cognitive impairment or dementia, not only won’t you really be able to think through these things in the best possible way but legally you won’t even be able to put someone in place. You can’t make a power of attorney if you don’t have full capacity to understand what it means to make a power of attorney." — Naomi Karp
Connect with Steve Vernon:
Website: https://restoflife.com/
LinkedIn: https://www.linkedin.com/in/svernon/
Twitter: https://twitter.com/stevevernon1
Books: https://www.amazon.com/Steve-Vernon/e/B000APH5FS%3F
Connect with Naomi Karp:
Website: https://thinkingaheadroadmap.org/
LinkedIn: https://www.linkedin.com/in/naomi-karp-728355b/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Should you purchase I Bonds?
- Treasuries are as safe as it gets
- Five places to put your money
- Inflation is personal
Key Takeaways:
- Purchasing I Bonds is a no-brainer. Go to treasurydirect.gov to buy direct from the treasury I Bonds.
- Treasuries are as safe as it gets because they can tax us and confiscate our money to pay them off, and that would happen if we needed to do that. The downside to I Bonds is that they don’t allow you to put as much money in them.
- There are only five legitimate places to put your money that protects the principal and that you’re not going to lose a dime, and you’re going to get an interest rate. Those five are money markets, CDs, fixed-rate annuities - also called MYGAs, treasuries, and Triple A-Triple A insured municipal bonds.
- Inflation is personal. Don’t get too caught up on inflation because most people in retirement will not be affected that much by it. Ask yourself if you’re being affected by it, or are you overplanning?
"If it’s a no brainer, then it’s a no brainer, and I Bonds are the ultimate no brainer. You can do it every year so why not put it on your calendar and do it every year? It just makes sense. " — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and John Lenz discuss:
- How inflation affected annuities
- Return On Premium MYGA’s
- The cost of not having a pivot feature
- Advantages of a guaranteed base
Key Takeaways:
- The rise in interest rates has been a positive for the annuity space in general. SPIAs have responded nicely where the Single Premium Immediate Annuity is now buying more robust monthly income.
- A better name for ROPs or Return On Premium is Pivot MYGA since it gives you the option to pivot, which means to take your money and go to another company with a higher rate.
- Suppose interest rates go up and you want to go out of your annuity, and you don’t have this return on premium feature. In that case, you’ll pay a penalty to the insurance company because they’ll have to liquidate the investments that they purchased with your money at a loss in addition to the surrender charge.
- You’ll be able to invest your portfolio for long-term growth if you have a guaranteed base.
"A lot of people get a little bit antsy about that, ‘what if I die early?’ why don’t I hear anybody complaining about, ‘what if I pay into social security my whole life then die at 66.’ Was that a bad deal? No, because you don’t need social security anymore. Cause you’re dead!" — John Lenz
Connect with John Lenz:
Website: https://www.lenzfinancial.com/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Limit on annuities
- Putting everything on an annuity
- How much should you invest in annuities?
- Why an application could get denied
Key Takeaways:
- For most financial products, you can get as much as you want, but there is a limit on what you can get with annuities, and that’s a good thing.
- You’ll get denied if you want to put everything you have on an annuity. The only way to go through is if the agent filled in the application incorrectly or falsely.
- The annuity industry prefers 50% of your investable assets, the maximum amount put into annuities of any type. When you fill out the application, the investable net worth is what the annuity company looks at.
- The vast majority of carriers will not accept the annuity if it’s not suitable - if it doesn’t solve a specific goal - and if it’s too much of your overall investable assets. They will decline the application, and they will not accept the money.
"Annuities - I think is the only financial product that you can’t go all in with. With the annuity industry, they will not allow you to do that, and that’s a good thing. " — Stan The Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator
In this episode, The Annuity Man and Bob Carlson discuss:
- Hedging for rising inflation rates
- Accessing institutional shares through 401k
- What are your digital assets?
- Watching out for blockchain technology
Key Takeaways:
- The inflation rate that you experience is probably lower than what data that is shared suggests. However, don’t forget that inflation rates are still rising, showing signs that it won’t be transitory.
- 401k plans allow access to institutional shares, which have the lowest expenses. Doing a roll-over from a 401k to an IRA will give you access only to retail shares, which have the highest expenses.
- Digital assets are a much broader category than a lot of people realize. It’s a federal crime for others to access your digital assets. You have to specify and give people permission. List and organize all your digital assets.
- It would be wiser to be more interested in blockchain technology than just the cryptocurrency part. Watch out for how companies will utilize this technology and if its biggest problem will ever be resolved: its impact on the environment.
"This is how you decide how much you love your family: are you gonna take time to sit down and write this stuff down, or are you gonna leave them a big electronic mess that’s gonna take a lot of time and effort to resolve, and might not eventually be resolved." — Bob Carlson.
Connect with Bob Carlson:
Website: https://www.retirementwatch.com/
Facebook: https://www.facebook.com/RWcommunity
Twitter: https://twitter.com/RetirementWatch
Most Recent Book: https://www.amazon.com/Wheres-My-Money-Secrets-Security-ebook/dp/B0853F3R7R
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator
In this episode, The Annuity Man discussed:
- Addiction to the market
- Reflecting on what you really want
- How would you like your retirement to look like
- When you don’t need an annuity
Key Takeaways:
- It is possible to get addicted to the market, and when you’re at that point, you’ll need to give yourself an intervention. At some point, you’re going to have to stop.
- Be honest, do you want to subject yourself to the daily ups and downs of politics and the markets, tracking it, hoping it goes well, hoping that you’ll get a bump? That would wear anyone out.
- What do you want your second chapter to look like? Do you want to be at peace with the lifestyle that you want, or do you want to be chasing the market constantly?
- Never buy an annuity under the premise that it has market growth and principal protection. It does not.
"Contractual guarantees - make sense to me. Most people that have accumulated wealth have done it in a slow, methodical way." — Stan The Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Mr. FIA-X discuss:
- Annuity companies do not give free money
- Ways to know if you’re dealing with a qualified advisor
- Sales pitches that you should watch out for
- Buying a product that you understand
Key Takeaways:
- Upfront bonuses are candy for the stupid. There are no philanthropists in annuity offices giving out free money to clients. They’ll chip away at you in different ways to recoup those dollars. They haven’t been around for hundreds of years because they gave money away.
- If your advisor says “guarantee your principal” and “rider” in the same sentence, that disqualifies them. They are not capable or qualified to be your advisor.
- Hypotheticals are hypotheticals for a reason. Zero is not your hero. There’s no such thing as a hybrid annuity. When given a participation rate, ask the advisor what you’re participating in.
- Do not buy a product if you don’t understand it, and definitely don’t buy it when you can see that even the agent doesn’t understand it. Simple is always better.
"I think simple is better, I also think they need to be careful when they explain all these wonderful things that the annuity can do. Just because they can do these wonderful things doesn’t mean there’s not a cost for it. You’re paying for it somewhere. If it does this wonderful thing, it means you have something less wonderful somewhere else for them to afford that one wonderful thing." — Mr. FIA-X
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The annuity industry’s bad reputation
- Don’t trust the sales pitch
- Are all annuities bad?
- Ask for the contractual guarantees
Key Takeaways:
- The annuity industry has unfortunately earned its bad reputation despite its monopoly on lifetime income. That’s because some agents target people who are not financially informed.
- When something sounds too good to be true, especially in annuities, it 100% is. There are no perfect answers, just bad sales pitches. If you don’t know who the sucker at the table is, it’s probably you, so don’t fall for their bad pitch.
- Social security is an annuity; pensions are an annuity. People who say they hate all annuities truly don’t know what they’re talking about.
- Don’t fall for hypotheticals or back-tested and projected numbers; ask for contractual guarantees. If you can’t explain it to a nine-year-old, don’t buy it. Don’t let somebody rush you into buying something you don’t understand.
"I don’t care if you’re smart in other things, but if you say ‘I hate all annuities’ or ‘all annuities are expensive’ - you are a moron; you should not speak. If you don’t know the answer, don’t bluff. I’m not out there talking about cooking; I can’t cook! But I know annuities." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Marcia Mantell discuss:
- Retirement planning is personal
- The uncomfortable “unexpected.”
- Who are the best financial advisors?
- Lasagna style income planning
Key Takeaways:
- Friends and neighbors are not your friends when it comes to retirement decision-making. It’s all completely personal.
- If there’s anything that’s not unexpected, it’s that we know we are one day going to die. We just don’t like to talk about it; we don’t like to think about it.
- The best financial advisors are those that aren’t born from money. They understand what it’s like to come from a family that doesn’t have much, so they’ve been repeatedly taught in their youth to respect and value money.
- If you can make lasagna, you can also make a retirement plan. Retirement planning is a layered process; there has to be a plan in place, you can’t randomly do it, and there’s a myriad of ingredients.
"Starting early is the key. If you miss 50, start wherever you are today. This is not a weekend project - it’s too hard and complicated. The best thing we can all do is take ownership, we have to understand social security to make good decisions, and we have to understand medicare." — Marcia Mantell.
Connect with Marcia Mantell:
Website: https://mantellretirementconsulting.com/about/meet-marcia-mantell/
LinkedIn: https://www.linkedin.com/in/marciamantell/
Twitter: https://twitter.com/MarciaMantell
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Which annuity provides historically higher guarantees?
- Being wary of ignorant advisors
- Getting the highest payout for yourself
- The choices for non-narcissists
Key Takeaways:
- An income rider attached to Fixed Index Annuities historically provides higher contractual guarantees and has less fees than variable annuities.
- Suppose a financial advisor or anybody tells you never to buy an annuity, that all annuities are expensive or that they hate all annuities. In that case, that person doesn’t know what they’re talking about.
- You can choose life-only if you want the highest contractual guarantee payment with an annuity. Keep in mind that you will be the only one who benefits from it and your spouse, too, if you structure it.
- With income riders that are attached to Fixed Index Annuities and sometimes to Multi-Year Guaranteed Annuities, when you die, whatever’s left of that accumulation value goes 100% to the beneficiaries.
"If you die, the money goes poof - that’s only one of forty ways to structure annuities - and what they’re talking about is life only, and life only is the narcissist pension plan. Because you’re shouldering some of that risk even though you’re transferring the risk to the annuity to pay you for as long as you are breathing." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and GUEST discuss:
- Why annuities get a bad rep
- What’s a tontine?
- Beating inflation
- Planning for health decline
Key Takeaways:
- Annuities are often complicated, and they are typically sold to a group of vulnerable people. That could be a recipe for disaster.
- A tontine was one of the many ways that people used to finance themselves in retirement; it was a scheme in which the longest living people got the most amount of people, and the people that didn’t live a long time got a small amount of income - it was a type of annuity.
- With a tontine scheme, the denominator keeps getting smaller as time goes by while the numerator stays the same - meaning the same amount of money is being split between fewer people. Mortality becomes a real interest rate. People don’t care much about this because inflation wasn’t that much of a hot topic, but nowadays, people should look into it.
- There’s a big difference between health span and life span, but they can have a short gap in between. Long-term health care is important because it allows you to use more of your lifetime income for things you like rather than split them between things you like and things you need.
"You have a product that’s meant to help people that are eventually going to cognitively decline and help them deal with the finances; there’s a higher burden of care there because you gotta make sure that they understand what they’re buying, they continue to understand what they’re buying and in many cases, annuities are quite complicated." — Moshe Milevsky.
Connect with Moshe Milevsky:
Website: https://moshemilevsky.com/
Twitter: https://twitter.com/RetirementQuant
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Why do agents tell stories?
- Protecting yourself from bad pitches
- Don’t listen to these stories
- The only two important questions
Key Takeaways:
- In sales, managers will often tell their people that stories sell and that they do, so you have to watch out for hypotheticals, testimonials, and anecdotal “evidence.”
- Here’s how you can protect yourself from liars who’d sell you stories: write down their sales pitch exactly how they said it and how you understood it. Sign and date it at the bottom and flip it over to them. Have them sign the contract, so they’re on the hook if they lie in their pitch.
- Never base your decision on a back-tested number; those are basically stories. If they tell you all about the people who own what they're selling, don’t listen - those are stories. Never base your decision on up-front bonuses; you’re smarter than that - there’s no such a thing as free money.
- There are only two important questions: “what are the contractual guarantees” and “when do you want those contractual guarantees to start.” By answering those two, we can determine whether you even need an annuity or which type will provide the highest contractual guarantees if you need an annuity. There are no stories with contractual guarantees.
"Don’t buy the dream because you’re going to own the contractual reality. Don’t buy the story, buy the contract." — Stan The Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Martin Parlato discuss:
- The biggest problem the government created
- How to send a country into stagflation
- Cryptocurrency is worthless
- Planning in six-month projects
Key Takeaways:
- The problem is government spending and the supply chain - which the government can’t fix. People being paid to stay home contributes to production and supply chain problems, leading to a lack of advertisements, resulting in layoffs and further unemployment in advertising sites like Facebook.
- If you can’t increase supply, then all you can do is decrease demand, and if you try to decrease the demand side so hard that it compensates for the supply side, that’s when you send the country into recession - that’s when you send the country into stagflation.
- Crypto is worthless, and it doesn’t do anything. Many people buy cryptocurrency because it’s untraceable by the government and unstealable by anyone. Except, there have been many incidents of hacking, often involving millions of dollars in stolen crypto.
- Retirement planning is done in six-month projects. The world changes fast; we are already in a different world than six months ago.
"The retirees need to understand that elections matter. You elect stupid people, this is what you get - you get a series of bad decisions that affect your retirement. Politics affect your money." — Martin Parlato.
Connect with Martin Parlato:
Website: https://www.lighthouseretirement.com/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Not everyone needs to be exposed
- Bonds and market volatility
- Looking into lifetime income
- Questions to ask your advisor
Key Takeaways:
- Financial advisors tend to advise their clients to do 60% equity and 40% bond split or that they always have some exposure, but it doesn’t apply to everybody. People who’ve won the game don’t have to keep playing.
- Bonds aren’t fool-proof; they go down in value if interest rates go up. If you’ve already accumulated enough to live the life you want and don’t want to tie yourself into any risks or volatility, then don’t. You have that option.
- If peeling off the interest rate isn’t an option for you, then why not look into lifetime income? You can structure your annuity where your money doesn’t have to go to the annuity company when you die. There are so many ways you can structure the contract in a way that achieves your goals.
- Advisors get paid assets under management, which is why they want you to dip into the market. Ask your advisor if you have enough money to live off. From a fiduciary standpoint, they’ll have to look at the money and tell you honestly if you are able to do that.
"Plan for when you win the game to stop playing the game. Look up at the scoreboard; you won!" — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Sheryl Garrett discuss:
- The role of a financial planner
- How the industry should be
- Hiring the right planner
- Being aggressive with cash flow
Key Takeaways:
- Many personal, financial, economic, and psychological things are coming together all at once. The planner’s role is to help clients see through all of that and reach out to the appropriate specialist when they need certain products or services fulfilled for the clients.
- Everybody has questions about their personal finances. People in the industry should be working towards making it easier for people to understand finances.
- Don’t hire anybody with disciplinary issues on their records. There are plenty of people to pick that don’t have any on the record. Make sure the person you’re talking to is working as a fiduciary.
- We need to be aggressive about our cash flow. Aggressive, conscious of where our money is going, where it’s coming from, and how it will move in the future.
"We’ve been trained to go get a second opinion if we have a significant medical issue come up, but why in the world do we not get a second opinion if we’re getting ready to make a decision as significant as retirement." — Sheryl Garrett.
Connect with Sheryl Garrett:
Website: https://garrettinvestmentadvisors.com/
LinkedIn: https://www.linkedin.com/in/sherylgarrett/
Twitter: https://twitter.com/SherylGarrett
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Never, ever “sign now, decide later”
- How agents give annuities a bad name
- The trouble is not worth it
- There's never a time for urgency
Key Takeaways:
- Never, ever “sign now, decide later.” If anybody pitches something that sounds too good to be true, it probably is.
- “Sign now, decide later” types of pitches are a shady sales practice that gives annuity companies a bad name. The only goal of this tactic is to make a sale and not to help the client.
- These shady tactics done for short-term gain will have long-term consequences and drawn-out complications for people who are involved, especially the client. The trouble is not worth it.
- Please take note and remember that there is never an urgency to buy an annuity for consumers out there.
"For any of the agents out there… stop it. People can make up their own minds. You don’t have to do bait and switch tactics. You don’t have to do shady “sign now” deals because to unwind a lot of this is a mess." - Stan The Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Adam Van Wie discuss:
- Being both analytical and tactical
- Does the market care about politics?
- Putin-proofing and pandemic-proofing your investments
- Two questions to ask your advisor
Key Takeaways:
- You need to be analytical and strategic, investing in the long-term while at the same time looking at short-term trends and figuring out how you could avoid losing, knowing what could happen in the short-term.
- The market doesn’t care that much about politics. The market has gone up historically on both sides; it isn’t as related as people think. However, there are specific policies that one side will do that will affect certain investments.
- The pandemic changed everything, but not every change was bad. The transition to webinars and online meetings has the upside of being able to save a lot of people’s time.
- Ask your advisor if they are a fiduciary or if they are putting their client’s best interest ahead of themselves. Then, ask them how they are getting paid because there wouldn’t be any reason for them to hide it if there’s nothing wrong with how they’re getting paid.
"For those of you that this is the first time you’ve experienced any real volatility - if you have more than five years to invest, I would double down, buy more. Long term, American companies have a natural inclination to increase their profitability, and that’s what drives stocks in the long run. It’s a little bit of a rigged game, but it’s rigged in your favor." — Adam Van Wie
Connect with Adam Van Wie:
Website: https://vanwiefinancial.com/
Facebook: https://www.facebook.com/vanwiefinancial/
Instagram: https://www.instagram.com/vanwiefinancial/
LinkedIn: https://www.linkedin.com/in/adamdvanwie/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- How do annuity agents get paid?
- Your two choices for lifetime income
- The downside to deferred income annuities and indexed annuities
- Explaining MYGA 2 SPIA to a nine-year-old
Key Takeaways:
- In every annuity type, commissions are built into the policy, hidden from the client, and paid from the reserves of the annuity company so that you don’t see them in your statement.
- If you want lifetime income and want it in however many years, you have two products to choose from—either a deferred annuity or an income rider attached to an indexed annuity.
- The negative to deferred income annuity is that it’s an irrevocable choice, and you don’t have any trackable interest. Meanwhile, for indexed annuities, the negative is that there is a fee for that income rider that is taken out of the accumulation value for the life of the policy.
- You will first buy a fixed-rate annuity in the MYGA 2 SPIA income strategy. They’ll pay you a guaranteed contractual interest rate every single year, which will compound for the duration you choose. After that, shop for the highest contractual guaranteed lifetime income stream at that time.
"Nobody’s gonna talk to you about the MYGA to SPIA income strategies because the commissions are so low. Remember this; if the commissions are low, it’s pretty good for you. " — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Mark Skousen discuss:
- Current problems in the world and the government
- Staying invested in the market despite the inflation
- Cryptocurrency and blockchain
Key Takeaways:
- Throwing money at problems isn’t the only way to solve them. In many cases, throwing money into problems could create more problems.
- It’s been a difficult year, but you shouldn’t give in to pessimism. You must remain fully invested in the market. You need about 10% or 12% return on your assets just to stay even, and that can be done through investment in real estate.
- Cryptocurrency and blockchain serve a valuable service, and we have to be updated and stay well-informed about them. Both success and horror stories are associated with it, but it definitely holds ground in the current market.
"When was the last time we let people make their own decisions rather than the government telling us what to do? I think that’s a serious problem in today’s world." — Mark Skousen.
Connect with Mark Skousen:
Website :https://mskousen.com/
Email: http://markskousen@skousenpub.com/
Facebook: https://www.facebook.com/mskousen
Twitter: https://twitter.com/MarkSkousen1
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- A plain annuity biscuit
- Biscuits for the weekend
- An annuity biscuit with a little bit of jelly and butter
- The Annuity version of a CD
Key Takeaways:
- A plain biscuit without anything on it would be a single-premium immediate annuity or a deferred-income annuity. You get lifetime income with no annual fees and no market attachments. It’s a straight transfer of risk based on your life expectancy.
- If you’re cooking biscuits for the weekend, your qualified longevity annuity contract would be. It can be used inside of your IRA for future lifetime income needs.
- Biscuits with a little bit of jelly and a little bit of butter would be an income rider. It’s attached typically to an index annuity at the time of application; it’s an attached benefit for future lifetime income. It comes with a fee for the policy’s life that’s taken out of the accumulation value.
- The biscuit for accumulation would be a Multi-Year Guaranteed Annuity. It’s the annuity world’s version of a CD. It’s not a CD, but it functions like it. It will give you a guaranteed interest rate annually for a specific period of time that you choose. It could be one year in length, two years in length, three years in length - up to 10 years in length.
"Understand that with biscuits, you’re looking for the simple buttermilk biscuits that grandma made you love. You want a simple biscuit that you understand. You want a biscuit and an annuity that a nine-year-old would like and be able to explain." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Roger Whitney discuss:
- The two retirement crises
- Balancing on the teeter-totter
- Before going into fancy tactical stuff
- Focusing on what you can control
Key Takeaways:
- There are two retirement crises: one is when people don’t have enough money to pay the bills when they can’t work anymore. The other crisis is for people with many resources and options but doesn’t know the right thing to do.
- On the one hand, you should start having your best life today, and on the other hand, you also want to make sure that you’ll be alright when you live until 80 or 90. There’s tension between those two things, you’re standing in the middle of it all, and you have to cover yourself on both accounts.
- Start with what you want, then create a strategy that will make that feasible. Make it resilient so that you don’t get knocked off course and get too fancy tactics.
- Don’t waste your life trying to predict the future or reacting to every event. Instead, focus on things that will be useful to you, like building functional health - health that will enable you to spend time with family freely.
"The majority of planning which feeds the mindset of this very uncertain world is always gonna default to denying today, and that’s not right because tomorrow isn’t promised to anyone. You gotta be a good steward. " — Roger Whitney.
Connect with Roger Whitney:
Website: https://www.rogerwhitney.com/
Facebook: https://www.facebook.com/pg/retirementanswerman/posts/
LinkedIn: http://www.linkedin.com/in/rogerwhitney
YouTube: https://www.youtube.com/channel/UC0gvNDYjMGdkO8OiNZu9jug
Twitter: https://twitter.com/roger_whitney?lang=en
Book: https://www.rogerwhitney.com/the-book
Podcast: https://www.rogerwhitney.com/blog
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- You can’t hate all annuities
- Who invented PIGs?
- The four PIGs
- Adding to your income floor
Key Takeaways:
- Just to recap, you already have an annuity, and there’s no way you could hate all annuities when there are a lot of kinds out there.
- The Romans invented the original portfolio income guarantee. The government provided an annual payment to soldiers’ families for their service.
- There are four PIGs in the annuity world: single premium immediate annuities, deferred income annuities, qualified longevity contracts, income riders attached to index annuities, variable annuities, or sometimes MYGAs as well.
- If you need additional income to add to your income floor, check out the SPIA calculator and run a reverse-engineered quote solving for that contractual amount you need to fill in that gap or inflation.
"The income floor is that amount that’s gonna hit your bank account every single month regardless of what happens in the world… it doesn’t matter; it’s gonna hit that bank account every single month." — Stan The Annuity Man.
Click on this link to check out Stan the Annuity Man’s SPIA Calculator: https://www.stantheannuityman.com/spia-calculator
In this episode, The Annuity Man and Heather Schreiber discuss:
- Insolvency in the future
- When should you claim?
- Consulting with experts
- Collecting survivor benefits
Key Takeaways:
- Somewhere in the years 2034 and 2035, social security will experience insolvency if nothing changes in the present. This is not as dire as it sounds; insolvency will only happen if nothing changes from now until then.
- You have to be careful about the break-even when you’re married because there is a disparity in benefit estimates.
- The best way to truly know what course of action to take is to surround yourself with experts who will discuss the “what if”s and tell you what’s the best decision you can make for the specific lifestyle you want.
- You can’t file for survivor benefits online; the only way that a surviving spouse will collect a survivor’s benefit automatically is if they were collecting dependent spousal benefits while the spouse was living.
"Insolvency just means that the trust funds will be depleted; it does not mean that they're just going to cut off benefits." — Heather Schreiber.
Connect with Heather Schreiber:
Website: https://www.hlsretirementconsulting.com/
Phone: (678) 888-5110
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Financial racism/classism in the annuity industry
- The responsibility of companies
- Don’t rush buying an annuity
- Hiring a trustworthy expert
Key Takeaways:
- Financial racism/classism is going on in the industry these days. People who have worked their whole life that are not particularly financially savvy are being preyed upon by annuity agents that don't have anyone’s interests in mind except themselves.
- Annuity companies and organizations are responsible for researching what their people are selling to their clients. Each agent must be properly trained and managed so that they will only be able to sell what the client needs.
- Tell that jerk to go away and stop harassing you if this is happening to you. Don’t let anyone rush you into buying an annuity. There’s no “too good to be true” product; you need to understand what you’re signing up for fully.
- There’s no shame in admitting that you don’t understand something fully. It’s better to keep asking questions than to be persuaded to buy a product that you don’t need. You can’t be good at everything, so you have to seek an expert in finances, but you have to be selective and find the truly trustworthy ones.
"There’s never an urgency to buy an annuity; the urgency is for you to understand what you’re buying - the good, the bad, the limitations, the benefits. " — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Rick Ferri discuss:
- Outperforming 90% of investors
- Developing a simple portfolio
- Five ways to improve your portfolio
- Facing the risks
Key Takeaways:
- Investing is not as difficult as others would have you believe. The best way to invest is to keep things simple; the fewer moving parts, the better.
- Develop a simple portfolio that will hold four funds, two stock funds, and two bond funds. The bond funds have to be some fixed income type of allocation, while on the stock side, you do a stock market index fund and a total international fund.
- Are you going to be active or passive? Select a portfolio strategy. Determine whether you’re going to be aggressive or conservative and assess if you need a higher rate of return and if you can handle high volatility.
- In bad times, remember that “this too shall pass.” Investing doesn’t come without risk. Everything in life has risks. Even burying your money has a risk; inflation will eat away at its value. It’s better just to face the risk.
"The idea is simplicity. Be simple, be low-cost, be consistent, stay the course, be tax-efficient." — Rick Ferri.
Connect with Rick Ferri:
Website: https://rickferri.com/
Facebook: https://www.facebook.com/TheIndexer/
LinkedIn: https://www.linkedin.com/in/rick-ferri-b6994010/
Twitter: https://twitter.com/Rick_Ferri
Books: https://www.amazon.com/Richard-A.-Ferri/e/B001IGJTE8%3F
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed
- The two primary functions of an annuity
- Don’t time it; ladder it
- Annuities are based on life expectancy
- When life expectancy tables change against you
Key Takeaways:
- There are two primary functions for an annuity: principal protection or income for life. Never buy an annuity for market growth.
- Don’t time it; try laddering instead. If you have $300,000, put $100,000 each in a three-year, four-year, and five-year plan. That way, you’ll have money coming due at different intervals, hopefully attaching to rising interest rates.
- Lifetime income is primarily based on your life expectancy when you take the payment. Interest rates play a secondary role, and that’s why laddering is the best strategy for squeezing yield out of annuities.
- Keep your maturity short and ladder it. Lifetime income is all about life expectancy, not interest rates. When you’re squeezing annuity yields, remember that because lifetime expectancy dries the pricing train, there’s a risk that the life expectancy tables will change against you in the future.
"Squeezing yield out of MYGAs really comes down to not trying to time it, not trying to pick a specific duration, and laddering those maturities." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Dana Anspach discuss:
- Don’t blame the hammer
- Overcoming confirmation bias
- Avoiding “perfect” products
- Long view financial planning
Key Takeaways:
- Don’t blame the hammer. It’s easy to blame the tool, but many other variables come into play if it doesn’t work. It could be that the person using the tool lacks experience or all the information they need to make it work.
- To overcome your own confirmation bias, try to be more curious. Listen to media, understand their audience, and consider if you’re a part of it. Determine if the message is for you or if their advice fits your lifestyle.
- Be wary of the “perfect product” that’s a fit for everyone; there is no such thing. Stop looking for a perfect product, and don’t let anyone sell it to you.
- Today’s current issues, like war and the pandemic, are just events that will eventually smooth itself out. Financial planning is all about the long view.
"When you’re not educated, it’s easy to use the wrong tool for the job." — Dana Anspach.
Connect with Dana Anspach:
Website: https://controlyourretirementdestiny.com/ | https://www.sensiblemoney.com/
Facebook: https://www.facebook.com/SensibleMoneyUS
LinkedIn: https://www.linkedin.com/in/danaanspach
Twitter: https://twitter.com/SensibleMoneyUS | https://twitter.com/moneyover55
Books: https://www.amazon.com/Dana-Anspach/e/B00GL9WC82%3F
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- How annuity companies buy bonds for you
- Accessing industrial-grade bonds
- Interest rates play a secondary role
- Potential or contractual increases
Key Takeaways:
- You can’t open an account with an annuity company and have them buy bonds for you, but when you sign a contract for an annuity they’ll buy bonds on your behalf to support the lifetime income they’ll be dishing out for you.
- Annuity companies have access to industrial-grade bonds that regular individuals don’t. That means they get the best of the best when it comes to investments.
- When you are talking about a lifetime income stream the primary pricing mechanism is your life expectancy at the time you start the payments. Interest rates play a secondary role.
- Anytime anyone says that the income stream is increasing with inflation, that means that the annuity company is lowering that initial payment to make up for that potential or contractual increase.
"When you’re buying lifetime income, you’re literally saying to the annuity company ‘I’m gonna piggy back on your institutional access to bonds and you’re gonna buy the bonds for me and you’re gonna do a better job buying the bonds than I could as an individual and because of that… the lifetime stream’s gonna be better." — Stan the Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Ted Benna discuss:
- From spender to saver
- Getting more money in the long run
- Employees should care about employees
- Investing faster in your retirement
Key Takeaways:
- The biggest help that 401k’s have provided is that they converted employees from being spenders into savers.
- A 401k plan enables an employee to essentially get more money in the long run and have more resources to use when they retire.
- Because of the 401k, employers are now forced to care for their employees. They have to have some plans that benefit an employee's future to stay competitive in the market.
- When you’re building a nest egg for retirement, it’s better to do it faster rather than slower. If you’re saving pre-tax, you’ll be able to invest more money into your future rather than doing it after tax.
"The biggest benefit of it [401k] is that it has actually helped convert spenders into savers - most employees would not do this if they had to do it on their own… enables them into becoming successful savers" — Ted Benna
Connect with Ted Benna:
Website: http://benna401k.com/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Social security is a lifetime income stream
- The annuity that most are unaware of
- Your pension is your third annuity
- Do you still need an annuity then?
Key Takeaways:
- The first annuity that you already own is Social Security. By definition, Social Security is a lifetime income stream that will pay you as long as you’re breathing based on your life expectancy when you take the payments. That’s an annuity.
- Another annuity you may not know that you already have is Required Minimum Distribution or RMDs. It factually and semantically is a forced annuity.
- If you work for a company or organization that offers a pension, congratulations, you already own three annuities!
- Do you still need an annuity if you already have social security, RMDs, and a pension? That depends on what type of income you’re solving for and what lifestyle you would want to live in the future when you’ve retired.
"Don’t be an annuity hypocrite. Embrace the fact that you already have lifetime income. Embrace the fact that you already have two items that are gonna fill that income floor as long as you are breathing. Embrace that, don’t hate annuities." — Stan the Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Amanda-Jo Wilt discuss:
- Your most important asset
- Removing the barriers to health
- Weight acceptance and promoting health
- The problem with alcohol
Key Takeaways:
- Your overall most important asset is your health. Invest in it, or you’ll lose out on enjoying your retirement.
- The best way to achieve a healthy lifestyle is to get rid of the barriers and make it easier on yourself. Hiring a specialist to create the perfect meal plan for you is the simplest way you can do this.
- Your value doesn’t change depending on your weight. No matter how you are and what health struggle you’re going through, you are beautiful and important. However, make no mistake that obesity is a sickness, and it will impact how much or how little you will be able to enjoy your life in the long run.
- If you have goals for longevity and quality of life, you have to sit back, be honest, and assess yourself and your relationship with alcohol. There’s nothing wrong with enjoying a glass, but it’s time to stop if you can see that you lack self-control.
"If your health span runs out before your lifespan runs out, all that saving you’ve put in for retirement is now vulnerable because instead of enjoying that, it’s all going toward medical costs. " — Amanda-Jo Wilt.
Connect with Amanda-Jo Wilt:
Website: https://www.theboomernutritionist.com/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Why do they sell you indexed annuities?
- Letting CPAs stay in their lane
- Listening to the right people
- No good reason to sell
Key Takeaways:
- Your CPA should not be involved in financial advice. There is a reason why they often sell indexed annuities, and that’s because they’ll get the highest commission from that type of annuity.
- CPAs are analytical and good with numbers, but they don’t read the policies, don’t understand the annuity product that they’re selling to you, and are not equipped to give you a product that gives contractual guarantees fitting all your needs.
- There’s not a one-size-fits-all product when it comes to annuities. Sometimes you don’t even need an annuity or don’t need it yet. If the person selling to you isn’t a licensed professional, then you shouldn’t be listening to them.
- There is no good reason why a CPA would sell you an annuity product that they don’t completely understand. There’s only one, and that’s greed - they’re not thinking about you, they’re thinking about taking your money.
"Never ever take any tax advice from anyone other than a CPA and a tax lawyer - but the reverse is true, don’t buy an annuity from a tax lawyer or a CPA. Tell them to stay in their lane." — Stan the Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Steve Vernon discuss:
- The Scrooge McDuck Syndrome
- Facing your reality
- Focusing on the future
- Maximizing your social security
Key Takeaways:
- The problem with decumulation is foremost a psychological one. People feel better seeing that account with money sitting there, but you have to turn the switch and spend it down.
- Develop lifetime paychecks that last the rest of your life, no matter how long you live. Take a look at your living expenses and see it’s below your paychecks. If it’s not, you need to find a way to either reduce expenses or increase income.
- Many people who are transitioning to retirement don’t plan ahead that much when they should. Focus on the future because if you don’t, it’ll be too late to have planned for it by the time it arrives.
- Maximize your social security, and don’t buy an annuity until you’ve taken steps to maximize that social security because that’s the best-priced annuity you’ll ever get. Use your savings if that’s what you need to do to delay your social security benefits.
"There’s just a whole bunch of things you need to think about, and so I encourage people - it’s gonna take some time. You’re not gonna do this in an afternoon. I encourage people to learn their options and hire professional help." — Steve Vernon.
Connect with Steve Vernon:
Website: https://restoflife.com/
LinkedIn: https://www.linkedin.com/in/svernon/
Twitter: https://twitter.com/stevevernon1
Books: https://www.amazon.com/Steve-Vernon/e/B000APH5FS%3F
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- What are interest rates?
- Payout rates and lifetime income
- Focusing on the monthly income
- You can’t beat the annuity companies
Key Takeaways:
- Interest rates have to do with multi-year guarantee annuities, the annuity industry’s version of a CD. You will be locked in at a guaranteed interest rate. The payout rate is a whole different animal.
- Payout rates have to do with life expectancy and lifetime income, a combination of a return of principal plus interest. That percentage is the payout rate.
- Forget the bonus, forget the payout rate percentage, forget it all. Focus on the monthly income number; it’s the number that matters.
- They price it so that the longer you allow them to hold your money as it’s deferring, as you’re waiting to turn on the lifetime income stream, the more they enhance the payments. You can’t time interest rates or payout rates.
"Don’t look at the percentage, look at the monthly income number, and with any of this, look at the contractual guarantee." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Paul Merriman discuss:
- The seven big things you need to know about investment
- Putting children on a glide path
- Avoiding market-timing
- Investing is simple
Key Takeaways:
- Figure out a way to identify what equity asset classes you should have and figure out how to put them together.
- Everyone needs a glide path, and in theory, it starts when a child is born. Parents and grandparents must immediately take steps to put their children on a glide path - all equities while they’re young and more fixed income as they get older.
- Don’t panic. If you want to be a successful long-term investor, you have to stay the course. Don’t market time; you might be able to avoid losses short-term, but you will pay the price in the long term.
- Investing is simple, but it takes faith in the system. It is easy to set it and forget it if you can keep your hands off the trigger. Winning in investing means thinking defensively, not aggressively.
"You don’t have to be Warren Buffet to get exceptional returns; you just need to be in the types of asset classes that have historically paid the premium - it’s not about the price you pay, it’s about the value you get." — Paul Merriman.
Connect with Paul Merriman:
Website: https://paulmerriman.com/
Podcast: https://paulmerriman.com/podcasts/
Facebook: https://www.facebook.com/PaulAMerriman
Twitter: https://twitter.com/SavvyInvestorPM
YouTube: https://paulmerriman.com/youtube
LinkedIn: https://www.linkedin.com/in/paulmerrimandotcom
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- What does Inverted Annuity Yield Curve mean?
- An opportunity in current events
- Are A++ companies too big to fail?
- Annuities are not bonds
Key Takeaways:
- An Inverted Annuity Yield Curve is when the two-year treasury rate is higher than the ten-year treasury rate. Typically when that happens, that’s a pre-determinant of a possible upcoming recession.
- The big carriers are popping to the top of the MYGA fees. A month ago, A++ carrier MYGA fees were way down the list, 50 or 75 basis points lower than the highest lead for that duration.
- The only scenario in which we will see A++ companies failing is if the world goes into apocalypse-esque or anarchic conditions.
- Annuities are not bonds! The only product comparison between bonds and annuities is in Multi-Year Guaranteed Annuities or MYGAs because they both have a guaranteed coupon.
"Where these A++ companies are being competitive is at the three-year and five-year level - oh my goodness, pound the table, take a look, don’t hesitate!" — Stan the Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Peggy Nicholson discuss:
- Lying in a shallow grave
- How to live like you’re dying
- Letting money complicate your life
- Stop waiting for yourself to be ready
Key Takeaways:
- Envision yourself lying in a shadow grave and reflect. Think about your legacy and the people you’ll leave behind. What are some things that came to your mind?
- Live life today like you’re dying tomorrow. That doesn’t mean doing crazy things with your money, but doing some things that take you out of that comfort zone.
- Money doesn’t solve anything and makes things complicated if you let it. Don’t let money complicate your life.
- Stop waiting for yourself to be ready. You’ve waited all your life. You have this moment; take it.
"We have this moment, we have memories in the past, we can think about the future, but we can only live right now, in this moment…" — Peggy Nicholson.
Connect with Peggy Nicholson:
LinkedIn: https://www.linkedin.com/in/margaret-m-nicholson-2b893455/
Book: https://www.amazon.com/gp/product/173263890X/ref=dbs_a_def_rwt_hsch_vapi_taft_p1_i0
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- The CBDC initiative
- The taxing of cryptocurrency
- Cryptocurrency is not going away
- How blockchain can affect annuities in the future
Key Takeaways:
- Putin using cryptocurrency to thwart US banking has led the administration to be aggressive with going in the direction of digital currency.
- Since the government is taking a huge interest in blockchain due to current events, there might be a possibility that the government will tax cryptocurrency in the future.
- Cryptocurrency may not have any intrinsic value, but it’s not going away. It’s just a matter of time before governments go in the direction of blockchain.
- There is hope for blockchain, and that is if the technology is used for pooling money, risk, and offering contractual guarantees.
"In the future, I think blockchain and this Central Bank Digital Currency strategy by governments are going to open it up and the products that will be coming up, I can’t say what they’ll be, but they’ll be pro-consumer because they’ll be transparent. " — Stan the Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Charles Rotblut discuss:
- Creating your own financial plan
- Finding your real risk tolerance
- History repeats itself
- Crypto is purely speculative
Key Takeaways:
- Prioritize your goals, recognize your risk tolerance, and identify your investment management preferences. Don’t be distracted by shiny objects, and remember that everything you do with your money is a trade-off.
- You might feel like your tolerance of risk is high, but it’s worth looking back at the past at how you reacted to certain situations - if you had freaked out or stayed steady - these instances will show you what your risk tolerance really is.
- History repeats itself in some form or another, that’s why you have to stay steady in the midst of unpredictable times. Focus on your goals and think of the long-term.
- Blockchain technology has a lot of potential for future applications, but right now, cryptocurrency - which is based on it, is purely speculative technology. It has value because people are assigning value to it.
"Prioritize your goals… write down your goals, your odds of achieving them go up by 40%." — Charles Rotblut
Connect with Charles Rotblut:
Website: https://www.aaii.com/
LinkedIn: https://www.linkedin.com/in/charles-rotblut-cfa-985b66/
Twitter: https://twitter.com/CharlesRAAII
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- Annuities are customizable
- An example of life with cash refund
- What does it mean to get a joint-life policy
- Options and choices when getting an annuity
Key Takeaways:
- A life-only contract means that the annuity company is on the hook to pay as long as you’re breathing, but the money goes away when you die.
- Life with cash refund means that you get paid while you’re alive, with some money going to your beneficiary when you die.
- A joint life policy means that you and your spouse will receive payments. When you die, their income continues uninterrupted and unchanged.
- There’s not just one annuity, there are many kinds, and there are also a lot of options when customizing your contract.
"I want you to understand what you’re buying and how it works ‘cause remember, an annuity is a contract" — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Andy Panko discuss: * How advisors should construct their fees * The complexity of decumulation * Making the plan as good as it can be * Cryptocurrency is a lottery ticket
Key Takeaways: * The work isn’t linear to the asset size; advisors shouldn’t make more money just because assets go up. In the same way, advisors shouldn’t be paid less just because the markets go down. They’re still doing the same amount of work and providing the same services. * Investment management, even good investment management, has become increasingly cheap, easy, commoditized to do and do well. Decumulation is much more complex. * Try to make the plan as good as it can be initially, accounting for unpredictable events. So try to structure your plan as best as possible to account for times of distress. Get all things working cohesively - it’s not just investments, insurance, real estate - it’s everything, including guaranteed lifetime income. * Cryptocurrency has zero intrinsic value. Its value is 100% on simple auction market pricing; it’s only worth as much as what someone is willing to pay for it. You can invest a small portion into it, but only if you’re comfortable that the value could go to zero. Treat it like a lottery ticket.
"Most people can do accumulation well; it’s the decumulation where things get a little more tactical and complicated…" — Andy Panko.
Connect with Andy Panko:
Website: https://tenonfinancial.com/
Facebook: https://www.facebook.com/tenonfinancial
YouTube: https://www.youtube.com/retirementplanningdemystified
LinkedIn: https://www.linkedin.com/in/andypanko/
Twitter: https://twitter.com/tenonfinancial
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discussed:
- What are Black Swan Events?
- How current events affect everything
- Making a decision solely for your life
- Considering guarantees always
Key Takeaways:
- When something strange happens, something you’re not prepared for, something you’re not used to seeing, or an event that’s entirely unique, then it’s a black swan.
- In just 90 days, we’ve seen interest rates move up and then down because of Russia's invasion of Ukraine. This event affects everything.
- Forget the black swan event. Making decisions around annuities should always be based on your situation, about what you’re trying to do right now.
- Own an annuity not for what it might do but for what it will do. It should always come down to the contractual guarantees.
" Fear and greed always sell, but please don’t allow that to happen to you. Black swan events do happen - it seems that they happen a lot. You cannot put your retirement plans on hold for a black swan event." — Stan Haithcock.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Michael Finke discuss:
- Delaying your decision to claim
- Insulating your income from volatility
- Inflation is personal
- Consequences of not annuitizing
Key Takeaways:
- If you have a good reason to expect that you’re not going to live as long as an average American, then it makes sense to claim early. Unless, you have a spouse who can continue to receive your benefit.
- Anybody who’s using stocks to compare the present value of future guaranteed income is insane. Insulate a portion of your income stock-market volatility, that’s just the right thing to do both mathematically and psychologically.
- Inflation is personal. It affects each person differently. When you’re planning for retirement, pay attention to what percentage of your expenses are subject to increases in inflation and what are “stable nominal expenses”.
- Stocks will be more volatile, and bonds less volatile. Either way, there is a lot of probability and risks involved.
"Essentially what you're doing when you’re delaying social security is that you are buying more of a government-provided, inflation-protected, annuity." — Micheal Finke
Connect With Micheal Finke:
Website: http://www.michaelfinke.com/
LinkedIn: https://www.linkedin.com/in/michael-finke-8134808/
Facebook: https://www.facebook.com/mfinke
Twitter: https://twitter.com/FinkeonFinance
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Terry Savage discuss:
- Responding to the IRS return delays
- Managing your beneficiaries
- The opposite of tempting fate
- Setting an example
Key Takeaways:
- Don’t go refiling your returns. Just be patient; your refund from last year will come eventually with 3% interest. Go to IRS.GOV and look for "sign in to my account," even if you don't have one yet. Scroll down until you see "create an account" and take it from there.
- Take time to manage the beneficiaries of your IRA, insurance policy, and other funds. Make sure that your money goes to whoever you want it to go to when you die.
- Imagine that you get hit by the proverbial bus, think about all the things you wanted people to know or take care of. Who would take care of your dogs? Does anyone else have a key to your house? Where do you store your important passwords?
- Create your will and your revocable living trust. Think about all the what-ifs while you still can. Set an example for your family so that they’ll be encouraged to practice being responsible with their affairs and finances.
"Consider the what-ifs… think about the possibilities. If you leave this stuff unplanned, you’re really tempting fate." — Terry Savage.
Connect with Terry Savage:
Website: https://www.terrysavage.com/
YouTube: https://www.youtube.com/user/TerryTalksMoney
LinkedIn: https://www.linkedin.com/in/thesavagetruth/
Twitter: https://twitter.com/Terrytalksmoney
Facebook: https://www.facebook.com/The-Savage-Truth-190870517609983/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Bill Black discuss:
- The predictability of death
- Long-term care rider
- Beating life insurance with investing
- Being wary of “tax-free income”
Key Takeaways:
- Death is predictably imminent. We’ll never know when we’ll pass or if we’ll be needing long-term care somewhere along with our life. That’s why it’s best to get a life insurance policy with a long-term care benefit rider.
- Getting standalone long-term care is not as good as getting it as a rider for an insurance policy. As a rider, the 1%, 2%, or 3% benefit can be turned on or off as needed, which means you’ve got a lot of choice in the matter and that the money won’t disappear in case you don’t get to use it.
- If you want to beat life insurance with investing, you’d need to earn 10% of your money every year for the next 30 years. If you can do that, you should be running a hedge fund.
- When looking at high cash value policies, don’t fall for “tax-free income”; it’s actually a loan.
"There are no silver bullets - there’s nothing out there that’s always the right answer, or never the right answer." — Bill Black.
Connect with Bill Black:
Website: http://www.whbco.com/
LinkedIn: https://www.linkedin.com/in/whblack/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Allan Roth discuss: * Minimizing expenses and emotions * Social security is the best annuity * Monte Carlo simulation method * Some simple investing principles everyone should know
Key Takeaways:
- Minimize expenses and emotions to maximize results. You need discipline and emotional fortitude to stay the course and not panic.
- Social security is the single best, inflation-protected, government-backed annuity on the planet.
- Garbage in, garbage out. Similarly, if you go into something with realistic assumptions, you’ll get real answers with no-nonsense.
- The more you pay in fees, the lower your returns will be. Don’t put all your eggs in one basket. Know the odds of a game before you play. Don’t lend your money to someone who can’t pay you back.
"In 8 words, investing is ‘minimizing expenses and emotions, maximizing diversification and discipline.’" — Allan Roth
Connect with Allan Roth :
Website: https://daretobedull.com
Twitter: https://twitter.com/Dull_Investing
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Owen Schrum discuss: * Correction and volatility in 2022 * Blockchain and cryptocurrency * What’s causing supply chain problems? * The most critical time for investing
Key Takeaways: * We will see a big increase in volatility this year and at least two corrections in 2022. Corrections are when the market goes down 10% or more and then corrects itself. * Blockchain technology is legit, but cryptocurrency is a risk-asset class; it has no stored value. It’s a way for people to trade something. * Outsourcing products overseas is dangerous. A disruption in their area could cause huge supply chain problems. * The most critical time investing is the three to four years before you retire and the three to four years after you retire. You can’t take a chance on luck when you retire.
"We’re going back to an era where diversification is king. You need to have different asset classes, different sectors, different size stocks. You need to be diversified." — Owen Schrum.
Connect with Owen Schrum:
Website: https://www.schrumpw.com/
LinkedIn: https://www.linkedin.com/in/owen-schrum-24319417/
Twitter: https://twitter.com/SchrumOwen
YouTube: https://www.youtube.com/channel/UCbT6r4ywyZ98UsbrHm_m_zg
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Gary Baker discuss:
- The bowling analogy
- Four different types of protection
- Contracts that serve the consumer’s need
- Comparing annuity programs
Key Takeaways:
- Getting a new index annuity is like going bowling and asking to put bumpers on both sides so you wouldn’t get a gutter bowl. There are literally zero downsides.
- You can get four different types of protection from an annuity contract. Protection against uncle sam, protection of your principle, death benefit, and income benefit.
- Consumers deserve to get the contractual guarantees rather than the contract that financial advisors think they want. Advisors have the responsibility to mold it according to the client’s needs.
- Comparison of annuity programs isn’t that useful of a discussion since they are all different and serve different needs. It’s much better to figure out the need first then configure the contract accordingly.
"Depending upon what gaps you’re filling in a broader financial plan, you can take one of these contracts and configure it so that it fits within that plan as opposed to the other way around" — Gary Baker.
Connect with Gary Baker:
Website: https://www.cannex.com
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Jeff Miller discuss:
- Benefitting from an expert’s guidance
- Inflation and increases in rates
- Correcting the social security issue
- Deciding when to retire and when to claim social security
Key Takeaways:
- Consult with experts in social security to get as much valuable information as you need and generate the most optimal strategy that’s tailor-made for you.
- Inflation will affect each one differently, but it will affect everybody somehow - especially in general needs, such as an increase in food prices.
- It’s easy for politicians to paint all rich people as evil, forgetting that most people with a lot of money scrimped, saved, and worked their whole lives for it.
- Retirement is not relevant to when to claim your social security. What’s relevant is if your benefits will go up if you delay a year or how does it match your life expectancy.
"They link the two - retirement and claiming as if they’re the same thing. If you got our reports, you will see when the optimal time is to claim - and we don’t ask you when you’re gonna retire… If you’re gonna do an optimization of this - that’s not directly relevant to the issue." — Jeff Miller.
Connect with Jeff Miller:
Website: www.socialsecuritychoices.com
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and John Lenz discuss: * What does laddering mean? * Lowering risk until it’s nonexistent * Hybridization of annuities * Annuity industry standards
Key Takeaways:
- Laddering is when you commit to pushing out your money when it becomes liquid into the long end of your ladder and recycling fixed income or annuities to keep your ladder in good form.
- If you look at a two-year period or three-year period, you’ll see that the chance of you losing money in a long period of time goes down until it’s nonexistent.
- Hybridization brings in the best features of a fixed annuity and the features of a variable annuity - which gives upside growth and brings them together into the index annuity.
- Regulators look at index annuities closely; there’s lots of disclosure and lots of innovation. The range of expectations is broadening.
"The longer that you measure the equity markets, the higher probability that you’re gonna have a predictably higher rate of return… " — John Lenz.
Connect with John Lenz:
Website: https://www.lenzfinancial.com
Email: john@lenzfinancial.com
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Ellie Saul discuss:
- The difference between medicare and medicaid
- Selling and educating
- Being on guard for misinformation
- Getting the most out of your medicare
Key Takeaways:
- Medicare is health care for people who are 65 or older, or someone who had a permanent disability for 24 consecutive months or has a specific diagnosis that makes them eligible for healthcare. Medicaid, on the other hand, is financial aid for lower-income.
- People today are not getting the most benefits out of their medicare because many salespeople are more passionate about selling than educating.
- Be wary of misinformation, do not surrender the rights you are entitled to, lose out on the benefits of your Medicare program that you worked for your entire life, and don’t get swindled out of contractual guarantees by people who offer supplemental benefits.
- The last thing you want to do is buy a Medicare plan because of its brand, because you’ve heard from someone else, or because you’ve seen it on TV. Consult with a trustworthy expert, or at the least, spend a lot of time doing research.
"Original medicare has everything that we’ve ever dreamed of health insurance having, that we’ve never had - it’s completely transparent and has accountability on every side." — Ellie Saul.
Connect with Ellie Saul:
Website: https://www.mamabearmedicare.com/
Instagram: https://www.instagram.com/mamabearmedicare/
Facebook: https://www.facebook.com/MamaBearMedicare
YouTube: https://www.youtube.com/channel/UCWCg5pmr76wwEYSMRQUXblQ
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man discusses:
- How the application process has changed with changing and evolving technologies.
- Putting your trust and money with the carrier (and choosing your carrier wisely).
- Time frames on buying an annuity.
- Frustrations in the application and annuity process.
- The future of direct to consumer annuities.
Key Takeaways:
- All of your information is kept secure and is only seen by the people who need to see it.
- Utilizing Zoom for a video call makes everything secure and easier for everyone involved in the annuity application process.
- With qualified funds, it must transfer from company to company with the correct forms.
- Insurance companies are trying to make it easier, but they tend to be slower about it. The process may take a bit longer than you think it is going to take.
"The comment I get quite a bit is, ‘Wow, that was way easier than I thought it was going to be!’ When doing an application, there are a lot of pages to do, but you don't have to do them yourself. We're doing the pages. We're just asking you questions and you're answering them." — Leah Brandt
Connect with Leah Brandt:
Website: https://theannuityman.com
LinkedIn: https://www.linkedin.com/in/leah-brandt-b383077/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Michael Finke discuss:
- Two choices in retirement
- The worst case scenario in retirement
- Thrift is good until it isn’t
- Difference between annuities and investments
Key Takeaways:
- There’s only two things you can do with your money in retirement - spend the money and live better or pass it on. Focus on what a product will do, more than what it might do. You need a steady income guarantee at the minimum in order to enjoy your retirement.
- The scenario you want to avoid is, for example, you live until 85 or 90 and you won’t have any money to spend to continue living. Without an annuity, you’ll be forced to cut your savings and investments into small little pieces for it to last.
- People don’t feel comfortable spending money, so the tendency is that they don’t live as well as they should have while they could. We’ve been conditioned to believe thrift is good and it is, but accumulating without enjoying it would be a waste of life.
- Annuities and investments are two very different things and serve two very different purposes. Never get them confused. The goal with investment is growth, while annuities provide a steady income stream and risk-transfer.
"The best way to approach it is, what are you gonna use the money for? Because money is just green paper... why not begin with how you wanna live in retirement and what sort of legacy you want to lead…" — Michael Finke
Connect with Michael Finke:
Website: http://www.michaelfinke.com/
LinkedIn: https://www.linkedin.com/in/michael-finke-8134808/
Facebook: https://www.facebook.com/mfinke
Twitter: https://twitter.com/FinkeonFinance
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Mr. FIA-X discuss:
- Avoiding upfront bonuses
- Prioritizing the interests of the consumer
- Market-like returns
- The worst-case scenario for annuities
Key Takeaways:
- Don’t let yourself be fooled by upfront bonuses and not everybody needs an income rider. Be reminded that the purpose of annuities is to transfer your risk.
- If you hear the sales pitch that you’ll get ‘market-like returns’, take your money and run. They don’t know what they’re talking about.
- Index annuities are not an investment, they're transfer risk, principle protection products because the worst-case scenario is that you don’t lose any money.
“Don’t ever-ever-ever confuse features on an annuity with benefits. Never” — Mr. FIA-X
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and David Blanchett discuss:
- People’s irrational preference
- A gap between perceived and actual ability
- Is cryptocurrency going to last?
- Investing when there are low yields
Key Takeaways:
- In theory, people should be indifferent between spending down your portfolio and living off of it - but investors aren’t always rational, they have a strong preference towards not depleting their portfolio, they want to live off of the income.
- As you age, your probability of making a poor decision increases. At the same time, the gap increases between your perceived ability to make good decisions and your actual abilities.
- Blockchain technology is real, it has some potential public use but the value of cryptocurrency is effectively speculative and most investors are young people who have never seen market downturns.
- Don't focus on the fact that it could drop in value, focus on how it does in creating sustainable income.
"The best thing you can do is to make 'easy buttons' and a way to enjoy retirement where you're not stressed out all the time when the market goes down." — David Blanchett
Connect with David Blanchett:
Website: https://www.davidmblanchett.com/
LinkedIn: https://www.linkedin.com/in/david-blanchett-b0b0aa2/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Jason Fichtner discuss:
- Preparing for depletion
- Preaching to a hurricane
- Maximizing returns and minimizing risks
- The real danger zone
Key Takeaways:
- There’s going to be depletion in combined trust funds in 2024. In response to this, you can delay claiming your social security until you absolutely need it, you can also save a little more - do anything to minimize the risk.
- People want a personal pension and a guaranteed paycheck for life, but they don’t want an annuity. That’s absurd, because that’s exactly what an annuity is and people have it already in the form of social security, because it’s such a good thing, they would want to have another one.
- We’ve trained people to be good investors, in that they must always ask how they can maximize returns. But there is no ROI in retirement, not until you die, so we need to keep talking about how minimizing the risks with annuities is the best way to go.
- The danger zone is complacency. We need to keep reframing and educating people on the truth about retirement and finances. People right now are not too crazy for annuities, and that’s not a good thing - because that means that it’s not being represented factually.
"In retirement we're not trying to maximize returns, we're trying to minimize risks - ensure that I have enough income to last for the rest of my life." — Jason Fichtner
The Peak 65 Generation: Creating A New
Retirement Security Framework: https://drive.google.com/file/d/128-Azi2dpeWXYafgPGAQ1Pi5f8S_ThVA/view?usp=sharing
Connect with Jason Fichtner:
Website: https://sites.google.com/site/jasonjfichtner/ | https://bipartisanpolicy.org/
Email: jfichtner@bipartisanpolicy.org
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Steve Parrish discuss:
- People don’t understand annuities
- Preparing for diminished capacity
- Life expectancy is good and getting better
- Managing your retirement plan
Key Takeaways:
- Annuities are not an investment, it’s a form of insurance that makes investments even better.
- Address problems in advance while you still can. Think about how your bills will be paid, how your money will be invested and how it can be protected from being abused by others when the time comes that your capacity is diminished.
- Plan to live past the life expectancy age - especially these days where technology was forced to advance to cope with the pandemic.
- Retirement is not just an event, it’s a change in life. Think of the behavioral and emotional aspects of it, not just the money. But when it comes to money, keep these three things in mind: your social security, medicare, and your benefit pension plan.
"Guess who the last person would be that knows that you have diminished capacity - you" — Steve Parrish
Connect with Steve Parrish:
Blog posts: https://www.forbes.com/sites/steveparrish/?sh=61590d633079
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Bob Carlson discuss:
- Current taxation and retirement climate
- Changes in Roth IRA rules
- Strategies you can use to get around IRA changes
- Donor-advised funds and some investment strategies
Key Takeaways:
- A lot of proposals are being thrown around, but the votes even out enough to not allow anything to be done yet. There are proposals that completely upend some tax or retirement strategies.
- Roth IRA holders are a minority in the eyes of the congress, so it’s easy for them to either make actions that make them mad or paint them as “the evil rich”.
- If you or your heirs take the money from your IRA, that’s taxable as ordinary income. Consider how taxes in the future can be very different from ours now. What you can do instead is take the money out of your IRA today, pay the taxes, use the after-tax amount to buy a permanent life insurance policy.
- A lot of people favor and back charitable giving because it helps and the tax deduction from it will not be taken away since some from charitable industries argue that some of the things they do are helping the government do its job at helping citizens.
“I still suspect that they’re gonna come together and get some kind of tax increases in, it’s just not clear at all which ones… but the good news is that big proposals - most of them are off the table. The question now is which of the lesser proposals are gonna get through? Is it gonna be restricted to just the very wealthy or is it gonna trickle down..." — Bob Carlson
Connect with Bob Carlson:
Website: https://www.retirementwatch.com/
Facebook: https://www.facebook.com/RWcommunity
Twitter: https://twitter.com/RetirementWatch
Most Recent Book: https://www.amazon.com/Wheres-My-Money-Secrets-Security-ebook/dp/B0853F3R7R
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Leah Brandt discuss:
- Seeing things from the client’s perspective
- When annuities are bought
- Making annuities easier to understand
- Never doing things in moderation
Key Takeaways:
- If you want to provide excellent service, always ask yourself what you would want if you were the client or what you would want to know if it was your money. How do you want to be guided, if you were the one going through the annuity-buying process? Put yourself in the client’s shoes, put their interests ahead of yours.
- You don’t have to pitch annuities to clients if you are able to educate, inform, give examples, answer enough questions and if you treat people like they are professionals.
- Practice the skill of being able to talk about your product in a way where it can be understood easily, because if it can be understood easily, then there’d be one less barrier towards purchase.
- You’ve already heard people talk about not being half-hearted when it comes to serving others, but that’s kind of a half-hearted statement compared to this: when it comes to service of others, adapt the mindset of never doing things in moderation.
"Annuities… don’t have to be sold, [they] can be bought. If you give enough education… answer enough questions… you don’t have to try and be pitching anything." — Leah Brandt
Connect with Leah Brandt:
Website: https://theanuityman.com
LinkedIn: https://www.linkedin.com/in/leah-brandt-b383077/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Jack Lenenberg discuss:
- The truth about long-term care
- Transferring annuity to annuity with an IRS 1035 exchange
- Traditional versus annuity with long-term care
- The full customizability of long-term care
Key Takeaways:
- Long-term care plans are flexible, benefits are guaranteed and you can set up the plan so that if you don’t use the money, it returns to the estate.
- An IRS 1035 exchange says you can take a non-IRA annuity using non-qualified assets and transfer them tax free into another annuity.
- Traditional policies involve a thorough process and investigation while long-term care annuity policies are the easiest - you can get approval in a day and it takes about 45 minutes. Annuity policies multiply the money we deposit, they will triple your money and provide you long-term care benefits.
- Long-term plan is fully customizable from the standpoint of amount of money, inflation, and length of time.
"Everyone is living longer today and the cost of care is increasing tremendously with inflation. So it’s important to plan for it. " — Jack Lenenberg
Connect with Jack Lenenberg:
Website: www.LTCPartner.com
LinkedIn: www.linkedin.com/in/jacklenenberg
Twitter: www.twitter.com/LTCPartner
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Terry Savage discuss:
- Is inflation going to be transitory?
- Getting ready for a collapse
- The Great Resignation
- Technology’s effect on markets
Key Takeaways:
- We have a lot of components of permanent inflation being injected into the economy along with the shortages of goods.
- No one knows for sure that a collapse is coming - everyone can be a little right and a little wrong. But it’s better to be ready and disciplined than to be very wrong at the very worst time, losing all your ability to adjust to the change.
- We not only helped people who are needy but we incented them to not go back to work. COVID is still out there and people are now more afraid to go back to work.
- Technology has allowed the economy to be less volatile, improved the market’s liquidity and allowed better raising of capital.
- Decide who you are. Know yourself and understand the place in history where you’re at right now and recognize the risks, the upsides and the downsides.
"Good judgement comes from experience and experience comes from bad judgement." — Terry Savage
Connect with Terry Savage:
Website: https://www.terrysavage.com/
LinkedIn: https://www.linkedin.com/in/thesavagetruth/
Twitter: https://twitter.com/Terrytalksmoney
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Tom Hegna discuss:
- Mortality credits: the secret sauce of annuities
- Trends in life expectancy
- Predicting the economy and preparing for market downs
- Making healthy choices for a happy retirement
Key Takeaways:
- The mortality credits are probably the highest that we’re going to see for the rest of our lives, there’s no better time to get annuities than right now.
- In the previous pandemic, we saw a rise in life expectancy after the end of it as it forced technology and medicine to progress to help people survive - so it might very well be how this current pandemic will shape the future. In the same vein, life expectancy is longer for people with annuities.
- Hope for the best, plan for the worst and have a happy retirement! Get multiple annuities, expose only a minimum amount of your portfolio to crypto - be careful of companies that use crypto as a “carrot on a stick”
- Watching what you eat and doing simple exercises daily can do a lot to improve your health and enrich your life in the long run. When you’re at your retirement age, you’re gonna want to still be able to carry yourself to do whatever it is that could make the rest of your life happy. Having a lot of wealth, without a lot of health doesn’t do anyone any good.
"The evidence is overwhelming that the people with annuities live longer. Because they have less stress, they worry less, they’re being paid to live so many of them live differently - they watch what they eat, they exercise, they call the doctor. All these little things cause them to tend to live longer. " — Tom Hegna
Check out Tom’s Books here: https://tomhegna.com/shop
Connect with Tom Hegna:
Website: https://tomhegna.com/
LinkedIn: https://www.linkedin.com/in/tomhegna
Facebook: https://www.facebook.com/TomHegnaSpeaks/
Twitter: https://twitter.com/tomhegnaspeaks
Pinterest: https://www.pinterest.ph/retirehappynow/
Youtube: https://www.youtube.com/c/tomhegna
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Jamie Hopkins discuss:
- ROS - Return on Sleep
- From an accumulation to a decumulation mindset
- Living your retirement meaningfully
- Changing your relationship with money
Key Takeaways:
- People often don’t care about optimal, people care about being happy. Giving people a good retirement experience, a Return On Sleep, is better than giving optimal results.
- Point your focus towards what you’re planning to work towards or what you want to acquire - accumulating money isn’t going to do you any good if you don’t convert it into anything that will make your retirement a joyful experience.
- If you go into retirement and end up not having any passion for anything or not having anything you care about, you’re not gonna have a great retirement - whatever it might be, find that piece that will make your retirement meaningful for you. That’s true wealth.
- Think about rewiring your preconceptions around money and wealth - it takes more than planning, it takes coaching and being aware of the misconceptions that you hold.
"Would you give up all your money if it means that you’ll be happy for the rest of your life? Most people would say yes - that’s what we’re aiming for. Dollars are a means to an end." — Jamie Hopkins
Connect with Jamie Hopkins:
Website: https://www.jamiehopkins.com/
LinkedIn: https://www.linkedin.com/in/jamie-hopkins-esq-llm-cfp%C2%AE-chfc%C2%AE-clu%C2%AE-ricp%C2%AE-022a502a/
Twitter: https://twitter.com/RetirementRisks
Book: https://www.jamiehopkins.com/book/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Loren Feldman discuss:
- Entrepreneurs and retirement
- Investing for business owners
- Passion and confidence on business
- Measuring your risk
Key Takeaways:
- Plan for the next chapter. Retirement brings about many opportunities that would otherwise be difficult or impossible.
- Many entrepreneurs love taking risks but being smart about your money means making informed decisions that take into consideration risk-transfer and investment.
- Passion is essential but not sufficient when getting a business to take off.
- You don't want to go straight from chapter 2 to chapter 11 - take time to plan out the venture you’re about to start and measure the risks you're about to take.
“You wanna listen but then do what you’re about to do. Listen to everybody who’s opinion you respect - when I say listen, I don’t mean follow their advice." — Loren Feldman
Connect with Loren Feldman:
Website: https://21hats.com/
LinkedIn: https://www.linkedin.com/in/feldmanloren/
Twitter: https://twitter.com/lfeldman
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Wade Pfau discuss:
- Success in retirement
- RISA - Retirement Income Style Awareness
- Funding long-term care
- Reverse mortgages and risk pooling
Key Takeaways:
- Retirement doesn't only mean stopping work, it's about being able to do what you want.
- Three retirement strategies: Total return investment strategy, time segmentation or bucketing, or annuity and social security.
- These are the factors that determine which retirement strategy or style will work for you: probability based or safety first; and optionality versus commitment.
- There is no ROI until you die, up until that point it’s a transfer of risk.
- Retire to something, don’t retire from something.
"Retirement… doesn't have to mean just not working, it's about having financial independence to do what you want and be who you wanna be… it's about finding your passion and purpose. " — Wade Pfau
Connect with Wade Pfau:
Website: www.retirementresearcher.com | http://wpfau.blogspot.com/
LinkedIn: https://www.linkedin.com/in/wpfau/
Twitter: https://twitter.com/WadePfau
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Dan Prescher discuss:
- Planning for travelling internationally
- Travelling internationally as a lifestyle change
- Minimalism and happiness
- Joining communities abroad
Key Takeaways:
- Research is the key, start by ruthlessly profiling yourself and ask yourself what you can do without and what you can’t do without.
- If you plan to live abroad, you gotta do it from the heart, it has to be a lifestyle choice. Otherwise you’d just be an economic refugee.
- Once you keep things compact and minimal, you can start focusing on what really matters. Happiness is in the people you know and the things you do, not in what you have.
- Community comes with the package, it cannot be avoided.
"If you could move tomorrow to a place where it costs you half as much to live, you’ve doubled the value of your resources" — Dan Prescher
Connect with Dan Prescher:
Website: https://internationalliving.com/
LinkedIn: https://www.linkedin.com/in/dan-prescher-35ba4b8b
Books: https://www.amazon.com/Dan-Prescher/e/B00HVI32FO
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Mr. FIA-X discuss:
- Running away from lies and half-truths
- “Guaranteed increasing income” and other misleading statements
- Knowing how much you’ll really earn
- Why people choose annuities
Key Takeaways:
- If anybody tells you that what they’re selling has “no downsides” - run away, don’t listen. Everything they're telling you will probably be a lie.
- How you state things matter, and how you decipher them matters. When selling annuity products, never mislead people.
- The old rule still applies: if it sounds too good to be true, regardless of who’s pitching it, it probably is.
- People choose to go for annuities because they want to transfer risks.
"They're [annuities] gonna give you a better than average chance at a better than average return…" — Mr. FIA-X
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and John Lenz discuss:
- How people reacted to the new payroll tax rule for LTC in Washington state.
- Live, die, quit - find out what that means
- Making mathematical decisions for your retirement
Key Takeaways:
- Live, die, quit. If you live, and you need long term care services, you’ll benefit. If you die, your family will benefit. If you quit, you’ll get your money back or some multiple or percentage of it depending on your plan.
- The benefit from where you’re coming from to where you’re going to - “the going to” has to be better mathematically.
"Can an annuity work in this situation?.. Yes… you can basically establish your own reserve. Instead of paying a tax every year, you can write a check to the insurance company, create a long-term care annuity" — John Lenz
Connect with John Lenz:
Website: https://www.lenzfinancial.com/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Kerry Pechter discuss:
- What is the Bermuda Triangle Strategy?
- How the Bermuda Triangle Strategy will affect you.
- The problem with the annuity industry.
- Prioritizing the consumer over anything.
Key Takeaways:
- The points of the triangle are: a life/annuity company with large in-force, “blocks” of (usually) fixed annuities with guaranteed returns; a Bermuda-based or other offshore reinsurer; and a major buyout firm or money manager.
- The issue is with transparency and the lack of communication between the company and the client that’s affected. The interests are not aligned with the people that hold your money.
- Many members of the annuity industry focus more on the growth story rather than focusing on the customer getting the contractual guarantee.
- The consumers all need to understand what’s happening with their money.
“Don’t let taxes rule your life, it’s more important to have guaranteed income. Buy yourself the guaranteed income that will give you peace of mind." — Kerry Pechter
Kerry’s article about the Bermuda Triangle Strategy: https://retirementincomejournal.com/article/an-insider-describes-the-bermuda-triangle-strategy/
Connect with Kerry Pechter:
Website: http://www.retirementincomejournal.com/
LinkedIn: https://www.linkedin.com/in/kerry-pechter-1b05705
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Chuck Jaffe discuss:
- Some good examples of bad investments
- Issues with cryptocurrency
- Understanding indexed annuities
- Interest rates and inflation
Key Takeaways:
- Some investments are unjustifiable and unnecessary.
- Cryptocurrency isn’t that different from gift checks, except you can actually spend gift checks. Only a handful of stores accept bitcoin payment.
- The problem with indexed annuities is that it’s so difficult to explain.
- A lot of things go into calculating inflation in your own context, like taking into account your spending habits and where you are in life.
"Inflation is a very much personalized thing… you could say that inflation is not bad, but a lot of houses are having trouble with inflation because of their spending patterns and where they are at in life." — Chuck Jaffe
Connect with Chuck Jaffe:
Website: http://moneylifeshow.com/
Podcast: https://moneylifeshow.libsyn.com/
Twitter: https://twitter.com/ChuckJaffe
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Owen Schrum discuss:
- The Retirement Crisis
- The Free Paradigm
- Unteaching things that people thought wrong
- Growth and guarantees - the truth about Structured Investments
Key Takeaways:
- The retirement crisis cannot be solved by Social Security, you have to be the one to save yourself from this crisis with strategy, sound planning and smart investment.
- Don’t be fooled - there is no “free lunch”. If it sounds too good to be true, it most likely is.
- The secret to retiring happy isn’t a secret at all: have a diversified portfolio that fits your risk profile.
- Some people will sell you what they think you want and often all they’re selling is dreams.
"They called it the ‘Crisis in Retirement in America’... 68% of people over 60 are not going to have sufficient money to live on when they retire..." — Owen Schrum
Connect with Owen Schrum:
Website: https://www.schrumpw.com/
LinkedIn: https://www.linkedin.com/in/owen-schrum-24319417/
Twitter: https://twitter.com/SchrumOwen
YouTube: https://www.youtube.com/channel/UCbT6r4ywyZ98UsbrHm_m_zg
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Jeff Miller discuss:
- Life expectancy and income level demographics
- Until what age should you wait?
- Figuring out your life expectancy
- Inflation, where is it going and how will it affect social security
Key Takeaways:
- With any type of lifetime income-stream annuity, it’s all about life expectancy - the older you are, the higher the payment.
- Find what your social security benefits would be at full retirement age.
- People in higher incomes seem to have a longer life expectancy. But a lot of people don’t consider themselves wealthy even if they are, so it still depends.
- The estimation of when the social security trust fund will run out of money keeps getting closer and closer.
"As a general rule... consider your spouse when you make your claiming decision. If you're the higher earning spouse, even if you're in poor health, you may want to delay to make sure that your spouse gets the highest possible benefit after you pass." — Jeff Miller
Connect with Jeff Miller:
Website: http://www.socialsecuritychoices.com/
My Social Security: https://www.ssa.gov/myaccount/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and John Olsen discuss:
- The suitability approach and consumer trust
- How the annuity industry can be better
- Approaching people who hate annuities
- Risk management and risk transfer
Key Takeaways:
- There is a considerable certainty that companies out there are determined to give the right product to their clients.
- If you’re looking for a solution for your client, the agent should be able to show 3-10 companies that could get the client what they want and need.
- Improving your knowledge of annuities as an agent is simple: read the contract. Don’t rely on the marketing material, read the hard words.
- Here’s what you can do with risks: you either assume it, remove it, reduce it, or transfer it. Annuity allows you to transfer risks.
"These are investments to a degree, but most annuities are risk management tools. There are a few things you can do with risks: assume it, remove it, reduce it, or transfer it… Transfer the risk, that’s what annuities do. Fixed annuities are all about guarantees." — John Olsen
Check out John Olsen’s here: https://www.amazon.com/John-L-Olsen/e/B011PP1LBK/
Connect with John Olsen:
Website: http://olsenannuityeducation.com/
LinkedIn: https://www.linkedin.com/in/john-olsen-clu-chfc-aep-ba551217/
Facebook: https://www.facebook.com/john.olsen.165
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and FIA-X discuss:
- Upfront bonuses on annuity and other bonuses to be wary of
- Looking for contractual guarantees in annuity contracts
- Uncapped products and other “modifiers”
- Monthly sum - what they’re actually saying
Key Takeaways:
- Buying an annuity for the upfront bonuses is like buying a car to get the stereo
- Stay smart out there. Companies are never a charity unless they state it, you’re never going to get free money. When someone is selling something for free, or saying they’ll give you money, be wary of that person.
- There’s no way you’ll find an uncapped product with 100% participation rate with no fees, where you put your money in them and just let it run. There is always a catch.
- Think about the downside. In a monthly sum, the downside is unlimited. They make it pretty, but you need to think about the facts.
"Think about a magician… with sleight of hand, they distract you while they’re pulling your watch off. That’s exactly what bonuses are that they wiggle for you to miss the other things" — FIA-X
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Tom Hegna discuss:
- Saying no to DIY retirement
- What the right age for retirement is
- How annuity addresses inflation
- Securing guaranteed lifetime income with annuities
Key Takeaways:
- Retirement is not a DIY project, do it with a professional.
- The age for retirement would not be the same for many. If you want to get the optimal age, you have to spend some time calculating for all the factors that go into it.
- Be creative in doing something that can help your retirement. It’s okay if you have to do a side-hustle or work longer.
- Having a huge income guaranteed allows you to make riskier and therefore more rewarding investments.
- When the account is drawn down to zero, the annuity company is still on the hook to pay.
“They found that the happiest people in retirement were those people who were surrounded by their families and friends, and had guaranteed paychecks every single month." — Tom Hegna
Check out Tom’s Books here: https://tomhegna.com/shop
Connect with Tom Hegna:
Website: https://tomhegna.com/
LinkedIn: https://www.linkedin.com/in/tomhegna
Facebook: https://www.facebook.com/TomHegnaSpeaks/
Twitter: https://twitter.com/tomhegnaspeaks
Pinterest: https://www.pinterest.ph/retirehappynow/
Youtube: https://www.youtube.com/c/tomhegna
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Bradley Birkenfeld discuss:
- Corruption in the government and our justice system
- The problem with bank secrecy and facts about the relationship between our government and bankers
- Getting incarcerated for doing the right thing
- Tax evasion in wealthy groups and how corruption happens in places
- The future of cryptocurrency and bankers
Key Takeaways:
- If you’re not part of the solution, you’re part of the problem - you’re either one of those.
- The system is so ingrained with corruption that it has already become impossible to change anything.
- Don’t stand for corruption when you see it - although it might get you burned even if you’re doing the right thing.
- The empowerment of the individual through cryptocurrency might not last as governments and bankers will find a way to get in the game and devalue the current ones.
"The system that we base ourselves on, what we believe in, is rotten to the core. I say that candidly and I can give facts to that. Support whistleblowers, don’t believe everything the government tells you and we need more transparency in our lives." — Bradley Birkenfeld
Connect with Bradley Birkenfeld:
Website: https://lucifersbanker.com/
Facebook: https://www.facebook.com/lucifersbanker
Instagram: https://www.instagram.com/lucifers.banker/
LinkedIn: https://www.linkedin.com/in/bradley-c-birkenfeld-13a6a77/
Twitter: https://twitter.com/lucifers_banker
Book: Lucifer’s Banker: https://lucifersbanker.com/books/lucifers-banker/overview/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Dana Anspach discuss:
- Juicing your retirement money
- How can you know if you’re “retirement-ready”
- What are some things you have to consider when setting up your retirement plan
- The four percent rule
Key Takeaways:
- Don’t underestimate what more you can juice from your retirement plan. You might very well end up with hundreds of thousands of dollars by the end of it.
- You need to know what the risk factors are in the decumulation phase.
- Calculating the bigger picture of your retirement will help you make decisions that increase your probability of success and have peace of mind in the future.
- Reality is that you can’t spend just a solid percentage in your retirement fund, there are circumstances that would have to be accounted for - like needing to buy a car, or having a health issue in the family.
"People are so focused on accumulating assets, which is relatively easy compared to the math you have to solve when you start drawing money out.” — Dana Anspach
Connect with Dana Anspach:
Website: https://controlyourretirementdestiny.com/ | https://www.sensiblemoney.com/
Facebook: https://www.facebook.com/SensibleMoneyUS
LinkedIn: https://www.linkedin.com/in/danaanspach
Twitter: https://twitter.com/SensibleMoneyUS | https://twitter.com/moneyover55
Books: https://www.amazon.com/Dana-Anspach/e/B00GL9WC82%3F
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Bob Powell discuss:
- The new normal of today’s interest rates
- Good tips and strategies for building your retirement fund
- Some insights on Cryptocurrency
- Special Purpose Acquisition Companies and
Key Takeaways:
- Use the "bucket strategy" for a low but somewhat stable yield even in unstable times
- Be very careful on deals and contracts that are "too good to be true" (but contractually are not).
- Cryptocurrency might be an interesting inflation hedge but it has never experienced an inflationary period.
- Risky assets don’t cover longevity given the market volatility but there’s a guarantee that the annuity will pay you regardless of what’s going on in the market.
"You should invest your time before you invest your money. I think that’s true as it was back when we started the business as it is today." — Bob Powell
Connect with Bob Powell:
Website: https://www.thestreet.com/retirement-daily/
Podcast:
LinkedIn: https://www.linkedin.com/in/powellrobert
Twitter:
Book:
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Christine Benz discuss:
- Why Christine is so passionate about financial education and retirement portfolio planning.
- Why decumulation is not bad (and when it is a good thing).
- Retirement blindspots to be aware of.
- Staying mindful of additional, variable costs in your spending plan.
- Bucket approach investing and portfolios.
Key Takeaways:
- Your portfolio doesn't know whether your withdrawals are coming from income or from selling appreciated securities, what matters is that you are not taking out too much.
- People tend to overestimate our ability and desire to continue working and, often, retire earlier than they originally expected to.
- There is power in diversification in your income portfolios.
- The products under the annuity umbrella are incredibly varied. The type of annuity that is best for you depends on what your needs.
"If you're looking for something that will zig when your stocks zag, you probably want to ensure that your portfolio includes that cash and treasury bonds." — Christine Benz
Connect with Christine Benz:
Website: https://www.morningstar.com/
Podcast: https://www.morningstar.com/podcasts/the-long-view
LinkedIn: https://www.linkedin.com/in/christine-benz-b83b523/
Twitter: https://twitter.com/christine_benz
Book: Morningstar’s 30 Minute Money Solutions: https://www.amazon.com/Morningstars-30-Minute-Money-Solutions-Step/dp/0470918136
Book: Morningstar Guide to Mutual Funds
https://www.amazon.com/Morningstar-Guide-Mutual-Funds-Strategies/dp/0470137533
Christine’s Article Archive: http://www.morningstar.com/articles/author/30-christine-benz.aspx
Reference:
Open Social Security: http://opensocialsecurity.com/
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Dennis Miller discusses:
- What ROMEO is and how it influences Dennis and his writing.
- Why inflation is a personal thing.
- Diversifying for income guarantee and reducing risk.
- Answering the questions Dennis’s readers are asking.
Key Takeaways:
- You must diversify if you are going to survive as a retiree and not rely solely on any one income stream, including Social Security.
- Plan for Social Security, in some form, but when you’re running the numbers it is not a guaranteed number.
- Once you retire, your mindset towards money changes.
- If it sounds too good to be true, you’re better off continuing to do your research.
"I took annuities, CDs, bonds, dividend paying stocks, preferred dividend paying stocks, and I sliced every one of those just to what was really guaranteed. Are they guaranteed to beat inflation? What I'm telling my readers today is, if you're going to survive as a retiree and make your money last, you've got to diversify and combine them." — Dennis Miller
Connect with Dennis Miller:
Website: milleronthemoney.com
FREE Newsletter: milleronthemoney.com/free
Twitter: twitter.com/DMonthemoney
Facebook: facebook.com/milleronthemoney
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
YouTube: Stan The Annuity Man
Get a Quote Today!
In this episode, The Annuity Man discusses:
- How the COVID19 pandemic has affected retirement plans.
- The Retirement Watch newsletter and how it can help you.
- What DC is doing that can affect retirement.
- Inflation and adding inflation hedges to your portfolio.
Key Takeaways:
- While the focus of retirement planning is on the financial side, that is the least important side of your retirement planning. Knowing what you’re going to do in retirement is vital.
- You need to keep up with changes and revise your retirement plan as necessary.
- The social security trust fund got hit on both ends during the 2020 year which could change when the trust fund runs out of money.
- Each year you delay taking social security, it increases 8% tax free.
"Even though social security is probably going to run out of money faster than it would have, that doesn’t mean there isn’t going to be a social security fund or a social security program." — Bob Carlson
Connect with Bob Carlson:
Website: https://www.retirementwatch.com/
Facebook: https://www.facebook.com/RWcommunity
Twitter: https://twitter.com/RetirementWatch
Most Recent Book: https://www.amazon.com/Wheres-My-Money-Secrets-Security-ebook/dp/B0853F3R7R
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and John Lenz discuss:
- Spendthrift planning.
- Customizing the annuity contracts to achieve the specific goals you have in mind.
- Medicaid planning using annuities.
- Nonqualified stretch plans.
Key Takeaways:
- There is nothing magical about the ability to manage money. It can be difficult regardless of the age of the beneficiary.
- Working with an elder care attorney or an estate planning attorney can often help when deciding how to best provide for your beneficiaries.
- There are many different types of annuities that you can choose from. If you work with the correct agent, there is a lot of flexibility for your specific situation.
- Make sure the agent you’re working with understands the business.
"Annuities provide an excellent layer of income protection. And if insurance companies stick to their knitting and remember what they're best at, it'll be a healthy environment for them." — John Lenz
Connect with John Lenz:
Website: https://www.lenzfinancial.com/
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
YouTube: Stan The Annuity Man
Get a Quote Today!
In this episode, The Annuity Man and Bill Black discuss:
- What is happening in the life insurance space (especially during the current pandemic).
- How interest rates affect life insurance policies.
- Benefits of life insurance to the beneficiaries.
- What to watch out for in the sales pitch world of life insurance.
Key Takeaways:
- Oftentimes, term insurance can be changed to permanent insurance without the health checks being redone.
- Life insurance is the best return on investment that you will never see.
- Like with annuities, you buy life insurance for what it will do, not what it might do.
- Rather than letting a life insurance policy lapse when you don’t want to continue it, it can be sold like you would a stock or bond.
"There are no ifs, ands, or buts when you buy the right policy that has the right guarantees on it." — Bill Black
Connect with Bill Black:
Website: http://www.whbco.com/
LinkedIn: https://www.linkedin.com/in/whblack/
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
YouTube: Stan The Annuity Man
Get a Quote Today!
In this episode, The Annuity Man discusses:
- The historical journey of indexed annuities and how they’ve gotten to where they are today.
- The questions to ask your advisor about your indexed annuities.
- The golden rule of annuities - they have the gold, so they make the rules.
- The problems with backtested numbers.
Key Takeaways:
- For anyone to say market upside with no downside or market participation with principal protection is misleading and blatantly false.
- If you get a big bonus with an annuity, you’re paying for it. You’re financing it over time (it’s not being given away by the annuity company).
- You need to understand why you want an indexed annuity before you shop for an indexed annuity.
- All annuity commissions are built into the cost, but they are hidden from the client.
"I think backtested numbers should be illegal. I think the stuff they put in brochures should be illegal. And here's why - because if you're looking at it now, you've already missed it." — Mr. FIA-X
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today - https://www.stantheannuityman.com/annuity-calculator!
In this episode, The Annuity Man and Terry Savage discuss:
- The Money Lady’s opinion on the current markets.
- The creation of money, interest rates, and the US budget deficit.
- How technology has changed investing.
- The coming hot topic of long term care.
Key Takeaways:
- You don’t have to beat the market to be successful, you need to be in the market.
- It is inevitable that rates will go up, and it will likely happen in a snap when it does. Nobody knows when that will happen.
- With the changes in blockchain technology, the game of finances will be changed.
- The annuity industry frowns upon anyone putting more than 50% of their investable assets in annuities.
"A US cryptocurrency is not where I see it going. I think it's more global than that." — Terry Savage
Connect with Terry Savage:
Website: TerrySavage.com
YouTube: youtube.com/user/TerryTalksMoney
LinkedIn: linkedin.com/in/thesavagetruth
Twitter: twitter.com/Terrytalksmoney
Facebook: facebook.com/The-Savage-Truth-190870517609983
Podcast: friendstalkmoney.org
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
YouTube: Stan The Annuity Man
Get a Quote Today!
In this episode, The Annuity Man and Jack Lenenberg discuss:
- The environment, products, and solutions in long term care currently available.
- The 6 daily functions of life and how they affect long term care.
- The best time to look into and apply for long term care.
- The answers to common questions that Jack is asked by customers.
Key Takeaways:
- Your long term care does not need to be permanent. It just needs your doctor to sign off that you need care for at least 90 days.
- There has been a shift to fixed and guaranteed policies to accommodate what people are looking for with their policies.
- Traditional long term care underwriters are leaving the field. Hybrid long term care providers are more prevalent, and are growing.
"The best time to look into long term care is when you are concerned about it and are healthy enough to qualify." — Jack Lenenberg
Connect with Jack Lenenberg:
Website: LTCPartner.com
LinkedIn: linkedin.com/in/jacklenenberg
Twitter: twitter.com/LTCPartner
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
YouTube: Stan The Annuity Man
Get a Quote Today!
In this episode, The Annuity Man and Paul Merriman discuss:
- Making decisions that are in your, individual, best interest.
- Understanding what you’re trying to achieve and what you want to do with your investments in the market.
- Navigating the forks in the savings road.
- Finding your good enough return.
Key Takeaways:
- To be a successful long-term investor, you have to shut out all of the noise.
- There is always a good news list and a bad news list for all market decisions.
- Stay in your lane - investing takes time.
- Every stock has reason to buy, and every stock has reason to sell. If they didn’t, there would be no trade.
"The biggest enemy, and I think every professional believes this, the biggest enemy that we have is what we believe and how we respond to the biases we have. We think that what's happened recently has way more importance than what happened before. " — Paul Merriman
Connect with Paul Merriman:
Website: PaulMerriman.com
Paul’s Books: paulmerriman.com/books
Email: Paul@PaulMerriman.com
LinkedIn: linkedin.com/in/paulmerrimandotcom
Show: paulmerriman.com/podcasts
YouTube: youtube.com/channel/UCPGFNkRJd0YpzUlfQCy6gzg
Twitter: twitter.com/SavvyInvestorPM
Facebook: facebook.com/PaulAMerriman
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
YouTube: Stan The Annuity Man
Get a Quote Today!
In this episode, The Annuity Man and Gary Baker discuss:
- The pricing of lifetime income.
- How mortality tables (life expectancy tables) work and function within annuities and life insurance.
- The future of the annuity industry.
- How Cannex works with carriers and some of the challenges with doing so.
Key Takeaways:
- You buy a life insurance contract in the event that you die too soon, you buy an annuity in the event that you live too long.
- Annuity companies don’t give anything away. If you add things onto your contract (like cost of living adjustments or cash refund options), it will change your payments.
- The annuity contract has been built to provide four basic types of insurance (but not all at once): tax deferral, death benefit, guaranteed income, and growth insurance.
- It helps to have human, eyeball to eyeball, contact with these annuity products to ensure you are getting the best thing for your individual situation.
"If you're looking to take advantage of some of these other unique features, for maybe more complex planning needs, you have to go to the specialist that's going to kind of configure the product for you at the end of the day." — Gary Baker
Connect with Gary Baker:
Website: cannex.com
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
YouTube: Stan The Annuity Man
Get a Quote Today!
In this episode, The Annuity Man discusses:
- Compliance at family offices, hedge funds, and other securities offices.
- Possible hiccups and downturns on the horizon.
- The misinformation around the 4% Rule.
- The research behind Barry’s book, The Pirates of Manhattan.
Key Takeaways:
- Family offices have more assets (money under management) than hedge funds.
- The general public doesn’t know what is going on and most people don’t know that they don’t know what is happening.
- Major banks buy more life insurance and fixed annuities than anybody.
- All things tend to return to the mean. Essentially, people with major pension plans could get the same return just by throwing their money into 10-30 year treasuries.
"Do your own research. If something sounds too good to be true, it generally is." — Barry Dyke
Connect with The Annuity Man:
Website: barryjamesdyke.com
Podcast: barryjamesdyke.com/economicwarrior
Facebook: facebook.com/thepiratesofmanhattan
YouTube: youtube.com/channel/UCMgvWBPowk4xZ-hcfh9-SUw
Book: barryjamesdyke.com/the-pirates-of-manhattan
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
YouTube: Stan The Annuity Man
Get a Quote Today!
In this episode, The Annuity Man discusses:
- What cryptocurrency is and how blockchain works.
- Losing Bitcoin and the future of the cash dollar.
- Looking at cryptocurrency as an investment.
- Normalizing cryptocurrency with direct and indirect regulations.
Key Takeaways:
- It is a speculation tool, an investment, but a very speculative one. That is, an investment in a new technology called Blockchain.
- Blockchain is the internet of things, of assets. Bitcoin is the application running on the blockchain.
- Right now, Bitcoin and other cryptocurrency transactions are essentially untraceable.
- Blockchain is a technology that is not going away.
"I don't believe that [Bitcoin is going to replace currency] until something is done via either government regulation or private regulation, that makes it a more stable, valued digital entity." — Owen Schrum
Connect with Owen Schrum:
Website: schrumpw.com
Twitter: twitter.com/SchrumOwen
LinkedIn: linkedin.com/in/owen-schrum-24319417
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
YouTube: Stan The Annuity Man
Get a Quote Today!
In this episode, The Annuity Man discusses:
- The relationship between annuities and inflation.
- Don’t believe the pitch, understand the contract.
- How you do address inflation with annuities.
- Laddering your annuities with staggered start dates.
Key Takeaways:
- Interest rates do not have to go up, and there are arguments for both inflation and deflation.
- There are no indexed annuities that are adjusted for inflation.
- Any time an annuity pitch sounds too good to be true it is. Every single time.
- Don’t worry about inflation - don’t worry about something you can’t control or quantify.
"There are no annuities that address inflation properly. There is no annuity type that tracks inflation." — Stan The Annuity Man
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
YouTube: Stan The Annuity Man
Get a Quote Today!
In this episode, The Annuity Man discusses:
- The top questions to ask your advisor about annuities.
- Knowing which questions are deal-breakers from the beginning for advising you about annuities.
- The nuances and varieties of annuities.
- The reasons to ask these questions for your best contractual guarantees.
Key Takeaways:
- All lifetime income streams are life expectancy-based, interest rates play a secondary role.
- If your advisor only represents a handful of carriers, they are not qualified to sell annuities. Annuities are a commodity product you quote all carriers for the highest contractual guarantee for your situation.
- Don’t allow your advisor to just say “trust me this is a good one.” You want to know what it is you own, don’t just take someone’s word for it.
"Hold their feet to the fire. This is your money. This is serious. With annuities, once you sign that paperwork and once that policy has been issued, you better know what the heck you own. So don’t just trust or take someone’s word for it." — Stan The Annuity Man
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
YouTube: Stan The Annuity Man
Get a Quote Today!
In this episode, The Annuity Man discusses:
- Why we don’t care about the cash flow percentage that other sites put by their numbers.
- The best immediate annuities...and why they differ for everyone.
- Income floor vs. cash flow.
- Annuities as confidence products.
Key Takeaways:
- Annuity companies have the big buildings for a reason - they are not giving any money away.
- Immediate annuities are the granddaddy of all lifetime income annuities, the granddaddy of all annuities for that matter.
- SPIAs can be used in a non-IRA setting, as well as in IRAs.
- Annuity companies are not smarter than banks, they're just more regulated.
"Income floor is a better word than cash flow. Income floor is the guaranteed amount hitting your bank account every single month, regardless of who's in office, what's happening in the markets, what's happening in the world. It’s going to hit your account. " — Stan The Annuity Man
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
YouTube: Stan The Annuity Man
Get a Quote Today!
In this episode, The Annuity Man discusses:
- What the 4% Rule is and how it affects you.
- Annuities are the only product that can provide a lifetime income stream.
- Figuring out what you need per month to know what your withdrawal strategies need to be.
- Understanding what you’re buying before you sign anything.
Key Takeaways:
- Every person retiring needs to set up their income floor, regardless of everything else that is happening in the world.
- Interest rates play a secondary role.
- Annuities are commodity products. You need to shop around to find the best contractual guarantee for you.
- If you want market growth, you don’t buy an annuity.
"All lifetime income from annuities, all transfer of risk, is a combination of return of principal plus interest." — Stan The Annuity Man
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
YouTube: Stan The Annuity Man
Get a Quote Today!
In this episode, The Annuity Man discusses:
- The different types of annuities and how they can work for you in retirement.
- Understanding your specific goals and needs.
- Customizing your annuity for your individual needs.
- Combining an income floor with your social security.
Key Takeaways:
- Upfront bonuses are just part of the contractual guarantee, not free money.
- Solve for the specific situation, no one annuity will fill every need.
- If an agent is steering you to a one-product solution, you should be hesitant.
- Lifetime income is primarily based on your life expectancy at the time you take the payment. Interest rates play a secondary role.
"The best annuity type for retirement really comes down to your situation. There is no one size fits all." — Stan The Annuity Man
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
YouTube: Stan The Annuity Man
Get a Quote Today!
In this episode, The Annuity Man discusses:
- The original purpose of a variable annuity.
- The mess that has been caused by Transamerica now taking over these Vanguard annuities.
- Being careful about companies offering upfront bonuses on annuities.
- Holding on and not making rash decisions.
Key Takeaways:
- Transamerica is the company that is now servicing all of the annuities that were purchased at Vanguard.
- Annuity companies are more regulated than banks.
- Don’t make rash decisions because you are having a hard time currently getting a hold of your annuity company during a transition period.
- The agents at Transamerica are on your side and want to help just be patient.
"Anytime you transfer from one annuity to another, during the application process, you have to prove, contractually, that it's a better deal for you to go from one to the other." — Stan The Annuity Man
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Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
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In this episode, The Annuity Man discusses:
- How to know if you even need an annuity.
- Shopping all carriers for your specific situation.
- The 5 choices when you have a fixed index annuity with an income rider.
- Test-driving your annuity.
Key Takeaways:
- There is no rush to buy an annuity, only to understand it.
- You will never know the ROI until you die on an annuity. It is a lifetime income stream.
- Income riders are flexible, you can change your mind - you can do a contractual pivot.
"If you defer out, say another three or four years, the income streams going to be higher, why the older you are the higher the payment because it is primarily based on life expectancy, not interest rates, not interest rates, not interest rates, not interest rates, not interest rates. " — Stan The Annuity Man
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Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
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In this episode, The Annuity Man discusses:
- Understanding how a fixed index annuity works, rather than how it is pitched.
- The dangers in backtested numbers (and why they should be illegal in all 50 states).
- Stripping away the complication of the fixed index annuity.
- Shopping around for your annuity and asking for a specimen policy.
Key Takeaways:
- Fixed index annuities can be used as an efficient and cost-effective delivery system for the income rider guarantee.
- The renewal rate is where the game is played with index annuities.
- There are over 700 index options currently available.
- If you want market growth, never buy an annuity.
"Fixed indexed annuities are a good investment if you fully understand how to use them, and fully understand how they are designed, and fully understand the realistic return expectations you should have." — Stan The Annuity Man
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Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
YouTube: Stan The Annuity Man
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In this episode, The Annuity Man discusses:
- What is meant when we talk about annuity rates.
- The three primary lifetime income products in the annuity world.
- Falling in love with the contractual number, no the carrier.
- Understanding what you’re trying to solve for and how rates apply to your specific situation.
Key Takeaways:
- In the annuity world, “rates” does not always mean interest rates. Rates can also mean life expectancy.
- Interest rates play a secondary role - life expectancy drives the train with all lifetime income.
- People have been waiting for rates to go up, but there is no guarantee on rates going up. They could still go down. Nobody knows what is going to happen with the rates.
- Rates can mean a couple of things in the annuity world. If you’re looking for an annuity, you need to know what you’re trying to do with the annuity before you know what rate you are talking about.
"With lifetime income, you can customize the payments to work exactly like you want them to work." — Stan The Annuity Man
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Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
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In this episode, The Annuity Man discusses:
- What an index annuity is.
- Buying the contractual reality, not the dream.
- Why renewal rates are the key to index annuities.
- The importance of understanding what the renewal rates are and why they matter.
Key Takeaways:
- If you’re looking for an index annuity for accumulation, then you need to know about renewal rates.
- There is no renewal rate history on an index that has just been created.
- There is no reason not to send a specimen policy - annuities are contracts, so you might want to read it before you sign.
- Never, ever, ever base your decision on a backtested number.
"Renewal rates with indexed annuities are the secret and hidden sauce that no one ever talks about, but that you and me need to talk about. " — Stan The Annuity Man
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Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
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In this episode, The Annuity Man discusses:
- What a MYGA (Multi-year Guaranteed Annuity) is.
- The negatives to a MYGA.
- The length of time on a MYGA term.
- The hidden secrets of a MYGA.
Key Takeaways:
- Multi-year guarantee annuities and fixed indexed annuities are both CD products.
- Interest rates do not have to go up, there is a good argument for them to go to zero (even if we hope it doesn’t).
- If you get to the end of your surrender term, you can then transfer it to another MYGA and keep pushing the tax puck down the ice.
- There is no urgency to own an annuity, the only urgency is to understand it.
"If you like simplicity, if you like short term, if you like understanding what you own, a MYGA is your product." — Stan The Annuity Man
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Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
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In this episode, The Annuity Man discusses:
- What an income rider is (and it isn’t an annuity).
- The income rider versus the accumulated value side of the calculation table.
- The flexible nature of income riders.
- Taking the annuity payments when you need the income and transferring the risk.
Key Takeaways:
- An income rider is an attachment to a contractual agreement, not an agreement itself.
- Deferred income annuities and income riders solve for income later, which is income down the road. The difference is just how they contractually get there.
- Upfront bonuses are not giveaways, they are part of the contractual guarantee - anything that seems too good to be true is.
- Interest rates play a secondary role - life expectancy drives the pricing train. Nobody knows where the interest rates will go.
"An income rider is a lifetime pension that is flexible." — Stan The Annuity Man
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Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
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In this episode, The Annuity Man discusses:
- The simplistic nature of MYGAs.
- The end of term flexibility of a MYGA.
- Why you can’t broad brush all annuities.
- It is your money, you get to make the decisions.
Key Takeaways:
- The commission is already built into annuity contracts, they can vary depending on the complexity of the annuity. For something like a MYGA, they can be quite low, possibly .5%-2% depending on the carrier.
- Choose the highest contractual guarantee, whether that is renewing with the current carrier or moving to a different carrier at the end of your MYGA term.
- You are living the reality - that is the contractual guarantees. You can make the annuities work for what you want them to do.
- Transferring within an IRA is a non-taxable event. You can also transfer to other annuities depending on what you want the money to do.
"The MYGA owner is the winner. You control the asset 100%." — Stan The Annuity Man
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Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
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In this episode, The Annuity Man discusses:
- The best thing to do if you have inherited an annuity.
- Understanding the type of policy that you are inheriting.
- Spousal and non-spousal choices of an inherited annuity.
- Understanding the goals and the contractual guarantees of the annuity you have and what you want it to do.
Key Takeaways:
- You have to hire someone who is qualified to give tax advice (like a CPA or tax lawyer) for tax advice. Do not take advice from anyone else because it is an ever-changing landscape and can vary from state to state.
- As a spouse, you can do what you want, you just have to inform the annuity company within 1 year from the date of death.
- As a non-spouse, there are multiple options and it depends on the type of annuity that you are inheriting and what you want the money to do.
- When transferring annuities, some of the benefits may not transfer. Do not transfer for an upfront bonus.
"Never, ever, ever move an annuity for an upfront bonus. There are no philanthropists at annuity companies that are giving away money." — Stan The Annuity Man
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Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
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In this episode, The Annuity Man discusses:
- Understanding the claims payability of the company that is offering the pension payment.
- Knowing what you want the money to contractually do.
- Owning an annuity for what it will do not what it might do.
- Telling what you want, not being told what you should do.
Key Takeaways:
- About 80% of the time, with a pension payment, the payments from the company will be larger than what any annuity company will pay you. Make sure to check your options carefully.
- Annuity quotes expire every 7-10 days and need to be requoted if they aren’t locked in at the application process.
- Congratulations on getting to make this decision!
"Be very specific on what you want that money to do." — Stan The Annuity Man
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Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
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In this episode, The Annuity Man discusses:
- Investors vs annuity buyers.
- Understanding the contractual guarantees and making sure they work for you.
- Annuities are life expectancy based - you can’t time that.
- The things you can’t time and why they shouldn’t affect your choice of buying an annuity.
Key Takeaways:
- Short answer - no, you can’t time your annuity purchase. It’s a contract, not an investment.
- You cannot time interest rates with MYGAs. You can often ladder the annuities to account for changing rates.
- No advisor knows how to time the annuity payments for interest rates - it all comes down to the contractual guarantees.
- What do you want the money to contractually do? When do you want those contractual guarantees to start?
"The urgency is to understand the annuity before you buy it. That is the only urgency." — Stan The Annuity Man
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Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
YouTube: Stan The Annuity Man
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In this episode, The Annuity Man discusses:
- Having money in the stock market (even if you don’t have or need an annuity).
- Why you should be in the stock market, either managing yourself or having someone manage it for you.
- Understanding if you need an annuity and how to allocate and proportion your money.
- Diversification of risk and assets. The stock market and annuities can work together, but they cannot be compared.
Key Takeaways:
- 80% of all stock market trades are not done by a real-life, breathing human.
- If you want market growth, stick with the stock market. Annuities are for the guarantees, not growth.
- Never buy annuities for what they might do. You can’t look at back-tested numbers, you can only look at what it will do, not what it might do.
- Never compare the stock market to annuities. Never compare investments to contracts. One is a shouldering of the risk and one is the transferring of the risk.
"It comes down to two things: how much risk are you willing to shoulder and how much risk are you wanting to transfer? Everybody is different." — Stan The Annuity Man
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Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
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In this episode, The Annuity Man discusses:
- What a 401K is and how it affects your retirement.
- Market growth versus contractual guarantees.
- Shopping annuities like you shop for plane tickets.
- Understanding proportion and allocation.
Key Takeaways:
- What do you want the money to contractually do? When do you want those contractual guarantees to start?
- If you want market growth, don’t buy an annuity.
- The best annuity is the one that provides the best contractual guarantee for your specific needs.
- Nobody knows what is going to happen with inflation. If hyperinflation hits, at that time you solve for what you need then.
"You have to be specific about what you want the money to contractually do." — Stan The Annuity Man
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Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals
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In this episode, The Annuity Man discusses:
- Laddering for principal protection vs. Laddering for lifetime income.
- The customizable nature of laddering annuities.
- What is looked at and strategies for laddering depending on what you want the contractual guarantee to do.
- Addressing inflation.
Key Takeaways:
- There are no perfect answers, just really bad sales pitches. Nobody can predict where interest rates are going to go and if they say they can they’re wrong.
- MYGAs are regulated at the state level.
- It’s about life expectancy at the time you take the payment.
- You already own the best inflation annuity on the planet - and that’s Social Security.
"Immediate annuities or deferred income annuities can be structured to pay for a specific time, not just for life." — Stan The Annuity Man
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Email: Stan@TheAnnuityMan.com
Book: SPIA Owner’s Manual
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In this episode, The Annuity Man discusses:
- How life insurance and annuities differ, despite being sold by the same companies.
- The variance in the death benefits between life insurance and annuities.
- Ways in which life insurance and annuities can work together.
- Knowing what your goal is when buying life insurance and annuities.
Key Takeaways:
- Annuities are issued by life insurance companies, but annuities and life insurance are different in terms of strategy, contractual guarantee, and transfer of risk.
- Life insurance is the best return on investment that you’re never going to see because you’ll be dead.
- Annuities and life insurance are both unique in their categories - life insurance is the only product that provides a tax-free, lump-sum death benefit that passes outside of probate and annuities are the only product on the planet that can provide a lifetime income stream and pay regardless of how long you live.
- Annuities and life insurance are both contracts.
"You really should buy life insurance for the tax-free death benefit. " — Stan The Annuity Man
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Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: SPIA Owner’s Manual
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In this episode, The Annuity Man discusses:
- Determining if you need an annuity.
- Annuities are not one size fits all - they are contractual guarantees.
- Taking care with the annuity sales pitches that are coming your way.
- Creating your Annuity Statement of Understanding.
Key Takeaways:
- Every single day, over 10,000 Americans reach the age of 65.
- To determine if you need an annuity, ask yourself 2 questions: What do you want the money to contractually do? When do you want those contractual guarantees to start?
- Never buy an annuity for market growth.
- There are no philanthropists at annuity companies giving away money. If there is an upfront bonus, it is part of the contractual guarantee, not free money.
"Annuities are commodity products. The best annuity for you is the one that provides the highest contractual guarantee." — The Annuity Man
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: SPIA Owner’s Manual
YouTube: Stan The Annuity Man
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In this episode, The Annuity Man discusses:
- Types of annuities that are and are not transferable.
- Buying and transferring an annuity inside of an IRA.
- Only transferring if it is in your favor (not the agent’s favor).
- How Income Riders affect the transferability of your policy.
Key Takeaways:
- You can transfer from one IRA to another as a non-transferable event (meaning no taxes) regardless of the type of account.
- Transferring your annuity is not always in your best interest. Just because it is transferable does not mean you should transfer it.
- Upfront bonuses to transfer your annuity is never, ever, ever, a reason to transfer. Ever.
- There is no urgency to buy an annuity and there is no urgency to transfer an annuity.
"You don’t transfer for transfer’s sake. You don’t transfer because it sounds too good to be true. Remember, if it sounds too good to be true, it is every single time." — The Annuity Man
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Email: Stan@TheAnnuityMan.com
Book: SPIA Owner’s Manual
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In this episode, The Annuity Man discusses:
- The misinformation around annuities.
- How buying an annuity is like buying a plane ticket.
- Maximizing results with annuity calculators.
- Using annuity calculators to get a feel for what the guarantees are.
Key Takeaways:
- There is never an urgency to buy an annuity. The only urgency is to understand the contract.
- The best annuity out there is the one that provides you with the highest contractual guarantee for your scenario.
- There is no way to know the future inflation rate. Laddering your annuities is more likely to account for that unknown.
- Live the reality, not the dream. Use the tools that are available and find out if an annuity is right for you.
"With annuities, if it sounds too good to be true, it is. Every. Single. Time." — The Annuity Man
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Email: Stan@TheAnnuityMan.com
Book: SPIA Owner’s Manual
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In this episode, The Annuity Man discusses:
- The limitations and benefits of the different types of annuities.
- Knowing if an annuity is right for you or not.
- All of the annuities can be used in the different types of accounts out there - it just changes how it is taxed.
- Reverse engineering to plan your annuity.
Key Takeaways:
- Annuities are the only product on the planet that guarantee a lifetime income stream, it's a monopoly that only annuities have.
- If you do not need to contractually solve for one four things - principal protection, income for life, legacy long term care, confinement care - you do not need an annuity.
- You will be a better investor when you have your income floor in place.
- Annuities are commodities - shop for them like you would for plane tickets.
"Don't fall for the sizzle because you're going to own the steak. Don't fall for the sales pitch dream, because you're going to own the contractual reality." — The Annuity Man
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Email: Stan@TheAnnuityMan.com
Book: SPIA Owner’s Manual
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In this episode, The Annuity Man discusses:
- Structuring your lifetime income payment to go to your beneficiary, not the evil annuity company.
- Life insurance versus annuity death benefits.
- Common death benefit choices.
- Beneficiary setups for annuity death benefits.
Key Takeaways:
- Annuities are contracts, it is up to you how you want to structure it.
- Annuities are customizable from a death benefit standpoint.
- Fixed annuities are regulated at a state level, not a federal level.
- There is no urgency to buy an annuity, you’ve got to do it on your terms and your timeline.
"Can annuities be fun? Yeah! Can contractual guarantees be fun? Yeah! Can death be fun? No. but, with the contractual guarantees of annuities, we can make sure that it is as enjoyable for your beneficiaries as humanly possible." — The Annuity Man
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Email: Stan@TheAnnuityMan.com
Book: SPIA Owner’s Manual
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In this episode, The Annuity Man discusses:
- Congratulations! You already own the best inflation annuity on the planet - Social Security!
- Shouldering or transferring your risk.
- One of the biggest mistakes that people make with annuities.
- Buying annuities for what they will do, not what they might do.
- Understanding what you are buying before you buy regardless of what your annuity agent says.
Key Takeaways:
- Social Security is political dynamite that no party wants to touch - it’s going to be there and you’re transferring the risk to the government to pay and they are going to pay.
- There are really two questions that you have to ask: What do you want the money to contractually do? When do you want those contractual guarantees to start?
- Social Security is an annuity. An annuity is Social Security. Your pension is an annuity. An annuity is a pension.
- Do not buy an annuity for the hypothetical, theoretical, back-tested, projected, hopeful-agent return scenarios. Don't buy the dream, because you're going to own the contractual realities.
- There is never, ever, ever, ever an urgency to buy an annuity, no matter what anybody tells you. Ever.
"Social Security recipients vote, and because Social Security recipients vote, that annuity will never be touched by politicians, period. " — The Annuity Man
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Email: Stan@TheAnnuityMan.com
Book: SPIA Owner’s Manual
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In this episode, The Annuity Man discusses:
- The importance of contractual guarantees driving your buying decision
- Why you should never buy annuities for potential market type growth
- What to be aware of at the “bad chicken dinner annuity seminars”
- How to protect yourself by creating your own “statement of understanding”
Key Takeaways:
- Indexed annuities were designed in 1995 to compete with CDs returns
- Upfront bonus offers are part of the overall contractual guarantee of the policy
- A high percentage income rider is not real yield
- There's no urgency to buy an annuity. The only urgency with an annuity is to fully understand the limitations and the benefits of the specific annuity strategy you are considering
"If you can't fully explain it to a nine year old, then don't buy the annuity being pitched to you." — The Annuity Man
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
YouTube: Stan The Annuity Man
In this episode, The Annuity Man discusses:
- Why he offers both personal service and do-it-yourself choices
- How all annuity types are commodities
- Why you should make your decision solely on the contractual guarantees
- Why he believes annuities should be bought, not sold
Key Takeaways:
- Take your time and make the decision on your terms and your timeframe
- By law, you have to speak with a licensed agent at the end of the process to make sure that the recommendation is suitable and appropriate for your specific situation
- You should quote all carriers to find the highest contractual guarantee
- Create your own “statement of understanding” for the agent to sign
"Buying annuities is like buying a plane ticket. You punch in your specific numbers in order to find the best price." — The Annuity Man
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
YouTube: Stan The Annuity Man
In this episode, The Annuity Man discusses:
- How annuity companies are more regulated than banks
- Where annuity companies are required to put your money
- The US 10 Year Treasury Note and the role is plays with annuities
- The reason for surrender charges on deferred annuities
Key Takeaways:
- Fixed annuity companies have 100% of your money available day one
- Life expectancy drives the pricing train with lifetime income guarantees
- All lifetime income payments are a combination of return of principal plus interest
- Annuity companies are shouldering the risk you are transferring to them
"Life insurance companies have big buildings for a reason because they know when we are going to die, so they price their products accordingly. " — The Annuity Man
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
YouTube: Stan The Annuity Man
In this episode, The Annuity Man discusses:
- Why DC wants people to start planning for their retirement income
- How Qualified Longevity Annuity Contracts (QLACs) were the original idea
- The new “fiduciary safe harbor” provision, and what it means to you
- The original intent of Social Security payments in retirement
Key Takeaways:
- If you have a Traditional IRA, you should consider a QLAC
- Company retirement plans will now start offering annuity income products
- The RMD (Required Minimum Distribution) age rose from 70 ½ to 72
- The stretch IRA strategy is now only applicable to spouses
"Social Security was never intended to be the primary source for retirement income needs." — The Annuity Man
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
YouTube: Stan The Annuity Man
In this episode, The Annuity Man discusses:
- Why Long Term Care coverage is a concern for many people
- The two different types of enhanced benefit type coverage
- How each of these annuity strategies work
- The limitation and benefits of both
Key Takeaways:
- The best coverage for Long Term Care is still traditional LTC
- “When you get sicker you get your money back quicker” with annuity coverage
- When you qualify for coverage, you typically live an average of 3 years and a maximum of 7 years
- Fewer than 20 carriers currently offer these transfer of risk strategy types
"In a perfect world, confinement care riders and enhanced benefit payout riders should only be used as secondary coverage, not primary coverage." — The Annuity Man
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Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
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In this episode, The Annuity Man discusses:
- Why annuities should be purchased for their contractual guarantees
- Why annuities should never be purchased for market type growth
- How different annuity types are priced
- The different types of annuities, and what they contractually solve for
Key Takeaways:
- There are no “one size fits all” annuity types
- If it sounds too good to be true, it is with annuities every single time
- Most annuity types are purely contractual, with no potential in the contract
- Don’t buy the sales pitch dream, because you are going to own the contractual reality
"The vast majority of annuity product types are purely contractual transfer of risk guarantees. There is no ‘potential’ to be found anywhere in those policies." — The Annuity Man
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Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
YouTube: Stan The Annuity Man
In this episode, The Annuity Man discusses:
- Why the buying decision should be based solely on contractual guarantees
- Always take the P.I.L.L. to determine if you need an annuity
- How you only need to answer 2 questions to find the right annuity type
- What “Will Do. Not might do.” means when considering annuities
Key Takeaways:
- Annuities are transfer of risk contracts...not investments
- Annuities should never be purchased for market type growth
- Annuity quotes are like a gallon of milk because they expire every 7 to 10 days
- Annuities (regardless of type) are commodity products
"Always shop all carriers for the highest contractual guarantee for your specific situation and goals." — The Annuity Man
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
YouTube: Stan The Annuity Man
In this episode, The Annuity Man discusses:
- The five safest places to put your money
- How fixed annuity types are safe transfer of risk strategies
- How to determine if a carrier is safe
- Ways in which the annuity industry protects the consumer
Key Takeaways:
- Always solve for the desired contractual guarantee
- Look at the carrier’s ratings, COMDEX score, and financials
- Use the NOLHGA site to verify your state’s guarantee coverage limits
- Take advantage of the annuity “free look” provision if needed
"Annuity companies aren’t smarter than banks, they are just more regulated." — The Annuity Man
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
YouTube: Stan The Annuity Man
In this episode, The Annuity Man discusses:
- How to build your Guaranteed Income Floor
- How annuities should be a part of your “income flooring” plan
- The various types of annuities to use with guaranteed income flooring
- How Social Security & Pensions payments are annuity structures
Key Takeaways:
- Annuities are the only product that can provide a lifetime income stream
- Use annuities to contractually solve for the income gap needed
- Annuity quotes are commodities, and expire every 7 to 10 days
- Always shop all carriers for the highest contractual guarantee available
"Your Guaranteed Income Floor is the income stream that hits your bank account every month, and that you will never outlive.” — The Annuity Man
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
YouTube: Stan The Annuity Man
In this episode, The Annuity Man discusses:
- What annuitization means and how it works
- The different structuring choices and how they work
- How you can customize the quotes for your situation
- How lifetime income guarantees are priced
Key Takeaways:
- There are over 30 ways to structure annuity payments
- Annuities are the only product type that guarantees a lifetime income stream
- Annuities can be held in IRAs, Roth IRAs, non-IRAs (non-qualified accounts)
- Always shop all carriers to find the highest contractual guarantee
"When you buy a lifetime income stream, the primary pricing mechanism is your life expectancy at the time you take the payment. Interest rates play a secondary pricing role." — The Annuity Man
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Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
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In this episode, The Annuity Man discusses:
- How annuities started in the Roman Times
- Annuities are the only product that guarantees lifetime income
- How Social Security & Pensions are annuity structures
- The differences between Income Now & Income Later
Key Takeaways:
- Annuity should be associated with lifetime income
- Payments are based primarily upon your life expectancy at the time you take the payment
- Interest Rates play a secondary role in lifetime income pricing
- Annuity income is a combination of return of principal plus interest
"There is no ROI (Return on Investment) calculation until you die with annuity lifetime income guarantees.” — The Annuity Man
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Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
YouTube: Stan The Annuity Man
In this episode, The Annuity Man discusses:
- The differences and similarities between these two products
- Why buyers should consider both MYGAs & CDs
- The value of using a Laddering Strategy
- Where CDs & MYGAs fit in your portfolio
Key Takeaways:
- MYGAs & CDs function exactly the same
- FDIC backed CDs are the safest guarantee available
- MYGAs are backed by the issuing carrier and a state guarantee fund
- CDs are for 2 years or shorter & MYGAs are for 3 years or longer
"Think about laddering and combining MYGAs and CDs to achieve your goal of principal protection while receiving annual interest on a contractual basis." — The Annuity Man
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Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
YouTube: Stan The Annuity Man
In this episode, The Annuity Man discusses:
- The fallacy of the one-size fits all annuity pitch
- The two pillar questions to ask yourself
- Take the annuity P.I.L.L. before buying
- There’s no “G” for market growth
Key Takeaways:
- Base your decision only on the contractual guarantees
- Annuities are transfer risk contracts, not investments
- Always shop for highest contractual guarantee
- Make your decision on your terms and your time frame
"You always own an annuity for what it WILL DO, not what it might do. The WILL DO are the contractual guarantees of the policy." — The Annuity Man
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Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
YouTube: Stan The Annuity Man
In this episode, The Annuity Man discusses:
- Step by step application process to own an annuity
- Fixed annuities are regulated at the state level
- Specific time frames with the paperwork process
- Key rules and procedures that you need to be aware of
Key Takeaways:
- Your information is kept fully confidential and is never shared
- You make your decision on your term and on your time frame
- All questions on the annuity application must be answered
- How the paperwork process works from application to policy issued
"My staff takes care of all the paperwork for you from start to finish." — The Annuity Man
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Email: Stan@TheAnnuityMan.com
Book: AnnuityMan Owner’s Manuals
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In this episode, The Annuity Man discusses:
- Annuities can be held inside of IRAs, Roth IRAs, and Non-IRA accounts
- Legacy & contractually leveraged strategies
- Customized solutions for your specific situation
- How to use contractual guarantees with combination strategies
Key Takeaways:
- Annuities are contractual mathematical solutions
- There’s no ROI (Return On Investment) until you die
- How to transfer from one annuity to another without tax consequences
- How to contractually “handcuff your beneficiaries” using annuity strategies
"All annuity quotes for lifetime income guarantees are customizable and should be shopped with all carriers*."* — The Annuity Man
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Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: AnnuityMan Owner’s Manuals
YouTube: Stan The Annuity Man
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In this episode, The Annuity Man discusses:
- How to buy the annuity steak, not the sales-pitch sizzle
- Own an annuity for what it “Will Do. Not might do.”
- Where annuities can fit properly in your portfolio
- Current sales pitch trends you need to be aware of
Key Takeaways:
- There are no perfect answers, just bad sales pitches
- Any time an extra benefit is being provided it is not being given away by the annuity carrier…just priced in
- Upfront bonuses and high % Income Riders are just parts of the overall contractual guarantees
- Annuities should be viewed as transfer of risk contracts, not investments
"If it sounds too good to be true, with annuities…without exception…it is every single time." — The Annuity Man
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: AnnuityMan Owner’s Manuals
YouTube: Stan The Annuity Man
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In this episode, The Annuity Man discusses:
- What an income floor is and why it should matter to you
- Creating an income floor for your specific situation
- Laddering and structuring strategies that contractually work
- Income Flooring is customizable to fit your specific situation
Key Takeaways:
- Two Key Questions: 1) What do you want the money to contractually do?.....2) When do you want those contractual guarantees to start?
- Quotes can be “reverse engineered” to solve for a specific income dollar amount
- Quote all carriers to find the highest contractual guarantees for your specific situation
- Pension payments, Social Security payments, and Annuity payments all provide income you can never outlive
"Annuities are the only product on the planet that offer a contractually guaranteed lifetime income stream…regardless of how long you live." — The Annuity Man
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Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: AnnuityMan Owner’s Manuals
YouTube: Stan The Annuity Man
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In this episode, The Annuity Man discusses:
- How interest rates affect each annuity type
- How life expectancy and interest rates work with each income annuity type
- What is the interest rate benchmark that the annuity industry follows
- What specific strategies to use instead of trying to “time” interest rates
Key Takeaways:
- With lifetime income guaranteed strategies, life expectancy is the primary pricing mechanism
- Interest rates play a secondary pricing role with lifetime income guaranteed strategies
- The US 10 Year Treasury Note is the “bogey” for the annuity industry
- No one on the planet can predict interest rate movement
"Trying to time interest rates with annuities is like trying to nail Jell-O to a wall." — The Annuity Man
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Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: AnnuityMan Owner’s Manuals
YouTube: Stan The Annuity Man
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In this episode, The Annuity Man discusses:
- The only 2 questions you need to answer to find out what type works for your specific situation
- How to use the acronym P.I.L.L. to see what annuities contractually solve for
- How each type of annuity works
- All annuity types are commodities, and all carriers should be quoted
Key Takeaways:
- Saying you “hate all annuities” is like saying you “hate all restaurants”
- P.I.L.L. stands for Principal Protection, Income For Life, Legacy, Long Term Care
- Own annuities for what they “Will Do.”, not what they “might do”
- All annuity types are contracts and should be owned for their contractual guarantees
"Annuities were put on the planet primarily for lifetime income guarantees." — The Annuity Man
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: AnnuityMan Owner’s Manuals
YouTube: Stan The Annuity Man
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In this episode, The Annuity Man discusses:
- What is an Income Rider and how it works
- The benefits and limitations of Income Riders
- How Income Riders can be part of your “Income Floor” guarantees
- Misleading Income Rider sales pitches to watch out for
Key Takeaways:
- Income Rider values are used to calculate your lifetime income payment amount
- High % Income Rider growth is not real yield
- Income Rider amounts are not liquid, and cannot be transferred
- Income Riders can be attached to an indexed or variable annuity at the time of application
"Attaching an Income Rider to a policy guarantees a lifetime income stream at a future date you choose." — The Annuity Man
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Email: Stan@TheAnnuityMan.com
Book: Income Rider Owner’s Manual
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In this episode, The Annuity Man discusses:
- What is a FIA and how it works
- The history of FIAs
- The benefits and limitations of a FIA
- Where FIAs can fit in your portfolio
Key Takeaways:
- FIAs were introduced in 1995 to compete with CD (not market) returns
- Income Rider guarantees can be attached to most FIA policies
- FIAs are life insurance products, not securities
- Don’t base your buying decision on back-tested proposal returns
"Don’t buy the annuity dream, own the contractual reality." — The Annuity Man
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: FIA Owner’s Manual
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In this episode, The Annuity Man discusses:
- What is a QLAC and how does it work
- The benefits and limitations of a QLAC
- The history of QLACs
- Why QLACs should be the #1 annuity type owned by consumers
Key Takeaways:
- QLACs solve for future lifetime income needs using your Traditional IRA
- QLACs allow you to add your significant other to the payment stream
- Everyone with a traditional IRA should get a QLAC quote for their specific situation
- QLACs and DIAs are the same product structure, but with different rules on how and where they can be used
"Qualified Longevity Annuity Contracts (QLACs) should be considered and quoted for every person that has a Traditional IRA.*"* — The Annuity Man
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Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: QLAC Owner’s Manual
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In this episode, The Annuity Man discusses:
- What is a MYGA and how does it work
- The benefits and limitations of a MYGA
- Differences and similarities between a MYGA and a CD
- How to ladder MYGAs to take advantage of future interest rates
Key Takeaways:
- MYGAs (Multi-Year Guarantee Annuities) are a fixed rate annuity and are the annuity industry’s version of a CD
- MYGAs usually offer a higher rate than CDs if the duration is 3+ years out
- MYGAs & CDs can be combined for fixed rate laddering strategies
- Some MYGAs allow you to peel off the interest every month for additional income needs
"Multi-Year Guarantee Annuities (MYGAs) are the annuity industry’s version of a CD.*"* — The Annuity Man
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Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: MYGA Owner’s Manual
YouTube: Stan The Annuity Man
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In this episode, The Annuity Man discusses:
- What is a DIA and how does it work
- The benefits and limitations of a DIA
- How a DIA fits into your Income Floor
- How DIAs are part of Income Later planning
Key Takeaways:
- Life expectancy is the primary pricing mechanism of DIAs
- The secondary pricing role of interest rates
- DIAs can combat inflation by having income start at future dates
- DIA quotes are customizable for your specific situation
"Deferred Income Annuities are a simple, efficient, and easy to understand transfer of risk strategy for future lifetime income needs." — The Annuity Man
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Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: DIA Owner’s Manual
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In this episode, The Annuity Man discusses:
- What is a SPIA and how does it work
- The history of SPIAs
- The benefits and limitations of a SPIA
- How to get your free copy of the SPIA Owner’s Manual
Key Takeaways:
- SPIAs are simple & efficient transfer of risk pension plans
- SPIAs quotes are customizable to contractually guarantee your specific goals
- SPIAs are commodities, and all carriers should be quoted to find the highest contractual guarantee
- SPIA payments are primarily based on your life expectancy, not interest rates
"Single Premium Immediate Annuities (SPIAs), 99.9% of the time, are going to have the highest contractual guaranteed payout. Period." — The Annuity Man
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: SPIA Owner’s Manual
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Welcome to The Annuity Man Podcast! With over 3 decades in the financial services industry, Stan The Annuity Man is recognized as the top independent annuity agent in America. He has published 7 books on annuities and has over 400 published articles on the topic. The Annuity Man Blog is the leading source for all things annuity, and his Stan The Annuity Man YouTube Channel releases new consumer friendly videos every single weekday….Monday through Friday. Stan The Annuity Man is licensed in all 50 states and represents all major annuity carriers.
In this welcome episode, The Annuity Man will explain his educational and entertaining approach to annuities, and what you can learn from his podcasts ongoing. With the focus on contractual guarantees only and his “Will Do. Not might do.” annuity mantra, The Annuity Man will bring you the brutal annuity truth and tell you how these products actually work so you can make an informed decision on your terms and on your time frame.
"I am an educator first because you need to know what you are buying." — The Annuity Man
Connect with The Annuity Man:
Website: TheAnnuityMan.com
Email: Stan@TheAnnuityMan.com
Book: AnnuityMan Owner’s Manuals
YouTube: Stan The Annuity Man
Get a Quote Today!