045: Fixed Index Annuities - Are They a Good Investment?
“Fun With Annuities” The Annuity Man Podcast
Release Date: 02/23/2021
The Cost of Waiting to Purchase an Annuity: Shootin’ It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
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...
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Steve Parrish: Rational and Phased Retirement Planning (TAM Classic)
“Fun With Annuities” The Annuity Man Podcast
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...
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Always Reverse Engineer Annuity Income Quotes: Shootin’ It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
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 . By doing so, you can compare...
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Keep Your Powder Dry Annuity Income Planning: Shootin' It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
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...
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Gary Baker: The Growth of Group and Fee-Based Annuities
“Fun With Annuities” The Annuity Man Podcast
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...
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There’s NO Annuity Sweet Spot to Purchase: Shootin' It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
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...
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Transfer Your Risk to Annuity Contractual Guarantees: Shootin' It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
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...
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Jamie Hopkins: Retirement Planning And The Why That Makes You Cry (TAM Classic)
“Fun With Annuities” The Annuity Man Podcast
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...
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You Already Own At Least 2 Annuities: Shootin' It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
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...
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Get Your Annuity Income Ducks in a Row: Shootin' It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
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...
info_outlineIn 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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