Mr. FIA-X: The Truth About Current Fixed Index Annuities
“Fun With Annuities” The Annuity Man Podcast
Release Date: 07/19/2022
Terry Savage: Chicken Money Is Still Tasty (From the Vault)
“Fun With Annuities” The Annuity Man Podcast
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...
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Life Insurance Loans Are Not Income: Shootin’ It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
In this episode, The Annuity Man discussed: Understanding why life insurance loans are not income Questioning glossy tax-free income pitches Keeping life insurance simple and purpose-driven Testing illustrations and setting clear expectations Key Takeaways: Loans from a life insurance policy are not income, just as bank loans are not income. They are tax-free only because they must be repaid, not because they create earnings. Calling them “tax-free income” is a misleading sales framing. Many life insurance illustrations rely on optimistic assumptions...
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Roth IRA Annuity Industry Insanity: Shootin’ It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
In this episode, The Annuity Man discussed: Seeing through product-driven Roth pitches Recognizing political risk in long-term tax planning Keeping conversions separate from annuity products Avoiding shiny-object sales tactics Key Takeaways: Treat Roth conversions as tax decisions rather than annuity strategies. Rely on math and tax guidance instead of sales-driven framing. Understand that tax-free structures like Roths can face future policy shifts. Plan with awareness that political changes may affect long-term assumptions. Run conversion numbers...
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Michael Finke: Why Annuities Make Sense Right Now (From the Vault)
“Fun With Annuities” The Annuity Man Podcast
In this episode, The Annuity Man and Michael Finke discuss: Annuities are more attractive today Protecting your future lifestyle Cutting little slices from 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 buying yourself a minimum standard of living forever, no matter how long you live. You have to choose if you want to shoulder the...
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Death as an Annuity Strategy: Shootin’ It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
In this episode, The Annuity Man discussed: Designing dependable inheritances Structuring income for generations Choosing tools for guaranteed legacy streams Partnering wisely with trusted professionals Key Takeaways: Integrating annuities into estate plans allows individuals to pass on structured, reliable income rather than lump-sum inheritances, protecting beneficiaries from mismanagement or market risk. Estate plans can specify lifetime payments, joint-income arrangements, or funds designated for annuities, giving families long-term financial stability...
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Warren Buffett’s 2 Rules for Annuities: Shootin’ It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
In this episode, The Annuity Man discussed: Prioritizing safety and guarantees Selling only contractual commitments Using PILL to guide purpose Key Takeaways: Annuities should focus on protecting principal and providing a reliable income. Strong insurance carrier backing ensures certainty and reduces risk. Avoiding speculative products maintains financial security for clients. Only offer annuities with contractual guarantees, not hypothetical promises. Market-based growth claims are often unrealistic and misleading. Contractual commitments provide clarity and...
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Moshe Milevsky: Learning from History with Annuities (From the Vault)
“Fun With Annuities” The Annuity Man Podcast
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 a predictable income even when you can no longer make decisions yourself due to cognitive decline. That’s why...
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Comparing Myga Interest Rates to Spia Rates: Shootin' It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
In this episode, The Annuity Man discussed: Distinguishing annuity types Applying the PILL strategy Interpreting annuity yields Securing contractual understanding Key Takeaways: Understanding the purpose of different annuities is crucial: MYGAs provide guaranteed interest on principal like a CD, while SPIAs deliver a lifetime income stream tailored to longevity. Each serves a distinct financial goal. The "PILL" framework—Principal protection, Income for life, Legacy, Long-term care—helps determine whether an annuity aligns with your needs and long-term...
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Annuity Zero Is Not Your Hero: Shootin' It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
In this episode, The Annuity Man discussed: What does “zero is your hero” mean Dirty tactics that agents use to sell annuities A more rational alternative to the 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...
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Rick Ferri: Core-4 Portfolios for Simplistic Success (From the Vault)
“Fun With Annuities” The Annuity Man Podcast
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...
info_outlineIn 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
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Email: Stan@TheAnnuityMan.com
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YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
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