Michael Finke: Why Annuities Make Sense Right Now
“Fun With Annuities” The Annuity Man Podcast
Release Date: 11/08/2022
Moshe Milevsky: Learning from History with Annuities (TAM Classic)
“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 predictable income even when you can no longer make decisions yourself due to cognitive decline. That’s why agents have to...
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The Older You Are, the Higher the Annuity Payment: Shootin' It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
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...
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Annuities Are Contractual Commodities: Shootin' It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
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. ...
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Wade Pfau - Retirement Income Style Awareness (Holiday Regift)
“Fun With Annuities” The Annuity Man Podcast
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...
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Annuity Contractual Guarantees Are NOT Complicated: Shootin' It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
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...
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Date the Annuity Rate…Marry Lifetime Income: Shootin' It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
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. ...
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John Lenz: The State of The Annuity Union
“Fun With Annuities” The Annuity Man Podcast
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...
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Go to the Sidelines With Annuity Contractual Guarantees: Shootin' It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
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...
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All Annuities Are…: Shootin' It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
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...
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Jack Lenenberg: Long-Term Care & Rising Interest Rates
“Fun With Annuities” The Annuity Man Podcast
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...
info_outlineIn 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:
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