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Christine Benz: Avoiding Blind Spots in Your Retirement Portfolio Planning (TAM Classic)

“Fun With Annuities” The Annuity Man Podcast

Release Date: 02/13/2024

Comparing Index Annuity Income Riders and Dias: Shootin’ It Straight With Stan

“Fun With Annuities” The Annuity Man Podcast

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...

Hidden Truths & Facts About Fixed Index Annuities: Shootin’ It Straight With Stan

“Fun With Annuities” The Annuity Man Podcast

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...

Stan The Annuity Man: New Realities of Annuity Recommendations

“Fun With Annuities” The Annuity Man Podcast

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,...

Strategic Retirement Planning Using Annuities: Shootin’ It Straight With Stan

“Fun With Annuities” The Annuity Man Podcast

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...

Tailoring Fixed Index Annuities to Your Specific Goals: Shootin’ It Straight With Stan

“Fun With Annuities” The Annuity Man Podcast

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...

Steve Parrish: Why QLACs Will Rival Roth IRA Popularity

“Fun With Annuities” The Annuity Man Podcast

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...

Avoiding Common Pitfalls With Annuity Purchases: Shootin’ It Straight With Stan

“Fun With Annuities” The Annuity Man Podcast

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,...

Fixed Annuities Explained: Which One Is Right for You?: Shootin’ It Straight With Stan

“Fun With Annuities” The Annuity Man Podcast

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...

Jack Lenenberg: New LTC Product to Disrupt the Industry

“Fun With Annuities” The Annuity Man Podcast

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...

The Annuity Truth About Bonuses, Rates, Caps & Spreads: Shootin’ It Straight With Stan

“Fun With Annuities” The Annuity Man Podcast

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...

More Episodes

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: