Gary Baker: The Growth of Group and Fee-Based Annuities
“Fun With Annuities” The Annuity Man Podcast
Release Date: 04/23/2024
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...
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Political Chaos Equals Contractual Opportunities: Shootin' It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
In this episode, The Annuity Man discussed: How chaos leads to both risks and opportunities What contributes to financial uncertainty? Maximizing lifestyle and financial security Locking in guarantees Key Takeaways: Political chaos leads to both risks and opportunities in investments, especially regarding annuities. Market volatility and potential government actions (like new cryptocurrency regulation) create financial uncertainty. Evaluate your age, health, and risk to maximize lifestyle and financial security. Locking in contractual guarantees such...
info_outlineIn this episode, The Annuity Man and Gary Baker discuss:
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The Secure Act's role in making annuities more accessible within 401(k) plans
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Lifetime guaranteed income options within 401(k) target date funds
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The widespread inclusion of lifetime income options
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How annuities can alleviate pressure on Social Security
Key Takeaways:
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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.
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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.
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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.
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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:
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Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
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