Comparing Index Annuity Income Riders and DIAs: Shootin’ It Straight With Stan (TAM Classic)
“Fun With Annuities” The Annuity Man Podcast
Release Date: 04/30/2025
The Truth About Annuities | How Income & Guarantees Really Work
“Fun With Annuities” The Annuity Man Podcast
In this episode, The Annuity Man discussed: Annuities as lifetime income How annuities are priced Focus on contractual guarantees Two primary purposes of annuities Key Takeaways: Annuities, like Social Security or pensions, provide guaranteed income for life. They come in several forms, such as immediate, deferred, and longevity annuities, each designed to fit different timing and retirement needs. The pricing of annuities is based on life expectancy, interest rates, and insurer capacity. Because of these factors, annuity quotes change frequently, much like...
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Smart Annuity Income Planning Explained: 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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The 3 Annuity Strategies for Principal Protection: Shootin' It Straight with Stan
“Fun With Annuities” The Annuity Man Podcast
In this episode, The Annuity Man discussed: CDs and MYGAs I-bond no-brainer The safest product in principal protection How safe are MYGAs? Key Takeaways: Here’s how CDs (Certificate of Deposit) work: you give the bank money, they protect the principal, and you don’t have to pay any fees. You can take the interest if you want to at the end of the term, and do what you want with your money. MYGAs are basically the annuity industry’s version of a CD. Treasury bonds are a no-brainer. Go to treasurydirect.gov to buy them for yourself. The...
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Can Your Annuity Income Increase With Inflation?: Shootin' It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
In this episode, The Annuity Man discussed: Annuities that increase with inflation The role of interest rates in pricing For products that adjust for inflation Reverse-engineering your income floor Key Takeaways: Annuities don’t give things away for free. A product that magically increases with inflation doesn’t exist. Lifetime income is primarily priced based on your life expectancy at the time you take the payment. Interest rates play a minor role. For products that have a potential or contractual increase for inflation, the...
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How to Reverse Engineer Annuities to Fight Inflation: Shootin' It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
In this episode, The Annuity Man discussed: Products that adjust for inflation Thinking rationally about inflation Reverse-engineering annuity Key Takeaways: Many bad sales pitches out there mention a way to beat inflation using indexed products that adjust for inflation. What really happens is that the annuity company severely lowers the initial payment to make up for any potential increase. Think rationally about inflation. It’s customizable to everybody, meaning not everyone is affected the same way. Some are not even affected at...
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Searching for Growth or Guarantees? Shootin' It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
In this episode, The Annuity Man discussed: Threading the needle with volatility Freedom from volatility Annuities are the haystack Time to secure guarantees Key Takeaways: Threading the needle to get market returns makes you dependent upon so much unknown. You’re dependent on world markets, geopolitical events, and meltdowns that are impossible to predict. A lot of people can retire from their jobs and the market, and they should; those who can’t yet should make it a goal to do that and be free from being dependent on volatility. ...
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Don’t Fall for Hypothetical Annuity Returns: Shootin' It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
In this episode, The Annuity Man discussed: Annuities are contracts How Indexed Annuities Should Be Used Don’t buy an annuity for market returns Key Takeaways: To say that something is “guaranteed and backtested” means that there is nothing guaranteed at all. Annuities are contracts; buy them for what they will do and not what they might do. Indexed Annuities have the potential to go down in value, but they can be used as an efficient delivery system for guaranteed lifetime income through an income rider attachment. If you...
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Flexible Annuity Start Dates Explained: Shootin' It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
In this episode, The Annuity Man discussed: The four lifetime income products How annuities are priced The simplicity of SPIA Getting the highest guarantee Key Takeaways: There are four lifetime income products: Single Premium Immediate Annuities, Deferred Income Annuities, Qualified Longevity Annuity Contracts, and Income Riders that can be attached to Variable Annuities and Indexed Annuities. Annuities are priced primarily on your life expectancy at the time you start the payment. Interest rates play a secondary role. Deferred...
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Annuities For A 9-Year Old: Shootin' It Straight With Stan (TAM Classic)
“Fun With Annuities” The Annuity Man Podcast
In this episode, The Annuity Man discussed: Buying an annuity that you understand Annuities aren’t one-size-fits-all How to know if you understand a product Key Takeaways: When buying an annuity, remember that if a product sounds too good to be true, it is every single time. Some annuities are more complex, and most agents cannot explain them well, let alone even comprehend them themselves. Currently, the annuity industry has an unbalanced way of compensation for different types of products. Agents get a higher commission for selling a...
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Annuity Horror Stories Debunked: Shootin' It Straight With Stan
“Fun With Annuities” The Annuity Man Podcast
In this episode, The Annuity Man discussed: Why do agents tell stories? Protecting yourself from bad pitches Don’t listen to these stories The only two important questions Key Takeaways: In sales, managers will often tell their people that stories sell and that they do, so you have to watch out for hypotheticals, testimonials, and anecdotal “evidence.” Here’s how you can protect yourself from liars who’d sell you stories: write down their sales pitch exactly as they said it and how you understood it. Sign and date it at...
info_outlineIn this episode, The Annuity Man discussed:
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An overview of Deferred Income Annuities
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Finding the best fit
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Income Riders attached to Indexed Annuities
Key Takeaways:
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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.
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DIAs are efficient, no-cost, no-fee transfer-risk pension products that can be deferred for up to 40 years. Compare DIAs and income riders on Fixed and Indexed Annuities to find the best fit based on contractual guarantees and flexibility.
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Income Riders attached to Indexed Annuities provide future income needs. Income Riders are separate ledgers that cannot be cashed in or transferred, but can be used to determine a lifetime income stream. They offer flexibility, such as a 10% free withdrawal annually, but this can disrupt the income rider guarantee.
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Compare both DIAs and income riders using the four filters: contractual guarantees, carrier ratings, flexibility, and fees.
"Don't fall for sales pitches. These are contractually guaranteed commodity products. There's not one that's better than the other, and if you use those four filters, you're going to make a good decision." — Stan The Annuity Man.
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Email: [email protected]
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