What Percentage Of Your Portfolio Should Be In Annuities? - YouTube

Hey, Stan the annuity man here. America's annuity agent. Yes, licensed in

all 50 states. i want to cover the country and help

people understand annuities before they buy them. And certainly we can help you

with that at stantheannuityman.com if we get to that point. But let's talk

about what you're interested in which is "What percentage of your portfolio should

be in annuities?" Really good question. No perfect answers. And if anyone's giving

you a percentage, they have no clue what they're talking about. Now, that's the

short answer. What I would like you to do is hang in there with me because I'm

going to kind of dig into how this all got started. How people start talking about

percentages of your portfolio. And I'm also going to talk about what the

annuity companies actually think about that in the laws in place to protect you

--the customer, the client. So, hang in there. There's going to be really neat little

music intro here. So, hit the music now.

Alright. So, the question is what's the percentage of annuities you need in your

portfolio? Now, it could be zero, right? You might not need an annuity and you say,

"Well, wait a minute Stan. You sell annuities. You're the guy out here. You're

America's annuity agent." That's all true. But I'm also conscious of the fact that

annuities are contracts. They're transfer of risk products. And there's a lot of

you out there that don't even need to transfer risk. So, how do I determine that

with my clients? 2 very simple questions. The first one is what do you

want the money to contractually do? Keyword is contractual. And then when do

you want those contractual guarantees to start? So, answer those questions. Write

those down or put them in the back your head. The other thing that I tell people

is there's an acronym up called PILL. "P" stands for principle protection. "I" stands

for income for life. "L" stands for legacy. And the other "L" stands for long-term

care. If you don't need to solve for one or more of those problems --principal

protection, income for life, legacy long-term care, then you don't need an

annuity. So, if you don't need to transfer risk then you don't need an annuity. So,

the answer is then zero. But let's just say that you do need to do some of those.

You need a lifetime income stream, etc. Let's go to the whiteboard and let's

look at how that would work for you. Okay, Stan in the annuity man before the

mythical Stan the annuity man existed and Nike was making shirts for

me with Stan Knows instead of Bo Knows. Remember that Bo Knows? Remember that? The

guy that played football and he had the ad campaign for Nike. It's not as good as

the Stan Knows. But anyway, here's how this all started. Before the Stan the

annuity man juggernaut was out there, I was in this securities industry. I work

for all the big firms. All the ones you've heard of. And I'm not going to say

their names because they're big enough. They don't need the ads and they're not

paying me. Just tell them their name. But they would say stuff like "If you're 60

years old, you need 60% in equities and

40% and bonds." I mean it was the old nap... They've called it the napkin

presentation where you just kind of drew it out on a napkin. I'm not kidding. Or

they flip it they'd say, "You need 40% in equities and 60% in bonds." It literally...

I know you're saying, "Wait a minute that sounds so simplistic. It really was

that simplistic." And there's a lot of old school guys out there in the securities

industry planners, fee planners, etc. That still kind of used that basic premise on

how to allocate stocks and bonds, etc. So, let's look at how the annuity companies

look at the the pie chart and what they approve of. So, what are the annuity

companies think about the old pie chart and the percentage of your portfolio?

There's rules in place to protect you, the client and to make sure that the

agent or the advisor out there is not just putting all of grandmas

money into an annuity, right? That doesn't need to happen. And there's guardrails in

place. So, here's the annuity version. Here's the annuity industry. Here's your

investable assets that's not and counting your house that's like your

your 401K, your stocks, your bonds. You know all of that stuff, your IRA. They're

saying, "They --the annuity industry, they feel comfortable with around a maximum

of 50% of your investable assets in annuities." Seriously. That's what they

say. I'll give you a great story on that. It just happened to me last week. Lady

called me. She literally watched one of these YouTube videos. Calls me and says, "I

think I need an immediate annuity for lifetime income stream." And I said "Fine,

let's run the quote. Give me a little bit of background about what you have what's

your investment assets." She was not working she rented apartment which is

fine. She had $150,000 to her name period. She

had no debt. And she wanted to put all $150,000 into an immediate

annuity. Now on surface, that makes sense because

she needed income, she needed a lifetime income stream. She had no beneficiaries.

Perfect. But I told her... I said, "Unfortunately. The annuity industry is

not going to allow that. They're not going to allow you to put all your money in." So,

in essence of her 150, we could only run a quote for $75,000. She was not happy.

She's like, "Well then, I'll just buy it from someone else." I'm like, "That's fine.

But the only way that application is going to go through is

someone fictitiously fills in your application to reflect the 150 being

half of what your industrial assets." They do this for a reason. Over a decade ago,

there's lots of lawsuits from consumers that they put all their money into

annuities and they sue the carriers for allowing them to do that. There wasn't

anything wrong with the annuities. They were in fixed annuities but there was a

lots of lawsuits and then the actual industry said, "Okay, enough of that.

We're going to put some guardrails in place to make sure that people have enough

liquidity. Enough cash on hand in case things happen." So, that's a great example

of why the annuity companies put that in place. And if you went to the annuity

company and you said, "Okay." And your agent didn't know that rule or advisor and

they put 75% of your investable assets into annuities and that

application got to the carrier, regardless of who the carrier is, they're

going to spit that back out. They're not going to prove it. And I think that's a

good thing. The annuity industry is doing. They are trying to protect the client

out there. And know the annuity industry gets a bad wrap. There's always bad actors

in any type of sales business. There certainly is in the annuity business. But

the annuity industry itself and the carriers have put some things in place

from an application standpoint, suitability and appropriateness to

protect you, the clients. So, what percentage of your portfolio needs to be

in annuities? I don't know that. That's the reason you kind of need to contact

us at Stantheannuityman.com. That's my email address or you can go to Stanthe

annuityman.com website and connect with us there. And we can have a conversation

and a discussion on what fits and what type of transfer risk annuities fits

your specific situation. Okay? So, I would encourage you to do that. I would also

want you to do there's a video I did pointing to it magically. "What's the

purpose of an annuity?" Which kind of coincides with what we're talking about

which is you really need to make sure that an annuity transfer risk contract

fits for your specific situation. That video will help. Obviously this one will

help. You can also go to my site to get free books. I've written a bunch of them

on annuities. Annuity owner's manuals that we'll send to you for free. Do me a

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hopefully will make you understand annuities a lot better and make an

informed decision on your terms and your time frame. See you next time.

you