Best Annuities For Seniors - YouTube

So, the question is what are the best annuities for seniors? Ooh!

Loaded question, right? Agents are salivating when they hear that question.

And that's unfortunate. Because seniors typically are the target of a lot of

annuity sales pitches. Primarily because hey! Seniors have all the money, right? But

that's also where a lot of the fraud and a lot of the bad sales practices are

happening. So, it's an important topic to talk about what are the best annuities

for seniors. Now, we're going to go through every specific type of annuity

out there and kind of the upside and downside for senior citizen. I would

encourage you to get all my books. I'm going to tell you how to do that at the

end of the video. All 6 of my owner's manuals. I'll ship them to you for free

and under no obligation because I want you to understand what you're buying.

Don't buy a sales pitch. Don't buy a dream, don't buy a hope, don't buy the

unicorn's chasing the butterflies. Buy the contract, buy the contractual

reality, buy both limitations and benefits and fully understand what you're signing.

So with that, let's dig in and look at what annuities might work for seniors.

Now, my mom lives in Florida. She's 80 years old at the time of this filming.

And she goes to these bad chicken dinner seminar things all the time. I'm assuming

that if you're watching this video, you've gotten this thing in the mail... You

know, market risk and be careful and all this stuff. Kind of scare tactic stuff

and a lot of the stuff that I see. And they're inviting you to a really nice

meal, no obligation and come eat their food and then hear a presentation. And if

you haven't gotten that, boy, you're lucky. Because I mean in Florida, you could eat

5 days a week as a senior citizen just going to these seminars. And most of

the time... Not all. But most of the time agents are pitching indexed annuities

typically or something somewhere. And they're not talking about the entire

world of annuities out there. They're just... They have one type, they've learned

that type and they're going to square peg into a round hole. Not all people do that.

But the ones that I see in Florida a lot of that happens. And senior citizens end

up buying products they don't need. Truly. So, let's talk about some of the types

and if it fits a senior citizen. And if it doesn't and the downside. Okay. So,

let's talk about single premium immediate annuities. Those are the

granddaddy of all annuities have been around since the Roman times. Sold them

in this country for hundreds of years. It's a pension plan that you can have

income start immediately. Meaning 30 days from the contract issue. A lot of senior

citizens like them because it's a guaranteed income stream that they

cannot outlive based on their life expectancy. That's the upside, the

downside is it's an irrevocable contract. You can set it up to where 100%

of the money goes to your beneficiaries if you pass away. But

that's a single premium immediate annuity. Same thing goes for a deferred

income annuity which is a single premium immediate annuity that you defer. Same

thing. A lifetime income stream starting at a future date. But it's an irrevocable

contract. But we can't set it up to where all of the money goes to the

beneficiaries if you die. I personally think that both of those products are

very Pro customer in general and pro senior just because you know most

people need more income. It's just the bottom line. Social Security doesn't cut

it from us be. And they just need additional income to

live the life that they deserve to live and they've earned a living and and

they've worked hard to get to the point to live that lifestyle.

Now QLACs --qualified longevity annuity contracts or deferred income annuities

II use inside of your IRA. Once again, I think this is a bit product for seniors

in a lot of cases because it's a lifetime income stream and you can use

your IRA assets for it. And again, we can structure so that 100% of any unused

money goes to your beneficiaries. Not the evil annuity company. Multi year

guarantee annuities are fixed rate annuities like CDs. I think these are

also pro senior. Because most senior citizens like my mom love CDs. Well,

multi-year guarantee annuities are the annuity industry's version of a CD

because it's a guaranteed interest rate for a specific period of time that you

choose. And you can use in an IRA or non IRA. And a non-IRA the interest grows

tax-deferred, which is good. So, I think that's good. Now, let's talk about the

ones that are kind of pushing the envelope a little bit. And I'm not saying

they're bad for seniors. They're not. But it's the one that seems to be getting

all of the negative press. First is variable annuities. I don't sell their

variable annuities. I'm a I'm a fixed only person. Because I only do contractual

guarantees. My motto is you know, an annuity for it will do not what it might

do. And variable annuities are kind of a might do. But you know, there's some

senior citizens that can manage their variable annuities and that's fine. But

at the end of the day, I don't think it's a perfect product for senior citizens.

I'm not sure. It's not a horrible product it fits in some situations. But not all

situations. I don't think it's a perfect fit. Now, the one that I get the most

calls on from seniors that probably should not have bought this product is

the fixed indexed annuity. I'm not saying that's a bad product because at the end

of the day when it was designed in 1995, it's a CD return type product. So, that in

my opinion... You know, if you're buying MYGAs fixed-rate annuities then shouldn't

indexed annuities go right beside them? Yeah, in a perfect world. But that's not

how they're sold. They're sold as market upside with no downside and

all kinds of whistles and bells attached to them and upfront bonuses that people

think are real money. Which in essence it's candy and shiny things to get you

to sign the contract. I'm not saying bonuses are bad. But this just a part of

the overall contractual guarantee. You shouldn't put any weight on the fact

that you're getting an upfront bonus to sign a contract. But I think the biggest

thing that that senior citizens have to watch out for are the surrender charges

on some of these indexed annuities. And some of them are as long as 10 years

some depending on the state you live in can be longer than that. Say, 12, 13 years.

That's a long time. So, you know, I kind of wince every time someone says, "Hey, I'm

77 and someone just sold me an indexed annuity." And I go, "What's the surrender

charge period?" Well, it's 10 years. You're going to be 87, okay? I mean, I just don't see

that being a good thing. And I'm sure there's agents and advisors can argue

against that. And I'm sure I could if I wanted to. Well the product blah, blah,

blah, blah. At the end of the day though, that's a long time to tie up your money

when you're that age. And I think you could do a shorter term multi-year

guarantee annuity that would make more sense. Remember to always ask the 2

questions: What do I want the money to contractually do? And when do I want

those contractual guarantees to happen? From those 2 answers, you can choose

the best type of annuity for your specific situation. But if you're out

there... Senior citizens or not. But especially if you're a senior citizen. You really

only have one line of defense when it comes to sales pitches with annuities.

When someone pitches to you, write down everything you heard them say the way

that you understand it. The way it makes sense to you. Well, he said this. It would

do this and it would do this. Write it all down in detail. Sign and data at the

bottom then flip the page around and have that agent and advisor sign and

date that sales pitch that they gave to you. Okay? Now, what they're going to

probably do is say, "No, I really didn't say that. That's not what that means."

They're going to clarify the understanding of what you put down. Or if

they sign it, they own it, right? But that's really the only protection that

you have out there. Do not blame the carrier. It's not the carrier's fault. They can't

regulate every single sales pitch that's out there that's not rational. And

there's bad actors in every industry. So, it is what it is. But I'm

just telling you as a consumer as a senior citizen how you can protect

yourself. But remember this: If it sounds too good to be true, it is every single

time without exception when it comes to annuity sales pitches. You have to

understand the good and the bad the benefits and the limitations. And you

have to buy the annuity for the contractual guarantee --what it will do,

not what it might do. Okay, you senior citizens or want to be senior citizens

like me. I want to be there, I want to get there, right? Hope I've helped. I don't

want to scare you. I just want to help you. I want you to understand kind of the

pitfalls and want to be aware of out there. I think you can kind of synopsize

this whole thing is simpler the better. The simpler the annuity is to understand,

I think the better it is for you. Truly. You can't explain it to a 9-year old, you

shouldn't buy it. If you can't describe what you're buying to someone, you should

never buy it. So, buy something simple transfer of risk. And I think you'll be

happy. Now, I would encourage you to go watch this video right here on immediate

annuities single premium immediate annuities. Where I dig a little further.

And most senior citizens when they need income, the single premium immediate

annuity is the best choice for them because it's a very efficient, no annual

fee, transfer of risk, based on your life expectancy and provides the highest

contractual guarantee payout of all annuity types. So, with that, I would

encourage you to sign up and get my books. Let me tell you how to do that.

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