Annuity Examples | Fixed Index Annuities - YouTube

Hi there. Stan The Annuity Man, America's Annuity  Agent, licensed in all 50 states. Top agent out  

here. Thought leader. Book writer, article writer,  speaker on annuities. Really? Speaker? Yes,  

we're speaking right now. Today's topic is  a good one. Lock in. Put on the seat belt.  

Examples about fixed indexed annuities. Annuity  examples on fixed indexed annuities. The truth,  

the facts. Not some unicorns chasing the  butterfly hypothetical, theoretical, projected,  

agent hopeful... "You're going to get  this if you put the money in here"  

joke pitch. I'm going to strip all this down.  Do I hate indexed annuities? No. Absolutely not.  

I hate how they're sold. Fixed index  annuities are good products but they're  

not too good to be true. But I'm going to  rip through all of that after this music.

I'm going to adjust my ball cap a little bit.  People say, "Wait a minute, Stan. You got all  

these you know logos and hats." Of course, I do.  Why wouldn't I? Walk through airports be like,  

"Hey, Stan The Annuity Man. How are you doing?"  I mean, they do that. It's great. I mean,  

I love it. I live it. I live this. Let's jump  into index annuity examples from a return  

standpoint. People be like, "Well, if I could  get 7 to 9 percent every year with principal  

protection, I'd really like that. Yeah, I'd like  six-pack abs too but that ain't going to happen.  

Ain't enough crunches in the world player. If you  know what I mean. With indexed annuity returns,  

just look at it and say, "I'm going to get 2 to  4 percent. If I get a little bit more than that  

1 year then high 5 it. Great!" But 2 to 4 percent  with principal protection. And that 2 to 4 percent  

locks in. Now, your agent is going to see this  video and you're going to show them the video.  

Hey, "Stan The Annuity Man said 2-4 percent."  And they're going to say, "Well, if you'd owned  

it 10 years ago, you got 7, 6, 12, 14..." Just  stop, okay? Stop with the backtesting. In fact,  

in some states, it's illegal to show back-tested  numbers. I wish it would be illegal across the  

board because that's nonsense. That's like saying,  "You know what, Stan? If you were to run 10 miles  

a day and just eaten vegan your whole life  you'd be thin. You'd be really thin." Whatever,  

okay? You can't be that dumb to base your decision  on a back-tested number when things were different  

back then. Just think 2 to 4 percent. There's  nothing wrong with that, okay? There's nothing  

wrong with that. Now, indexed annuity examples,  the return is primarily based on an index call  

option. I'm not going to get in the weeds but in  essence, in the south, call option means "I think  

it's going to go higher". That's a call option.  And most indexed annuities have at what's called  

a contract anniversary date when it's issued. And  then there's a call option to the next contract  

anniversary date. Or if it's a 2 year, it's a  contract anniversary date to 2 years from now. The  

bottom line is you can lock in those gains that  are limited by the company with caps and spreads  

and participation rates. And oh by the way, I've  done videos on that. If you're at this site,  

you know, obviously you are. You're watching the  video. There's playlists, go to the playlist and  

you'll see index annuity playlist. I have rift on  indexed annuities in detail. And I've written a  

book on it. Fixed index annuity owner's manual  that I'll send to you for free. Just go to my  

site at theannuityman.com and sign up. No one's  going to call you. You only have to go to a bad  

chicken dinner seminar. Most of the time when  you hear about index annuities, you have to go  

to the bad chicken dinner seminar. And this guy  in a bad leisure suit is up there going, "Yeah,  

market upside with no downside. And you get an  upfront bonus and you get free long-term care."  

And all this nonsense. Remember, upfront bonuses  candy for the stupid. Don't be stupid. No one's  

giving money away. There's no philanthropist at  annuity company it wakes up in the morning and go,  

"You know what? I really like humanity. And I'm  going to give money away because of it." No,  

there's not that person there, okay? Up-front  bonuses and all that stuff is just part of  

the overall contractual guarantee. Now, the  way... You got to say, "Well, wait a minute,  

Stan The Annuity Man, America's Annuity Agent,  you're bashing. You're on a hard bash here.  

Tell me how you use it, player!" Alright, let  me tell you. We use index annuities as a very  

efficient and cost-effective delivery system for  an income rider. What's an income rider? Income  

rider is a guaranteed income that you can start at  a future date that you choose. Let's do a visual.  

Draw a line down the middle of a blank sheet of  paper. This side is the accumulation value side.  

The index option side. We don't know what's going  to happen there. All we know is you're not going  

to lose money. This side is the income rider side.  Phantom account monopoly money. But grows at a  

high percent that you can only use for income. You  can't cash it in, you can't peel off the interest.  

It's nothing fungible. You can't get your money  out. You can only use it for the first lifetime  

income stream payment calculation. I get this  call from Chester the other day. Chester is like,  

"Hey, Stan The Annuity Man, I just bought  an 8% annuity." No you didn't, Chester.  

Jimmy Carter is not in the office. He's building  houses in Georgia. That's an 8% income rider,  

okay? That is monopoly money in a phantom account  that you can only use to calculate income with  

that income rider, lifetime income stream. That's  okay if you know that. And you're not falling for,  

"We'll I got an 8% annuity." No, you don't. You  have an 8% income rider and we're going to use  

that for lifetime income. But don't get enamored  with the percentages of income riders. Okay,  

we shop all carriers. All carriers, all income  riders for the highest contractual guarantee  

for your specific situation. Some carriers want  people at your age range when you turn it on, some  

don't. And they're going to price it accordingly.  They're going to... The ones that want you are  

going to have the highest contractual guarantee.  But that's how we use indexed annuities. Do we use  

them for the accumulation value? Just that index  option side? Not much. Not much but sometimes we  

use it as part of a ladder. Maybe a fix. We have  what's called a mix fix ladder which is combining  

multi-year guarantee annuities which is a cd  type. The annuity industry's version of a cd  

and indexed annuities. We might use it for that.  But just as a standalone, typically not. We use it  

with the income rider guarantee. Now, the good  news about index and news is another example  

that I can give you that I really really like...  Remember I talked about earlier in the video the 2  

to 4 percent return? Great, right? that's going to  lock-in. So, let's just say one year you got 4%.  

It's going to lock in permanently. Never ever,  ever, ever, ever, ever, ever going to go below  

that amount, ever! That's good. So, let's just  say the first year example locks in at 4 in the  

next 2 years the market takes a big dump. This  way. Great! The third year, you're still here.  

You haven't gone down in value. That's good,  right? But just put your return expectations  

in line with the contractual realities of the  policy and also understand this: The annuity  

company can change how those gains... That side,  remember that left-hand side, the income option,  

the call option? They can change the caps and  spreads and participation rates. In English that  

means limitations on the upside. They can change  that at their discretion without talking to you  

or without talking to me. That doesn't make  it horrific. That just means that it is what  

it is. So, if you get this huge teaser rate the  first year, it might not be that the second year,  

the third year and ongoing. So, that's index  annuities. What I want you to do is don't fall  

for the sales pitch. Don't trust what you've been  told. Do not. I don't care if it's your brother,  

your sister, your brother-in-law. I don't care. If  they say, "Trust me, this is the best one", wrong.  

It's not. Okay? Indexed annuities unfortunately  is what's giving the annuity industry its bad  

reputation from a sales practice standpoint. I  mean, when people are standing up saying, 'Well,  

you can get market participation with principal  protection", that gets your attention. Well,  

it should because it's not true. I mean, there is  no such product. If there was a product like that,  

then the fed would just buy that product. Then  institutions would just buy that product. And  

for all you agents out to go, "Well, that's a good  idea, I think I'm going to call an institution".  

Please do so you can get blown up. I mean, come  on! For the agents that are listening to this,  

stop. Tell people the truth. It's a 2 to 4 percent  return. Yes, you could get more than that in some  

years. But the blended return is like a MYGA type  return. So, just realize that. I mean, don't fall  

for the dream sales pitch. Because you're going to  own the contractual realities. Hey, and one last  

thing. If the agent or advisor that's trying to  sell you the indexed annuity says the following,  

"zero is your hero", stand up and smack the crap  out of them. That's the dumbest statement of  

all time. Zero is not your freaking hero. I hate  that! So, if someone says that, you can verbally  

slap them or you can literally slap them. There's  some exposure there legally but that's your call.  

I'm just saying that's dumb and if someone says  that as an agent or advisor, they're either very  

very young or they're a straight-up sociopath. And  they have absolutely no clue what they're talking  

about. Here's the other thing: These aren't  one-size-fits-all products. I mean, if you  

go into the your bank or your brokerage firm or  your advisor and say, "You know what? I don't feel  

good. I know I don't have covid but I've got like  the stomach issue and my arm hurts and I think  

I've twisted my ankle. What would you advise me to  do? And their answer is indexed annuity, they're  

not listening to you. Remember the 2 questions  --"what do you want the money to contractually do?  

And when you want those contractual guarantees  to start?" don't fall for the hype as they say.  

And with that, hey, share this video. Like this  video. Click this video. Subscribe to this video.  

Do everything you want to this video. But continue  to watch the videos. I'm Stan The Annuity Man.