Are Fixed Indexed Annuities A Good Investment? - YouTube

You got guarantees. You're saying got guarantees. Was that? Remember "Got Milk?"

The "Got Milk?" ad? I love that. Had the milk mustache. How about the annuity

mustache. Got guarantees should be the annuity industry's mantra. 2 words

because that's what they are. They're contractual guarantees. They're transfer

of risk products, period. End of story. So today, we're going to talk about "Are

fixed indexed annuities a good investment?" If you're a living, breathing

human being with a bank account then you're probably going to get pitched and

indexed annuity by somebody. Because it's a good story. It really is. But the

reality is a little different than some of the pitches you might hear. And we're

going to go through all of the indexed annuity. Good and bad the stories of the

pitches you might hear. The bad chicken dinner seminar stuff. But at the end of

the day. you're going to get the truth. And you're going to get the facts about these

products. And find out if they make sense for you. And at the end, I'd love to send

you my book on indexed annuities. I've written the fixed indexed annuity

owner's manual. It's very thin. It's about 70 pages. Good and the bad the ugly. And

anything that I forgot and this a YouTube video is covered in that book. So,

if you can hang in there with me, I'm going to tell you how to get it for free

and under no obligation to continue that annuity education and that Questor on

right now. So, let's get started.

Okay, fixed indexed annuities, indexed annuities. In the past, they were called

equity index annuities. But they can't say equity indexed annuities anymore. Why?

Because they are not securities. Fixed indexed annuities are life insurance

products. And they are approved at the state level. And in order to sell them,

you have to have a life insurance license to sell a fixed indexed annuity.

Now, they were put on the planet in 1995 to compete with CD returns. So, yeah.

They're new to the public because they're getting pushed really heavily

right now. But they've been around since 1995. I remember because I was here. I was

in the financial services business. I remember they first came out. And they

were pitched to us as a CD product. And guess what? Historically, that's kind of

what they've done. So, I know that's not what you hear out there. You hear mark it

upside with no down side. Market participation all that stuff. And that's

fine. But historically, the returns are in the CD return level. And that's what they

were designed to do. And guess what? That's what they do.

Indexed annuities... And that's let's just call them that just to make it simple.

Indexed annuities are a fixed annuity. So, your principle is protected. But the gain

part of it, the accumulation value part of it is attached to what's called in a

call option. Meaning, you're betting that the markets are going to go up.

And typically, that call option is attached to an index like the S&P 500.

But what you need to know these indices, index like S&P 500 does not

include dividends. Which is a big deal because over 50% of the returns

of S&P are dividend-based. So, in essence, you're saying, "I believe from contract

anniversary date. The contract anniversary date with most of the

contracts." it's going to go up. And if it goes up, I'm going to capture a portion

of that gain. Now, you need to get the book because we could spend hours on

this topic because there's ways, there's caps of what's called caps and spreads

on the limitations on the upside. You also need to know that the gains are

calculated at their discretion which I'm not saying that that's bad. I'm just

saying you just need to know that. That sometimes their renewal rates on these

aren't as good as you might expect. And also too, it's

just a high commission product as compared to some of the more simplistic

annuities out there. So, a lot of the newer people or people that aren't

really educated about annuities as a whole, as a group, they're pushing this

one product is a one-size-fits-all. It's not a one-size-fits-all at all. So, index

annuities a good investment? Maybe. Let's talk about benefits and limitations of

the product. Benefits to me is that the gains portion, that index option portion,

it does lock in permanently if you have a one-year option it locks and after the

one-year if you have a 2-year option And when I say that a lot of the

products are different. So, you can't make a carte blanche statement on this is how

it works. Bottom line is the gains lock-in. The other thing I think is good

it's a fixed annuity. So, you're not going to lose any money because it's fixed. But I

really like using fixed indexed annuities for a very efficient and

low-cost delivery system for income riders. And income riders are attached

benefits to a policy that you can use for future income. And with indexed

annuities, income riders do work and we do like attaching them for income later

quotes. Now, limitations. I think a lot of the limitations on the indexed annuity

story comes down to how they're pitched and how they're sold. I don't blame the

carriers that all. The carriers are putting out the information and if you

look at their sales material, it's pretty straightforward on how they work as such.

Or some of them a little piped. But most of the problems we're running into in

the industry has to do with how agents and advisors are selling indexed

annuities. And how they're promoting them as almost too-good-to-be-true products.

They're not too-good-to-be-true products. There's CD products. You can attach an

income Rider. But at the end of the day, they're contracts. So, it's not too good

to be true. So, I think the limitations really revolve around the sales pitch.

Which is unfortunate. I think if people understood that they're going to get CD

type returns and they could attach an income Rider to it for future income

needs, that's fine. They should also quote defer to income annuities as well. If

they're looking for income later. But the other part about is indexed annuity

good investment? One of the things that happens out there is a lot of index

annuities have what's called an upfront bonus to sign up and you're saying, "Hey,

that sounds great." Just remember there's no philanthropist those who knew we do

companies give them money away. It's just part of the contractual guarantee. It's

what I call a shiny thing. And shiny things attract people to the policy. But

there shouldn't be a lot of weight placed up on that. So, you know, just as a

safety measure for you as the consumer, what I would do is if you're getting

pitched in index annuity, write down everything that agent says. The way you

understand it and have them sign off on it. You sign and date it have them sign

and date it. In other words, flush out the truth a

little bit. You can always contact us. We can run index annuity quotes for you.

Send you the book and you know, you can understand really how they work and not

buy something... Not buy hopes and dreams by the contractual reality. That's really

the bottom line with index annuities. You have to be careful on what you're

going to hear because if you go to the bad chicken dinner seminar or the expensive

steak dinner seminar and you hear the sales pitch, that's just all the sizzle.

They really haven't told you the steak part of it. And you need to know that.

Okay. So, I threw a lot at you with the indexed annuity stuff. Now, I've done

another video here. It's called "How fixed indexed annuities work?" Where I kind of

went deeper into the index call options and those type of things. So, I would

encourage you to take a look at that one as well. You shouldn't buy an indexed

annuity unless you read this book. And I'm not saying I'm you know the John

Grisham of annuity riders but I am. Actually, I am. Well, I guess not because

he's like a fictional. Right? This is the truth. I mean, it explains how all of it

works. I get in the weeds. You'll know how the annuity sausage is made. So, I

encourage you to get that. And let me tell you how to do that. After you click

the subscribe button which is your first step. Step 2 is you go to the "more info"

button underneath me. Click that. There'll be a drop down. You'll see all kinds of

stuff. Look for the one that has a link to the books. It'll take you to a page

where you can fill in your shipping information and we can ship you those

books. In about 7 to 10 days, you'll get you'll get this book. In fact, we might

ship you the others. I'm not sure what we're doing that. We might be shipping

all the owners manuals. But at least you'll get this one.

And then if you want to indexed annuity quote, you can contact us at

stantheannuityman.com for everything annuity. I am licensed in all

50 states. See you next time.

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