What Is The Difference Between An Annuity And An IRA? - YouTube

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

including yours. I'm wearing all black today not  because I'm a Johnny Cash fan or it's Halloween.  

Just because I'm wearing all black. But I'm  throwing the light blue cap on because I'm from  

North Carolina and that for all of you  basketball fans... I guess football fans too.  

They're pretty good, is that's their colors.  University Of North Carolina. today's topic:  

What's the difference between an  annuity and an IRA? Like an account,  

an IRA account or an annuity? Let's  talk about that but not until we hear

music. Okay. So, what we're going to  talk about today are the annuity types.  

You have the multi-year guarantee annuities, fixed  index annuities, variable annuities, all that  

stuff. And the account types IRA, Roth-IRA and  non-qualified. We're going to go over all of that  

in detail. So, remember you can put an annuity  inside of a Roth-IRA inside of a traditional iRA  

and inside of a non-IRA. We call that a  non-qualified account. So, just remember,  

whether it's a single premium immediate annuity,  multi-year guarantee annuity, fixed index annuity,  

deferred income annuity, qualified longevity  annuity contract which is used in IRAs,  

just understand the guarantees are the same, the  taxation of it coming out is different. But you  

can have it in all account types. IRA, Roth-ira,  non-ira. Let's talk about the types of annuities.  

There's multi-year guarantee annuities,  MYGAs, that's the annuity industry version  

of a CD. There's fixed index annuities. That's  a fixed annuity, also a cd product. It does have  

the accumulation value that's tied to a call  option. I need to get my book on that. Go to  

the annuityman.com and I'll send you the book on  that. Then there's a deferred income annuity which  

is an immediate annuity that you can defer as far  out as... As short as 13 months, as far out as 40  

years. Then there's a qualified longevity annuity  contract, QLAC that can be used in a traditional  

IRA and some employer-sponsored plans. And you can  use that for future income needs and you can defer  

as far out as age 85 before the income starts  but you don't have to go that far. It can start  

sooner than that. Then there's variable annuities.  I don't sell variable annuities. I only sell  

things that are fixed. Products that are fixed  for the will do part. You own annuity for what  

it will do, not what it might do. And the will  do is the contractual guarantee. So, variable  

annuity. And variable annuities nothing wrong  with them. They have mutual funds inside of them.  

They call them separate accounts. And they were  put on the planet in the 1950s for tax-deferred  

growth. And finally, the granddaddy of them  all --single premium immediate annuities  

that were put on the planet in the roman times.  Those are (in my opinion) the best annuity for  

immediate income right now what I call income  now. That's a single premium immediate annuity.  

Okay. So, let's dig in a little deeper about  the types of IRAs that you can put an annuity  

inside of. You might have a traditional IRA that  you have contributed to over all these years.  

You might have had a 401(k) that you've rolled  into an IRA that you can put an annuity inside  

of. You might have inherited an IRA and then  there's the Roth IRA. That's non-taxable.  

Alright. So, I get a call the other day from the  infamous Ernie, right or Chester as I normally  

call him. That calls me all the time on the phone.  I use the name Chester because that's the typical  

person that calls me from the south, right? Like  my uncle Chester. And Chester will call and he'll  

say something like this, "I just bought an ira  annuity." No, you didn't, Chester. You bought an  

annuity inside of an ira and there's a difference.  And I think a lot of times when people buy  

annuities from bankers like young bankers... You  know, I have cowboy boots older than most bankers.  

I mean, I've been in the business a long time.  There's a lot of blurring between the lines on  

the definition of an annuity in the account type.  You can have an annuity inside of a Roth-ira,  

inside of a traditional ira, inside of a  non-ira. But the annuity is separate. Think  

about the annuity and ira conundrum like this.  The ira, the Roth-ira the non-qualified account  

is the house, okay? The annuity types, the  mygas, QLACs, DIAs, SPIAs. All of that,  

that's the furniture that goes in the house, okay?  So, you have the house which is the account type  

and then you have the annuity that's inside that  specific account like an IRA, non-IRA, Roth-IRA.  

Now, the guarantees of the annuities are the  same as I told Chester. He didn't believe me at  

first but now he does. It's just the taxation  issues as you bring money out. That's it. So,  

in YouTube world, the world that we're in right  now me and you, you're watching this YouTube,  

you might not be familiar with this. I certainly  wasn't about a year ago when we started all these  

videos. But what you can do if you're like  Chester that calls me up and says, "I got  

an annuity ira or an ira annuity." And you really  have some questions, you can leave a comment.  

We'll respond. So, when you have an annuity of  any type inside of an ira or traditional ira,  

the taxation is going to be the same. You've been  deferring this whole time with the ira. Think of  

the irs tapping you on the shoulder. So, when  you take money out, it's going to be taxed at  

ordinary income levels. So, a common question I  get all the time, Stan The Annuity Man is, "Stan,  

which annuity type is best to put an ira?" There's  no good answer, just bad sales pitches. It really  

comes down to your specific situation. And  remember the two questions I always ask.  

What do you want the money to contractually do?  When do you want those contractual guarantees to  

start? And from there, I can narrow down to (A)  if you need an annuity. And if you do, what type  

is going to provide the highest contractual  guarantee for your specific situation. So, get  

this question all the time. People are looking at  annuities we've gone through the process of asking  

the two questions "What do you want the money to  contractually do? When you want those contractual  

guarantees to happen?", We've come up with the  right specific type of annuity that's going to  

provide the highest contractual guarantees for  your specific situation. So, then the last part  

of that puzzle is "What account type should I put  it in? Stan, I've got a Roth-ira. Stan, I've got  

a traditional IRA, 40(k) type thing. And then I  have just cash. I have a non-qualified account.  

Those are things that me and you need to talk  about. There's no perfect answers in the annuity  

world, just bad sales pitches. Never forget that.  But we will come up with a plan based on your  

specific situation whether that annuity guarantee  that you're looking at, whether it's principal  

protection or income for life, whatever we've  decided that fits for your specific situation,  

I will weigh in with my 3 decades of  experience on where that would fit best.  

It might fit best in your Roth it might fit  best in your traditional IRA, it might fit best  

in a non-IRA. But that's something that we need to  talk about. And by the way, if anyone ever says,  

"Well, you never put an annuity in a traditional  IRA." That's garbage. Garbage` in french. Why?  

Because the guarantees in an annuity work inside  of a traditional IRA and it might make sense for  

you to do that. So, don't listen all the noise.  Listen to stan the annuity man. That's the reason  

that me and you need to talk. You can go to my  site at theannuityman.com and set that appointment  

and we'll have that conversation. Hey, thanks  for joining me on this video. I do encourage  

you to go to my site theannuityman.com to  run your own quotes. You can also get my  

books. I'll ship them to you for free and under no  obligation. And you can schedule a call with me,  

Stan The Annuity Man, 1 on 1 for 30 minutes.  I will listen to you. I'll put together a  

customized plan and I'll even tell you if you do  not need an annuity. Hey, do me another favor.  

Hit the subscribe button on the way out and I'll  see you on the next Stan The Annuity Man video.