“Fun With Annuities” The Annuity Man Podcast The Annuity Man

In this episode, The Annuity Man discussed: 
What are MYGAs and SPIAs? 
Annuities are contractual commodities 
MYGA to SPIA 
 
Key Takeaways: 
A MYGA, Multi-Year Guaranteed Annuity, is the annuity industry's version of a CD. The good news about MYGAs is that the interest rate is locked in and non-callable. This means that when interest rates go down, you’re going to be locked in. 
Annuities are contractual commodities, meaning that when you're buying them for the contractual guarantees, you can shop all carriers for the highest contractually guaranteed payout for your specific situation based on how you structure them. 
Through MYGAs, you can protect the principal, peel off interest, and retain liquidity. After the duration of the MYGA, we can then shop all SPIA carriers and transfer the MYGA to the SPIA. 
 
"You can have your cake and eat it too, you can protect the principle, you can peel off interest if needed during that duration of the MYGA, and at the end of that term, you have full control of the asset." —  Stan The Annuity Man. 
 
Connect with The Annuity Man: 
Website: http://theannuityman.com/ 
Email: Stan@TheAnnuityMan.com 
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g 
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator! 

In case you missed it, I have decided to circle back to one of my Fun With Annuities episodes that just cannot be missed. This one has annuity gold, and it is definitely a must-listen. 
In this episode, The Annuity Man and Moshe Milevsky discuss: 
The problem with annuities 
What’s a tontine? 
How income increases with tontines 
The gap between healthspan and lifespan
 
Key Takeaways: 
The point of annuities is to generate predictable income even when you can no longer make decisions yourself due to cognitive decline. That’s why agents have to make sure the clients understand and continue to understand what they are buying and what contractual guarantees they have in place. 
A tontine is one of the many strategies people use to finance themselves in retirement in which the longest-living people get the most income while the people who didn’t live a long time get a smaller amount of income.
Tontines increase the income for all living people involved as time passes because the same income amount is being split within a group that gets smaller as members pass away. The mortality rate becomes a real interest rate - this is most interesting in the current inflationary times. 
Money alone doesn’t solve your problems; just throwing money at a problem won’t make it go away. You need to do something with it to solve your problems, and one of the biggest problems in aging is the gap between health span and lifespan. 
 
"When you have a product that is meant to help people that are eventually going to cognitively decline, there's a higher burden of care there because you got to make sure that they understand what they're buying and they continue to understand what they're buying. " —  Moshe Milevsky.
  
Connect with Moshe Milevsky:
Website: https://moshemilevsky.com/ 
Twitter: https://twitter.com/RetirementQuant 
 
Connect with The Annuity Man: 
Website: http://theannuityman.com/ 
Email: Stan@TheAnnuityMan.com 
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g 
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator! 

In this episode, The Annuity Man discussed: 
Claiming your social security
You can’t time annuities 
Three phases of retirement 
 
Key Takeaways: 
Social security payments get higher if you wait until 70 because you’re older which means that your life expectancy is less, meaning that there are fewer projected payments. Fewer payments mean that those payments will be higher. It’s simple, but that doesn’t mean that that is always the better choice. 
You can’t time it with annuities, you can’t time it with lifetime income. Annuities are priced primarily based on your life expectancy. However, this doesn’t mean that you should wait until you are seventy before you get a lifetime income. 
There are three phases of retirement: go-go, slow-go, and no-go. Go-go when you are still rolling, slow-go is when you start to feel slow down, and no-go is when you have severely decreased physical and mental faculties. Make your decisions based on what phase you’re in and what your goal is. 
 
"There are no sweet spots with annuities. There's no arbitrage moment with annuities. The older you are, the higher the payment for lifetime income when you're looking at life to make them it's that simple." —  Stan The Annuity Man. 
 
Connect with The Annuity Man: 
Website: http://theannuityman.com/ 
Email: Stan@TheAnnuityMan.com 
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g 
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator! 
 

In this episode, The Annuity Man discussed: 
Owning an annuity for what it will do 
Annuities are a commodity product 
Don’t swallow the pitch 
 
Key Takeaways: 
You should own an annuity for what it will do, not what it might do. When you strip down annuities to the contractual guarantees, only then will it become commoditized. 
Annuities should be quoted from multiple carriers to get the most favorable contractual guarantee for the client. That’s the way it should be. Take note that quotes often change as carriers adjust their bid. 
Annuities that adjust for inflation are structured where the insurance company lowers the payment to make up for the potential increase. Don’t be swayed by sales pitches. Focus on the guarantees. 
 
"Once we strip it down to the contractual guarantees, then they're immediately commoditized for us to then go quote for the highest contractual guaranteed number. That's how simple this is. That's how simple the annuity industry could make this." —  Stan The Annuity Man. 
 
Connect with The Annuity Man: 
Website: http://theannuityman.com/ 
Email: Stan@TheAnnuityMan.com 
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g 
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator! 
 

The holidays are here, and so is this fan-favorite throwback! Take a trip down memory lane with this re-uploaded video - the perfect way to celebrate the break.
 
In this episode, The Annuity Man and Wade Pfau discuss:
Retirement Income Style Awareness (Risa) framework
Wade’s different viewpoint on retirement
4% rule of thumb and its limitations
The truth about retirement planning strategies 
 
Key Takeaways: 
Understanding one's preferred retirement income strategy via the Retirement Income Style Awareness (Risa) framework. It assesses different retirement strategies that align with the retiree’s needs and goals, such as total return investing, time segmentation or bucketing, and essential versus discretionary expenses.
Go beyond viewing retirement as mere cessation from work and consider it as attaining fiscal independence to pursue passions and goals without dependency on income from employment. Read Wade Pfau’s article on the 4% rule of thumb and its limitations. Additionally, explore the potential benefits of annuities as a tool for sustaining retirement spending over a long retirement.
Explore the broader international experience in financial markets and retirement planning to better understand the uncertainties and challenges involved. Consider the impact of low interest rates on bond returns and the need for diversified retirement income strategies.
 
“We need to figure out what retirement strategy works for each individual because what works for one person may not work for another. It's about finding the style that resonates with you.” - Wade Pfau
 
Connect with Wade Pfau:
Website: retirementresearcher.com
LinkedIn: https://www.linkedin.com/in/wpfau/
Twitter: WadePfau
 
Connect with The Annuity Man: 
Website: http://theannuityman.com/ 
Email: Stan@TheAnnuityMan.com 
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g 
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!

In this episode, The Annuity Man discussed: 
Explain your annuity to a nine-year-old
Why annuities seem complicated 
Ask for contractual guarantees 
Don’t buy an annuity for market return
 
Key Takeaways: 
You should be able to explain the annuity that you’re getting ready to buy or considering buying to a nine-year-old. You should be able to explain the annuity type, how it functions, how it works, and what are the limitations and benefits of it. 
Annuity contractual guarantees are simple and easy to understand, they're not complicated. It is the sales pitch given by agents and advisors that makes them complicated. 
If someone is pitching you something that sounds too good to be true then it is, without exception. Ask the agent to show you contractual guarantees. Ask them what would be the worst-case scenario. 
If you're looking for real market returns, then don't buy an annuity go in the markets so you can get real upsides. 
 
"Annuity contractual guarantees are simple and easy to understand. It's the non-guaranteed part that gets people confused and making bad decisions. Make your decision on what an annuity will do, not what it might do." —  Stan The Annuity Man. 
 
Connect with The Annuity Man: 
Website: http://theannuityman.com/ 
Email: Stan@TheAnnuityMan.com 
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g 
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!