In this episode, The Annuity Man discussed:

• Annuities that increase with inflation

• The role of interest rates in pricing

• For products that adjust for inflation

• Reverse-engineering your income floor

Key Takeaways:

• Annuities don’t give things away for free. A product that magically increases with inflation doesn’t exist.

• Lifetime income is primarily priced based on your life expectancy at the time you take the payment. Interest rates play a minor role.

• For products that have a potential or contractual increase for inflation, the annuity company will severely lower the initial income as compared to the exact annuity without the increase.

• Don’t focus on things that you can’t control. Focus on building up an income floor that suits your needs. Compute the number you’ll need to cover your expenses; we can reverse-engineer a product for that.

"It's math to the annuity companies. It should be math to you. If it sounds too good to be true, it is every single time. " — 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:

• CDs and MYGAs

• I-bond no-brainer

• The safest product in principal protection

• How safe are MYGAs?

Key Takeaways:

• Here’s how CDs (Certificate of Deposit) work: you give the bank money, they protect the principal, and you don’t have to pay any fees. You can take the interest if you want to at the end of the term and do what you want with your money. MYGAs are basically the annuity industry’s version of a CD.

• Treasury bonds are a no-brainer. Go to treasurydirect.gov to buy them for yourself. The only downside of treasury bonds is that there’s a limitation on how much money you can put in it.

• Of these three safe principal protection options, treasury bonds are the safest because the government can tax or confiscate money in order to pay it, and they will. The second safest one is CDs since they are government-based as well.

• MYGAs are safe products to invest in, and their safety is based on the annuity company’s ability to pay. They are commodity products, and the money you’ll get from them can be used to buy another MYGA from another company. However, you can’t put all your money on annuities; you got to spread it around.

"This trifecta is a contractual guarantee: CDs, Treasury's, Multi-Year Guarantee Annuities. You’re owning these because of what they will do, not what they might do. You're buying the yield. The yield is contractual." — 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:

• Products that adjust for inflation

• Thinking rationally about inflation

• Reverse-engineering annuity

Key Takeaways:

• Many bad sales pitches out there mention a way to beat inflation using indexed products that adjust for inflation. What really happens is that the annuity company severely lowers the initial payment to make up for any potential increase.

• Think rationally about inflation. It’s customizable to everybody, meaning not everyone is affected the same way. Some are not even affected at all.

• Start with the goal or the need. How much more do you need in order to live the life that you want? To solve for that difference, you’ve got to shop all carriers and see which offers the highest contractual guarantee that will fit the goal or the need.

"Just hold until you need to fill the gap in income for inflation. Don't be proactive; don't throw darts at it. But if you do want to throw darts - let's buy income that starts at a future date." — 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!