Episode Transcript
[00:00:05] Speaker A: This is Annuity Straight talk. Since 2008, your host Brian Anderson has helped clients nationwide navigate the complex market for annuities. With Brian's assistance, hundreds of clients have achieved a profitable and secure retirement. You I would know because Brian has answered many of my questions concerning annuities and retirement planning so that you can benefit as well. Let's get started here's brian.
[00:00:47] Speaker B: Hello and welcome, everyone, to the Annuity Straight Talk podcast cast episode number 106. My name is Brian Anderson, founder and creator of Annuitystraytalk.com piling up the episodes. Always good content, especially when you are like me, and you could do a little searching for annuities just to see what's out there. And then you start getting hit with ads all over the place.
Some are good, some are good people. Some are just out to get your money. So that's why I'm going to talk about the 9.3% Annual Annuity Return that's been splashed all over.
I know when I go to my YouTube channel to check out the videos, it pops up above mine. So they're buying Annuity Straight Talk as a keyword, that's for sure. Let me share my screen while I do that. I want to remind everyone to follow along on your favorite podcast platform or on YouTube. Hit the like button, hit the subscribe button. You'll get notified when it comes out.
Share it with your friends. A lot of people like this, and I think a lot of people need to see it. So whatever you think is best. But I would appreciate you guys getting the word out there. My time is limited and try to leverage it as much as I can and help as many people as possible.
So here's the newsletter. 9.3% annual Annuity return.
I started learning about annuities. Like you, I searched for what I could find online. I told everybody that went to the library. There wasn't a whole lot of stuff out there 1520 years ago.
Now there's a lot more information, but it doesn't mean it's good or accurate. A lot of what the majority of it is sales oriented. It's just trying to entice you to buy something. And whether it's the right thing for you is not the concern of the people that post the information online. There are very few, if any, resources out there that are just one guy talking to you and trying to help you figure things out. A lot of them are bigger organizations. We'll continue to talk about that throughout this podcast. But you need to know what you're looking for, what you see. And just because you see one of those things and maybe it's not on the up and up, it doesn't mean that there aren't good people out there trying to do their best to help. But those are the exception rather than the rule, unfortunately.
So ads like the one I'm going to talk about today go back to as long as I can remember, they made certain people millions and millions of dollars.
I like to call them clickbait, get them in. Then they bug the hell out of you till you buy something.
They draw you into the site, they get your information, and then you start getting phone calls. Professional salesman takes over and you just can't say no. A lot of these guys are out there, oh, we got this secret. We have the exact wording that you need to get them to make a decision. I'm not into Jedi mind tricks to sell annuities. There's plenty of good reasons to do it, and I want you to understand why you're doing it.
In this one particularly, the problem is there are a lot of ways to portray an interest rate, but a lot of consumers, because you guys don't do this every day, you're only going to see it one way.
So when you see a rate like this, a lot of people, wow, it'd be really great to just grow my money like that. That's awesome. But it actually means something entirely different. A lot of different things.
There are a lot of strategies that exist to make you think a greater yield is available.
Bonuses. Companies use bonuses to make the first year look good. Maybe they're just an income bonus. Maybe it's not real money.
You're going to pay for it on the back end. The yield in the first year is going to give way to a much lower yield than the following years, with the result being an effective yield that falls short of what you could get with a more simple product. Idiots with a license sell stuff like this to make money from people who otherwise would not even consider annuities. So when I started in this business, there's another young guy that started. He was a couple of years older than me, but he started about the same time I did. We both figured out that annuities were going to be a good product to learn about, going to be value to some people.
And we were trying to sell fixed annuities to people that want to protect money. So CD alternatives, just basic simple stuff. I chose the long term guaranteed fixed rate. He chose a contract that had a big bonus and paid a higher commission.
I said, how can you sell that 10% bonus when it only yields 1% per year? After that? Oh, they don't know. They just like the 10% and plus I'm making a huge commission. He was making three times as much money as I was. The contracts I sold had a much better yield in the long run, but he made more money.
That was my very first experience with self dealing and it hasn't stopped since. I'm not going to call him out by name because it's been almost 20 years.
And he was a nice guy. I got along with him really well. I do not know if he's still in the business, but here's the ad. As you can see on the screen, 9.3% annual annuity return.
Get guaranteed lifetime income without any risk. Maximize your savings and income today.
So what it's probably talking about is an annual payout. But people are going to see the 9.3%. You're going to go learn more. I'll show you what you see when you learn more. So most likely talking about an income payout, everyone's going to interpret it differently.
If it is an income payout, then it depends on several factors. So it's not immediate income. The age you are and how many years you defer the payments will make the biggest difference. The 9.3% will not apply to anyone, but you're not going to find that out until after they give your name to five or six people that start calling you. It's a stated return indicating payments, not an interest rate. So you have to be aware of what it really means. If someone tries to pull you in using a phony claim like this, is it really somebody you want to do business with? I'll show you real quick. So if you click on that, which I did, you get all sorts of stuff. 8.5%.
The 9.3 was just a couple of weeks ago and sometimes you see it pop up. Right now they're doing 8.5%. But go search Annuity straight talk on YouTube. I bet they pop up right above it. Enjoy market like returns without the market like Volatility. That's talking probably about a cap rate like a cap on the S and P 500. But it's not an annual return, it's a potential return.
Big difference. Guaranteed Retirement Income receive guaranteed income payments for life. Even if you reach 120 years of age.
What if you lived to 121? They'd still pay. Why'd they pick 120? I don't know. 17% purchase bonus. You can receive up to front upfront bonus of up to 17% on your money. Again, you pay for it on the back end. But these are all just clickbait advertisements.
Yeah. Put your name, number, zip code, all that stuff in there. Guys, this is a marketing company just trying to get your information. That's all it is, right? They're going to sell your name off to an agent. They have no vested interest in you except for getting you with the most aggressive guy so that they can get a piece of the commission when he sells something. That's all they're doing. Most of the people are going to fall for this, are not going to realize what it means for several years. By then, they're locked into an annuity contract after finally learning about the reality of the sales pitch. I have seen this hundreds of times. It's always something similar to somebody will tell me I'm earning 9.3% of my money and that's never what it really means. After 20 years in this business, I can say rates like that preceded me by more than ten years. So they haven't been around. Annuities can do all sorts of things, but you should never rely on an advertisement to get what you want. So a lot of times the fixed or fixed index annuities will have a first year yield that is enhanced by an initial bonus. It does not indicate the long term yield you can expect. And often annual increases on guaranteed income payments are stated as an annuity return secret. There's another guy out there annuity return secret. And it's simply an annual roll up and increase in income payments for waiting. Just like Social Security. Everybody knows how Social Security works.
Got to draw the comparison to this. Both of them are annuities. One of them is in your control. One of them is in the federal government's control. No matter how you look at it, there are salespeople who will present a flashy percentage just to get you in the door and maybe sell you something that's not for you or then switch gears and just try to sell you anything. It's no different in this case.
So the site that promotes it run by an insurance marketing organization. One of those companies that brokers insurance contracts to agents and advisors, they receive a commission. One of their agents sells a product.
They'll do anything to get your name on the list, only to sell your info to a hungry agent. So the marketing companies are competing with each other, right?
And if they've got free leads and the agents, oh yeah, we'll do business with you, switch around. I don't switch anymore. I'm just tired of it. But I get people all the time calling me. So if you buy something, both those parties, the marketing organization and the agent, are going to get something out of it. If you're buying only on that type of ad, or if you don't realize what it actually means, you might be left with something that may or not be what you expect. So don't rely on third parties that hold no liability for the outcome of your retirement. Those guys are not going to be around if you buy something that does not work out. These guys do not have anything to offer that's not available from another source. I can in all likelihood get everything they're talking about, but I present it in a different way because we're talking about education and trying to do the right thing. Now, you might get lucky and end up with something good if you do it. Wouldn't you rather be absolutely sure?
That's why I've got several people we work for three, four, five months. More people contact me two or three years ahead of time just to get an idea. They follow along, they learn a lot of stuff. And then when it's time, when they can remove money or when they retire, when the timing is right for them, when everything else is out of the way and it's time to make this decision they're doing with a whole lot more confidence than you would if you're following the clickbait ads and talking to those guys that are just trying to get you to close quick. Right? If you know the difference between the two, then it's likely that we'll get along just fine. Anyhow, this is what you're going to see out there. Many of you probably already have. I would not be surprised. But this has been episode 106, trying to open your eyes to the good and the bad out there. You guys can decide what you want. You might meet a nice guy. You might meet a decent agent. There are probably plenty of decent agents that are just trying to get in front of people and don't know how to do it.
They can't go back 15 years like I have and have all this written work and have the audience that I do. But I'm also putting a lot more time into it. A lot of people don't understand how it works.
So you might get a nice guy. It's possible, but you're rolling the dice anyway. Episode 106 9.3% Annual Annuity Return colin BS on it. Guys. So there it is. Go ahead and subscribe or comment on any of your favorite podcasts platforms, wherever you get them. YouTube channel is big. If you want to see the video, you want the visual AIDS that works as well. I appreciate you guys joining me as I sit here before I go on a hunting trip. Thank you so much for stopping by. I will catch you down the road. Okay, goodbye.
[00:11:47] Speaker A: You have been listening to Annuity Stray talk.
The precision information is for informational and educational purposes only and does not represent tax, legal or investment advice.
The views expressed by guests on this program are their own and do not necessarily reflect the views of Annuity Straight Talk or its partners. No information presented today should be acted upon without meeting with a qualified and licensed professional.
It is important that you read all insurance contract disclosures carefully before making the purchase decision.
Guarantees are based on the financial strength and claims paying ability of the insurance company.
