Speaker 0 00:00:05 This is annuity straight talk since 2008. Your host Brian Anderson has helped clients nationwide navigate the complex market for a new audience. With Brian's assistance. Hundreds of clients have achieved a profitable and secure retirement. 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 <inaudible>.
Speaker 1 00:00:47 Hello and welcome everybody to the annuity. Straight talk podcast, episode, number a show called, is it like seven or something? I'm going to guess lucky center. Okay. Well, we're losing drag. We're really getting on a, on a roll here. My name is Brian Anderson owner and creator of annuity straight talk.com. My co-host is the, uh, ever so intelligent, uh, show ground GC. Hello, sir. Hello Brian. I'm the founder and creator of top planning in Kirkland, Washington. Guess we call it sister firms right now. So we're doing a lot of work building a group of people. We had the firefighter on last time. So you guys got a chance to meet him. He's a great guy down in Missouri in a showcase, the guy in Washington, we're going nationwide nationwide. Well, there's a lot of people that need help. And so what I was going to tell you a show, as I look at the podcasts that are available for annuities, and there's a couple of there's one other real consistent one, not going to mention him.
Speaker 1 00:01:37 He's a competitor, obviously. So not giving him a plug, but a lot of the ones that I see are for agents. And so just as a notice to consumers is if I listened to those agent podcasts, they're all talking about tricks to get people, to buy annuity. So you've got to say this, and then you get them to do that. And if you do this the right way, you can get them to move their money on the second meeting. And I just want to tell you that neither one of us is like that. Our goal is to educate first and foremost. And even if that education leads to you, deciding an annuity does not work, the goal is just to help people make good decisions one way or the other. Okay. Anything else to say to that? I would completely concur. I know there's a podcast put by person who I know, and he would actually go by, he'd say you got to stump the chump and you just have to rattle off any single objection that one of our listeners might provide.
Speaker 1 00:02:32 And there would be sort of this mental judo. Like I can immediately flip that around and I just said, this isn't for me. I just want to talk straight. And that's why I'm here. Yeah. What if you make people feel bad about themselves when they leave your office? No, that's not the right way to do it in my opinion. So a shock, you had a good idea and we're actually going to make this a two, maybe a three-part series, but just talking about the basics of some of the popular products out there. So why don't you tell everybody what it's going to, what we're going to do today? We're going to talk about something called the G w B writer, G L WB is an acronym for guaranteed lifetime withdrawal benefit. And what that means is that when you put your money into a fixed deferred annuity contract, like a fixed index annuity, you can have lifetime income without having to what's called a new attire.
Speaker 1 00:03:20 You don't have to give the carrier your money in exchange for a stream of payments. You actually still have possession of the money. If that money goes to zero, the carrier keeps making payments for as long as you and or your spouse is alive because of that writer that's on the contract. So again, it's called the GL WB writer. That's usually found on a fixed indexed annuity. I believe variable annuities have it as well. How am I doing so far? Yeah, variable annuities. I think variable annuity started with it, but we'll get to that a little bit later. That's a good explanation. And I think that pays to kind of put a little more into the idea of annuitizing where that's kind of been one of the long-term complaints about annuity products in general is that guaranteed income payments. Typically you call it a new enticing of the certain assets where you exchange the investment funds for a monthly income in retirement, but you lose control of the asset.
Speaker 1 00:04:15 And the GL WB was placed on deferred annuity products so that you could maintain control of the cash balance. That's correct. And it was really designed for income. So it's a wonderful planning tool if you use it for lifetime income, because what if you have a hundred thousand dollars, let's just say that guaranteed lifetime withdrawal benefit is $5,000 per year. You live to year 21, that carrier keeps making the payments. So, you know what certainty that your money, this will be a weld that doesn't run dry, but you don't have to lose control of your money to do so. Right. And I was to help you. If you live to be a hundred years old, that's typically a really, really good deal. And then alternate strategies go for a, well, I guess we can talk about some of that later, but let's just explain the product in general.
Speaker 1 00:05:03 And then we'll use a couple of the other episodes go into some alternate ideas. Yes. The stream of payments, for example, are guaranteed by the claims paying ability of the underlying insurance company. Brian, I'd say my experience has been that when we are looking at different carriers, some of them that offer the higher payments are able to do so because perhaps they have a lower credit rating, which is fine. But as long as people understand that sometimes those payments can defer, defer rather based on maybe the strength of the underlying company. That it's true. And the way I understand that you can correct me if I'm right, we're wrong. But in a lot of those cases where you've got, say a B rated company, that's got a higher payout than any others. The company may not be so focused on having a large reserve requirements.
Speaker 1 00:05:49 So they're comfortable operating with less liquidity. And in a lot of those cases, there's still plenty of liquidity on the insurance part where there's reasonable assurance, you'll get the payments, but I've never been. And this is kind of one of the ideas I came up with alternate strategies, because I didn't really feel like working with, uh, the B rated companies for instance. But I mean, does that sound about right? Why they might be willing to do that? So if New York life's going to pay you $5,000 a year, but Podunk insurance company in a small town, Nebraska wants to pay you 6,500. Yeah. You look at the, they might not have the same standards as New York life who is obviously a very strong, stable, steady. They're probably not going to change what they do. That's why they're one of the strongest insurance companies. That's correct. So typically whenever we're looking at different companies with these guaranteed lifetime withdrawal benefits, we wonder why is it that some companies can offer a higher payment than others?
Speaker 1 00:06:42 One reason might be the credit rating. Another reason might be other tools that the insurance company can use. Like maybe a bonus, right? Brian, that's true. So one of the big misconceptions about annuities and it's not especially index annuities is the bonus. And a lot of people think it's just free money and it's not really, no, it's not free money. In most cases. Now there are some bonus products where you do get a kick to the cash value. And those are kind of, honestly, that that's a whole separate episode. In my opinion, we could talk about bonuses for a long time, but in regards to most products, then all it does is say, if there's a 10% bonus, that means your income is going to be boosted by about 10% when you take it. And I think that's, uh, but a lot of, again, there's a company running around right now.
Speaker 1 00:07:30 We've got a 25% bonus on your money. A client sent me that, uh, sent a pitch from a salesperson and choke, and I read it right before we recorded this episode. And what did I say? It was dripping with misleading information because now it's not, no insurance companies did not get to be strong, stable institutions by giving money away. If you get it on one spot, they take it from another fair. They have to be in business at the end of the day. So, yes. Okay. So what's the next one. So that's, I guess these are called like levers that will get your income up to the desired amount. Right? The next lever we might talk about is something called a roll-up rate. Now this is usually a little confusing, so let's, I'm going to take a whack at it. And you tell me, how would you describe it if differently?
Speaker 1 00:08:16 So we have our account value where somebody puts in, let's just say a hundred thousand dollars into an annuity, but there may be a bookkeeping column where there might be a bonus given to that. The bookkeeping column is ultimately going to help crunch numbers in terms of what the payment's going to be. When companies, for example, used to offer pensions, they might have a formula. Like, what was your average salary over your last three years? What was the percentage? You know, how many years did you work? So this bookkeeping is something that helps determine what income payment is going to be. And the roll-up rate is really designed to help grow that bookkeeping column. How did I do there? So, and everybody would, yeah. And that's fine. That's a good technical example of it. But the simple form of it is the roll-up rate is just how much.
Speaker 1 00:09:11 And so every year you wait to take income, the income payment grows and each contract will say, we're going to roll up that income amount by a set percentage each year. Okay. And that's the explanation where, and again, you talk about the bonus. So if you have a 10% bonus on a hundred thousand dollars, your income is going to be based on $110,000 day one. But let's assume that every year you wait, they're going to add 7% to it. That's your roll up rate. And so if you wait, one year, it's call it 117, whatever. I don't have the compounding off the top of my head, but after a year, it's 117,000. And then you wait two years, then it goes up to 1 24. And some of them are simple interests. Some of them are compounded. But then again, that goes to the misleading sales tactics, where a lot of people will say, you're going to get 7% on your money.
Speaker 1 00:09:58 And I've talked to thousands of people who said, I've got this annuity, that's paying me 7% per year, or then no, you don't. What are you talking about? Your income? And then they look at it and they read it. And they're like, son of a gun. I, he told me I was getting 7% a year. No, you're not your income. Everybody understands social security, right? Like the longer you wait, the more it goes up. And social security has got its own calculations. But if you wait an extra year, you get more, you wait another year, you get theirs, you get can take it at 62. You can full retirement age, 66 and two months or 70. Right? That's correct. So what's the last factor that comes into play here. So we've got bonus. We got a roll up rate. And the last one is the longer you wait, it's the payout rate.
Speaker 1 00:10:42 And the older you are all else being equal. The insurance company who feels more comfortable giving you a higher percentage as you get closer to higher ages, they say, you can have more of your money because that's the way annuities work, right? So if you're 60, you might get 4% of that value and income. If you're 65, maybe 5%. And I just looked at someone at 72 and they were sitting at 6.1%. So it pays to wait. But then again, it has to, it comes down to what you can afford to wait to do and what your plans are. So, and this is where I like to make the point that too many people, even if you are looking for a guaranteed income contract, you don't want to look at the 25% bonus alone. You got to look at the payout rate, the roll-up and the payout as well.
Speaker 1 00:11:26 So there might be a company that's not paying a bonus all at all. In fact, I looked at this just last week against a 20% bonus product in the company. That's not paying a bonus, has a higher payout rate. And the higher payout rate actually puts that contract at an advantage. But so many people are just looking at that, whoa, the bonus. Wow. But you have to look at all three of those things to see where your actually highest income payment is. There's always that danger, the shiny object. You know, we can put a shiny mirror on a car, but if that car doesn't go very fast, we've put you at a disadvantage. So you have to look at everything together. And not just one part of the story, right? It was like a Tesla goes really fast and it doesn't make noise, but you have to stop in the middle of nowhere at a charging station and have coffee with a bunch of people you've never met before.
Speaker 1 00:12:17 And you wait two hours for the battery to get charged. Again, there's a trade off thing as trade-offs, that's what life's about. So some trade off, for example, the later the start date, the greater the deferral, the higher the income. So the longer that we wait, usually that roll up, increases the income. And then also the later the start date, the higher the payout rate. So that might increase the income. So whenever we're looking at these fixed deferred annuities with these writers, we have to examine all the pieces to figure out what's best for each client. True. We've both done this a whole bunch of times. And the hardest situation is when someone says, well, I don't know when I'm going to retire. I worked with someone a couple of years ago, who ended up finding the right? We found him the right annuity, but he really liked what he was doing.
Speaker 1 00:13:06 And he wanted to keep doing it. And he said, I don't want to retire. Cause I love my job. And I like the lifestyle I have because of it. But he wanted to buy the annuity. So his wife was protected. If he passed away, she had the income she needed. And so we had to run this a scale, basically a grid to say, okay, this one's the best one at four years. This one's the best one at five, this one's at six. And so we found the contract that essentially kind of gave him the range of when he expected he might retire or might have to retire, right? So it can be a careful calculation. And this is one where this is the kind of situation where you cannot have your favorite products, because you could see somebody six years old could call today and say, I am going to retire in five years.
Speaker 1 00:13:46 I want a guaranteed income product. So you run the numbers and you find out what the highest payout is. And then another person might call at age 62 and say, want to start income in three years. So they're both taking income at the same time, but my bet dollars to donuts, man, they're going to be different products. Don't you think? And I think, you know what? We've discussed a lot of levers. We've talked about payout rates and roll-up rates and this GMWB rider. It's a lot. So if you want to make sense of it, you can figure it out. Or you can call 804 3 8 5 1 2 1 that's 804 3 8 5 1 2 1 go to a nudity, straight talk.com, click on the green, schedule a call button and let us do the work for you and show you what does well, bird, dog. Exactly. And one of the other advantages I think that you and I bring to the table is I know, like when I look at these products with the guaranteed lifetime withdrawal benefits, I take a direct subscription that shows me everything, even carriers that I don't have access to.
Speaker 1 00:14:46 So that way I can show the client, Hey, I don't have access to this. This is the best for you. So I, that, that's something we do where we add value to clients here. Yeah. And one of the carriers that she and I both worked closely with, they usually don't have the highest income products, but I can usually call their sales desk and they will tell me who is the highest because the companies have competitive comparisons. I think that's really great that they do that because a lot of companies wouldn't be willing to say, oh yeah, in this case, it's going to be this other company or, Hey, we're good right here. They know where their products are, where their products fit. And they're pretty honest about it. So I think that's a really good benefit. That's something we've gotten our back pocket. Speaking of which that particular carrier, for example, offers a product where there's level payments for this lifetime income, or there's also an increasing option.
Speaker 1 00:15:37 So sometimes if you just look at the number you say, Hey, that's a great number. Well maybe that number could be higher in five years time. So sometimes it behooves one to know, is this a level payment or potentially lowering year one, but maybe we'll hit that crossover if those payments start rising. So that's another dimension. Yeah. And so, and then you can talk about the roll up rates, where the annual increases. Some of them are static and have a stated rate. They'll increase each year. And some of them are, performance-based where it depends on the other underlying account growth. And the income will increase by whatever, you know, some factor of the underlying account interest. We should also talk about how so if a husband and wife or two partners have one of these products, there could be a payment for both lives. And typically joint payments covering more than one life are lower because the carrier has to keep making the payments until the second one passes away.
Speaker 1 00:16:37 Right. And so, and that's, that's a key method of calculation. I always say, it's, this has happened dozens of times when someone says, can you give me a payout for delts, email me? Can you give me a payout for $200,000? No. First, how old are you? Are you married? How old is your spouse? And when do you want to take income? Right? Those three things. It's always interesting. What, why do you need to know all that about me? Everybody else is going to ask the same questions. They're getting, they want to know what to put in there. Right? And I've been yeah. Competitive situations before where someone is showing a single payout and the person is married and I should come along showing a joint payout. And my number looks worse, but I have to explain, do you realize that upon your passing for spouse, one, the payments continue uninterrupted to spouse two.
Speaker 1 00:17:32 Whereas if we did a single contract, the carrier might make payments until the account value goes to zero. After which times, assuming spouse, when it passed away, spouse two, doesn't get any more income payments. So walking in through the pluses and minuses of designs, sometimes I've found people don't appreciate like, oh, I didn't realize there's a difference between joint and single payoff. Right? And it's a big deal. There were a lot of people that have not had the foresight on that, or kind of place the contract. I've talked to a fair number of people in the last year who had variable annuities with guaranteed income riders. And when they first came out, you had to choose single or joint. And some contracts are like that. But a lot of them will let you choose single or joint payout at the time you take income, correct?
Speaker 1 00:18:21 Correct. But a lot, some of these old contracts, they chose single life because the payout look better not thinking about it. And who knows with the advisor, what kind of conversation they had, but I've got a couple right now. That's sitting there looking at it saying they've got a really nice account value because the variable annuity has done very well, but they've got high fees for it, of course. And it's a single life payment on the husband. And he's looking at it thinking, I think my wife's going to live longer than me. And if there's market volatility and underlying account, I'm worried she could be left with nothing. And so you have to look at all the, and it's an unfortunate situation. It really is because had they elected the joint payout a long time ago, they never would have called me. And they would have been just fine because even if the market volatility dropped the account or the fees aided up or whatever, it's a really good insurance company, they've got tons of reserves, really stable.
Speaker 1 00:19:16 They'd be just fine. They never would have needed me, even if they would have had just a slightly lower payout. But that's what they're saying. That's worth it now, because even though they will take a hit on the payment, it's going to give the insurance that both spouses have the income they need. I think it's important. The moral of the story is before you purchase one of these, make sure you do the homework and look at it, maybe from a 360 dimension and make sure things like, do you have to elect that income at the time of actually triggering income? Or is it something maybe when you put in the application, these different things like the roll-up rate and the payout rate, there's a lot of factors to consider when making a decision for some time. And we have to know everything about your situation.
Speaker 1 00:20:02 I go back to the case of the gentleman that bought it for his wife who loved what he was doing and wanted to continue working. Part of that grid was single and joint life payments because he considered, there was a possibility that he may work until the day he dies. He likes what he's doing and he enjoys his work. And so it had to be single joint. But the contract he got when they trigger the income, they will make an election on the form, say single or joint life. And you know, and one of his concerns was I want her to not have to think about it. I said, well, all you gotta do is she has to think about making a phone call and that's, it I'll take care of it. So, and that the moral, yeah, don't work with stupid people. You got to work with guys that know their stuff because you might end up that goes to some of the reasons people get caught in annuities and say, man, I, I, I would've known, I didn't know this.
Speaker 1 00:20:48 It's not that the product is bad. It's just that, that, you know, it wasn't designed for the specific purpose. So that's kind of why we do this again. There's a lot of great things you can do with annuities. And this is one of them. Although I do have some of the alternate strategies that our show likes to use as well. Right? But, well, this isn't another little teaser. If you tomorrow story again now is if you don't want to work with stupid people, give us a call at annuities straight talk. We'll give it to you straight. And those stupid somebody once said, I don't do stupid. So we're not stupid. Hopefully 804 3 8 5 1 2 1 hit the green schedule, a call button over to nudity, straight talk.com, give you a little history of these writers back in 2002, the very first guaranteed minimum withdrawal benefit was introduced. And that's sort of a different design than what we're talking about.
Speaker 1 00:21:39 Just know that one year later in 2003, the very first guaranteed lifetime withdrawal benefit, which is the focus of this show came out. My notes showed that the very first fixed indexed annuity with a guaranteed lifetime withdrawal benefit came out in 2006. So they've been around for 15 years. Sounds about right. And this was one of the, my first exposure to them was through variable annuities with the company that I was a captive agent with. And there was a great company and they were nice products. I did. That's when I started crunching numbers and looking at them because there was something that I looked at. I said, you know what? I'm not quite sure about that. So, and I guess that's what the consumers do as well. And people like them for the peace of mind. Cause it really is. I mean, it's nice. You can go about the rest of your life, knowing that every single month you're going to get a direct deposit in your checking account, just don't lose your debit card.
Speaker 1 00:22:36 That's all, it's a piece of cake. So then that's where I ran into him. That's kind of what spurred the idea to, Hey, I need to start this website so that people have information because there are good products. There's a good purpose for them. And there's a lot of different ads you can do with them. But there's also alternatives that are very useful. So again, air, I am plugging the next day. Can you tell, I like it. That's why I want to keep talking about it. That's right. Just to wrap up the little history of it, by the way, in 2008 oh nine during the great recession, I think there were some worries whether these type of writers could be supported. And then in 2009, when the economy started getting shored up again, companies came back with these and then I had heard of at least one or two companies where they pulled their guaranteed lifetime withdrawal benefit rider is during the Corona virus crash in 2020.
Speaker 1 00:23:27 So yeah, there were some companies that exited or pulled back for a time. Didn't completely exit the business. Correct. So glee, when times get tough, I guess maybe companies wonder, can they be supported? But the general history is the ones that are enforced are obviously supported. So, I mean, this is public knowledge. So we can say as a guaranteed lifetime withdrawal benefits on variable annuities, one of the core reasons why Hartford insurance company failed Hartford, the beautiful stag and all the history of the company, and they didn't have sufficient reserves. They bailed early and they still operate in insurance capacity, but they've sold off all of their annuities. They're not doing them anymore, even though we don't talk about companies a whole lot, but that's public knowledge. So, and that's good. It speaks to why index annuities typically have a higher guaranteed payment variable annuities have a higher likelihood of a step-up based on account performance.
Speaker 1 00:24:19 And the reason the index annuities have a higher guaranteed payment is because they've got a stable asset base to work with. So they can have make a more solid actuarial projection with those funds. Whereas the variable annuities, they've got to assume the best and worst case of the stock market right up and down. So typically the account itself is a bit of a reserve index annuities. The lifetime income can usually be, you can get it for about 1%, whereas the variable annuity, you got all the other fees. And it's, I guess the one I looked at for the couple of sinking about getting rid of it was, uh, they were three and a half percent that was before their fund management fees. They were sitting in the fixed account and they're paying three and a half percent. So you've got to think about that as well.
Speaker 1 00:25:01 Sorry, I keep getting in the way of your, it's a nice segue because like, let's talk a little bit about some of the advantages here for these guaranteed lifetime withdrawal benefits. I mean, like you said, on a fixed annuity, there are low fees. Sometimes you can see no fees, right? Typically my experience has been when a product has this writer on it. And even though there are no fees, it's usually going to have a lower growth rate on the monies that a product without the writer. And that makes sense. It's just doesn't have that rider on it, but that rider serves a purpose. So when someone's looking at a product they need to determine is my motivation here to have a stream of income that I can count on, or am I instead looking to grow the account value, right. And I always thought it was important for, because there'll be sold that way, where they say, oh, you've got control over the account.
Speaker 1 00:25:52 But if there's no growth factor in the contract and a 1% fee plus a 5% income payment, you're going down quick. And usually by, I think a lot of my lookout I've always said, it's about year 18 where the cash value goes to zero. So if they'll say, oh, you can have extra access to the money, but if you take extra money, then they're going to ding your income payments. So one way I've heard it said is that the cash value, the account value is held hostage by the income payments. And that means that, you know, if you're getting 6,000 a year out of an annuity and you decide, Hey, I'm going to pull an extra 5,000 out, say that's 5% of the account. Then your income payments, essentially going to drop by about 5% going forward. And the later you do that, the bigger effect that it's going to have as well.
Speaker 1 00:26:37 So really I think they should be looked at for just guaranteed income. And then there's a couple other features that are on there as well. Right? Well, like for example, we've talked earlier about the level payment and then the rising payment. So when people are doing this planning for income, they need to figure, okay, if let's just say they have a pension and that pension provides a level income payment, and then they have a guaranteed lifetime withdrawal benefit from an annuity paying a level of payment, you know, maybe that income in retirement is going to be just flat. And we have to worry about what happens if there's a loss of purchasing power, right? So that's another thing to consider. I think people typically get the concept of guaranteed lifetime withdrawal benefits when we show them, if you, if you hold the money now and you say, let's go ahead and turn on the rider.
Speaker 1 00:27:27 Or if you wait five years or 10 years, typically that amount is higher. It's very similar in concept to say social security during that corridor after say 8 67, up to eight 70, there's another feature that is advantageous to people. And that sometimes the annuity can double up on payments. If we've had an earlier episode where we talked about people needing care, if they can't perform certain activities of daily living, some of these annuities can increase the payment for a short period of time, maybe five years, or when that account value hits zero, whichever comes first, but there's ways to at least give a little extra payment when, and that's another reason why a lot of people like them because they can set money into an annuity. If the long-term care is a concern for a lot of people and a high percentage of the people we work with have seen a parent or another loved one kind of in a care situation.
Speaker 1 00:28:18 And, but a lot of times getting insurance in your mid to late sixties is not the easiest thing. And some people don't like doing that, but you can purchase one of these annuities. I've had a few people do that, where they don't even claim to take the income. They're only going to access it if they need the enhanced payments for long-term care. And it should be said, it's not a qualified long-term care expense. It's additional income. So it will be additionally taxable. Whereas a qualified longterm care expense will a shock. You're the expert, right? It comes out tax free if it's qualified. But if you're, this could potentially increase the amount of taxable income, if you increase the payments for care out of these type of annuities. Absolutely. Let's talk a little bit about marketing. You know, when someone is learning about these products, if they don't fully appreciate everything we've discussed, like here are the different levers.
Speaker 1 00:29:08 Here's where this GMWB rider fits in, in the big scheme of things. They may go to that dinner seminar and get that nice chicken dinner and to Seattle, I think that bumped it up. The stakes. A lot of guys are doing stakes. Now they're doing stakes. I don't know. I mean, I might have to, I've heard a lot of guys using Ruth's Chris. I love that restaurant. I mean, I don't know. I might have to go to seminar. We'll see, I'll buy an annuity. If I get a steak, I'm just kidding. Are you free tonight? Maybe we can go split the difference. We'll go back. Let's go find one. No, my dad, my dad, why dad beef. I have my own steaks and they're really good. So when a show comes out to Montana, I'm going to feed him one. He's going to like it and then we'll go the next night to a dinner seminar and we'll compare.
Speaker 1 00:29:50 But I think that yours, no blown out of the water. I don't care where you get it from. But when people go to these dinner seminars, what are they hearing from what I've heard? They may just get a very limited universe of products because what is that person doing? The dinner seminar, doing they're being efficient with their time. They can't obviously speak to each and every person. And so they say, here's this array of products, but if they all have these guaranteed lifetime withdrawal benefits that may not be appropriate for someone who may do better with the flex strategy. Absolutely. And I, I know a lot of guys that do seminars and yeah, there are guys that really are just trying to what I like. I like the guys that do the social security planning, seminars, Medicare stuff like that. In fact, we might have a guest on, in the next few episodes, one of our other contacts who, who does and what he's trying, he's trying to provide a service to people.
Speaker 1 00:30:44 And then also explain that he's capable of financial management and has all these products at his disposal. Whereas there are the guys that go out there and there'd be 30 people in the audience. And they'll say, here's the product and you should buy it every one of you. Right. And it's kind of like just throwing a dart at the dartboard, hoping it sticks, I guess. So it's not necessarily anything terrible with it, but there's no creativity there. And it's, it's kind of, I always say like that 30 people in the room, if you're one of those 30 people, how much do you want to bet that you're how many people do you think share the same identical situation have the same needs, the same assets and same requests or goals in life. What are the chances that even one person is like you pretty slim, everybody's unique.
Speaker 1 00:31:27 And so everybody takes a unique approach. I come back to my thing, when I'm driving, I stop at a stoplight. And if there's a lane next to me and there's a car, what are the odds that, that car is going to be the identical car, the same color, the same year, make and model. And it happens. So, I mean, it's a fluke. If you see that happen, right? So more often than not, you could be on the freeway listening to this podcast and look to the car to your left. And right. It's usually not the same car. Cause we all have different tastes and preferences. That's what makes a world. And, but when you do see the car, that same exact car, you're like, wow, that's the same car I have. But you're so excited because it never happens driven by a financial advisor no less.
Speaker 1 00:32:11 So we're touching a little bit about some of the disadvantages here for these guaranteed lifetime withdrawal benefits. Like we were talking, there might be limited marketing. Even if you're shown a product, you might not get the full universe. If you're looking for that guaranteed income, you might not be shown, okay, here's a product that starts a little lower, but maybe in years, three, four or five, when you're looking to activate income, this other product could be better. Maybe it has a level payment. Maybe it has a rising payment. And I think another aspect of it is longevity. Obviously these payments are actuarily determined based on what the insurance company believes. Most people are going to live out to what age. And so when those payments are calculated, it behooves people to generally take that payment, but they can't take more because otherwise, like you said, they could end up ruining the right.
Speaker 1 00:33:02 Right. And that is correct. Right. And again, itching to get to the alternatives. Right. But that's okay, let's get to the right. I got to finish this one. So, but again, because this is to talk about the benefits and the ideas behind the, the guaranteed lifetime withdrawal benefits on annuities. And the reason I have other ideas is because there's a lot of people that buy them for the wrong reasons. They actually have a different purpose and they're much better off doing something else. And so over the years of playing with alternative options, I came up with some really good stuff. It's like, wow, Hey, I like this. And so I like to, again, it's all about education. Go ahead and buy a GMWB if that's what you want. But I think most people would prefer to see the alternative at some point. So we will get to some alternatives on another episode.
Speaker 1 00:33:47 And if people, again, want to start seeing what alternatives are available, talking with someone who's not stupid, who understands these alternatives, the number to call is (800) 438-5121 that's 804 3 8 5 1 2 1 go to a nudity, straight talk.com the green schedule, a call button. And we can start looking at these products with GMWB writers or not. And helping you make an informed, we are here to help. I want to thank you to show for putting the other list of, uh, talking points today. And I'm excited to again, do the next one as soon as we can. And then it'll obviously be released, uh, the fall of the week following this. But yeah, absolutely. Let's I guess, sign off. I'm happy with what we covered and I appreciate everybody joining us. I look forward to speaking with you again soon and go ahead and get ahold of
[email protected]. If you want to have a chat. Thank you guys. Hey, great day. You've been listening to
Speaker 0 00:34:48 The <inaudible> and do not necessarily reflect the <inaudible> is an investment advisor, representative insight, folios and sec registered investment advisor. The firm only transacts business in states where it is noticed viral or is exceeded or exempted from notice filing requirements. Fee-based financial planning and investment advisory services are offered through his association with insight folios. Top wedding LLC is not a registered investment advisor. It is not another name under which insight folios provide services. Insurance products and services only are offered through top lending, LLC insight, folios Inc, and top lending LLC are not affiliated companies. <inaudible>.
