What is a Multi-Year Guarantee Annuity (MYGA)?

How can people say that they “hate annuities” and love CDs at the same time? Short answer is they can’t. Multi-Year Guarantee Annuities (MYGA) are the annuity industry’s version of a CD (Certificate of Deposit). Both guarantee an annual % rate for a specific period of time that you choose. Both have no annual fees, …

What is a Qualified Longevity Annuity Contract (QLAC)?

In 2014, our friends at the IRS and the Treasury Department introduced the Qualified Longevity Annuity Contract (QLAC) as a way for consumers to plan for future income needs using their qualified (i.e. Traditional IRA, 401k, etc.) accounts. In addition, you are allowed to add your spouse/partner for a joint life income guaranteed payout. Sounds …

What is a Fixed Index Annuity (FIA)?

The hottest “sounds too good to be true” and “best thing since sliced bread” product to hit the financial world in the past few years is the Fixed Index Annuity (FIA). Regardless of your specific financial goals, some agent or advisor will most likely pitch you this product…so it’s important to know the factual reality …

How do I choose the right annuity type?

It’s important to lay the foundation to this question by reminding you that annuities (regardless of type) are transfer of risk contracts. In my opinion, and after 3+ decades in the financial services business….annuities are not investments. They are contracts. So how does a person choose the right annuity type? It’s very simple using a …

How do I find the best annuity price or deal?

Everybody is always looking for a deal. You want the best price. You want to be prudent. You go to Orbitz or Priceline for plane tickets. You go to Wish for inexpensive daily items. You shop Amazon for practically anything. Almost everything available today is a commodity. Same thing can be said about annuities…regardless of …

How do interest rates affect different annuity types?

In a perceived low interest rate environment, I’m always being asked about interest rates and annuities. When I say “perceived low” interest rates, people need to understand that the United States 10 Year Note is still the highest 10 year equivalent rate in the world. In other words, we have the highest interest rates. Sad …

What do annuities contractually solve for?

Saying that you “hate all annuities” is like saying you “hate all restaurants.” It’s total nonsense. I’m the first one to say that annuities are not for everyone, but they do have their place as a transfer of risk contractual guarantee. I’ve come up with an easy to remember acronym that tells you whether you …

The ONLY Protection for the Annuity Consumer

The annuity industry has earned its bad reputation over the years due to misleading sales practices and over-hyped sales pitches. I don’t really blame the annuity carriers because it’s impossible to oversee what your “agent/advisor army” is saying to the consumer. In addition, hot sales products like Fixed Index Annuities (FIAs) are regulated at the …

A Rational Approach to Owning Fixed Indexed Annuities

As most of you know by now, I’m not a fan of how FIAs (Fixed Index Annuities) are too often sold and promoted to consumers. Many mistaken my frustration with the over-hyped sales pitch barrage with a hatred toward FIAs. Nothing could be more further from the truth. It’s time for me to spell out …

Dissecting a Fixed Index Annuity (FIA) Sales Pitch

If you are an adult with investments or nearing retirement, there is a 95% chance you will be pitched a Fixed Index Annuity (FIA) by your banker, broker, or some eager annuity agent. It’s going to happen, so you better be able to “translate” that too good to be true store you are going to …

What they are really serving at the Bad Chicken Dinner Seminar

If you live in semi-nice neighborhood, there is a 99% chance you will receive an invitation to a local restaurant to hear a sales pitch in exchange for a free meal. I refer to this as “bad chicken dinner seminar marketing.” I’ve recently upgraded that saying to “expensive steak dinner seminar,” which is a reflection …

What is a Single Premium Immediate Annuity (SPIA)?

In the Roman times, the dutiful Roman soldiers laid it on the line to expand and protect the empire. They were fearless warriors. Because of their commitment, the Roman government guaranteed a lifetime income stream for the soldier and their family. The Latin word “annua” means payment, which is where the word annuity originates. This …