“Fun With Annuities” The Annuity Man Podcast

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076: Mr. FIA-X: Letters, Numbers, and BS Bonuses

by The Annuity Man
September 28th 2021

In this episode, The Annuity Man and Mr. FIA-X discuss: 

Welcome to fun with annuities with your host me stand the annuity man America's annuity agent can annuities be fun. Can contractual guarantees be fun. Absolutely. They can find out the brutal facts about annuities with no sales pitches or high pressure nonsense. Just the brutal and factual annuity truth, which is all you need to hear. Let's have some fun with the new duties and let's have that fun start right now. All right. Uh huh. Welcome to fun with annuities. I'm your host Stand the annuity man americans annuity agent license in all 50 states. So glad you joined us here for the fun with annuities podcast on all major platforms. And also you can see the guests and myself on the fun with the new these Youtube channel, which is great because he has on a mask. Yes, everyone back by popular demand. Mr F I A X, which by the way, he is currently the superstar. When we have him on.

Just people are dying to know the truth about index and who is now the funny part about this is that agents and people who listen and our listening audience is 99% consumers. But there are some hardheaded agents out there that listen to us as well and they're all trying to guess who Mr F I A X is and up until this point, everyone's got it wrong. I'm not going to reveal it because I know who he is of course. But you know, this is heavy stuff and this is how the F a sausage is made and the annuity companies really don't like him being on, I have heard from two specific companies that say, we don't like him. We don't like what he's saying. We don't know what you're saying. You know, we used to love to know you is to love you measure two ex wives. All right. So here we go. You know, uh, here's what I always say. Mr F I X. What season is it? Is it the covid season? There's an argument for that.

Is it fall season? It's coming up. Is it football season? Yes, but all of those answers are incorrect. Mr F I X. It is officially indexed annuity silly season. Okay, This is getting in in saying and disclaimer. I sell them stand the annuity man americans annuity agent license all 50 states. I sell indexed annuities. I saw them properly for the contractual guarantees and the attached income writers. But the topic of today is letters and numbers and Bs bonuses and all that stuff. I'm going to throw it to you. Mr F A X. Well after Labor Day, it's the official kickoff of a seminar annuity season. So you're going to eat well, you're going to hear half truths. You're gonna, you know, it's it's a whole difficult process to step through the Bs swallow the food, not the sales pitch and order the steak medium rare like warm in the middle. Right. Mr If I were a family show cause I can't say what I really want to say. Come on, you know, look there's some good information healthy.

I don't want to discredit all the eight, but I'll just I'll just read it a lot of them and I can do it very easy when you go into a seminar. Okay? And one of the things that God hasn't called you personally to greet you, I find that you're not that busy that you can't call me. They have to assess the systems here. The reason why they have their assistance students as they don't want to talk. It's just back, right. They don't eat and stay. A lot of guys just do their deal that you have a meal on a daily Really. But I would never but but they have they have stories are just amazing that this is my favorite one though. So if you hear this and your seminar, get your food, you go, okay, what it is, you can participate in the stock market without the risk. You'll get stock market like return, get market upside with no doubt side get the heck out. And boy, is that that's the one that I hear more often than not. It's just insanity.

What's being pitched out there? If that, as we always say as mr F. I. X. And I always say if that was true, then we would go to D. C. And convince the Fed to buy just indexed annuities because that would be the perfect product, right? Yeah. To get all the upside and downside. Yeah. In the actual market in the actual index. And I'll give you because I think that's my segue into what we want to talk about today. The asian store illustrations. I know we want to talk about the numbers right? The V. S. The illustration every illustration you've ever been shown by an agent is a lot. Say it again. Every illustration you've ever been shown by the age of years old. Lives future past present doesn't matter that. Hypothetical theoretical back tested agent hopeful unicorns chasing the butterflies as I always say is garbage in french Mr F. I. X. And that is I mean to the carriers credit they do put hypothetical longer. I'm not bleeding the carrier on this one because I I looked at an illustration before we jumped on.

I know these people think we rehearsed this and we practice and no we jump on and stand and I have a conversation. Do we do we come off as two people that practice rehearse? Yeah. No. Okay so one of the things on the top of the illustration it says this hype. This is hypothetical in nature. Not contraction binga. Okay that's fair binga. It's fair though. Okay remember how we were talking about the stock market index thing and how you get an upside your turns right? This is what it says it says you cannot buy or directly participate and receive dividend payments from them. That's not directly invested in the market then, is it? Oh and me and you both know over 50% of the returns historically on the S and P 500 index just to choose one is over 50% and you're not getting that with an indexed annuity. I just think in this and I want people out there that's purchased an indexed annuity to take this the right way and they purchased it for the upside and the growth and the pitch and the unicorns chasing butterflies. Please take this the right way. But you shut your brain off when you did that.

I mean I've been saying this for a while that when my clients call me about index annuity and the accumulation value story they dig in and they want to know the details and they're not always say they're not the people that the agent most agents are looking for, they're looking for the room at the table. The sucker, the person that trust the person that's going to believe the sales pitch. I just think people turn their brains off when they do that and they're buying either for fear or greed and when you do that, you shut your brain off a lot of cases. Well, the greed, always common journey. They know better. They just want the sizzle and they know better. They know that it's not that, but they feel like it was good because they really like the guy who is really good at what saturday public but and I give a great example of that. I had an agent that I was speaking with close to the mic Mr F. I. X. People like you have an agent that I was speaking with, he sells one particular product and obviously I know we're not going to name names we don't want no we're not doing that. So we go through this the whole deal comes up right.

Mhm. And he goes, why sell this? Because it has guaranteed increasing income. Now? If I told you stand put your money in here and every year you can guarantee this increasing income, what does that mean to you? It means that I own Social Security which is the best inflation annuity on the planet, but it does not mean that it's another product, but Social Security doesn't guarantee you increase your income every year agreed, but it's as close as you're going to get. And so I I asked him I said what happens when the product makes zero for that year? Because we will have zero years in the stock market. No. Yeah. Ok. Yeah. He goes, well, they don't get an increase that europe. But you told me I have guaranteed increasing income. I said words matter how you say things matters and how you decipher it matters. I know what you're saying, you're saying that if we have an increase their income will increase good inflation hedge. I like the idea but what you told me was it was guaranteed increasing income? The products are bad? The carriers aren't to blame because the product is stacked. It's how they understand it and how they relay that message. Communication to the back.

And when people that annuity companies do can build in like on an immediate annuity, deferred income annuity or kulak it costs to live in adjustment increase. But they simply lower the initial payment by 30 to 40% as compared to the same annuity without same thing happens in the index annuity world. Mr. F. I. X. You can explain this. All they're doing is they are lowering significantly the initial payment. You're not beating the system. You're not smarter than your neighbor. You haven't figured it out. You haven't stumbled upon something. Am I correct? Mr five 100 pennies on the dollar. They're all playing with the same chinese in the same dollar. So why can company egg in all of this? And company can they're playing the same playing field. So what you're really telling me in a real world scenario is there is no pill that can make me skinny. Right more handsome. Oh dog on it. There is no eight minute abs. Even though I'm right now working on a program called six minute abs.

No there's no Okay. And this is the one that I was thinking about, you the other day. Do you remember the thigh master for all you old people remember that. Remember the chick from? Okay, do you know how old she is now 70 70 74. Yeah. And her thighs look great because she's using the thigh master not because the thigh master does not target the thighs, it actually makes them bigger because your muscles grow. The point is if it sounds too good to be true, regardless of who's pitching it. It is now indexed annuities are fantastic. They're not too good to be true, but they're pretty darn good If you're looking for cd returns and principal protection into it, attach an income writer. But what Mr F I A X and I are discussing is the silly season of how these things are being pitched. And I defy anybody listening or watching this. Listen to all podcast platforms are watching on the front with annuities Youtube channel. If you purchased these index news, I defy you to explain it to me.

I define that most of the agents to explain to you. Exactly. I mean, there's just no way there's one that we're talking about. We're certainly not going to name names of the carrier because we we love them. We love all carriers and we really don't blame them because once they put it out to the agent army, they can't they don't know what those guys are saying. But let's go into some of the without naming names. Without naming product names. Let's go into some of the what we call letters and numbers mr. F. I. X. And how you broke this dude down the other day tell that story because it was a good one. Well it's funny because when I talked to that one agent and we'll go backwards just we were sitting there talking and I had this is a separate agent. He used the company we'll just call him X. Y. Z. And he said if I took this amount of on the end it's gonna give me $40,000 a year for the rest of their life income he says and that's all that they need. And I said well 10 years down the line 40,000 doesn't spend like 40,000 does it?

Uh I go inflation was like 5% in june we got a problem don't we? We don't have a problem. The client has a problem. And the agents along down the road I said well what are you going to do to protect against you know the inflation, the cost of everything rising baba. I mean well you know this is what he needs. No it's really needs today. I don't know what we need in the future. So we need to have a little better plan than just pick up all your money dropping in here and here is your check the problem that happens with that check standards that the clients see to check and they get kind of either it up and like who 40 grand wow but you got to see the forest through the trees of what's coming down the road and I don't know what that is. But you're gonna need a little flexibility. It's not just about the biggest number. It's not just about how much I can get out of there. And here's the one thing that everybody misses in 9 to 10 years. That account will be gone. The income will continue right? But the cash value all your life's work got spent like that.

Yeah. Because you're getting your money back with interest with any type of lifetime income payment and you're transferring the risk of the annuity company to pay for the rest of your life. That's the reason I always say there's no R. O. I until you die, Mr F I A X. I want it. I want you to dig in and explain to the beautiful listeners and viewers of this podcast, which is growing by leaps and bounds by the way, I want you to explain this sales pitch that is proliferating itself across the country. And the fruited plain of All right, you buy this index annuity and it increases. You know, the income increases with the index increased. Sounds absolutely fantastic from a 30,000 ft view. Can you please mathematically destroy that so that people aren't buying the dream because they're gonna own the contractual reality. Well, let's just break it down into simple numbers. Let's take cds how much you see these fans right now. One, I'm going to be nice and say 1 to 1.5 percent. Yeah, exactly. At the time of this taping, correct, how much are guaranteed fixed, traditional, fixed annuity space multiple.

My God. Multi you're guaranteed annuity. You can get up at the time of this taping. So look at the date please everyone 3% on a five year. Okay, so about 275234 between let's do that. Okay, that's just what it is. It's life baby. So now I come in with this index annuity and I say, look at the stock market's killing it and we're going to do this and we're going to do that. These were in rains to do somewhere between about 5 to 7%. We will have some batter years, don't get me wrong. And that's where they catch you. But historically mr F. I. S. Historically, but historically interrupt you. Just, we've looked at its around the 4% number. It's and recurrent environment with index annuities. You should go into the accumulation value story and listen up all you agents out there all the 1% of you. The other 99 consumers listen as well. It's a 2 to 4% play in most cases from a return standpoint. Yes, some years will be better. But the game that's being played with some of these products on the increase explain how they're doing that.

If you can paint that picture. It's like showing paintings to blind people. Sometimes. I I think one of the things that I was going to note while you were talking is I see a lot of these companies say we'll give you 100 and 2100 and 4100 and 6200 and 10%. Right patient. So what they're saying is if you give them $100,000 if you had 150% participation is like 150,000 was working for you. Right? Right. Those in those in disease that I typically find that have that leveraged amount do worse than if you just had 60% 50% of a real index. And when I say a real index I'm talking like the S. And P. Why is the S. And P. So low like 50 60% because it's expensive to buy the option. So what the insurance company did and what all these people have done. The product designers, they build products and then they go to the insurance company and say, hey look at this cool product we built with our actuaries, put your actuaries on it, let them test it.

If it meets your product and goal objectives, can we put it on your paper, you back it and we'll go sell it for it and there's a lot of those out there. They're proprietary products and they're they're you know some good some not so good. But I noticed because the S and P. Index the dow jones, the NASDAQ those are the three keys the russell made before. Those are expensive to buy that option cost. Okay. So for them to meet their goals and objectives, what do they do? They make up cockamamie indices some work some don't. I give a great example. There was one that came out years ago stan and you know what I'm talking about mention any names okay with a carrier that was at the time my you know, insurance wouldn't cover me if I sold it. How's that? Is that a fair statement? It's fair because I have to be absurd rating or higher. Right. And they pitched how if you would have sold this part, there was never a down year since the history of inception because they back tested it and they showed it in the hypothetical and theoretical proposal package that they showed people there is I don't think today current and we're talking this is 10, 12 years.

Yeah, at least at least 10. I don't think it's above water yet. Right. I don't think the index ever crossed where it was when it was put out to where it is now and if it did it's very minimal and the clients got nothing. The agents got paid and the company that built it got rich and the only hope is if you attach the income writer to it and you bought it just for the income writer you can turn on the income stream but if you bought it straight for accumulation and growth is I mean it just technical term, there's a technical term for that you got through. That was the technical term because I got screwed. They didn't make nothing. When you talk to this, you told me the story about the agent when you when you got him back on the phone and you were digging into this specific product and it was the one that increases your income with the index. What were the specific numbers that you kind of drilled into his head? And what was his response? Well I thought first of all the income started significantly.

Bless than other companies which is which makes sense because they have to lower the payment to make up for the potential increase because annuity companies don't give anything away. It's like a running start. They were walking then then kind of do a job and then you get into a run. But by time you're running your accounts nine years the account was exhausted. So I personally have dealt with clients and stand, you probably have cuba I don't think it ever gets presented this way. Mr client put your money in here. We're gonna turn this income on in the nine years. Every ounce of your hard work that you ever did is gone. This account will be exhausted if you die. There's nothing to leave kids. now. You can do a joint income with your wife. So the income will keep carrying. We can do joint income now, but there will be no inheritance left over for any of your loved ones. Now. Some people will say I don't care about them. And some people will say, oh, I don't want that. Well, we certainly do that here. I tell people you're getting your money back with interest at the, if the account goes to zero there, they the annuity company are still on the hook to pay for as long as you live and as long as you are breathing.

But a lot of the pitches that I, you know, a lot of people email me their pdf the pitches are getting and do that. Go stand at the annuity man dot com. And I will factually tell you the truth, but the agents will say you can take this income and the growth will offset the income you're taking out. Which me and you both know is mathematically impossible. That's the biggest line of Bs in the world. And here's what I say that let's just use 4% is a number, let's say the income writer pays out 4%. Let's say we make a zero for the year. How did I offset? You didn't now wait, do they charge for those income riders? Do they charge for those riders? And those fees come out of the accumulation slash index side of the ledger. It's typically about, we'll call it 1%. Let's be nice for easy math, 95 basis points, 1%. We'll call it 1% for easy math. They're taking 1% of your game but not just the game comes out of the account value. So if you made interests of say 4% in your account went to 104 that 1% he comes off to one oh four.

Doesn't it send? It definitely does. So now I paid $1040. That would be $1400 correct? Every year up or down. Doesn't matter. They get their take, this doesn't make it a bad thing. It just makes it or you need to understand that thing. Well and also too, I think I've never heard anyone but me or you tell people this, the writer percentage that the income base is growing by and by the way it's not jimmy carter yield, we can't send it to you and it's not fungible and it doesn't transfer and we can't cash it in. It's fair it's fake, it's phantom but you can it's that's the it's legitimate if you're buying lifetime income that starts in the future because we can determine to the penny what that income stream is going to be in shop. All carriers like shopping plane ticket. But what me and you tell people is whatever that nice jimmy carter percentage is the fee is growing by that every year as well explain that. Well, let's do easy math rule of 72 after 7.2% interest on money doubles in 10 years.

Right. So the income writer is 7% a year at the end of 10 years, the the income writer went from 100,000 to 200,000, correct. Well then what does that mean that my fee went from 1% to 2% of my original deposit? That is correct. And locked in forever at two at two. And that's not even an increasing if you keep going, correct. If you say, well, I don't want to turn on in 10 years, let's push it out and keep that writer going for 15. It's gonna grow again, right? And when you turn on the income writer does the fee stop? The fee is for the life of the policy, as long as you're breathing. Now, these are just detailed things that you need to know. That's not saying income writers are bad and computers are transfer risk pension products period, but you have to understand that you're not buying an 8% if I get one more call and I get them all the time, I'm getting 8% stan I'm getting 8% and I found an annuity give me 8%. You're only offer three on the Magas and I'm getting 8%.

No, you're not. Okay. And I hate to be harsh here. But the problem is a lot of the agents that are pushing uh index annuities only and most, most index annuity gunslinger's out there, just sell indexed annuities. They're going to allow you to believe that you're getting 8%. And the sad part about that mr F. I. X. Is people see that on their statement, they see that growth and then they don't turn on the income writer and all they're doing is making the annuity company rich. That's all they're doing instead of transferring the risk and turn on the income writer. Do you happen to know or can you make a guess on how many people never turn on the income writer? Even though they bought the income writer? I think I'm gonna be kind if 93 94% do not turn on the rider 56% do and I think that I would be you serious. I think I would be being kind in that, okay, let's say you're wrong completely. And it's 50%. Let's just say it's 50 you're saying stan that's way more than that. That's insanity. So let's think about this way, I want to think about this because you've been doing this a long time?

Like I have, let's go back 20 years go about 25 years when income writers didn't exist on these products. How many people actually took income out of their annuities. Yeah. Zero, virtually zero. Even though all deferred annuities if it doesn't have an income writer just for your knowledge base so that you can annuities, you can convert it into a lifetime income stream if you want to do that, I'm gonna blow I'm gonna blow everyone's head off right now. You're ready to watch this one. Let's do it for all ira people people that own irish boy. I see a lot of these guys put income riders on people's irish right? Which depending on the circumstance, may be justified or not correct. Everyone's customizable. Everyone's customizable. But think of it this way at 70.5 back in the day at 7.5, you haven't turned on the you have to take your distribution. And at the time of this taping at 70 to look at the data center back in the day, it was 70.5. Right, OK, 72 now, but it was 70.5. I want to play off a 7.5 right now. Okay, okay.

The old rules when I would talk to clients, the first thing they would say to me is do I have to take this money? I'm like, well, yeah, the government forces you to take this one. Stop you. They go but I don't need I take it I don't need it because the government wants to cut you made a deal with the devil. You didn't even know it. They let you accumulated all this money for all this time now, they want their take So in 7.5, you have to turn it on the number one chosen distribution that America was what minimum? Why? Because they didn't need the money. Why do I want to take money that I don't need and pay tax on it? You mean to tell me in 25 years that flipped all the way to where everyone wants their money. That's a good point. And I always tell people if you're going to buy the income writer then we're going to turn it on. We're going to remind you that we bought it for future income. We're going to remind you that the percentage growth is a phantom account and it's not jimmy carter yield, we're going to remind you that we put this in place for a pension and we're going to remind you to turn it on because there's, that's the value proposition of an income writer attached to an index annuity period not to watch it.

But I call this the procrastination ratio. I would love to know the true number and the companies will never tell you, oh, I don't think they would give that number because it's an insane money maker to the character. But I guarantee when they have the, when they have the grand poobah meetings and in the marble floors and they're sitting in there and they're smoking their cigars and drinking the lats, there's a question that comes up that says, what's the residual number on the writers that's never going to get turned on and they give that residual revenue number. I bet it's gargantuan. Oh my God. And here's the funny part. So when I deal with agents and we educate them, here's the fun part stan they go, yeah, but if they live long enough and contact you, then they're in their insurance companies pocket. And I laugh because that's true. That's true. But they're missing. That's like saying zero is your hero, which is another saying that index annuity people say as well. That's dumb. But here's what they forget. Remember 900,000 we put in, they collected a fee for how long as long as you're there and breathing as long as you're there breathing off of the interest.

So if it grew and then had interest. So let's say you've been in there for 10 years. It grew to 135 140,000. They stroke, they raped 1% every year on that When you turned on the rider, they raped that 1% feet off of that about on the way up and on the way down, didn't they? All the way. So let's say you actually lived past your life expectancy where the agent goes, well, they got into their pockets. Ha ha ha, No. You just got your fee money back, you don't get in anybody's pocket. They just paid you back with your own money, didn't they, which leads me to. And you just triggered something that I tell people all the time. And I get these calls and really smart people that are obviously attracted to stand the annuity man as you can well imagine Mr F E. X. And they'll say, well, you know, I could, you know, I'm looking at these uh just choose the income writer. DsB aqui like, well my investments could beat that. My God, I hope so. No, you're not. If you are making a correlation or an analysis between an investment, an annuity, you're an idiot.

You are an Absolutely. That's that's like saying I bought a Yugo and I bought a Ferrari and I'm going to compare how fast they go. It's not for some reason wins the race every time. I can't understand why. If you can manage your money. Okay. And you don't want to turn key, build an income floor that complements your Social Security, then you don't need an annuity of any type. The reason people choose annuities of whatever type they're choosing is there transferring risk there either transferring most of time, it's transferring the risk for principal protection or it's transferring the risk for lifetime income. And then there's also a legacy play in the long term care play If those. So my acronyms pill principal protection income for life legacy and long term care confinement care if you don't need to solve for one or more of those four, then you do not need an annuity of any type notice. There's no G for growth which leads us back to the index annuity. Silly season. Mr F. I. X about these products being pitched for market growth even though they're not securities, they're going to give you a better than average chance at a better than average return.

Say it again. A better than average chance at a better than average returns but not guarantee. No, it's not guaranteed returns. Not guaranteed. But the principle of the protection, all the other things. So what you're doing is you're willing to trade a guaranteed rate, lesser guaranteed rates a 2.5 to 3.5% for some upside if you can live with that. I guess for lack of a better term risk because I've given away the bird in the hand to maybe get a little more than the bush. If you're willing to live with that over time, index annuities will outperform just a regular static fixed. He'll, they should, they should, they should, they may not, but they should. One thing I want to go back to real quick on these numbers things because I know that some of the agents, you're gonna get some hate mail or you'll get some from your clients stand that will say my guy told me wolf, I die that this amount in that income account will pay out to my beneficiaries. There are some products that work like that. some 100% true.

They can take it out over a specific period of time, steeply five years. Here's the part that they left out. There won't be any money left in the account. So they're not gonna get anything with the accumulation value goes to zero, which will be in 9 to 10 years. All that other stuff goes away. You are just on a paycheck, a monthly paycheck at that point. And when you go those checks stop and I always tell people the best legacy product on the planet's life insurance, it's the best return on investment. You will never see I'm talking about level term those type of things. You know, if I ever mr F. I. X. If I ever show up dead, just out of the blue, not covid, then my wife has killed me because I have so much life. But it's the best, it's the best transfer risk. Life and uh legacy product on the planet. When you're buying lifetime income, you should not be buying lifetime income regardless of the four products. Remember Species DSQ lacks income writers as the four income lifetime income guarantee products or strategies. You should not be buying it for. Legacy should be buying it for lifetime income.

You should be buying it for filling the gap on the income floor. And just as a reminder, you can go to my site at the annuity man dot com and run quotes 24 73 65 without having to talk to be me or anybody else. Thank you very much pro consumer. So and you can see the number I got. This is funny off the top of this. I know I'm gonna lose this hold that you're smarter than well you're younger so that I'll know it's smarter your younger. So hold that thought the guy said stand the annuity man America's annuity agent and by the way everyone does address me like that. He said stand the annuity man America's annuity agent. I don't like this payout. This payout slow. And my comment to him was I guess you're kind of pissed off because you're young right? Because really what he was saying is I don't like the payment because I'm young because it's primarily based on life expectancy at the time you take the payment. So when you say, oh like that return return, it's a mortality credit transfer of risk, shared pool pension. And if you don't like the payment, you don't like the fact that the annuity companies looking at you from looking and saying, hey that's a youngster even though you might be in your sixties.

So I have to answer for that number one is putting more money and you get a bigger payment. Number two is start older and you'll get a higher payment for less time as, as payment for your car payment, I pay less for longer. If I take a shorter payment I pay more for less time or reverse. Alright. Just always ask people. Just answer me this why? This is an easy one. You can answer it. Are your social security payments hired age 65 or 70. Well seventies reason I'm gonna wait, bingo Chester bingo. Same thing. Alright. What sage part of advice did I cut off that you retain that you want to share with the people? Well, I think it's something that the layperson may miss and it was. This is really point. Believe you actually said something good. Believe it or not. Here we go. When you go on all these websites and you run quotes you are gonna get inundated. They are taking that information and they are selling it except for us.

This is where I wanted to go stan doesn't care. Go right to quote your big boys. You're big girls. You want professional help from a real guy that knows what he's doing. We figure you'll call us. We don't need to call you exactly. I call myself the walking middle finger of annuity truth. For a reason. If you want to speak with me, you have to schedule call because I respect you and treat you as a professional. These other places are lead mills. They're selling your name for 100 and 50 to $300 to a bunch of agents and you are going to get inundated. We do not share. We do not sell, we do not. It is confidential information. You can run, you can go to my site and know that if you run quotes, no one's gonna call you, no one's gonna show up your doorstep. You're not going to get something in the mail asking to go to a bad chicken dinner or expensive steak dinner. And yes, I am self promoting because I think this is the way annuity should be purchased. I had recent podcast guest, he said, well stand the annuity man America's annuity agent. You know, people just don't wake up in the morning and say I'm going to buy an annuity.

They do with us. We do have a site where annuities are bought, not salt. I mean now the vast majority and we're talking about indexed annuities. Most indexed annuities are sold because it's too complex to make a decision on your own terms. Even though I send you the book that I've written on index annuities and I've done hundreds and hundreds of videos and I have Mr F I X on still still as I always say there's five people in the world that can explain indexed annuities and I don't know the other three because two of them are on this podcast bingo. It's really pretty simple. I think it's really important to understand when you go put your name in that computer and you type in for a lead that goes into some source and they take that lead and they will sell it. They're actually going for $350 a lead right now. It will sell your information to someone for $350 and they'll sell it multiple times. They're not stupid. This guy doesn't know I send it to that guy, so I'll just sell it to like 10 people. You will get inundated with calls from the worst of the worst. And here's why if you have to buy people's names, you have done something wrong in this business.

Exactly. I totally agree. And that's the reason we put out all this content. I want to talk about bonuses. We talked about in a couple the other two podcasts that we have, you know, put on the in the evergreen content world to be consumed by thirsty individuals for the rest of their lives. It's just great what we're doing mr F. I. X. Is just fantastic. I think you've got to pay attention to the bonus and where it goes and I think this is a really big misnomer here. Like a lot of people say, oh they're gonna give me and I'm gonna use hypothetical numbers. So we don't get in trouble with any carrier Shan give me uh give me a 21% bonus on my money. 21% 21%. Oh my God, you put 100,000 and you have 121,000 Day one. Holy crap, March, why wouldn't we do that. Well I don't know either, we get the application out ask where that 21% goes. Thank you. I promise you this it doesn't go into your account value real money.

It's not real money. It doesn't go into your real well I think it's a deterrent. You have a real money account of fake money account. Do you think the insurance companies just gonna hand you $21,000 of real money? So you're telling me there's no philanthropist at annuity companies. They are not a benevolent society. They are a traffic making company and there's different kinds of profit making companies. There stop companies you go on the stock exchange and they buy stock so they report to shareholders, there's usual companies where they report to you the client, you're the owner. So they have to pay out dividends and they have extra couch, they gotta pay out the dividends and pay it out to you. The shareholders at the end of the earth. I personally like mutual companies because I think they give you a little more fair shape. They don't have to worry. So let's get back to this 21% bonus Mr F. I. A. X. That sounds good. Well it is good now why? That's why you should put more than $100,000 and if we take 300,000 you would get $63,000 and look at what your account looks like and that is amazing.

So when you turn this income on this income is going to pay you this amount of money increasing for the rest of your life and your wife because we'll do a joint income and you'll always have this check. Amazing. And we're tied to the stock market so you're going to participate in the stock market like returns. And let me ask you a question Mr X. If I compared and shopped all income riders, is it going to finish first contractually on the payout? That one won't convince verged on the bay out. But once again is if you're folk, I hate when it's not the client that's focused on the number as much as it is the agent. That's my belief. I believe the agent shows the biggest number they can because the greed factor on the client outweighs the common sense. I'll give you a great example, let's say I only need to get $20,000 of income to solve my problem. But this income writer spits out 40,000. The client goes, oh my God, that's twice as much as we need. Here's what I see you're going to exhaust your kind a whole lot faster. You're paying tax on $20,000 more money than you need and you're gonna have nothing left when you may need it.

And I always tell people when you're running income quotes, reverse engineer the quote are quote machines have that where you can put in, okay we need X amount per month. How much premium is it gonna take shopping all carriers and find the best carrier that requires the least amount of premium. And so the inflation thing comes up. Okay well I'm an inflation. Well in my perfect world and I do as you know mr X. I do live in a perfect world that at the time you need to address inflation. Then we again reverse engineer solving for that monthly dollar amount needed. But inflation is not is not uniform inflation for stand the annuity man doesn't affect me like other people because I don't drive I just get on a plane occasionally but you know we don't drive anywhere. My kids are out of the home. Thank God. So you know we don't have that type of food bill anymore. The point is inflation is also customizable and personal. So I always say address it when it comes up build the income floor to that specific dollar amount that you need.

You know and then when inflation hits because you suffer because if an agent says to you I have the annuity that addresses for inflation and tracks it. They are full of crap period. Well I mean there's products yeah there's products out there that have inflation riders will call it Cps but inflation but etcetera but you know what does that exactly cover? What's it capped out at what does it max act? I mean there's a lot of moving parts and I think you go back to like annuities like you're saying is their annuities are still sold or not accept the annuity man dot com. No, they are bought because I would say, I don't know what the percentage is pretty high. 20 to 30% at this point of people that we provide, they've run the quotes, we provided, the information we've sent the books and then they email or call in and say we're ready to go And here's why because they educated, they took the time to educate themselves and they didn't take their whole life's work and educate themselves in a 90 minute or 60 minute bad chicken dinner seven right.

And if someone ever says to you, you need to buy it now because the bonuses going away or you need to buy it now because this capture spread of participation rate is going to get loaded. You need to buy it now. All that means is the agent needs to make a car payment because there's never an urgency to buy an annuity. The urgency is to fully understand it and then make your decision on your terms and your timeframe. I do encourage people listen to this. If you want to dig into indexed annuities, then go to my side of the annuity man dot com and schedule call top left hand corner is book a call book a call with me, we'll talk about it. There are a handful of indexed annuity that I like that. I've been literally guided to buy Mr F I A X. That we think they are fair and we think that you have a potential to get a better than average return. If you want to see those, I'll show them to we're not going to promote them on this because they're not paying me at fees. Mr X. Well I don't like to promote anything in particular until I understand your circumstance. You know, I don't you want to hear the crazy part, Maybe a fixed and that's the income writer is not for, you know, I know you're gonna you're saying it's not one size fits all.

I'm just saying, you know, there's something that I think about. That's pretty funny and I think you and I think you would agree on this if I put $100,000 in it rolls up to 200,000 at the end of 10 years like income writers work and I turn it on and at the end of 10 years the accounts have, which is what will happen. Isn't that really a tenure or certain with a life expectancy. Come on, you're getting detailed, you're starting to do facts again. Come on, so why not accumulate the best money I could possibly find. And I would think in 10 years interest rates might be a little bit better and then you move the money into a vehicle that is built to literally pay our income well and that's that's what I call defer to spear, that's defer to spears defer defer defer to her and then by a speed at the exact time immediate duty and the cool part is this you don't need to take all the money to buy the sphere. Just take what you need to let the other shops keep growing and then you can keep filling the bucket back up. Hey Mr X. I've got the greatest business idea for you. I have not shared this with you because I was waiting to get your facial expression.

That's a joke cause he's wearing a mask on what I'm getting ready to say? I was on the podcast the other day and we were talking about Cryptocurrency et cetera and the person says stay in the annuity man, America's newly agent. Do you ever think there'll be a Cryptocurrency F. I. X. And I said I don't know but that's a pretty good sales pitch and here it is. What's coming here it is. Here it is. You can share in the upside of Cryptocurrency with no downside Mr jones. How much of that do you think we can sell? Oh this way just look, I personally think crypto is here to stay. I do too, I do too. Biology is here to stay but all the stuff they're slinging around here, 99% of those things won't be here so well. But the majority won't. But the technology is gonna step technologies here, there's over 5000 cryptocurrencies. I read the other day on ESPN that some guy that doesn't even start for you to the basketball team, he's on the bench for U. C. L. A. Mr X. He started his own Cryptocurrency. This is insanity.

This reminds me of when the Goobers were out there going, well I'm gonna start my own hedge fund. You're an idiot. You don't even know what It's funny people that are doing the crypto Yes that the Blockchain technologies here but I just was going to throw that at you if you ever decide and I'm not sure I could ever do this because you know, I care about the people out there but if you ever wanted to leave your morals at the door you got Yeah. You say this is a Blockchain F. I A sharing the upside. No downside. We're talking about record setting sales. Mr X. What do you think? Uh Yeah, that's a tough one. I guarantee you people going to come and go, I heard you talk about that crypto indexed annuity. I'd like to go million in that one. We're joking. We're joking joking. But the problem is that they'll always keep trying to find a way to do that I think would be as I would be very curious to see what the option with the hedge cost would be to try to buy an option on something so volatile.

Oh my goodness. I think it would be quite expensive. What do I know, what do you know? You're the expert Mr X, you know he is, I know what else is happening out there. I mean we got a few more minutes and the people are leaning in, they pulled their cars over, they stopped the treadmill so that they can listen intently to you. Mr F I a I want to go back to where I want to go back to where we started with little recap. Remember those illustrations and stuff are hypothetical and I told this language out at one of them, which I thought was hysterical says it's not intended to serve as a projection or a prediction. That's what it says the agents do is they show you what this could do. They use it as the projection. They used to read that again, that's from the proposal. It is literally out of the illustration and I challenge all of the people on here, read the illustration and you'll be like what? And I promise you a majority agents can't answer the questions. So, read that, read that sentence again. The illustration is not intended to serve as a projection or prediction except for the guaranteed values.

Uh huh. So in other words, everything below here ignore except don't ignore it because I saw it part of the sales pitch, right, ignore everything except the one column where it says guaranteed. Okay, I'm I know, but here's the sad part about this. It doesn't make them bad. No, means you have to understand what you're getting into. I encourage people to go to the annuity man stand the annuity man Youtube channel, which is different from the fund with annuities Youtube channel. Yes, I do have multiple, but the standard annuity man Youtube channel, if you go to the playlist section of that Mr X. I've done a ton of videos on indexed annuities to the detail. You can go to my side of the annuity man dot com. I'll send you a book called the F I A owner's manual, fixed index annuity owner's manual could be the best thing ever. And guess who consulted on that Mr X. I mean, we we dug in there. Yeah, we dug in there and got it done my first book, the annuity stana festo. Yes, had a great section on indexed annuities with MR X helped out on the point is educate yourself and don't be afraid to ask for a specimen policy.

Okay. Not just a brochure, a specimen policy and if any agent box at giving you a specimen policy, that person is not your agent. Now. The only way you're using an agent other than the annuity man. Is that your brother in law and sister in law that's selling, you know, annuities. That's the only way that's even scarier. That's even scarier. But or don't I heard one the other day of the index annuity seminar at the church. The guy was soliciting the flock, he was flocking the flock and it was horrific. That's that's scary. So just be careful out there any last words mr F I X. Obviously you're going to be on again, you know when you're Lear jet lands in the States and I can get you on online anything out there for the people when it comes to indexed annuities because once again they're not too good to be true, but they're pretty darn good when you understand them and use them appropriately. What would you tell the people? It's easy, just a few simple things. Number one, figure out what you want to extend. This is something that we've always said, it's your money.

What do you want to do for you, yep. So you need to figure that out. Okay. Number two is you need to educate yourself. Read up, take the time, I think I find it amazing that in 60 minutes you'll give me your life savings with a good steak dinner with the steak that's cooked medium rare warm in the center. I have always found that amazing. Okay, and and read and get educated and then the third part and I think this is very important. Take a powder paper and a pen leave it on the tower and as the weeks go by, keep writing questions down on that path. And then you make your call to stand and then go through every one of your questions and don't do anything. Until those are answers are satisfactory view and you fully understand. The last thing I want to I want to add this is advisors and agents should never be your friend. You know, I have thousands of clients. They are not my friends. I am not their friend. I'm their advisor. You don't want your you don't want your cancer doctor to be your friend. And when agents start using, hey, look at my kids or look at my grandkids or you went to ST you and I went to ST you put them back in their land and say enough about that.

Let's talk about the details of what you're trying to sell me. I could give a rip about your kids, your grandkids way you from and all that stuff. That's just fodder to earn your trust. The trust should be in the policy. The trust should be in the contract. This trust should be in the carrier that you're transferring the risk to. And the trust should be in the contractual guarantees. Only period. Lastly, the trust should be in the competence of the agent to explain it. Crystal clarity factually not some sales stuff. Right? No, exactly. You know what Mr F. I. X. We have blown through another session easily. Of course because we're rolling. We're like butter right on a roll. Get it Mr If I understand. Well, listen to everyone out there. I appreciate you joining me, join me every single week until I stopped breathing for fun with annuities. The number one annuity podcast on the planet. See you next week. Thanks for listening to fun with the new teas. Please hit the subscribe button and make sure to go to my site at the annuity man dot com where you can run your own speed idea and kulak quotes and see a live feed of the best mega fix rates in the country and even get index and income rider quotes as well.

You can also sign up for my six annuity owner's manual books and I'll ship them for free and under no obligation. I also encourage you to schedule a one on one call with me. Stand the annuity man so we can have a full discussion of your specific situation. It will be the best brutally factual and truthful advice you will ever get and that's one guarantee you should definitely take advantage of. So join me next time for the number one annuity podcast on the planet. Fun with annuities. Yeah

076: Mr. FIA-X: Letters, Numbers, and BS Bonuses
076: Mr. FIA-X: Letters, Numbers, and BS Bonuses
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