so what did yo learn? I am a licensed Insurance agent for Health, Life, and P&C along with a Realtor, and Loan office; invader/immigrant since 1989 and prospered. Would like to know your perspective :)
Dear Lady: I will just humbly say thanks for this valuable help in making a very important decision in my life; I just turned 80; I will watch you again and again 'till I get acquainted with the turns and facts of the trade. thanks again.
I had no idea how annuities work but you did a great job at explaining. I will be looking forward to talking with you soon as I am looking to retire very soon. Thank you.
Last year, I made a property sale and had over $1 million in proceeds. I allocated $400k to index annuities and put the rest in the trending High Frequency Trading style. So far I've more than doubled the annuity premium from the stock market and sure enough will not need an annuity for the rest of my life. However I won't discredit annuities in any way, they buy you peace of mind but then a lot of people buy them out of fear of what's yet unknown even when it's not the best decision for them. If you need growth, try other stuffs. Annuities should be a backup plan, just like an insurance. Concepts like HFT/ algo trading and diversification of assets can be of great help for growth oriented individuals while still retaining control of your money
@@George-hl7jf It's when your account mirrors someone else's trades. Trick is knowing who to copy. I managed to work my way into Josephine Guevara Laporte's popular algo trading program. She's a renowned CFA, you should check her out. There are other similar options out there but consistency and smart diversification skills were the clincher for me with Josephine.
@@profderek8111 hi I'm already in retirement and have like $700,000 in a CD account with a very low interest. I only need $30,000 for liquidity purposes(emergency fund) and plan on growing the bulk to over a million. I found Josephine Laporte's official website after looking up her name. Quite impressed at her portfolio and will schedule a call with her right away. What's the fee structure?
@@theexpendables3152 Since it's an algo trading based model, it's very much transparent because you can actually see what assets you have and how much growth your portfolio has achieved. She takes 10% of the profits, no hidden fees.
Some states don't have death taxes, and inheritance tax is only a thing if you have assets over a very high dollar amount, which I believe is around 12 million dollars.
hello im taking my life,health,& accident exam on sunday in new york city, i was wondering where did u take yours, and what did u struggle the most on the test? and what topics did you see on the test alot! Thanks!
The problem here is inflation . If it’s structural in the 3-5% range you’re quite exposed . Inflation protected annuities are prohibitively costly . Variable products are merely a conduit for transfer of your money to the insurance company and usually an inferior pay table for annuitizing compared to a simple income annuity . Perhaps to cover a fixed expense like a mortgage you could have one of these but why do you have a mortgage in retirement ? Anyone that has annuitized pre pandemic must be kicking themselves.
Thank you so much it was informative. I recently got into three fixed indexed annuity’s. I was in three different variable annuities.Hope I made the right choice
This was SO helpful - very clear, simple and unbiased (except for the variable caution at the beginning). Thank you! You mentioned the stability of indexes vs. the market - does the person shopping for an annuity choose the index or does the insurance company (who is selling the annuity)? How does one know how to evaluate various indexes?
You have a choice of indexes with any indexed product. You want a volatility control index, uncapped with the highest participation rate, guaranteed at 100% if possible, rebalanced daily and no fees and no riders (not necessary). The agent sells the annuity.
Excellent explanation of how annuities work! You have a subscriber in me! Thank You. Very helpful, I’m looking at transferring a 857b deferred comp account from my employer to an annuity managed by a company called Athene. I have a lot of questions before proceeding thanks to your video
Hi, I have been a licensed agent for many years and I recently discovered your videos and think you do a great job and I have learned several nuggets from you. I am wondering if you have a video specifically teaching an annuity illustration, I like your easy to understand teaching methods.
He absolutely should NOT put ALL of his money into anything. If he is looking for safety from. market downturns and maximum cash accumulation, there is an uncapped flexible premium deferred annuity with a a 10-year surrender period. There are no fees or expenses and it has a 120% participation rate, so however much the index grows, you are credited with 120% of that gain.
@@WealthProtectionLady Great presentation! Thank you! Please correct me if I am wrong, variable annuity is not good but FIA and DIA are good options to invest. Also, which annuity are you referring above that is uncapped flexible premium? How do you check the credit rating for some of these insurance companies?
My financial advisor has recommended a single premium deffered annuity for me to invest in for 5 years at 5.3 % interest on 100,000 dollars.at the end of the period can i take it all in one lump sum or am i only allow to get it back over payment for next 20 years.i want to take it in one lump sum.
@@louismorris7946yes you can take that money out as a lump sum but you will be taxed on the sum. I would suggest that you rollover that money into a new index annnuity to continue defer taxes
Thank you for making this video. It was very informative and educational for me. Thank you. I fully understand the differences, I will continue to educate myself.
You're welcome I have two annuities that I have for many years and it was perfect insight I learned a lot from your video keep up the good work thank you so much for all you do and stay well
Would you recommend a 3-5 year deferred annuity for an 85 year old in a nursing home who has enough money to pay for his care for at least five more years without touching the annuity funds? We’re trying to protect some of his money while also gaining a bit more than what CDs usually offer. Thanks ahead of time. Love the content.
Very informative video, ma'am About history n details of annuities. Your expression was very clear. Sad Parr is crooks are everywhere, international n local. Jussojuan
Thank you, Pat. If you are interested in an annuity, I have an uncapped annuity with a 120% participation rate, which means you are credited 120% of market gains. There are ZERO fees! If you are interested in this, please complete this application. Here is a link: form.typeform.com/to/SNfW1IBA
SPIA does not stand for Single Premium Indexed Annuity. It means Single Premium Immediate Annuity. And the same for a DIA. It's not Deferred Indexed Annuity, it's Deferred Income Annuity
If you are talking about an IUL being properly structured, the initial death benefit for a $500 monthly premium should be $100,000. With a larger premium, you can always email me at sue@wealthprotectionlady.com with your annual premium amount and your initial death benefit and I will let you know.
My mom recently passed and we are stunned to learn she had an annuity. I am just now learning all about them as I want to understand this decision of hers. My question is, is there a reason she wouldn't have been informed of adding a death rider onto the annuity to insure us heirs received the rest of the money? Is there a way I can retroactively figure out how much she put into the annuity?
She might have added a beneficiary or beneficiaries to her policy so the funds would pass onto them upon her death. You can call the carrier to inquire.
Thanks, I am a retired Army and your video was very interesting as I am getting myself educated in annuities, as O expecting around $250 K from a real estate sale. I am 63
thanks for the video, although your video is 3 years old now. i was considering a guaranteed future income annuity based on todays current rates. it would be a single life with a cash refund option. an example was shown for contract writing at age 60 with payments starting at age 65 with a 9,23 percent rate. this could be a lump sum or payments to fund it. i'm not seeing to many cons other than you give the insurance company your money and they invest it to pay you for life like a pension. the rates now are higher than ever before and i would like to lock in now because later likely to go down. what do you think. thanks
Variable annuities are expensive! Your money is IN the stock market, so when the market crashes, so does your annuity. The annuity I sell is uncapped in an index that has a 120% participation rate so however much the index gains, you get 120% of that gain. The index performs very well and there are zero fees or expenses. If you are interested, complete this application and I'll prepare an illustration for you. form.typeform.com/to/SNfW1IBA
Thanks for the great video. I learned a lot. Down in comments below you stated not to put all of your money in an annuity. Why not ? I will have around $500,000 by the time I retire in two years. Where else should I put my money in addition to an indexed annuity ? Also, what fee structure is generally fair when hiring a financial advisor ? Thanks !
I would never advise anyone to put all their eggs in one basket. Another place to put your money would be Indexed Universal Life (IUL), but I don't recommend that for anyone over the age of 65. You could also do an income annuity and that would give you a lifetime income. Annuities are a life insurance product and most financial advisors are licensed to sell them. Indexed annuities have no fees as long as there are no riders. Even the agent's commission comes out of the carrier's general account.
Today a single life male annuity for $100,000 taken at 65 will pay around $540 per month net pre tax current quote or $6480 per year for life. That represents a return of 6.4% Net of fees. so to match that in a RRIF assuming 1.5% MER you need a return of 7.9% gross year over year. The only question is heath dying you a large balance in an rrif will leave a larger estate. I prefer to fund that with life insurance which unlike a riff is not taxed on death in Canada.
Thank you for this video, I'm working on becoming a insurance producer. Not only is this helping me learn but its making me more comfortable with this product. Beforehand I was feeling I wont touch this product at all, I wont sell it or mention it to my customers. If they want it I'd refer them to my boss.
I've done a lot of research recently on annuities as I get close to retirement. Generally, I think SPIAs are not a good product for retirement, however, the SPDA products can be used to insure against running out of money, should one live beyond expectations. I also think that, just like life insurance, annuity products are good as insurance products, but not good as investments. Keep investments and insurance separate. Just my 2 cents.
No. An indexed annuity is not anything like a SPIA. I just uploaded a new video this afternoon on rolling over your 401k into an index annuity to protect it from market losses.
I don't know anything about mutual fund commissions. With an indexed annuity, as long as there are no riders, there are no fees and even the agent's commission is paid by the carrier's general account.
Good video. You have a very pleasant demeanour. However, I am not big on annuities because you relinquish control of your money. I looked at the mortality tables. At the age of 65 you have a 50% probability of living to 85/86 and a 34% probability of living to 90. I prefer to invest and control my money instead of handing it over to someone. Outliving your money is so overplayed and a tactic to put the fear into people.
@@Seccheus Very easy. Invest in an S&P Index ETF. If you hold the money for 35 yrs (from 65 to 100) you get an average return of 11% (ranging from 8.7% to 13.1%). Let's take a 9% rate. This implies you can take out $94,000 per yr. for 35 yrs. A life annuity at 65, such as Schwab, will allow $80,880 per yr. At 80 your ROI is 2.5%. At 90 your ROI is 6.35%. At 100 your ROI is 7.4%. I am way far ahead my way. Plus, and most importantly, if I die, at, say 85, I leave a whack of cash. Annuities are a lousy bet, no matter how you cut it.
If you are looking for safety from market downturns and want maximum cash accumulation, my clients are really liking an uncapped flexible premium deferred annuity with a 10-year surrender period. There are no fees or expenses and it has a 120% participation rate, so however much the index grows, you are credited with 120% of that gain. The index is a volatility control index with an annualized return of 8.42%.
I don't see much info explained so well on annuities on the internet 👍 I have an annuity and I am better able to understand now. I believe I have a fixed annuity with life contingent payments till 2063, does that mean if I die before 2063 my beneficiaries will receive my payments ? If I die after 2063 my payments will not be guaranteed to my beneficiaries?
I wish I could answer your questions, but every annuity is different. It depends on how your annuity was structured and what riders you have. I suggest you contact the agent who sold you the annuity. Thank you for the compliment!
A STABLE INCOME IS MORE IMPORTANT THAN ANNUITY FOR RETIREMENT PLANNING. Big ups to everyone working effortlessly trying to earn a living while building wealth. I'm 40 and my wife 34. We are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. Saving and investing lifestyle made it possible for us this early even till now we earn monthly through passive income.
Thank you so much for the video!! I have one question... Is income guaranteed for life if your balance is fully depleted even without the life time income benefit rider?
And how does your balance get depleted in the first place given that your money is being invested and is theoretically growing due to the investment returns? Thanks again!
Love your video! I'm 55 and have 100K in IRA, after watching your video I plan to open an annunity but which one, Fixed or Indexed. Also take lump some or through my life time? Thank you.
I would go with indexed. Watch my video about rolling over a tax-deferred retirement account into an indexed annuity. th-cam.com/video/XezlpQTrwdM/w-d-xo.html
Quick questions: having an annuity affects you in your social security in terms of taxes? And also if you have a whole life insurance there is a way you can convert that product for an annuity?
I'm not sure what you are referring to as far as how much lower means. Sorry, but this is an old video of mine and I don't remember what you might be referring to.
question on surrendering non-qualified annuity... if there is no growth in first 2 years, if annuity is surrendered with original money (minus surrender charges), will there be IRS penalty for cancelling annuity (less than 59.5yrs).?. Since there is no growth, I feel no IRS penalty. Right?. Ex: Invested 100K money 2 years back with non-qualified money (like savings account). No growth yet. Surrendering contract will give 100K -6K = ~94K. No IRS penalty in this case. Right?
Hi, Joe! Surrendering the policy before 59 1/2 is a withdrawal so you would have to pay the 10% IRS penalty. One thing you can do is change the index you are invested in. I would suggest a volatility control index that is rebalanced daily. Also, most agents put an income rider on the policy when it is unnecessary and you're paying fees on that. If that is the case with you, I would call the carrier and see if they can remove the rider.
I would recommend you put your money into an Indexed Universal LIfe (IUL). I would only recommend an annuity for people who don't qualify for life insurance or to save your 401k from stock market losses by rolling it over into an indexed annuity. You can check out my video on the IUL I sell: th-cam.com/video/UL66iBH5HXY/w-d-xo.html&ab_channel=WealthProtectionLady
I have a question. If you have a fixed annuities for life by transamerica..Does the annuitor own the policy or does transamerica corporation own the annuity policy? Usually annuit is same as owner?
People, please be careful. Annuities have a place but are definitely not for everyone. Please understand, these can be high commission products and are still products being sold by a for-profit company. - There is nothing wrong with for-profit companies, they need to make money to stay in business. Like all insurance products, in most cases, the insurance company makes money off of you. - So be wary of the use cases in which the individual "makes" more money in a product. - For example, a 12.5% cap, a 0-2% floor & based upon the S&P500 Index; think to yourself "how is the company making more than the 0 to 12.5%, on average"....because they are. - There can be fees, expenses, other limiting tools such as participation rate (% of capped rate).
Annuities are not for everyone, for sure. Because I was declined for an IUL, I am now having to put my money into an indexed annuity and because an indexed product is all about the index, for me, the trick is finding a volatility control index that is rebalanced daily, has a high participation rate that is guaranteed at 100% and that performs really well. I'm still searching, but you have to be very careful. As long as there are no riders, there are no fees with an indexed annuity.
@@WealthProtectionLady everyone's "why" is different. But, I would choose term life over permanent and probably (situation dependent) an annuity over permanent. - Again, the "why" matters. - Life insurance, for me, is for coverage for children/spouse until the children are out of the house and payment for death expenses. - Possibly spousal support until other assets become available. - That is where term works the best (for my situation). An annuity, to me, is a hedge against outliving income. When I get closer to retirement, evaluating where my family is (or was) regarding current/final age and health conditions will be helpful in answering whether a hedge is a wise move and how much of a hedge should I use. But, annuities have fees (or expenses) and those fees (or expenses) are still higher than other asset types; with or without riders. - "Guaranteed", or safety, comes at a cost. - The cap limit and participation rate are places where the insurance company is making money. - I am highly skeptical of your example of a 12.5% cap, 100% participation rate & 2% floor. - This seems like a unicorn. Especially, when you mention the average annual return of the S&P500, in this time period, is 7-8%. - Expenses in the investment products are a place the insurance company makes money. - Riders, cancelation fees etc are also other areas in which they make money. - Annuities aren't inherently good or bad. But, there is far more nuance and better initial places to put money.
I’m 59 Last year I was talked into by my financial visor to move my Roth IRA into a Allianz annuity. I moved 150k into it. I was told that it is a safe haven when the market corrects itself or drops. And only making maybe 3%, but never losing anything… What can I do, can I get out of the annuity or can I move it into some other field in the annuity toilet earn some money while the market is still climbing?
Hi, Eli! If you moved your Roth into the annuity last year, you've passed the "free look period." Not to worry. You can exchange it for another annuity. The annuity I use is uncapped with a 120% participation rate, which means you are credited with 120% of the index gain. There are ZERO fees! If you are interested in this, please complete this application. Here is a link: form.typeform.com/to/SNfW1IBA
@@WealthProtectionLady thank you! I was so afraid of if my investment would just sit there like ice or if I was missing an opportunity to still make money, at my age and before retirement.
In my annuity, I am invested in 2 indexes -- the SG Global Alpha index and Barclays Trailblazer Sector 5 index. Both are volatility control indexes. I am credited interest based on the movement of the index and both have participation rates of over 300% so I am credited over 300% of any gains in the indexes and am protected by the 0% floor.
I am not sure if there is a benefit to an annuity. How would I benefit with an S & P index annuity rather that just investing in the S & P 500 directly? Also; why are the annuity companies so terrified that someone will remove their money so, they have enormous fees for doing so? Chances are they are up to no good. You can pull your money out of a brokerage account whenever you like. Those companies are fearless. Regarding the market downturn protection; Even with downturns, the S & P 500 has an average return of 8% annually. Also, if invested in a brokerage firm, the money is liquid, no withdrawal penalties. No fees? You bet there are. Try to take your money out. Long term care; There is common problem with long term care. If you long at the requirements, in order to collect on the long term care benefit, you must be just about dead. A 30 day review time for annuity. Why can't you review the contract before signing? Ahhh good question.
I would never recommend the S&P 500 as an index choice. There are many choices for indexed, but I really like one that has zero fees as long as there is no rider, has a 230% participation rate, so however much the index goes up, you are credited with 230% of that gain. It is a volatility control index that is rebalanced at the end of every single business day, so it performs very well. Remember, there is that 0% floor. Regarding the 10 year surrender period, this is what life insurance companies require. You can access up to 10% of your cash value after year 1 if you are over the age of 59 1/2 ; otherwise, just like with a 401k, you will have to pay the 10% IRS penalty. You have to understand that there are things you can do with a life insurance product that you cannot do with an investment account. When you purchase a life insurance product, you are signing a contract, so obviously, you review the contract before signing.
Please advise. I am a 73 year old bachelor who recently inherited 300K. I live in a care facility and am in good health. I have no other assets other then social security. What is the best annuity for me assuming I want the maximum monthly payout with no legacy inheritance. Thanks
David, I would recommend an immediate annuity with a guaranteed income for life. If you want me to run an illustration for you, email me with your date of birth, your state, your email address and phone number. I'll email you when it is ready and then we can get on the phone so I can go over it with you. I'll give you several options along with the annuity that will pay the biggest monthly payment for life. My email address is: suecunningham@me.com. I look forward to hearing from you!
Thankyou not that bright 45, I got around 400 liqoud 150 in a dividend stock account can I buy a 10 or 20k annuity and just take the 4, 5 or 6%, a year dispute inflation just to keep some money with a solid base despite inflation.
@@WealthProtectionLady 10k paid cash for a annuity now?, my father was a cpa,150k I was his life insurance, cashed outta 401k for roth, and sold r home that's why I'm so cash heavy, really 370 liquid as the other 30k is a Nixon of silver coin, bars , vaulted platinum , gold and mining stocks, ty and God-bless
Yes. No penalties or tax consequences whatsoever. Watch my video on rolling over a 401k into an index annuity: th-cam.com/video/XezlpQTrwdM/w-d-xo.html&ab_channel=WealthProtectionLady
I am studying for my Life Insurance license and I just learned SO much more by watching your short video
so what did yo learn? I am a licensed Insurance agent for Health, Life, and P&C along with a Realtor, and Loan office; invader/immigrant since 1989 and prospered. Would like to know your perspective :)
Dear Lady: I will just humbly say thanks for this valuable help in making a very important decision in my life; I just turned 80; I will watch you again and again 'till I get acquainted with the turns and facts of the trade. thanks again.
Yes I watch it to get a better understanding of annuities. I felt your sincerity with explaining too. And not take advantage of consumers. Thank you
Thank you for the very clear and simple explanation about annuities. I learned a lot compare to other videos.
I had no idea how annuities work but you did a great job at explaining. I will be looking forward to talking with you soon as I am looking to retire very soon. Thank you.
Love your videos- simply informative
Last year, I made a property sale and had over $1 million in proceeds. I allocated $400k to index annuities and put the rest in the trending High Frequency Trading style. So far I've more than doubled the annuity premium from the stock market and sure enough will not need an annuity for the rest of my life. However I won't discredit annuities in any way, they buy you peace of mind but then a lot of people buy them out of fear of what's yet unknown even when it's not the best decision for them. If you need growth, try other stuffs. Annuities should be a backup plan, just like an insurance. Concepts like HFT/ algo trading and diversification of assets can be of great help for growth oriented individuals while still retaining control of your money
I agree with the idea of considering annuities as an insurance rather than an investment. Nice portfolio you have going on though. kudos!
How does algo trading work? Might just be what I need now. I still need growth as much as the downside protection that annuities provide
@@George-hl7jf It's when your account mirrors someone else's trades. Trick is knowing who to copy. I managed to work my way into Josephine Guevara Laporte's popular algo trading program. She's a renowned CFA, you should check her out. There are other similar options out there but consistency and smart diversification skills were the clincher for me with Josephine.
@@profderek8111 hi I'm already in retirement and have like $700,000 in a CD account with a very low interest. I only need $30,000 for liquidity purposes(emergency fund) and plan on growing the bulk to over a million. I found Josephine Laporte's official website after looking up her name. Quite impressed at her portfolio and will schedule a call with her right away. What's the fee structure?
@@theexpendables3152 Since it's an algo trading based model, it's very much transparent because you can actually see what assets you have and how much growth your portfolio has achieved. She takes 10% of the profits, no hidden fees.
Some states don't have death taxes, and inheritance tax is only a thing if you have assets over a very high dollar amount, which I believe is around 12 million dollars.
I’m struggling with passing my life,health,& accident exam... but mainly w/ remembering annuities. This is a big help‼️💜
Zan, I am so glad they are helping. I remember having a hard time with annuities myself. Good luck!
hello im taking my life,health,& accident exam on sunday in new york city, i was wondering where did u take yours, and what did u struggle the most on the test? and what topics did you see on the test alot! Thanks!
@@Lightning-bv2vv the company I applied for directed me to a online insurance exam that has practice test. It was $150 & $33 to take the test.
@@WealthProtectionLady thank you again I passed my test back in October
@@zanb5397 was the practice test questiond similar to the exam? And what topics did you mainly see on the exam? Line annuties, medicare etc.
The problem here is inflation . If it’s structural in the 3-5% range you’re quite exposed . Inflation protected annuities are prohibitively costly . Variable products are merely a conduit for transfer of your money to the insurance company and usually an inferior pay table for annuitizing compared to a simple income annuity . Perhaps to cover a fixed expense like a mortgage you could have one of these but why do you have a mortgage in retirement ? Anyone that has annuitized pre pandemic must be kicking themselves.
You're really smart, thanks for this. I'm trying to study to pass my state exam and needed this! You can always go over policies and riders!
Thank you so much it was informative. I recently got into three fixed indexed annuity’s. I was in three different variable annuities.Hope I made the right choice
I would never recommend a variable annuity because there is no 0% floor. You can lose money.
I would completely trust you as my financial adviser. Watching your next video...
I don't know if I've ever received a better compliment! Thank you!
Just let me know if you want more information. I'm here to help.
Great information, I just don't know where to start or what questions to ask inorder to get the right answers and no be fooled
Very Throughly Stated About Annuity. Five Stars. Zero Biased !!!
Thank you!
This was SO helpful - very clear, simple and unbiased (except for the variable caution at the beginning). Thank you! You mentioned the stability of indexes vs. the market - does the person shopping for an annuity choose the index or does the insurance company (who is selling the annuity)? How does one know how to evaluate various indexes?
You have a choice of indexes with any indexed product. You want a volatility control index, uncapped with the highest participation rate, guaranteed at 100% if possible, rebalanced daily and no fees and no riders (not necessary). The agent sells the annuity.
@@WealthProtectionLady Thank you for your rapid and helpful reply!
Excellent explanation of how annuities work! You have a subscriber in me! Thank You. Very helpful, I’m looking at transferring a 857b deferred comp account from my employer to an annuity managed by a company called Athene. I have a lot of questions before proceeding thanks to your video
Wow! This is super well explained! Subscribed and can't wait to watch more! :)
Hi, I have been a licensed agent for many years and I recently discovered your videos and think you do a great job and I have learned several nuggets from you. I am wondering if you have a video specifically teaching an annuity illustration, I like your easy to understand teaching methods.
The only one where I show an illustration is "Roll over your IUL into an Indexed Annuity"
Thank you! My retired father was looking to dump all of his money into an indexed annuity. You just saved us!
He absolutely should NOT put ALL of his money into anything. If he is looking for safety from. market downturns and maximum cash accumulation, there is an uncapped flexible premium deferred annuity with a a 10-year surrender period. There are no fees or expenses and it has a 120% participation rate, so however much the index grows, you are credited with 120% of that gain.
@@WealthProtectionLady Great presentation! Thank you! Please correct me if I am wrong, variable annuity is not good but FIA and DIA are good options to invest. Also, which annuity are you referring above that is uncapped flexible premium? How do you check the credit rating for some of these insurance companies?
My financial advisor has recommended a single premium deffered annuity for me to invest in for 5 years at 5.3 % interest on 100,000 dollars.at the end of the period can i take it all in one lump sum or am i only allow to get it back over payment for next 20 years.i want to take it in one lump sum.
@@louismorris7946yes you can take that money out as a lump sum but you will be taxed on the sum. I would suggest that you rollover that money into a new index annnuity to continue defer taxes
Thank you for making this video. It was very informative and educational for me. Thank you. I fully understand the differences, I will continue to educate myself.
Glad it was helpful!
Thank you so much you are a wonderful teacher you're so understandable and clear everything was perfect thank
Thank you, Reinaldo!
You're welcome I have two annuities that I have for many years and it was perfect insight I learned a lot from your video keep up the good work thank you so much for all you do and stay well
Would you recommend a 3-5 year deferred annuity for an 85 year old in a nursing home who has enough money to pay for his care for at least five more years without touching the annuity funds? We’re trying to protect some of his money while also gaining a bit more than what CDs usually offer. Thanks ahead of time. Love the content.
If you are talking about a MYGA, you can get a 3-year for 5.9% and a 5-year for 5.8%. It's safe and guaranteed.
I will have to listen to this multiple times because my understanding is not good on stuff like this 😢
That was excellent! Am in the process of looking at retirement and annuities. Didn’t have an idea what it meant. Thank you.
I'm so happy it helped!
Youre a wealth of information. I'm so glad I came across your channel.
I'm so glad!
Subscribed I NEED TO LEAR MORE ABOUT IT BEFORE I DECIDE WHat to do!
Thanks 😊
Most people do months of research.
Thank you. Excellent video! Volatility is your enemy. Never lose money!
Very informative video, ma'am
About history n details of annuities. Your expression was very clear.
Sad Parr is crooks are everywhere, international n local. Jussojuan
Thank You so much for explaining...Perfect
Thank you, Pat. If you are interested in an annuity, I have an uncapped annuity with a 120% participation rate, which means you are credited 120% of market gains. There are ZERO fees! If you are interested in this, please complete this application. Here is a link:
form.typeform.com/to/SNfW1IBA
SPIA does not stand for Single Premium Indexed Annuity. It means Single Premium Immediate Annuity. And the same for a DIA. It's not Deferred Indexed Annuity, it's Deferred Income Annuity
This really helped me to understand annuities. I am studying for my life insurance exam so this information will be usefull.
Great Information. Can you please let me know what to look at an illustration to make its property structured. Thank you
If you are talking about an IUL being properly structured, the initial death benefit for a $500 monthly premium should be $100,000. With a larger premium, you can always email me at sue@wealthprotectionlady.com with your annual premium amount and your initial death benefit and I will let you know.
My mom recently passed and we are stunned to learn she had an annuity. I am just now learning all about them as I want to understand this decision of hers. My question is, is there a reason she wouldn't have been informed of adding a death rider onto the annuity to insure us heirs received the rest of the money? Is there a way I can retroactively figure out how much she put into the annuity?
She might have added a beneficiary or beneficiaries to her policy so the funds would pass onto them upon her death. You can call the carrier to inquire.
Thanks, I am a retired Army and your video was very interesting as I am getting myself educated in annuities, as O expecting around $250 K from a real estate sale. I am 63
thanks for the video, although your video is 3 years old now. i was considering a guaranteed future income annuity based on todays current rates. it would be a single life with a cash refund option. an example was shown for contract writing at age 60 with payments starting at age 65 with a 9,23 percent rate. this could be a lump sum or payments to fund it. i'm not seeing to many cons other than you give the insurance company your money and they invest it to pay you for life like a pension. the rates now are higher than ever before and i would like to lock in now because later likely to go down. what do you think. thanks
Incredibly helpful!
So glad!
IMO this is the best helpfull Annuity info and not just another sales pitch 👉
This is really an informative video. Thanks for the explanations and pulling back the curtain.
Glad it was helpful!
My financial advisor is talking to me about an AIG Polaris Platinum Variable Annuity. Thank you for explaining these so well but I'm still unsure.
Variable annuities are expensive! Your money is IN the stock market, so when the market crashes, so does your annuity. The annuity I sell is uncapped in an index that has a 120% participation rate so however much the index gains, you get 120% of that gain. The index performs very well and there are zero fees or expenses. If you are interested, complete this application and I'll prepare an illustration for you.
form.typeform.com/to/SNfW1IBA
@@WealthProtectionLady Can you explain the term you have used in several replies "120% participation" ? and thank you. great info
Thanks for the great video. I learned a lot. Down in comments below you stated not to put all of your money in an annuity. Why not ? I will have around $500,000 by the time I retire in two years. Where else should I put my money in addition to an indexed annuity ? Also, what fee structure is generally fair when hiring a financial advisor ? Thanks !
I would never advise anyone to put all their eggs in one basket. Another place to put your money would be Indexed Universal Life (IUL), but I don't recommend that for anyone over the age of 65. You could also do an income annuity and that would give you a lifetime income. Annuities are a life insurance product and most financial advisors are licensed to sell them. Indexed annuities have no fees as long as there are no riders. Even the agent's commission comes out of the carrier's general account.
I LOVE your videos...they help me to understand my true options to maximize my savings and retirement!!
I'm so glad!
Thanks so much..you're very clear, understandable and informative..very helpful!!!
Thank you, Nadia!
Thank you even it's old information, it's needed today.
Yeah, it is old. I'm glad it help you anyway.
Today a single life male annuity for $100,000 taken at 65 will pay around $540 per month net pre tax current quote or $6480 per year for life. That represents a return of 6.4% Net of fees. so to match that in a RRIF assuming 1.5% MER you need a return of 7.9% gross year over year. The only question is heath dying you a large balance in an rrif will leave a larger estate. I prefer to fund that with life insurance which unlike a riff is not taxed on death in Canada.
Thank you for this video, I'm working on becoming a insurance producer. Not only is this helping me learn but its making me more comfortable with this product. Beforehand I was feeling I wont touch this product at all, I wont sell it or mention it to my customers. If they want it I'd refer them to my boss.
Good luck, Trisha!
Thank you for your informative video .✌🌵
Thank you for this! Made it really clear.
Excellent explanation.. thank you.
You cut the tape, get right on point. Appreciate that !
I've done a lot of research recently on annuities as I get close to retirement. Generally, I think SPIAs are not a good product for retirement, however, the SPDA products can be used to insure against running out of money, should one live beyond expectations. I also think that, just like life insurance, annuity products are good as insurance products, but not good as investments. Keep investments and insurance separate. Just my 2 cents.
Annuities are not for everyone. I only recommend them if you do not qualify for an IUL or you want to save your retirement plan from market losses.
Good stuff
SPIA is a Single Premium Immediate Annuity not necessarily indexed.
No. An indexed annuity is not anything like a SPIA. I just uploaded a new video this afternoon on rolling over your 401k into an index annuity to protect it from market losses.
Thank you 🙏. I have learned a lot from this video.
thank you wealth protection lady!!
You are very welcome, Vicky!
I love your video! Thank you
thankks so much for breaking it down and explaining it
Awesome video!! Thank you for breaking this down!
My pleasure!
If a financial advisor sells mutual funds and annuities where do they make a higher commission? Annuities or mutual funds?
I don't know anything about mutual fund commissions. With an indexed annuity, as long as there are no riders, there are no fees and even the agent's commission is paid by the carrier's general account.
Good video. You have a very pleasant demeanour. However, I am not big on annuities because you relinquish control of your money. I looked at the mortality tables. At the age of 65 you have a 50% probability of living to 85/86 and a 34% probability of living to 90. I prefer to invest and control my money instead of handing it over to someone. Outliving your money is so overplayed and a tactic to put the fear into people.
@@Seccheus Very easy. Invest in an S&P Index ETF. If you hold the money for 35 yrs (from 65 to 100) you get an average return of 11% (ranging from 8.7% to 13.1%). Let's take a 9% rate. This implies you can take out $94,000 per yr. for 35 yrs. A life annuity at 65, such as Schwab, will allow $80,880 per yr. At 80 your ROI is 2.5%. At 90 your ROI is 6.35%. At 100 your ROI is 7.4%. I am way far ahead my way. Plus, and most importantly, if I die, at, say 85, I leave a whack of cash. Annuities are a lousy bet, no matter how you cut it.
Sounds like a no brainer good video
Agreed!
You are amazing and I use your videos for potential clients.
Wow, thank you!
Beautifully clear. This was the most helpful video on annuities that I have watched. Thank you!
If you are looking for safety from market downturns and want maximum cash accumulation, my clients are really liking an uncapped flexible premium deferred annuity with a 10-year surrender period. There are no fees or expenses and it has a 120% participation rate, so however much the index grows, you are credited with 120% of that gain. The index is a volatility control index with an annualized return of 8.42%.
I don't see much info explained so well on annuities on the internet 👍 I have an annuity and I am better able to understand now. I believe I have a fixed annuity with life contingent payments till 2063, does that mean if I die before 2063 my beneficiaries will receive my payments ? If I die after 2063 my payments will not be guaranteed to my beneficiaries?
I wish I could answer your questions, but every annuity is different. It depends on how your annuity was structured and what riders you have. I suggest you contact the agent who sold you the annuity. Thank you for the compliment!
Thank you very good inf
My 401(k) is going to purchase an immediate annuity for me one day. Each has its purpose.
Thank you for explaining this you are perfect 😊💘
Thank you, Shyne!
Very informative . 🙏
A STABLE INCOME IS MORE IMPORTANT THAN ANNUITY FOR RETIREMENT PLANNING. Big ups to everyone working effortlessly trying to earn a living while building wealth. I'm 40 and my wife 34. We are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. Saving and investing lifestyle made it possible for us this early even till now we earn monthly through passive income.
Can I get any investment advice from you?
Thank you for sharing this.
You are welcome!
Thanks for the video I’m studying to be an FA
Thank you so much for sharing this information! I've learned a lot and am happy to subscribe.
Thanks for sharing this informative content.
Thank you so much for the video!! I have one question... Is income guaranteed for life if your balance is fully depleted even without the life time income benefit rider?
And how does your balance get depleted in the first place given that your money is being invested and is theoretically growing due to the investment returns?
Thanks again!
Income is not guaranteed for life if your surrender value is depleted.
Thank you very much. This video was super helpful to me.
You're welcome!
Thank you very much 🙏👍
Love your video! I'm 55 and have 100K in IRA, after watching your video I plan to open an annunity but which one, Fixed or Indexed. Also take lump some or through my life time? Thank you.
I would go with indexed. Watch my video about rolling over a tax-deferred retirement account into an indexed annuity. th-cam.com/video/XezlpQTrwdM/w-d-xo.html
Quick questions: having an annuity affects you in your social security in terms of taxes? And also if you have a whole life insurance there is a way you can convert that product for an annuity?
I'm not sure what you are referring to as far as how much lower means. Sorry, but this is an old video of mine and I don't remember what you might be referring to.
So fixed income annuity is like a long term cd? Why is the contract so huge??
Note this is US, canadin annuities are simpler.
question on surrendering non-qualified annuity... if there is no growth in first 2 years, if annuity is surrendered with original money (minus surrender charges), will there be IRS penalty for cancelling annuity (less than 59.5yrs).?. Since there is no growth, I feel no IRS penalty. Right?.
Ex: Invested 100K money 2 years back with non-qualified money (like savings account). No growth yet. Surrendering contract will give 100K -6K = ~94K. No IRS penalty in this case. Right?
Hi, Joe! Surrendering the policy before 59 1/2 is a withdrawal so you would have to pay the 10% IRS penalty. One thing you can do is change the index you are invested in. I would suggest a volatility control index that is rebalanced daily. Also, most agents put an income rider on the policy when it is unnecessary and you're paying fees on that. If that is the case with you, I would call the carrier and see if they can remove the rider.
@@WealthProtectionLady but isnt IRS penalty on the growth only?. Why there is penalty on principle which paid taxes already?.
Excellent explanation di you have an book?
I have written a book but it is not published yet.
When should someone start purchasing an annuity? For example, I am 27 years old. My husband is 40. When do we need to start pursing this?
I would recommend you put your money into an Indexed Universal LIfe (IUL). I would only recommend an annuity for people who don't qualify for life insurance or to save your 401k from stock market losses by rolling it over into an indexed annuity. You can check out my video on the IUL I sell: th-cam.com/video/UL66iBH5HXY/w-d-xo.html&ab_channel=WealthProtectionLady
Thanks
Do you know if there are any Annuities that invest in Life Settlements?
No, I do not.
I have a question. If you have a fixed annuities for life by transamerica..Does the annuitor own the policy or does transamerica corporation own the annuity policy? Usually annuit is same as owner?
Hi, Sean! The annuitant is the owner of the policy.
@Wealth Protection Lady you are so awesome! I have been reading up asking people..but diff answers
Thank you!👋🤓👍
People, please be careful. Annuities have a place but are definitely not for everyone.
Please understand, these can be high commission products and are still products being sold by a for-profit company.
- There is nothing wrong with for-profit companies, they need to make money to stay in business.
Like all insurance products, in most cases, the insurance company makes money off of you.
- So be wary of the use cases in which the individual "makes" more money in a product.
- For example, a 12.5% cap, a 0-2% floor & based upon the S&P500 Index; think to yourself "how is the company making more than the 0 to 12.5%, on average"....because they are.
- There can be fees, expenses, other limiting tools such as participation rate (% of capped rate).
Annuities are not for everyone, for sure. Because I was declined for an IUL, I am now having to put my money into an indexed annuity and because an indexed product is all about the index, for me, the trick is finding a volatility control index that is rebalanced daily, has a high participation rate that is guaranteed at 100% and that performs really well. I'm still searching, but you have to be very careful. As long as there are no riders, there are no fees with an indexed annuity.
@@WealthProtectionLady everyone's "why" is different. But, I would choose term life over permanent and probably (situation dependent) an annuity over permanent.
- Again, the "why" matters.
- Life insurance, for me, is for coverage for children/spouse until the children are out of the house and payment for death expenses.
- Possibly spousal support until other assets become available.
- That is where term works the best (for my situation).
An annuity, to me, is a hedge against outliving income. When I get closer to retirement, evaluating where my family is (or was) regarding current/final age and health conditions will be helpful in answering whether a hedge is a wise move and how much of a hedge should I use.
But, annuities have fees (or expenses) and those fees (or expenses) are still higher than other asset types; with or without riders.
- "Guaranteed", or safety, comes at a cost.
- The cap limit and participation rate are places where the insurance company is making money.
- I am highly skeptical of your example of a 12.5% cap, 100% participation rate & 2% floor.
- This seems like a unicorn. Especially, when you mention the average annual return of the S&P500, in this time period, is 7-8%.
- Expenses in the investment products are a place the insurance company makes money.
- Riders, cancelation fees etc are also other areas in which they make money.
- Annuities aren't inherently good or bad. But, there is far more nuance and better initial places to put money.
I’m 59 Last year I was talked into by my financial visor to move my Roth IRA into a Allianz annuity.
I moved 150k into it. I was told that it is a safe haven when the market corrects itself or drops. And only making maybe 3%, but never losing anything… What can I do, can I get out of the annuity or can I move it into some other field in the annuity toilet earn some money while the market is still climbing?
Hi, Eli! If you moved your Roth into the annuity last year, you've passed the "free look period." Not to worry. You can exchange it for another annuity. The annuity I use is uncapped with a 120% participation rate, which means you are credited with 120% of the index gain. There are ZERO fees! If you are interested in this, please complete this application. Here is a link:
form.typeform.com/to/SNfW1IBA
@@WealthProtectionLady thank you! I was so afraid of if my investment would just sit there like ice or if I was missing an opportunity to still make money, at my age and before retirement.
Someone will be happy to exchange you into another annuity that makes 3%, no problem!
@@WealthProtectionLadyI don’t see info on the product. Before I fill out an application I’d like to learn more about the product first. Thank you
@@WealthProtectionLady120 % ?
If your money in index annuity is not in the market where is it invested ?
In my annuity, I am invested in 2 indexes -- the SG Global Alpha index and Barclays Trailblazer Sector 5 index. Both are volatility control indexes. I am credited interest based on the movement of the index and both have participation rates of over 300% so I am credited over 300% of any gains in the indexes and am protected by the 0% floor.
I am not sure if there is a benefit to an annuity. How would I benefit with an S & P index annuity rather that just investing in the S & P 500 directly? Also; why are the annuity companies so terrified that someone will remove their money so, they have enormous fees for doing so? Chances are they are up to no good. You can pull your money
out of a brokerage account whenever you like. Those companies are fearless.
Regarding the market downturn protection; Even with downturns, the S & P 500 has an average return of 8% annually. Also, if invested in a brokerage firm, the money is liquid, no withdrawal penalties.
No fees? You bet there are. Try to take your money out.
Long term care; There is common problem with long term care. If you long at the requirements, in order to collect on the long term care benefit, you must be just about dead.
A 30 day review time for annuity. Why can't you review the contract before signing? Ahhh good question.
I would never recommend the S&P 500 as an index choice. There are many choices for indexed, but I really like one that has zero fees as long as there is no rider, has a 230% participation rate, so however much the index goes up, you are credited with 230% of that gain. It is a volatility control index that is rebalanced at the end of every single business day, so it performs very well. Remember, there is that 0% floor.
Regarding the 10 year surrender period, this is what life insurance companies require. You can access up to 10% of your cash value after year 1 if you are over the age of 59 1/2 ; otherwise, just like with a 401k, you will have to pay the 10% IRS penalty.
You have to understand that there are things you can do with a life insurance product that you cannot do with an investment account.
When you purchase a life insurance product, you are signing a contract, so obviously, you review the contract before signing.
Nicely explained.
Thank you, Debbie!
Thank you so much. Great explanation
You are welcome!
Please advise. I am a 73 year old bachelor who recently inherited 300K. I live in a care facility and am in good health. I have no other assets other then social security. What is the best annuity for me assuming I want the maximum monthly payout with no legacy inheritance. Thanks
David, I would recommend an immediate annuity with a guaranteed income for life. If you want me to run an illustration for you, email me with your date of birth, your state, your email address and phone number. I'll email you when it is ready and then we can get on the phone so I can go over it with you. I'll give you several options along with the annuity that will pay the biggest monthly payment for life. My email address is: suecunningham@me.com. I look forward to hearing from you!
Such good information!
Thank you, Cathy!!!
Thank you. Very helpful information.
Glad it was helpful!
Thanks So Much
You are welcome, Nedda!
Hi I'm here in 2024 is this information still valid? Has anything significantly changed?
This is an old video and the basics are the same.
Thankyou not that bright 45, I got around 400 liqoud 150 in a dividend stock account can I buy a 10 or 20k annuity and just take the 4, 5 or 6%, a year dispute inflation just to keep some money with a solid base despite inflation.
if you are talking about thousands as opposed to hundreds, yes!
@@WealthProtectionLady 10k paid cash for a annuity now?, my father was a cpa,150k I was his life insurance, cashed outta 401k for roth, and sold r home that's why I'm so cash heavy, really 370 liquid as the other 30k is a Nixon of silver coin, bars , vaulted platinum , gold and mining stocks, ty and God-bless
Hi, am I able to roll over my 401K without penalty to fund a new annuity account?
Yes. No penalties or tax consequences whatsoever. Watch my video on rolling over a 401k into an index annuity: th-cam.com/video/XezlpQTrwdM/w-d-xo.html&ab_channel=WealthProtectionLady