1 00:00:00,200 --> 00:00:03,240 Speaker 1: Now adjust the volume control so that the sound can 2 00:00:03,320 --> 00:00:04,840 Speaker 1: be heard in all parts. 3 00:00:04,519 --> 00:00:07,520 Speaker 2: Of the room. 4 00:00:08,440 --> 00:00:11,240 Speaker 3: This is to Protect your Assets Podcast. 5 00:00:11,560 --> 00:00:15,760 Speaker 1: This sound you get the idea on the internet. 6 00:00:15,880 --> 00:00:19,239 Speaker 2: Make him the cutest seen go on. 7 00:00:21,400 --> 00:00:28,680 Speaker 1: It's like no cheese I've ever tasted. With all the 8 00:00:28,760 --> 00:00:33,600 Speaker 1: uncertainty out there in the stock market bouncing around, is 9 00:00:33,600 --> 00:00:37,320 Speaker 1: there a way to participate in any future gains of 10 00:00:37,360 --> 00:00:40,960 Speaker 1: the market but not lose everything the bottom were to 11 00:00:40,960 --> 00:00:41,400 Speaker 1: fall out? 12 00:00:42,800 --> 00:00:43,840 Speaker 2: Well, there could. 13 00:00:43,600 --> 00:00:46,320 Speaker 1: Be, and it's called an annuity. And annuities are getting 14 00:00:46,360 --> 00:00:48,360 Speaker 1: popular again, according. 15 00:00:47,880 --> 00:00:49,720 Speaker 2: To an article recently in art. 16 00:00:49,880 --> 00:00:53,199 Speaker 1: But I don't think there's a financial product surrounded by 17 00:00:53,240 --> 00:00:58,680 Speaker 1: more confusion and misinformation than annuities. You hear some good 18 00:00:58,680 --> 00:01:03,240 Speaker 1: things about them, there are some terrible things about them. Well, 19 00:01:03,280 --> 00:01:04,000 Speaker 1: what's the truth? 20 00:01:04,080 --> 00:01:06,160 Speaker 2: What should you do? What do you need to know? 21 00:01:07,240 --> 00:01:09,760 Speaker 1: Keep it here as I'll be discussing today with you 22 00:01:09,880 --> 00:01:12,760 Speaker 1: what you need to know about some of today's most 23 00:01:12,800 --> 00:01:16,720 Speaker 1: popular annuities. Good morning, I'm David Hollander, and this is 24 00:01:16,800 --> 00:01:19,559 Speaker 1: Protect your Assets Radio. For those of you just joining us, 25 00:01:20,160 --> 00:01:23,679 Speaker 1: you're the jingle welcome people around here. They call me 26 00:01:23,760 --> 00:01:26,679 Speaker 1: the Sandman. If you have a question, something comes up 27 00:01:26,760 --> 00:01:29,800 Speaker 1: during the week, you need some help, email me questions 28 00:01:29,920 --> 00:01:34,600 Speaker 1: at PYA radio stands for Protect your Assets Questions at 29 00:01:34,600 --> 00:01:41,800 Speaker 1: pyaadio dot com. So should you consider adding an annuity 30 00:01:42,040 --> 00:01:44,479 Speaker 1: to your investment portfolio right now? 31 00:01:44,480 --> 00:01:45,280 Speaker 2: Well you might. 32 00:01:45,560 --> 00:01:48,240 Speaker 1: You see, there are types of annuities that allow you 33 00:01:48,280 --> 00:01:51,760 Speaker 1: to participate in different indexes of the stock market, like 34 00:01:51,800 --> 00:01:56,800 Speaker 1: the S and P five hundred and still protect or 35 00:01:57,040 --> 00:02:01,440 Speaker 1: insure backed by that insurance company. The downside, if the 36 00:02:01,440 --> 00:02:05,080 Speaker 1: market were to go down. So today I'll cover five 37 00:02:05,360 --> 00:02:14,119 Speaker 1: ways the newdies could help you out. Now, let's get started. Well, 38 00:02:14,160 --> 00:02:17,160 Speaker 1: the Fed met this week and they held rate steady 39 00:02:17,280 --> 00:02:19,720 Speaker 1: in the market, the DAW was off just slightly at 40 00:02:19,760 --> 00:02:22,880 Speaker 1: point four percent. Year to date, we're up one point seven, 41 00:02:22,960 --> 00:02:26,560 Speaker 1: SMP up a little bit point three percent year to date, we're. 42 00:02:26,440 --> 00:02:27,360 Speaker 2: Up one point four. 43 00:02:28,280 --> 00:02:33,600 Speaker 1: NAZAK was off slightly point two percent. The MSCI International 44 00:02:33,680 --> 00:02:36,200 Speaker 1: e F Index, well that was up one point four percent, 45 00:02:37,200 --> 00:02:40,520 Speaker 1: and the Tenure Treasury held flat at four point twenty five. 46 00:02:41,000 --> 00:02:44,400 Speaker 1: Oil had a very good week, up seven point seven 47 00:02:44,480 --> 00:02:47,160 Speaker 1: percent this week, and year to date it's up fourteen 48 00:02:47,200 --> 00:02:51,280 Speaker 1: point five. The Fed met, as I was talking about 49 00:02:51,360 --> 00:02:55,600 Speaker 1: last week, and they held rates. I'm sure you heard flat, 50 00:02:55,840 --> 00:02:57,560 Speaker 1: so the FED fund and rate is at three and 51 00:02:57,560 --> 00:03:00,360 Speaker 1: a half to three seventy five. They liked the growth 52 00:03:00,400 --> 00:03:03,280 Speaker 1: in the economy, saying still at a solid pace. Big 53 00:03:03,320 --> 00:03:07,320 Speaker 1: news this week was President Trump's nomination of Stanford Professor 54 00:03:07,400 --> 00:03:10,800 Speaker 1: Kevin Worsh to succeed Chairman Powell. 55 00:03:10,560 --> 00:03:11,080 Speaker 2: On the FED. 56 00:03:11,840 --> 00:03:14,440 Speaker 1: Worsh was with the FED, you may remember during the 57 00:03:14,680 --> 00:03:18,960 Speaker 1: eight recession. He's also a more broader perspective, meaning he'll 58 00:03:18,960 --> 00:03:22,800 Speaker 1: look at other things to forecast inflation. But remember the 59 00:03:23,120 --> 00:03:27,000 Speaker 1: confirmation process could take some time, and if it goes 60 00:03:27,040 --> 00:03:31,000 Speaker 1: past the May twenty sixth term of Chairman Powell, then 61 00:03:31,280 --> 00:03:34,960 Speaker 1: Philip Jefferson, the Vice chair would take over for Chairman Powell. 62 00:03:35,000 --> 00:03:35,640 Speaker 2: As the chairman. 63 00:03:36,440 --> 00:03:40,160 Speaker 1: Powell still will be on the FED until January twenty eight, 64 00:03:40,240 --> 00:03:42,680 Speaker 1: that's when his term expires, and he hasn't said what 65 00:03:42,680 --> 00:03:45,840 Speaker 1: he's going to do. But remember the FED is made 66 00:03:45,920 --> 00:03:51,320 Speaker 1: up of twelve different people and each one has their own. 67 00:03:50,680 --> 00:03:53,400 Speaker 2: Equal voting power, So we'll see what happens. 68 00:03:53,440 --> 00:03:58,080 Speaker 1: Fourth quarter earning season hit its stride last week. More 69 00:03:58,120 --> 00:04:02,760 Speaker 1: to come this week with the Magnificent seven companies Apple, Meta, Microsoft, 70 00:04:02,840 --> 00:04:08,320 Speaker 1: Tesla reporting all estimates beat. The reaction in the stocks 71 00:04:08,360 --> 00:04:11,360 Speaker 1: well was coming mixed. We saw Microsoft down a little 72 00:04:11,360 --> 00:04:14,040 Speaker 1: bit this past week, and the concerns again, we keep 73 00:04:14,080 --> 00:04:20,280 Speaker 1: hearing about capital expenditure spending to increase cloud computing power 74 00:04:21,720 --> 00:04:22,520 Speaker 1: that's tied to AI. 75 00:04:22,800 --> 00:04:24,200 Speaker 2: What about the government shut down? 76 00:04:24,240 --> 00:04:26,760 Speaker 1: Well, it's shut down, that's right, and they will get 77 00:04:26,760 --> 00:04:30,640 Speaker 1: back together again Monday to vote on this budget to 78 00:04:30,760 --> 00:04:33,960 Speaker 1: extend that out to September of this year. And the 79 00:04:34,000 --> 00:04:36,720 Speaker 1: issues appear to be ice funding and things like that, 80 00:04:36,760 --> 00:04:38,480 Speaker 1: so we'll see how they resolve it all, but it's 81 00:04:38,520 --> 00:04:42,239 Speaker 1: still up in the air. If you have excess cash 82 00:04:42,320 --> 00:04:44,240 Speaker 1: right now, now might be a good time to start 83 00:04:44,279 --> 00:04:47,560 Speaker 1: looking at some quality some quality bonds and or equities 84 00:04:47,560 --> 00:04:49,719 Speaker 1: that could align with your goals or your. 85 00:04:49,560 --> 00:04:50,400 Speaker 2: Comfort for risk. 86 00:04:51,000 --> 00:04:55,640 Speaker 1: Speak with your financial advisor who can help you navigate economic, geopolitical, 87 00:04:55,640 --> 00:04:59,880 Speaker 1: and policy shifts and help your portfolio remain on track 88 00:05:00,120 --> 00:05:08,039 Speaker 1: to achieve your personal financial goals. Coming up next, as 89 00:05:08,080 --> 00:05:11,840 Speaker 1: the S and P five hundred keeps going up, what 90 00:05:11,880 --> 00:05:13,920 Speaker 1: can you do to protect some of those gains that 91 00:05:14,000 --> 00:05:14,840 Speaker 1: you've made. 92 00:05:15,400 --> 00:05:17,919 Speaker 2: If things were to change. Find out you're. 93 00:05:17,720 --> 00:05:21,200 Speaker 1: Listening to the Protect your Assets Show. I am David Hollander, 94 00:05:21,240 --> 00:05:22,080 Speaker 1: the Sandman. 95 00:05:22,760 --> 00:05:23,600 Speaker 2: We'll be right back. 96 00:05:25,960 --> 00:05:30,120 Speaker 3: Times are changing, some would say they've already changed, and 97 00:05:30,240 --> 00:05:34,359 Speaker 3: how do you actually protect your assets? David Hollanders Protect 98 00:05:34,400 --> 00:05:38,479 Speaker 3: your Assets events focus on common financial concerns that individuals 99 00:05:38,480 --> 00:05:41,440 Speaker 3: and families face in retirement, things like how to prepare 100 00:05:41,480 --> 00:05:45,159 Speaker 3: for unexpected medical expenses and ways to create income to 101 00:05:45,160 --> 00:05:48,680 Speaker 3: help support your desired lifestyle. Join us at our next 102 00:05:48,720 --> 00:05:51,840 Speaker 3: free event to learn how addressing these concerns can help 103 00:05:51,880 --> 00:05:54,640 Speaker 3: you feel more confident about the days ahead and help 104 00:05:54,680 --> 00:05:57,799 Speaker 3: you sleep better at night. Just go to pya events 105 00:05:57,839 --> 00:06:02,120 Speaker 3: dot com and reserve your seat today. That's pyaightevents dot 106 00:06:02,160 --> 00:06:04,520 Speaker 3: com and sign up or join the wait list today 107 00:06:04,880 --> 00:06:09,599 Speaker 3: pyaightevents dot Com. Now back to Protect your Assets with 108 00:06:09,800 --> 00:06:11,960 Speaker 3: David Hollander The Sandman. 109 00:06:12,080 --> 00:06:15,359 Speaker 1: Welcome back. I am David Hollander, also known around here 110 00:06:15,640 --> 00:06:18,680 Speaker 1: as the Sandman, And recently there was an article in 111 00:06:18,839 --> 00:06:24,480 Speaker 1: the ARP Bulletin for January February which talked about annuities 112 00:06:24,520 --> 00:06:28,240 Speaker 1: and the popularity of them. So, whether you're considering an 113 00:06:28,279 --> 00:06:30,840 Speaker 1: annuity as part of your retirement plan, maybe you already 114 00:06:30,880 --> 00:06:34,080 Speaker 1: own one, or just wondering what they are all about, 115 00:06:34,920 --> 00:06:37,320 Speaker 1: tune in for the entire show today as I will 116 00:06:37,360 --> 00:06:42,520 Speaker 1: discuss five ways that annuities could help you. So let's 117 00:06:42,520 --> 00:06:44,880 Speaker 1: start out with the first one. Do you think interest 118 00:06:44,960 --> 00:06:49,119 Speaker 1: rates will continue to go down later this year? 119 00:06:50,200 --> 00:06:52,320 Speaker 2: Well, you could be right, you could be wrong, of course. 120 00:06:52,360 --> 00:06:55,599 Speaker 1: But if you've been following our market segment as we 121 00:06:55,640 --> 00:06:58,240 Speaker 1: talk about rates what the Fed's doing, we know they're 122 00:06:58,279 --> 00:07:03,720 Speaker 1: keeping the economy under control and growing and inflation not 123 00:07:03,880 --> 00:07:07,679 Speaker 1: quite at two percent, but getting there. And that's because 124 00:07:07,760 --> 00:07:11,160 Speaker 1: Chairman Powell and the members of the FED have been 125 00:07:11,240 --> 00:07:12,080 Speaker 1: on top. 126 00:07:11,880 --> 00:07:13,680 Speaker 2: Of rates and have been lowering rates. 127 00:07:13,720 --> 00:07:15,680 Speaker 1: They did it three times last year, and they just 128 00:07:15,760 --> 00:07:18,520 Speaker 1: met this week as I was discussing in the market segment, 129 00:07:19,000 --> 00:07:21,320 Speaker 1: and it looks like right now they're just going to remain. 130 00:07:22,800 --> 00:07:24,520 Speaker 2: For a bit. But of course there was just. 131 00:07:24,480 --> 00:07:28,360 Speaker 1: A nomination of the new potential FED chairman, Kevin Warsh, 132 00:07:28,400 --> 00:07:32,560 Speaker 1: who's a local Stanford guy. So let's start out with this. 133 00:07:32,640 --> 00:07:37,239 Speaker 1: If interest rates were, say to go up and not down, 134 00:07:37,800 --> 00:07:40,080 Speaker 1: what would happen to the value of your bond portfolio. 135 00:07:41,000 --> 00:07:45,400 Speaker 1: That depends But typically when rates go up, value of 136 00:07:45,600 --> 00:07:48,640 Speaker 1: bonds go down. How much they go down, well, that 137 00:07:48,680 --> 00:07:52,880 Speaker 1: depends on typically the quality of the bond, the maturity, 138 00:07:55,160 --> 00:07:58,920 Speaker 1: and typically for every one percent rise and interest rates 139 00:07:59,680 --> 00:08:02,040 Speaker 1: multip apply that by the end date of your bond, 140 00:08:02,080 --> 00:08:06,240 Speaker 1: and that's how much you could lose. In principle, so 141 00:08:06,280 --> 00:08:08,640 Speaker 1: if your bond fund has an average maturity, say of 142 00:08:08,680 --> 00:08:11,920 Speaker 1: ten years, and rates were to rise one percent, then 143 00:08:12,080 --> 00:08:16,440 Speaker 1: potentially you could lose up to ten percent of the 144 00:08:16,520 --> 00:08:22,040 Speaker 1: value of that bond or that bond portfolio. However, if 145 00:08:22,080 --> 00:08:25,680 Speaker 1: you used a certain type of annuity, you could protect 146 00:08:25,720 --> 00:08:30,200 Speaker 1: your downside, and that's something called a fixed annuity. You 147 00:08:30,240 --> 00:08:33,280 Speaker 1: could structure annuity payments for a set number of years 148 00:08:34,240 --> 00:08:37,480 Speaker 1: and as a short term or mid to longer term investments. 149 00:08:37,559 --> 00:08:42,160 Speaker 1: Annuities could give you an alternative to bonds, CDs and 150 00:08:42,400 --> 00:08:48,000 Speaker 1: or other what you might call fixed income assets. And 151 00:08:48,080 --> 00:08:49,959 Speaker 1: so you just want to compare the rates. Compare the 152 00:08:50,080 --> 00:08:55,280 Speaker 1: rates to one, three, five, seven year bonds compared to 153 00:08:55,320 --> 00:08:58,319 Speaker 1: some things out there called multi year guaranteed annuities, and 154 00:08:58,320 --> 00:09:00,800 Speaker 1: they're guaranteed remembered by the claims paying ability of that 155 00:09:00,840 --> 00:09:01,720 Speaker 1: insurance company. 156 00:09:01,840 --> 00:09:03,400 Speaker 2: My guess is what they're called. 157 00:09:04,679 --> 00:09:07,480 Speaker 1: Migas are typically tax deferred, so you don't pay tax 158 00:09:07,520 --> 00:09:10,800 Speaker 1: on income you earn over to the term until you 159 00:09:10,880 --> 00:09:12,560 Speaker 1: start to take that money out. And then of course 160 00:09:12,600 --> 00:09:14,319 Speaker 1: you'll pay ordinary income tax. 161 00:09:14,600 --> 00:09:15,480 Speaker 2: On that gain. 162 00:09:16,679 --> 00:09:20,199 Speaker 1: Your principle, well, it's backed by the claims paying ability 163 00:09:20,280 --> 00:09:26,800 Speaker 1: of that issuing insurance company. Think of it as a 164 00:09:26,880 --> 00:09:34,199 Speaker 1: strategy to hedge against rate risk or market risk. If 165 00:09:34,240 --> 00:09:36,640 Speaker 1: interest rates were to go down, Well, you've locked in 166 00:09:36,720 --> 00:09:42,000 Speaker 1: those higher rates now, so you'd be protected against that volatility, 167 00:09:42,040 --> 00:09:45,880 Speaker 1: that drop in rates, and you could consider it a 168 00:09:46,000 --> 00:09:48,800 Speaker 1: market hedge as well against something like the S and 169 00:09:48,800 --> 00:09:51,040 Speaker 1: P five hundred if that were to drop, because again 170 00:09:51,080 --> 00:09:53,840 Speaker 1: those are backed by the set rates that they declare 171 00:09:53,880 --> 00:09:54,640 Speaker 1: when you buy it. 172 00:09:54,640 --> 00:09:55,400 Speaker 2: It's a contract. 173 00:09:57,720 --> 00:10:01,720 Speaker 1: What are the types of indexed annuities are out there, Well, 174 00:10:01,760 --> 00:10:05,320 Speaker 1: there's a couple now. The first one is called a 175 00:10:05,559 --> 00:10:09,040 Speaker 1: registered index linked annuity. 176 00:10:09,040 --> 00:10:12,200 Speaker 2: These are called rilas RILA. 177 00:10:12,600 --> 00:10:15,920 Speaker 1: And what they do is they link to stock indexes 178 00:10:17,720 --> 00:10:20,520 Speaker 1: that generally have higher limits than say a fixed index 179 00:10:20,559 --> 00:10:24,640 Speaker 1: annuity would. In return, you face the possibility of loss, 180 00:10:25,400 --> 00:10:27,640 Speaker 1: though that loss could be limited in the form of 181 00:10:27,640 --> 00:10:31,080 Speaker 1: what's known as a buffer. So let's say you had 182 00:10:31,080 --> 00:10:33,760 Speaker 1: a RILA with a twenty percent buffer. 183 00:10:34,640 --> 00:10:37,040 Speaker 2: And your annuity. 184 00:10:38,280 --> 00:10:42,480 Speaker 1: Had that protection on the twenty percent downside. So if 185 00:10:42,520 --> 00:10:44,679 Speaker 1: the index, let's say the S and P five hundred 186 00:10:44,720 --> 00:10:47,840 Speaker 1: were to drop, say eighteen percent. On the downside, you 187 00:10:47,880 --> 00:10:50,520 Speaker 1: wouldn't lose any of your principle once again, because I 188 00:10:50,559 --> 00:10:53,440 Speaker 1: was backed by the insurance company. But if the buffer 189 00:10:53,480 --> 00:10:57,720 Speaker 1: was twenty percent and the smpfel say twenty five percent, 190 00:10:58,320 --> 00:11:01,760 Speaker 1: then the value of that in the RIILA would be 191 00:11:01,840 --> 00:11:08,360 Speaker 1: down that five percent differential. If the market does drop 192 00:11:08,400 --> 00:11:11,640 Speaker 1: here in the future, how much would you lose? 193 00:11:12,440 --> 00:11:13,040 Speaker 2: Think about that. 194 00:11:14,320 --> 00:11:16,920 Speaker 1: Can you afford to lose any of that money that 195 00:11:16,960 --> 00:11:21,600 Speaker 1: you've made over the last three years? Would that change 196 00:11:21,640 --> 00:11:26,679 Speaker 1: your retirement date? Well, you should find out what that 197 00:11:26,800 --> 00:11:29,520 Speaker 1: might look like by giving us a call right now 198 00:11:29,760 --> 00:11:32,720 Speaker 1: and getting our checklist. Maybe it'll spark some things in 199 00:11:32,760 --> 00:11:34,560 Speaker 1: there that you haven't been thinking about. 200 00:11:34,800 --> 00:11:35,440 Speaker 2: And I'm going to. 201 00:11:35,520 --> 00:11:39,080 Speaker 1: Email it to you this morning. Absolutely complimentary, but you 202 00:11:39,120 --> 00:11:40,560 Speaker 1: have to give us a call to get it. So 203 00:11:40,600 --> 00:11:42,360 Speaker 1: call this number right now if you would like this 204 00:11:42,440 --> 00:11:46,800 Speaker 1: retirement checklist eight six six protect call us eight six 205 00:11:46,960 --> 00:11:52,320 Speaker 1: six seven seven six eight three two eight again to 206 00:11:52,320 --> 00:11:58,400 Speaker 1: get your retirement checklists eight six six seven seven six 207 00:11:59,240 --> 00:12:02,120 Speaker 1: eight three Now coming up next, it is time for 208 00:12:02,160 --> 00:12:05,800 Speaker 1: our popular they say segment where they say when you 209 00:12:05,920 --> 00:12:09,560 Speaker 1: die with an annuity, The Life insurance Company keeps all 210 00:12:09,640 --> 00:12:10,280 Speaker 1: your money. 211 00:12:10,320 --> 00:12:10,959 Speaker 2: Is that true? 212 00:12:11,640 --> 00:12:15,640 Speaker 1: Find out you're listening to Protect your Assets with David Hollander. 213 00:12:15,720 --> 00:12:17,640 Speaker 2: That's me. We'll be right back. 214 00:12:22,960 --> 00:12:25,800 Speaker 3: Take the first step toward reaching your financial goals and 215 00:12:25,840 --> 00:12:29,040 Speaker 3: get the information that can help you live a confident retirement. 216 00:12:29,120 --> 00:12:32,679 Speaker 3: That first step is going to pyaevents dot com and 217 00:12:32,760 --> 00:12:38,400 Speaker 3: signing up for our next free event. That's Pyaevents dot Com. 218 00:12:38,440 --> 00:12:42,160 Speaker 3: Now back to Protect your Assets with David Hollander, The Sandman. 219 00:12:46,480 --> 00:12:47,160 Speaker 2: Welcome back. 220 00:12:47,400 --> 00:12:51,400 Speaker 1: I am David Hollander, also known as the Sandman, and 221 00:12:51,440 --> 00:12:53,640 Speaker 1: you are listening to Protect your Assets this morning. And 222 00:12:53,720 --> 00:12:57,480 Speaker 1: so recently there was an article out in ARP about 223 00:12:57,960 --> 00:13:02,200 Speaker 1: the popularity of annuities and as people are getting ready 224 00:13:02,240 --> 00:13:06,120 Speaker 1: to retire, annuities could be part of your retirement. So 225 00:13:06,200 --> 00:13:08,000 Speaker 1: what are some things you need to know this morning? 226 00:13:08,040 --> 00:13:10,120 Speaker 1: We're covering the five. 227 00:13:10,520 --> 00:13:11,960 Speaker 2: Ways that annuities could help you. 228 00:13:12,000 --> 00:13:13,720 Speaker 1: And if you missed the last segment, I was talking 229 00:13:13,720 --> 00:13:17,760 Speaker 1: about fixed annuities and then also something called a riila 230 00:13:18,440 --> 00:13:20,160 Speaker 1: And if you'd like to know more about that, we'll 231 00:13:20,160 --> 00:13:23,280 Speaker 1: go check out our podcast. Where would you get that, Well, 232 00:13:23,320 --> 00:13:26,840 Speaker 1: you go to your favorite podcast station, maybe like Spotify, 233 00:13:26,920 --> 00:13:31,480 Speaker 1: and you would type in protect your assets market segment 234 00:13:31,800 --> 00:13:35,320 Speaker 1: and you will pick it up right there. We are 235 00:13:35,320 --> 00:13:39,640 Speaker 1: doing our tax smart Retirement workshops once again and those 236 00:13:39,720 --> 00:13:42,760 Speaker 1: are filling up fast. So it's great to see you 237 00:13:42,800 --> 00:13:43,600 Speaker 1: all out there. 238 00:13:44,559 --> 00:13:45,880 Speaker 2: We have some coming up this week. 239 00:13:45,920 --> 00:13:48,720 Speaker 1: If you'd like to register, go check out our website 240 00:13:48,720 --> 00:13:51,920 Speaker 1: where you can register. Right there, go to a Liberty 241 00:13:51,960 --> 00:13:55,760 Speaker 1: Group LLC dot com. You click on the events tab 242 00:13:55,800 --> 00:13:57,840 Speaker 1: at the top. You'll see they are all over the 243 00:13:57,880 --> 00:14:01,400 Speaker 1: Bay Area. We have different dates time, I'm different restaurants. 244 00:14:02,200 --> 00:14:04,040 Speaker 1: Thank you to all the restaurants who do such a 245 00:14:04,040 --> 00:14:07,760 Speaker 1: great job for us. We appreciate you guys and look 246 00:14:07,760 --> 00:14:08,720 Speaker 1: forward to seeing you there. 247 00:14:10,240 --> 00:14:12,199 Speaker 2: All right, So now. 248 00:14:11,960 --> 00:14:14,719 Speaker 1: It's time for one of our fan favorite parts of 249 00:14:14,760 --> 00:14:17,480 Speaker 1: the show. This is our They Say segment where we 250 00:14:17,600 --> 00:14:21,680 Speaker 1: debunk common miss half truce and sometimes just bad advice. 251 00:14:22,200 --> 00:14:26,040 Speaker 1: They say, who are they? 252 00:14:26,520 --> 00:14:28,800 Speaker 3: What do they know that I don't? And what are 253 00:14:28,840 --> 00:14:33,000 Speaker 3: they saying this week? Here's David Olanders the Sandman's answer. 254 00:14:34,960 --> 00:14:37,920 Speaker 1: All right, So here's when they say. They say that 255 00:14:38,040 --> 00:14:42,640 Speaker 1: if you die while owning an annuity, the insurance company 256 00:14:42,760 --> 00:14:49,440 Speaker 1: keeps all your money. Is that really true? Well, that 257 00:14:49,560 --> 00:14:53,840 Speaker 1: depends most annuities. Well, they're designed to leave a death 258 00:14:53,920 --> 00:14:58,560 Speaker 1: benefit to your errors, not the insurance company. That all 259 00:14:58,560 --> 00:15:01,680 Speaker 1: depends on the beneficiary form and also the type of annuity. 260 00:15:01,280 --> 00:15:01,760 Speaker 2: That you own. 261 00:15:03,160 --> 00:15:06,520 Speaker 1: There are exceptions to that though, and this is maybe 262 00:15:06,520 --> 00:15:10,120 Speaker 1: where this they say came from. Let's say you took 263 00:15:10,160 --> 00:15:15,480 Speaker 1: an annuity payout over a single life expectancy meaning just you, 264 00:15:17,280 --> 00:15:21,880 Speaker 1: and if you didn't have the period certain feature, well 265 00:15:21,920 --> 00:15:24,760 Speaker 1: then you might have a problem. So let's look an example. 266 00:15:26,160 --> 00:15:29,440 Speaker 1: And again the example I'm about to share this reflects 267 00:15:29,480 --> 00:15:34,000 Speaker 1: a client experience. She was not compensated for it, and 268 00:15:34,040 --> 00:15:38,720 Speaker 1: this experience may not be representative of all clients. Results 269 00:15:38,760 --> 00:15:44,040 Speaker 1: are not guaranteed and very based on individual circumstances. 270 00:15:44,080 --> 00:15:45,400 Speaker 2: So let's take a look at Evelyn. 271 00:15:45,480 --> 00:15:47,800 Speaker 1: She was looking to retire and one of the pension 272 00:15:47,880 --> 00:15:55,560 Speaker 1: options on her lump some pension benefit was the benefit 273 00:15:55,680 --> 00:16:00,640 Speaker 1: was to elect a either single person's life expectance or 274 00:16:01,360 --> 00:16:04,760 Speaker 1: she could have tied it to her spouse. Now, Evan 275 00:16:04,840 --> 00:16:07,640 Speaker 1: was looking to retire in one of the options was 276 00:16:08,440 --> 00:16:13,880 Speaker 1: a lump sum that monthly income would be guaranteed. 277 00:16:13,360 --> 00:16:16,400 Speaker 2: For as long as you're alive, but. 278 00:16:16,400 --> 00:16:19,040 Speaker 1: Absolutely nothing goes to the errors if you were to 279 00:16:19,080 --> 00:16:23,040 Speaker 1: select that option. Again, I was a single life expectancy. 280 00:16:23,480 --> 00:16:27,240 Speaker 1: This pension is a type of annuity, and therefore, when 281 00:16:27,280 --> 00:16:29,600 Speaker 1: someone finds out that they didn't collect all the money 282 00:16:29,640 --> 00:16:33,920 Speaker 1: that their spouse or parents earned over their lifetime, well 283 00:16:34,320 --> 00:16:36,400 Speaker 1: you can understand how people might get. 284 00:16:36,200 --> 00:16:37,120 Speaker 2: Excited about that. 285 00:16:37,440 --> 00:16:42,520 Speaker 1: She called her financial advisor before she retired, and by 286 00:16:42,520 --> 00:16:47,160 Speaker 1: structuring her pension properly, she was able to access not 287 00:16:47,240 --> 00:16:49,880 Speaker 1: only the original principle, but if something were to happen, 288 00:16:50,680 --> 00:16:54,480 Speaker 1: her spouse would get a payout in the event she 289 00:16:54,520 --> 00:16:57,880 Speaker 1: didn't live the full term of the annuity. So if 290 00:16:57,920 --> 00:17:02,240 Speaker 1: you're looking at a pension option, definitely give your financial 291 00:17:02,240 --> 00:17:04,680 Speaker 1: advisor a call to see if there's something that's out 292 00:17:04,720 --> 00:17:07,359 Speaker 1: there that might fit your situation a little bit better 293 00:17:08,200 --> 00:17:12,159 Speaker 1: than what they're showing you. What's another type, so that 294 00:17:12,200 --> 00:17:15,680 Speaker 1: would be number three there. That would be called a SPIE, 295 00:17:15,800 --> 00:17:19,119 Speaker 1: a single premium mediate annuity with a different payout option. 296 00:17:19,280 --> 00:17:21,440 Speaker 2: So that's number three on the list. Here. 297 00:17:22,640 --> 00:17:25,560 Speaker 1: Another option, well, that could be using something called a 298 00:17:25,720 --> 00:17:30,440 Speaker 1: q LAC QLAC. Let's say that you have to take 299 00:17:30,480 --> 00:17:31,560 Speaker 1: your RMD. 300 00:17:31,520 --> 00:17:33,640 Speaker 2: From your IRA. Sorry for all. 301 00:17:33,520 --> 00:17:39,200 Speaker 1: The three letter words anyway. RMD stands for required minimum 302 00:17:39,200 --> 00:17:41,639 Speaker 1: distribution and I'm sure you know what an IRA is 303 00:17:41,680 --> 00:17:44,920 Speaker 1: an individual tirement account. And let's say you had to 304 00:17:44,960 --> 00:17:47,880 Speaker 1: take the rm D because you just turned seventy three. Well, 305 00:17:47,920 --> 00:17:51,520 Speaker 1: you don't need the money. You don't need that RMD 306 00:17:52,920 --> 00:17:54,760 Speaker 1: and so as you know, when you start to take it, 307 00:17:54,760 --> 00:17:58,280 Speaker 1: it's part of your ordinary income, and that could increase 308 00:17:58,320 --> 00:18:01,440 Speaker 1: the taxes you pay on your Social Security, on your 309 00:18:01,480 --> 00:18:06,240 Speaker 1: Medicare benefits. There is a way to delay taking some 310 00:18:06,560 --> 00:18:09,520 Speaker 1: or all of that RMD and protecting your Social Security 311 00:18:09,520 --> 00:18:13,359 Speaker 1: and Medicare from higher taxes. It's called a q LAC 312 00:18:13,480 --> 00:18:17,280 Speaker 1: that stands for Qualified Longevity Annuity contract. 313 00:18:17,480 --> 00:18:18,920 Speaker 2: This is another type of an annuity. 314 00:18:20,000 --> 00:18:23,240 Speaker 1: It's a special type of annuity designed to meet specific 315 00:18:23,320 --> 00:18:27,040 Speaker 1: IRS requirements that you don't need to take rmds on 316 00:18:27,119 --> 00:18:28,640 Speaker 1: the assets in the qu LAC. 317 00:18:30,359 --> 00:18:31,400 Speaker 2: It is one. 318 00:18:31,280 --> 00:18:34,560 Speaker 1: Way you can legally delay rm ds for a portion 319 00:18:34,640 --> 00:18:37,320 Speaker 1: of your IRA funds and thus keep more in a 320 00:18:37,440 --> 00:18:43,840 Speaker 1: tax deferred environment to hopefully grow more. Right now, the 321 00:18:43,920 --> 00:18:45,879 Speaker 1: rules are as follows. You can invest up to twenty 322 00:18:45,920 --> 00:18:50,640 Speaker 1: five percent of your IRA value. The limit is two 323 00:18:50,680 --> 00:18:56,040 Speaker 1: hundred thousand. You can delay taking income payments from the QULAC. 324 00:18:55,600 --> 00:18:58,040 Speaker 2: As late as your eighty fifth birthday. 325 00:18:59,240 --> 00:19:01,639 Speaker 1: That means, if you have, say a million dollar iron, 326 00:19:01,720 --> 00:19:03,640 Speaker 1: you don't want to take your rm D, you could 327 00:19:03,640 --> 00:19:06,080 Speaker 1: move two hundred thousand of it to a q LAC 328 00:19:06,960 --> 00:19:11,280 Speaker 1: and defer any RMD on that money until you turn 329 00:19:11,359 --> 00:19:16,480 Speaker 1: eighty five. Why else might you put an annuity in 330 00:19:16,520 --> 00:19:19,280 Speaker 1: an IRA, because remember annuities. 331 00:19:18,880 --> 00:19:20,280 Speaker 2: Are tax deferred, so or IRA. 332 00:19:20,480 --> 00:19:23,119 Speaker 1: So it's sort of a double benefit that you're not 333 00:19:23,119 --> 00:19:26,159 Speaker 1: really getting a benefit, right if you had an IRA 334 00:19:26,560 --> 00:19:29,920 Speaker 1: to fund. Well, let's say you don't like market volatility. 335 00:19:30,080 --> 00:19:32,360 Speaker 1: In the previous segment I was talking about the RYLA. 336 00:19:33,400 --> 00:19:37,240 Speaker 1: Another type of annuity that ties itself to indexes is 337 00:19:37,240 --> 00:19:44,679 Speaker 1: something called a fixed indexed annuity. Now, these typically offer 338 00:19:44,800 --> 00:19:48,159 Speaker 1: higher upside than say a fixed annuity would that just 339 00:19:48,200 --> 00:19:53,640 Speaker 1: has a declared interest rate. They typically pay a fluctuating 340 00:19:53,680 --> 00:19:57,359 Speaker 1: interest rate pegged to an annual percentage change of an index. 341 00:19:57,359 --> 00:19:58,679 Speaker 1: So let's say we looked at the S and P 342 00:19:58,800 --> 00:20:03,440 Speaker 1: five hundred. The worst it could do would be zero 343 00:20:03,600 --> 00:20:05,760 Speaker 1: on a year when the SMP was negative. 344 00:20:07,200 --> 00:20:08,080 Speaker 2: The best it could. 345 00:20:07,880 --> 00:20:11,760 Speaker 1: Do, well, you get a portion of that S and 346 00:20:11,800 --> 00:20:16,320 Speaker 1: P five hundred upside in return for protecting against losses 347 00:20:16,359 --> 00:20:20,960 Speaker 1: of your principle. So here's what you need to know 348 00:20:21,040 --> 00:20:26,800 Speaker 1: in exchange forgetting that protection on the downside, and again 349 00:20:26,800 --> 00:20:32,040 Speaker 1: that protection is backed by that insurance company's claims paying ability, 350 00:20:32,760 --> 00:20:38,120 Speaker 1: you're giving up some of the upside and potentially dividends 351 00:20:38,160 --> 00:20:41,040 Speaker 1: that would pay on that indext as well. So what 352 00:20:41,080 --> 00:20:42,679 Speaker 1: are some terms you want to look at if you're 353 00:20:42,720 --> 00:20:46,560 Speaker 1: looking at something like this, something called a cap. A 354 00:20:46,680 --> 00:20:52,480 Speaker 1: cap is the maximum rate of interest that you could 355 00:20:52,560 --> 00:20:56,440 Speaker 1: earn in that annuity during that SMP five hundreds term 356 00:20:56,520 --> 00:21:01,480 Speaker 1: that particular year. So an example, the annuity could say 357 00:21:01,600 --> 00:21:04,200 Speaker 1: that on the S and P five hundred for year one, 358 00:21:04,240 --> 00:21:08,520 Speaker 1: there was a nine percent cap. So if the index 359 00:21:08,600 --> 00:21:11,840 Speaker 1: goes up eight percent, well you'd get one hundred percent 360 00:21:11,880 --> 00:21:15,680 Speaker 1: of that eight percent return, and the insurance. 361 00:21:15,240 --> 00:21:17,840 Speaker 2: Company in that case would get zero. 362 00:21:17,960 --> 00:21:24,840 Speaker 1: If the index, say goes up eighteen percent, then if 363 00:21:24,840 --> 00:21:28,880 Speaker 1: you had a nine percent cap, they get eleven percent 364 00:21:29,680 --> 00:21:33,280 Speaker 1: and you would get nine. Well, let's say we have 365 00:21:33,280 --> 00:21:36,280 Speaker 1: another twenty twenty two and the index drops twenty percent. 366 00:21:37,600 --> 00:21:39,520 Speaker 1: S and P five hundred drops twenty percent. What would 367 00:21:39,520 --> 00:21:41,960 Speaker 1: happen to your deposit plus all the games you've been 368 00:21:41,960 --> 00:21:46,600 Speaker 1: making these years or those years. It's a good question. Well, 369 00:21:46,640 --> 00:21:51,040 Speaker 1: you wouldn't lose any of that. So in that case 370 00:21:51,080 --> 00:21:53,359 Speaker 1: you would get a zero. You would still keep your 371 00:21:53,840 --> 00:21:56,240 Speaker 1: principal plus the interest you'd earned in any years you 372 00:21:56,280 --> 00:21:58,960 Speaker 1: were in there, and even if the index was down 373 00:22:00,040 --> 00:22:04,199 Speaker 1: twenty percent or worse, then you would still have everything 374 00:22:04,240 --> 00:22:07,200 Speaker 1: you had that previous year. So that's where they protect 375 00:22:07,240 --> 00:22:10,199 Speaker 1: you on the downside. But again you would potentially be 376 00:22:10,280 --> 00:22:12,840 Speaker 1: giving upside as the market were to go higher over 377 00:22:12,920 --> 00:22:16,760 Speaker 1: future years if that's what happened. There's also something you 378 00:22:16,800 --> 00:22:20,280 Speaker 1: want to pay attention to called a participation rate in 379 00:22:20,320 --> 00:22:23,879 Speaker 1: these fixed index annuities, and that par rate, as we 380 00:22:24,000 --> 00:22:27,840 Speaker 1: call it, determines what percent of the increase in the 381 00:22:27,920 --> 00:22:32,600 Speaker 1: underlying index would be used to calculate the total return 382 00:22:32,680 --> 00:22:35,320 Speaker 1: during that index term. This could be again, it could 383 00:22:35,359 --> 00:22:37,760 Speaker 1: be in addition to the cap. It could be just 384 00:22:37,800 --> 00:22:40,399 Speaker 1: a separate declaration of interest. That's why I have to 385 00:22:40,400 --> 00:22:43,960 Speaker 1: pay attention to these things. For instance, let's say they 386 00:22:44,600 --> 00:22:47,560 Speaker 1: say the insurance company says we will pay a participation 387 00:22:47,640 --> 00:22:50,879 Speaker 1: rate of seventy percent of the increase of the S 388 00:22:50,920 --> 00:22:53,880 Speaker 1: and P five hundred. The S and P five hundred 389 00:22:53,920 --> 00:22:58,720 Speaker 1: for that year goes up ten percent, so you would 390 00:22:58,720 --> 00:23:01,800 Speaker 1: get seven percent and they would keep the three percent, 391 00:23:01,840 --> 00:23:05,240 Speaker 1: and that seven percent gets locked in as an addition 392 00:23:05,320 --> 00:23:08,879 Speaker 1: to your principle. And so the next year, if things 393 00:23:08,880 --> 00:23:11,199 Speaker 1: weren't so great and the market went down, well, you 394 00:23:11,240 --> 00:23:13,960 Speaker 1: still have your principle in that seven percent that you'd 395 00:23:14,000 --> 00:23:21,520 Speaker 1: earned the previous year. Makes sense. Sure, so some of 396 00:23:21,520 --> 00:23:23,760 Speaker 1: the benefits over all of annuities, Again this is. 397 00:23:23,760 --> 00:23:24,560 Speaker 2: Just a high level. 398 00:23:25,240 --> 00:23:27,200 Speaker 1: If you're looking at a fixed indexed annuity or a 399 00:23:27,280 --> 00:23:30,040 Speaker 1: riler or fixed annuity as we've been talking about this morning, 400 00:23:30,040 --> 00:23:33,840 Speaker 1: they could pay more income than you might get by 401 00:23:33,840 --> 00:23:39,480 Speaker 1: investing that in something on your own. That's because innuity 402 00:23:39,520 --> 00:23:44,080 Speaker 1: buyers who happened to die earlier than expected indirectly subsidized 403 00:23:44,119 --> 00:23:47,520 Speaker 1: annuity buyers who happened to live longer than expected. 404 00:23:47,800 --> 00:23:51,000 Speaker 2: It's sort of like your fire insurance. 405 00:23:51,040 --> 00:23:55,879 Speaker 1: Remember those claims are usually paid by premiums from homeowners 406 00:23:55,880 --> 00:24:00,199 Speaker 1: who don't have claims when your house burns down. Some 407 00:24:00,200 --> 00:24:04,080 Speaker 1: of the downsides well gains as I've been talking about 408 00:24:04,160 --> 00:24:08,600 Speaker 1: with an FIA or ariilah, those are typically less than 409 00:24:08,880 --> 00:24:13,320 Speaker 1: the stock market total returns over time. If you were 410 00:24:13,359 --> 00:24:15,960 Speaker 1: to invest the same amount in a mutual fund or 411 00:24:15,960 --> 00:24:20,040 Speaker 1: ETF for stock, you're giving up upside of course for 412 00:24:20,119 --> 00:24:24,280 Speaker 1: downside protection, but like I've been saying, they could produce 413 00:24:24,400 --> 00:24:27,000 Speaker 1: better total returns overall if you were to live longer 414 00:24:27,040 --> 00:24:30,600 Speaker 1: than others, as you compared it to say a bond. 415 00:24:31,480 --> 00:24:33,960 Speaker 1: In addition, some of the things about these indexes you 416 00:24:34,000 --> 00:24:37,600 Speaker 1: need to know is a dividends are typically not paid 417 00:24:38,359 --> 00:24:41,879 Speaker 1: into the policy, so yes, you get the upside of 418 00:24:41,960 --> 00:24:45,119 Speaker 1: the market, and if it's a RILA with a downside 419 00:24:45,119 --> 00:24:49,040 Speaker 1: cap of twenty, remember everything past that twenty you would feel. 420 00:24:50,720 --> 00:24:53,240 Speaker 1: But you're also not going to receive those dividends paid 421 00:24:53,240 --> 00:24:54,840 Speaker 1: off of say an index like the S and P 422 00:24:54,880 --> 00:24:58,199 Speaker 1: five hundred, which again over time, does contribute to the 423 00:24:58,240 --> 00:25:03,639 Speaker 1: total return. Once you buy an annuity, receiving your money 424 00:25:03,720 --> 00:25:08,480 Speaker 1: could be costly. Surrender periods they could range from three 425 00:25:08,560 --> 00:25:11,720 Speaker 1: to ten years, and if you needed to get more 426 00:25:11,720 --> 00:25:14,199 Speaker 1: than say ten percent out of that annuity, look for 427 00:25:14,240 --> 00:25:18,000 Speaker 1: the withdrawal features on them. You could end up paying 428 00:25:18,040 --> 00:25:22,320 Speaker 1: a penalty, and that's because you were to cash out 429 00:25:22,320 --> 00:25:26,840 Speaker 1: early from what you originally signed up to do. Of course, 430 00:25:27,440 --> 00:25:31,920 Speaker 1: annuities also bring ordinary income, so any gains you make 431 00:25:32,040 --> 00:25:36,560 Speaker 1: will be taxed as ordinary income as opposed to capital gains. 432 00:25:38,000 --> 00:25:42,800 Speaker 1: Do you ever wonder if your retirement savings would last 433 00:25:42,880 --> 00:25:47,480 Speaker 1: as long as you do? Big question, right, if you 434 00:25:47,600 --> 00:25:52,159 Speaker 1: saved enough to have the continual income that you're going 435 00:25:52,240 --> 00:25:54,840 Speaker 1: to need that will keep pace with inflation. Well, if 436 00:25:54,840 --> 00:25:57,320 Speaker 1: you're thinking those kind of questions, you're not alone. According 437 00:25:57,320 --> 00:26:00,600 Speaker 1: to a survey done by Alliance, the vast majority of 438 00:26:00,640 --> 00:26:04,879 Speaker 1: Americans fear running out of money in retirement. Get this, 439 00:26:05,240 --> 00:26:09,719 Speaker 1: more than they fear death itself. So if you have 440 00:26:09,800 --> 00:26:13,359 Speaker 1: this fear or any questions around that, then get a 441 00:26:13,400 --> 00:26:15,720 Speaker 1: copy of my book Protect your Assets. In it, in 442 00:26:15,800 --> 00:26:19,159 Speaker 1: chapter three, I talk about these sort of things. If 443 00:26:19,200 --> 00:26:22,320 Speaker 1: you'd like a copy of that right now, we'll email 444 00:26:22,440 --> 00:26:24,000 Speaker 1: that to you, but you have to give us a 445 00:26:24,040 --> 00:26:27,800 Speaker 1: call eight six to six Protect to get your complementary 446 00:26:27,800 --> 00:26:31,480 Speaker 1: copy of Protect your Assets. Call the number eight six 447 00:26:31,640 --> 00:26:37,760 Speaker 1: six seven seven six eight three two eight again eight 448 00:26:37,880 --> 00:26:40,399 Speaker 1: six six Protect to get a copy of my book 449 00:26:40,480 --> 00:26:43,960 Speaker 1: right now. Keep it tuned right here, because when we 450 00:26:44,040 --> 00:26:47,840 Speaker 1: come back, find out about the costs associated with annuities. 451 00:26:47,880 --> 00:26:50,720 Speaker 1: And one mistake you don't want to make when you 452 00:26:50,800 --> 00:26:52,080 Speaker 1: list your beneficiaries. 453 00:26:54,920 --> 00:26:59,040 Speaker 3: Times are changing, some would say they've already changed. And 454 00:26:59,160 --> 00:27:02,840 Speaker 3: how do you actually we protect your Assets David Hollanders 455 00:27:02,920 --> 00:27:06,639 Speaker 3: Protect your Assets events focus on common financial concerns that 456 00:27:06,760 --> 00:27:10,000 Speaker 3: individuals and families face in retirement, things like how to 457 00:27:10,040 --> 00:27:13,959 Speaker 3: prepare for unexpected medical expenses and ways to create income 458 00:27:14,000 --> 00:27:17,240 Speaker 3: to help support your desired lifestyle. Join us at our 459 00:27:17,280 --> 00:27:20,560 Speaker 3: next free event to learn how addressing these concerns can 460 00:27:20,600 --> 00:27:23,199 Speaker 3: help you feel more confident about the days ahead and 461 00:27:23,359 --> 00:27:26,680 Speaker 3: help you sleep better at night. Just go to pyaevents 462 00:27:26,760 --> 00:27:31,040 Speaker 3: dot com and reserve your seat today. That's pyaevents dot 463 00:27:31,080 --> 00:27:33,439 Speaker 3: com and sign up or join the wait list today 464 00:27:33,800 --> 00:27:38,520 Speaker 3: pyaevents dot com. Now back to Protect your Assets with 465 00:27:38,720 --> 00:27:40,280 Speaker 3: David Hollander, the Sandman. 466 00:27:44,240 --> 00:27:48,159 Speaker 1: Welcome back. I am David Hollander, also known as the Sandman. 467 00:27:48,280 --> 00:27:49,360 Speaker 2: Around here you are. 468 00:27:49,359 --> 00:27:52,080 Speaker 1: Listening to Protect your Assets. In this month, there was 469 00:27:52,119 --> 00:27:56,280 Speaker 1: a great article in the ARP mulletin talking about the 470 00:27:56,320 --> 00:28:00,640 Speaker 1: popularity of annuities. That's because people are tiring and they're 471 00:28:00,640 --> 00:28:03,000 Speaker 1: wanting to protect some of that gains that they've made 472 00:28:03,000 --> 00:28:06,240 Speaker 1: in the market all these past really good years. So 473 00:28:06,280 --> 00:28:08,760 Speaker 1: they're wondering how they can do that. So annuities are 474 00:28:08,760 --> 00:28:12,520 Speaker 1: becoming popular again. And so this morning I've been covering 475 00:28:12,680 --> 00:28:16,240 Speaker 1: five different types of annuities and things that you could 476 00:28:16,240 --> 00:28:18,479 Speaker 1: do to use them to help you in retirement. And 477 00:28:19,520 --> 00:28:22,960 Speaker 1: those were the follow We had fixed fixed annuities, We 478 00:28:23,040 --> 00:28:27,240 Speaker 1: talked about fixed indexed annuities, we talked about Rylah's, we 479 00:28:27,320 --> 00:28:30,480 Speaker 1: talked about q LAX, and I threw one in there 480 00:28:30,520 --> 00:28:33,480 Speaker 1: called my Gay. And today we're talking about annuities and 481 00:28:33,480 --> 00:28:37,440 Speaker 1: how those work. And you should just know a few 482 00:28:37,480 --> 00:28:40,000 Speaker 1: things about them before you get into them. Obviously, So 483 00:28:40,840 --> 00:28:45,800 Speaker 1: previously I was talking about fees, and let's talk about that. 484 00:28:45,880 --> 00:28:48,240 Speaker 1: So insurance companies, of course are in the business to 485 00:28:48,240 --> 00:28:51,719 Speaker 1: make money, and there are fees and annuities even if 486 00:28:51,760 --> 00:28:56,320 Speaker 1: you don't see them. So I haven't really discussed variable annuities. 487 00:28:56,360 --> 00:28:57,920 Speaker 1: And there's a lot to talk about when it comes 488 00:28:57,920 --> 00:29:00,640 Speaker 1: to that subject. So please get a copy of any 489 00:29:00,680 --> 00:29:03,120 Speaker 1: perspectus before you would buy one or look at one, 490 00:29:04,040 --> 00:29:07,680 Speaker 1: because those have great information in them, and in them 491 00:29:07,680 --> 00:29:10,680 Speaker 1: there is something called a fee section, and so when 492 00:29:10,680 --> 00:29:14,240 Speaker 1: you looking at that, you'll see admin fees. There's fun fees. 493 00:29:14,360 --> 00:29:17,120 Speaker 1: There could be a company fee or a writer feed. 494 00:29:17,160 --> 00:29:20,160 Speaker 1: These are all fees you want to add up and 495 00:29:20,240 --> 00:29:22,840 Speaker 1: make sure you look at them to see what they 496 00:29:22,840 --> 00:29:25,320 Speaker 1: would be each year before you made or broke even 497 00:29:25,360 --> 00:29:27,479 Speaker 1: on any of your money that was invested in something 498 00:29:27,600 --> 00:29:30,680 Speaker 1: like that. Been spending a fair amount of time on 499 00:29:30,840 --> 00:29:34,000 Speaker 1: fixed index annuities and fixed annuities this morning as well. 500 00:29:35,200 --> 00:29:36,640 Speaker 2: And so those. 501 00:29:37,240 --> 00:29:40,720 Speaker 1: Typically have the fees built into them before the rates 502 00:29:40,720 --> 00:29:45,440 Speaker 1: that they quote, because there isn't usually a fee that 503 00:29:45,600 --> 00:29:50,080 Speaker 1: is deducted out of that profitability before you see it. 504 00:29:50,120 --> 00:29:52,960 Speaker 1: So again, read those, understand what they are, how they work, 505 00:29:53,240 --> 00:29:56,320 Speaker 1: how they come out, what that looks like. And if 506 00:29:56,360 --> 00:29:58,240 Speaker 1: you're looking at something like a MAGA I was talking 507 00:29:58,280 --> 00:30:02,320 Speaker 1: about earlier, MAGA is again multi year guaranteed annuities, guaranteed 508 00:30:02,320 --> 00:30:04,920 Speaker 1: by the claims paying ability the insurance company. They declare 509 00:30:04,920 --> 00:30:07,360 Speaker 1: a rate, So there could be a five year MIGA 510 00:30:07,480 --> 00:30:10,320 Speaker 1: right now, and that rate that they quote, that is 511 00:30:10,360 --> 00:30:13,000 Speaker 1: the rate that you would make. It's net would be 512 00:30:13,000 --> 00:30:14,880 Speaker 1: the net rate of all fees that you would collect 513 00:30:14,880 --> 00:30:17,840 Speaker 1: each year on your principle. And remember those are tax deferred, 514 00:30:18,520 --> 00:30:20,880 Speaker 1: so you wouldn't pay taxes on that interest until you 515 00:30:20,960 --> 00:30:25,480 Speaker 1: decided you wanted to take it out. Now, when you 516 00:30:25,520 --> 00:30:29,080 Speaker 1: buy an annuity, you're going to be required to name a beneficiary. 517 00:30:29,160 --> 00:30:31,640 Speaker 1: And this continues to be an issue that we see here. 518 00:30:32,440 --> 00:30:35,520 Speaker 1: People own annuities, they pass away, and then the beneficiariy 519 00:30:35,520 --> 00:30:36,120 Speaker 1: say well, why. 520 00:30:35,960 --> 00:30:41,320 Speaker 2: Didn't I get it? I'm his wife, I'm his kid. 521 00:30:41,400 --> 00:30:42,040 Speaker 2: What happened? 522 00:30:42,800 --> 00:30:49,000 Speaker 1: The beneficiary designation on the contract controls. So even if 523 00:30:49,040 --> 00:30:50,760 Speaker 1: you have a will, even if you have a trust 524 00:30:50,760 --> 00:30:56,920 Speaker 1: that says something different, sorry, that annuity form will control 525 00:30:57,080 --> 00:31:02,160 Speaker 1: the disposition of that money. So if you named your 526 00:31:02,200 --> 00:31:06,760 Speaker 1: spouse as your sole beneficiary upon your death, your spouse 527 00:31:07,520 --> 00:31:11,720 Speaker 1: would collect that money and they should be able to 528 00:31:11,800 --> 00:31:14,800 Speaker 1: roll that over to say a spousal continuation option, So 529 00:31:14,840 --> 00:31:19,360 Speaker 1: again the taxable portion of that would be deferred until he. 530 00:31:19,480 --> 00:31:23,560 Speaker 2: Or she started taking that out later in life. 531 00:31:24,800 --> 00:31:28,000 Speaker 1: If beneficiaries like your kids aren't named on those contracts, 532 00:31:28,040 --> 00:31:32,880 Speaker 1: they don't automatically just get it doesn't work that way. 533 00:31:32,920 --> 00:31:35,120 Speaker 1: And of course, if they were to receive the beneficiary, 534 00:31:35,120 --> 00:31:37,240 Speaker 1: because let's say they were the beneficiary and they receive 535 00:31:37,360 --> 00:31:39,840 Speaker 1: the value they typically and of course they're not the spouse, 536 00:31:39,840 --> 00:31:41,520 Speaker 1: they're not going to get that same sort of benefit. 537 00:31:41,520 --> 00:31:43,520 Speaker 1: They're going to have to pay taxes on that income 538 00:31:43,560 --> 00:31:46,640 Speaker 1: as they take it out on any gain that was there. 539 00:31:48,520 --> 00:31:50,680 Speaker 1: So if you haven't looked at this for a while, 540 00:31:51,120 --> 00:31:54,600 Speaker 1: I would encourage you to do so, take a look 541 00:31:54,600 --> 00:31:59,680 Speaker 1: at your beneficiary designation form, make sure it's current, make 542 00:31:59,720 --> 00:32:04,360 Speaker 1: sure filed with the particular company, because if it's not, 543 00:32:04,640 --> 00:32:06,640 Speaker 1: will end up happening as you could end up in 544 00:32:06,680 --> 00:32:10,760 Speaker 1: the probate court. In other words, that there's some confusion 545 00:32:10,800 --> 00:32:13,280 Speaker 1: about who the beneficiary is or who the insurance company 546 00:32:13,320 --> 00:32:14,320 Speaker 1: is going to pay out. Do you think there's going 547 00:32:14,360 --> 00:32:15,800 Speaker 1: to pay the money out to someone who says, well, 548 00:32:15,840 --> 00:32:19,520 Speaker 1: I'm the numb and tot. No, they're going to say sorry, 549 00:32:19,560 --> 00:32:21,280 Speaker 1: you need to go to the probate court and let 550 00:32:21,320 --> 00:32:23,240 Speaker 1: the judge figure it out and then come back to 551 00:32:23,320 --> 00:32:30,000 Speaker 1: us with letters that'll tell us what we're supposed to do. Okay, 552 00:32:30,480 --> 00:32:34,240 Speaker 1: So if you have anything like that, including life insurance 553 00:32:34,280 --> 00:32:39,680 Speaker 1: policy or a retirement account, then I would suggest at 554 00:32:39,680 --> 00:32:43,920 Speaker 1: this point make it a priority to pull the form 555 00:32:44,280 --> 00:32:48,120 Speaker 1: that's filed with that company, make sure it's correct, and 556 00:32:48,160 --> 00:32:50,760 Speaker 1: make sure it's what you want, and then put it 557 00:32:50,800 --> 00:32:55,320 Speaker 1: with your important papers that your children or your spouse 558 00:32:55,360 --> 00:32:57,040 Speaker 1: would look at in the event something happened to you. 559 00:32:58,160 --> 00:33:01,280 Speaker 1: That's called a state planning, and we are attorneys who 560 00:33:01,320 --> 00:33:04,400 Speaker 1: do estate planning and we help you. 561 00:33:05,080 --> 00:33:06,200 Speaker 2: Think about things like this. 562 00:33:06,400 --> 00:33:09,080 Speaker 1: I hope today you learn something from the five things 563 00:33:09,120 --> 00:33:11,360 Speaker 1: we were talking about with annuities, but if you'd like 564 00:33:11,440 --> 00:33:13,680 Speaker 1: some help, you want to explore some of these new 565 00:33:13,680 --> 00:33:20,600 Speaker 1: products like Ryla's that are out there or migas. Don't 566 00:33:21,160 --> 00:33:24,600 Speaker 1: put all your eggs in one basket, diversify, hedge, use 567 00:33:24,640 --> 00:33:26,600 Speaker 1: the strategies that are out there right now. That's where 568 00:33:26,600 --> 00:33:28,640 Speaker 1: we come in because our mission at the Liberty Group 569 00:33:28,680 --> 00:33:31,720 Speaker 1: well it to help you protect and keep more of 570 00:33:31,800 --> 00:33:36,280 Speaker 1: your money so you can enjoy your lifestyle in retirement. 571 00:33:36,680 --> 00:33:39,120 Speaker 1: It helps to generate a plan and to look at 572 00:33:39,160 --> 00:33:43,520 Speaker 1: your situation as opposed to going it blindly. And if 573 00:33:43,560 --> 00:33:45,560 Speaker 1: you need someone to talk to, call us eight six 574 00:33:45,680 --> 00:33:49,800 Speaker 1: six Protect. We're here eight six six seven seven six 575 00:33:49,960 --> 00:33:54,680 Speaker 1: eight three two a eight six six Protect. Like to 576 00:33:54,680 --> 00:33:58,040 Speaker 1: give it big thanks to the entire Protect your Assets 577 00:33:58,080 --> 00:34:01,440 Speaker 1: crew for putting together a great show today, my executive producer, 578 00:34:01,520 --> 00:34:04,840 Speaker 1: network manager Kevin Renfer, and of course all my fabulous 579 00:34:04,920 --> 00:34:09,920 Speaker 1: producers back there raf Dylan Zach Because without my team, 580 00:34:10,280 --> 00:34:11,439 Speaker 1: I'm just another. 581 00:34:11,160 --> 00:34:12,520 Speaker 2: Pretty voice on the radio. 582 00:34:12,560 --> 00:34:15,520 Speaker 1: You've been listening to Protect your Assets show. I am 583 00:34:15,600 --> 00:34:20,520 Speaker 1: David Hollander, the Sandman. Go out and make the rest 584 00:34:20,560 --> 00:34:25,080 Speaker 1: of your Life The Best of Your Life. 585 00:34:25,280 --> 00:34:28,560 Speaker 3: Investment advisory services are offered through Liberty Wealth Management, a 586 00:34:28,600 --> 00:34:32,759 Speaker 3: registered investment advisor. This podcast is for informational purposes only 587 00:34:32,840 --> 00:34:34,920 Speaker 3: and should not be relied upon as a basis for 588 00:34:35,080 --> 00:34:38,280 Speaker 3: investment decisions. The strategies to mention are not suitable for everyone. 589 00:34:38,320 --> 00:34:41,880 Speaker 3: The information expressed does not considered your specific situation or objectives, 590 00:34:41,920 --> 00:34:44,640 Speaker 3: and may not be appropriate for all investors. Past performance 591 00:34:44,680 --> 00:34:47,279 Speaker 3: is not indicative of future results. To better understand the 592 00:34:47,360 --> 00:34:50,120 Speaker 3: risk associated with investing and how it reacts to different 593 00:34:50,120 --> 00:34:53,960 Speaker 3: market conditions, listeners should always consul with their qualified investment professionals, 594 00:34:54,000 --> 00:34:56,960 Speaker 3: financial advisors, legal or tax specialists, and conduct their due 595 00:34:57,000 --> 00:35:00,480 Speaker 3: diligence before making any financial decisions or taking any The 596 00:35:00,520 --> 00:35:03,160 Speaker 3: legal information provided on the air is not intended substitute 597 00:35:03,160 --> 00:35:05,720 Speaker 3: for callers hiring their lawyers to advise them about personal 598 00:35:05,760 --> 00:35:09,560 Speaker 3: legal matters. Investments involve risk, and, unless otherwise stated. 599 00:35:09,280 --> 00:35:10,239 Speaker 2: Are not guaranteed. 600 00:35:10,360 --> 00:35:12,920 Speaker 3: Liberty Group, LLC paid for the following program, and the 601 00:35:12,960 --> 00:35:15,319 Speaker 3: host views and opinions do not represent those of the 602 00:35:15,320 --> 00:35:18,439 Speaker 3: station or its ownership. California Life Agent number zero four 603 00:35:18,480 --> 00:35:21,600 Speaker 3: eight five sixty nine. Persons engaging the services of one 604 00:35:21,640 --> 00:35:24,520 Speaker 3: affiliate of Liberty Group LLC. Companies should be aware that 605 00:35:24,600 --> 00:35:28,040 Speaker 3: each company is operated separately. You are listening to the 606 00:35:28,080 --> 00:35:30,080 Speaker 3: Protect your Assets Radio Network.