Stan the Annuity Man is a self-proclaimed expert, however, he has a pretty good reputation throughout most personal financial groups. As you know, we take a pretty hard line against annuities here at the Wealthy Idiots. With that said, we’re obligated to give you unbiased advice. Sometimes that means acknowledging that some annuity products can be good. Keep reading to find out more about Stan the Annuity Man.
Who is Stan the Annuity Man?
Stan is referred to by many as the “walking middle finger of annuity truth”. This is refreshing, as many people get duped into buying annuity products that they don’t need and frankly won’t ever benefit from. Stan is also known for saying some colorful things, which can be evidenced in the graphic below. Licensed in all 50 states, Stan is a firm believer that you need to buy an annuity to get the contractual guarantee you desire, not chase market returns. That statement is 100% Wealthy Idiots approved!
Don’t chase market returns
The biggest issue with variable annuities or variable universal indexed life or whatever you want to call it, is that you’re chasing market returns while also trying to protect from the market downturns. In doing this, you’re paying an insurance company to protect this downside on your behalf. This means less returns for you in good markets. During these times, the insurance companies will collect copious amounts of fees. Yay insurance company profits!
If you want to chase market returns, we’d recommend doing so in a 401k, IRA or Roth IRA, or Brokerage Account. These accounts are designed for stock market investments and can be managed independently without the involvement of an advisor. To learn more about how to do this, check out the Little Book of Common Sense Investing by John Bogle!
When to contact Stan the Annuity Man
The biggest reason to purchase an annuity is the need for guaranteed income for a specific period of time. Let’s say you’re about to retire and you have $500,000 saved in a brokerage account. After social security and your pension, you have a $2000 per month gap between your income and expenses. Purchasing an SPIA would be a good way to fill that gap without worrying about market fluctuations in your $500k brokerage account. For some people, the ability to sleep well at night knowing their personal finances are in order is priceless. Stan the Annuity Man can help provide some of that.
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