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***: Hello, I'm ***. Eric: And I'm Eric and we're the annuity guys.
Today ***, we're going to look at best in class annuities. Now, that sounds
awfully high pollutant there.
What's best in class mean? Sounds like a horse racing term.
***: Well, Eric, one of the problems that we've had in our videos
and we've been criticized at times; we had folks say...
Eric: No. ***: Why don't you guys
tell us what a company; which annuity and that type of thing?
Well, let's just give some disclosure here. Folks, were in the most
tightly regulated, most highly compliant industry;
and if we start mentioning companies names,
we actually have to go out to get their approval first. Eric: We need a lot more
leave time to be able to tell you what the company name is. ***: Before we can do a video. Eric: We have to get
approved by the company and then they take about six weeks to banter back and
forth;
and then they come back, they usually say, no. ***: And then there's another problem,
if we start mentioning companies Eric... Eric: Because it's wrong as soon as we say
it. ***: After we've said it, it's wrong the next day. And
that's because the best in class annuities;
Eric and I have certain annuities that we tend to favor or
better than others, and certain companies... Eric: It's based off of historical performance that
typically is better than others
***: But we may have a client one week
that's pretty similar to a client two or three weeks later;
and we have to use a different product because some things either change
with that annuity or that person's situation is just a little bit different.
Eric: That's right. It can be as simple as one is male, one is female.
You would think there would not be that much difference? ***: So, what got us
going on this subject today? Eric: Well, It varies.
I love them, but I hate them right now. You know it's nice of an
investment kind of publication that we typically think up to feature anuities
in the top fifty annuities on the cover of that...
***: Well, they're so biased. A lot of times they won't even talk about annuities.
Eric: That's right. So, we love the fact that they've decided talking about you
which are the top fifty annuities. Now,
I'll have you know, they're wrong. ***: Take it with a grain of salt and
read it with a critical eye. Eric: That's right because as soon as I look at
their list, I said
"oh no!" Now, they had to make assumptions.
They assume within their first section here that everybody two hundred thousand
dollars exactly.
***: They're all sixty years old. Eric: Six-years-old
and male. So, this list
is probably very good for the time the article was written
if you're sixty and had two hundred thousand dollars. Now, if you're
63 and female, the list is wrong.
***: Or all you have is two hundred thousand in your name;
or what if you had a million to your name?
All those variables change. Suddenly that isn't the right annuity because
there's
other reasons you'd be doing this. Eric: So, it did address
some of the issues in the different pieces but we would tell you that
when you first look at this, don't assume everything here is going to apply to your
situation.
There's typically not just one best annuity.
***: No! And then when you start talking about working
with an advisor that really gets it,
they're going to take a much more sophisticated approach
and it's good not going to be one best in class annuity;
it's going to be three or four or five; and they're going to have to all work together.
Eric: Right. It's a balancing act of usually giving you an option.
Maybe this one is lower rated but has a slightly better pay out for whatyour
intention is. ***: Yes, yes. Eric: This one has a higher rating but maybe slightly lower or
may have to hold it a little bit longer... ***: This piece over here works good in a
tax-free environment for growth and
there's the maybe starting a portfolio out of a good immediate annuity
might make sense out there.
So, again,
being able to structure this properly, I would say
to get best in class annuities, there's no substitute for working with an
expert. Eric: And that's where you rely on somebody in their expertise
to define for you, what fits your situation. I know I sat down and run
numbers
and I've had what I thought was going to be the best one going in.
And all of a sudden I said I run numbers and for this particular
unique situation
it had to be somebody that was exactly this year old and
got to hold it for this long, one specific annuity all of a sudden
jumps out of package you never expect.
Nothing pay's to go back and look at the analysis and...
***: Exactly. And it doesn't hurt folks; never,
never think that Eric and I are saying "don't do your own research."
Look at the company's,
look at their ratings; get in our rate vault and look at all of the different
annuities and the different features, and ratings, that type
of thing; and do some comparison.
But then, there comes a point where you do get involved with a an expert,
an agent that works with these on a regular basis;
and they'll be able to look at the subtleties, the real differences
and
that's where you really can find the best in class annuities.
Eric: And as we've spoken,
there's no reason why you can't pull out a list like this and say "hey,
what about company X here? I see that they were best in class
on variance. What's that look like?"
The advisor can then run the numbers, give you the idea of why
what they're proposing may be better or you know... ***: Eric, even with our
expertise,
we've had situations where somebody's come to us and said
"you know I was reading about this or that or whatever";
and maybe we haven't even opened our eyes to something that they
brought to us.
And then we started utilizing it for other clients because it looks like they were
right.
You know, I'd like to think that we have a lock on
all the knowledge but it's working with people on a regular basis that keeps us
on our toes
and keeps us at the top of our game. Eric: So if i'm looking for best in class
annuity,
where do I go? ***: You go first of all
to our website... Eric: Which you are here for a long time... ***: And
you begin your research; and then you work with an expert advisor.
Eric: Yes and that's the key. it's getting the facts from somebody that works in this
area
all the time. ***: That's right!