“What Happens If My Annuity Goes Bankrupt?” (FAQ Series)

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  • Опубликовано: 26 дек 2024

Комментарии • 51

  • @kciis
    @kciis  Год назад +7

    Did you enjoy this video? Please let us know!

  • @Filipinolife
    @Filipinolife Год назад +4

    Very straightforward and useful information

    • @kciis
      @kciis  Год назад +1

      That’s great! Thanks for your comment.

  • @BigPoppa-t3z
    @BigPoppa-t3z 5 дней назад

    Fixed annuities are backed by the state but their hasent been a default since 1929. You check the companies payout rate.

  • @grnthumb444
    @grnthumb444 11 месяцев назад +1

    so glad I watched. Questions are now answered. Love working with you Kai.

    • @kciis
      @kciis  11 месяцев назад

      Thank you so much, Pat!

  • @deadsmile2023
    @deadsmile2023 4 месяца назад

    Thank you Ann & Kai,
    I have learned alot from your channel!
    😁👍🏻

    • @kciis
      @kciis  4 месяца назад

      Thank you!

  • @tomjames5374
    @tomjames5374 Год назад +3

    Excellent explanation and video you guys! Timely and much needed. Much thanks!

    • @kciis
      @kciis  Год назад +1

      Perfect Tom! I’m glad this helped you. Thanks for being a loyal customer!

  • @JagLite
    @JagLite Год назад +1

    Great video!
    I'm learning more and more with each of your videos.
    Thanks!

    • @kciis
      @kciis  8 месяцев назад

      Thanks for your compliment!

  • @yonkokuchera
    @yonkokuchera 2 месяца назад

    United Airlines lost all pensions and GVIU

  • @georgeabernathy6646
    @georgeabernathy6646 4 месяца назад +1

    WOW!! Such a ton of information, thank you so much.

    • @kciis
      @kciis  4 месяца назад +1

      You’re welcome! We would encourage you to also take a look at our channel and go to playlists. You can also watch from steps one to four to make sure that you’re watching them in a right order. We hope you enjoy it!
      Kai & Ann Chung
      408-502-7080

  • @soniaflorez5030
    @soniaflorez5030 5 месяцев назад +2

    Never heard a hybrid pension. Thanks for educating us

    • @kciis
      @kciis  5 месяцев назад +2

      You’re welcome, please give us a call to learn more.
      Kai and Ann
      408-502-7080

  • @kevinedward-jt2vs
    @kevinedward-jt2vs Год назад +1

    Most states have pension/annuity guaranty psuedo-agencies that insure up to $250k per insurance company.

    • @kciis
      @kciis  10 месяцев назад

      Yes, thank you! We did mention that at 1:16.
      Our goal is to not focus on that though. We want to give people other reasons to feel confident. Thanks for your comment!
      Kai & Ann Chung

    • @kevinedward-jt2vs
      @kevinedward-jt2vs 10 месяцев назад +1

      @@kciis You did briefly mention the State Guaranty, but were very vague about it. In fact, I find that even when I talk to my state Guaranty, they are very vague about how strongly they back up insurance failure. In fact, I heard that there is some sort of law that prohibits insurance agents from discussing the State Guaranty, is that true?

    • @mindyxiong719
      @mindyxiong719 2 месяца назад

      ​@@kevinedward-jt2vsyeap they can't because it's the law but it's there in case of bankruptcy and insurance also has insurance to cover them so no worries

  • @BigPoppa-t3z
    @BigPoppa-t3z 3 месяца назад +1

    I keep nothing in a bank. Listen to Grandma mattress. Watch out for home fires. Lol

    • @kciis
      @kciis  3 месяца назад +1

      😂 grandma’s mattress! If you have her mattress…😬🤣

  • @raymonddee1059
    @raymonddee1059 6 месяцев назад +1

    agree

    • @kciis
      @kciis  6 месяцев назад +1

      Thank you!

  • @HomeOrchard
    @HomeOrchard Год назад +1

    Can a hybrid pension include the option to activate a longterm care doubler?

    • @kciis
      @kciis  Год назад +1

      Yes. But you sacrifice other options. Feel free to call us to discuss details.
      Kai & Ann Chung
      408-502-7080

  • @danielmartin2995
    @danielmartin2995 7 месяцев назад +2

    Good presentation. However, it seems much less risky to invest the funds yourself then to rely on a 2nd party like an insurance company to do it for you, essentially. You control your principal balance and you won't get pennies on the dollar if the insurance company fails due to poor risk management, fraud, etc. If you have a $1 million annuity in my state, only $500,000 is guaranteed and that's not by the state. It's guaranteed by the insurance companies. But if they have rolling catastrophic failures from a financial crisis, you're out of luck. FDIC insurance is essentially unlimited if you spread your assets properly across several institutions in the right account types.

    • @kciis
      @kciis  7 месяцев назад +4

      Thanks for your thought. If you don’t mind, there’s a few things I would like you to think about.
      I hope you consider which annuity you might be discussing regarding risky or not. Only the SPIAs are you giving up control? Otherwise, all the other annuities you can pull out at any time. Just like you can pull our stocks at any time.
      Remember, regarding risk management, if you invested in mostly bonds, especially over 70%, would you say that your company is going to have a high chance of going bankrupt?
      Remember, a catastrophically event would mean that everybody died at the same time. Because annuities are only sold through life insurance divisions. Property and casualty loss would be through a separate cash reserve.
      The other thought about controlling the principal, there’s of course some truth to that.
      Remember, we are investors by heart, not annuity sales people. We feel that annuities have their place like our new newest video that we just produced. And each type of annuity has their own place as well.
      Perhaps you can think about this point though. Would you rather do straight commission or work with the salary? Most people would prefer to take a salary rather than straight commission. Of course, those who are good enough would rather take commission rather than a salary. And that is our point. In retirement, Would you rather have guarantees or hypotheticals? There’s really no right or wrong answer, but anytime you give up some control, but you’re guaranteed something in return most people do not mind, that’s our point about having a guarantee salary while you’re working for an employee.
      However, the final point. While you’re working, even if you’re a straight commission, at least you’re in control of the commission. Your entire lifestyle was never built on how the index, the stocks, the CD, rates are doing. Your entire life was built on guarantees or things that you had 100% control over. The stock market you did not have any control over it. You only can control how much you put in and when to take it out.
      Again, we are investors ourselves as we invest in bitcoin, altcoins, real estate, our business, but we also have annuities. And each type has on purpose too.
      No matter what, we all have our own comfort and perception of things, but I hope the above at least gives us a little bit more clarity.
      Thank you again for watching and leaving as your thoughts!
      Feel free to give us a call if you have any questions.
      Kai & Ann Chung
      408-502-7080

    • @kciis
      @kciis  7 месяцев назад +2

      By the way, here is another video that we just released today that discusses what annuity should be in which part of your portfolio. We hope you enjoyed it!
      ruclips.net/video/aGAcPKedZWc/видео.htmlsi=8-h8FkjDqBy3WsuF

    • @danielmartin2995
      @danielmartin2995 7 месяцев назад

      @@kciis Thank you for your thoughtful reply! You make excellent points. I did not know that there are annuities you can pull out of at anytime. I've been 100% commission for 33 years and self employed for the last 17 of those years so I'm used to working without a net - but I can certainly see the benefit of a predictable income stream.

  • @markvader8083
    @markvader8083 Год назад +2

    So let me see if I got this. If a person in a union retires with a monthly pension & the company goes bankrupt, the pension is still guaranteed for the entire monthly amount for the rest of their life?. Is it still guaranteed for the full monthly amount(for the rest of their life) if the workers vote to decertify the union & go non-union?.

    • @kciis
      @kciis  Год назад +1

      Without getting into the weeds, you don’t see people that have a pension and already is collecting it in retirement on the streets, homeless because their Pension stopped.
      Yes, there’s typically reinsurance for those who are already collecting. However, people that I have not yet collected, they
      could possibly lose it, have less, or have it changed into a define contribution plan (401k).
      Many people that have a pension, especially a big one, do not have Social Security. So it would be a big deal if they lost their pension.
      Also, same goes for Social Security. If Social Security completely goes bankrupt, we will see a much bigger problem in the United States. Again, streets filled, homeless people.
      Thanks for watching and your thoughts as well.
      Kai and Ann

    • @yonkokuchera
      @yonkokuchera 2 месяца назад

      United airlines lost all money

  • @kevinedward-jt2vs
    @kevinedward-jt2vs 10 месяцев назад +1

    why didn't you mention the state coverage for the pension/annuity?

    • @kaichung9677
      @kaichung9677 10 месяцев назад +1

      1:16 we mentioned it! 🙂

    • @kciis
      @kciis  10 месяцев назад +1

      1:16 we mentioned it. 🙂

  • @alankita1059
    @alankita1059 11 месяцев назад +1

    I would like to know more about riders and the associated fees.

    • @kciis
      @kciis  11 месяцев назад

      Feel free to give our office a call 408-502-7080 😊. We’d be happy to help!

  • @alanzimmerman1674
    @alanzimmerman1674 7 месяцев назад +1

    Either I missed something or you didn't actually answer the question. There was one reference to state insurance failure protection, but no detail. The video is about why Life Ins companies are very unlikely to go bankrupt. Nothing about what happens in the unlikely event that they do. Or did I miss something?

    • @johnc2438
      @johnc2438 7 месяцев назад +1

      I don't think you missed anything. Detail is probably lacking because the video would then have to go into some detail about the insurance protection each state offers private and public pensions and annuities. The likelihood of insurance companies not being able to make a pension payout is "very unlikely." However, if that insurance company, for some very unlikely reason, does go bankrupt, I'm virtually certain that those persons receiving pensions from that bankrupt insurance company have their pensions insured by a third party already (i.e., another insurance company or group of companies and/or the state organization set up for this purpose, state by state), just in case. Bye-bye insurance company, but your pension payment still keeps rolling in. Of course, there are no real guarantees in life about anything. For example, it's very unlikely you will die on your next trip to the grocery store. But the fact that it could happen does not prevent you from going ("Grocery trips can be dangerous, I've been told!"). If Russia and China nuke the U.S., I guess that means my investments, my Social Security payment, and my Naval Reserve pension are also gone, too. But it's very unlikely -- at least for now. It's just that nothing in life is truly insured and guaranteed except taxes and death. And fretting about it too much can ruin your entire day! 😀

    • @kciis
      @kciis  7 месяцев назад +1

      Thanks for asking. We touched on it but did not go into it since each state is different and we want to go beyond just the state guarantee. Also for compliance notice what the states say about discussing them too deeply:
      “Insurance agents are prohibited by law from using the existence of a state guaranty association to encourage people to buy insurance policies. Guaranty laws often restrict the mention of guaranty associations in conversations about sales or solicitations.”
      As you can see from our videos our goal is to be transparent and not overhype things or abuse the use of things like the state guarantee. I hope this makes sense.
      Feel free to call us if you would like to learn more.
      Kai & Ann Chung
      408-502-7080

  • @zhily661
    @zhily661 Год назад +2

    I m still concern the bankruptcy of insurance companies😅

    • @kciis
      @kciis  Год назад +1

      That’s understandable. We hope these points help elevate some concerns at least.

  • @Jasper-h9o
    @Jasper-h9o 8 месяцев назад +1

    I’ve been following and enjoying your videos but feel like you lost some credibility on this one… why no mention of the State Guaranty Associations and their coverage limits (depending on the State) and the wisdom of splitting an annuity among different policies to be within the insured limits?

    • @kciis
      @kciis  8 месяцев назад +2

      We did mention the state guarantee association beginning. However, the goal of our video is to not have people depend on that or use that to sell annuities. So we said “besides the state guarantee…”Also, if we go into it too much, then we would be using it to prompt annuities. See below.
      “Insurers and agents are prohibited by state law from using the existence of the Guarantee Association to sell, solicit or induce the purchase of any form of insurance. This is because the protection is limited, and in some cases there is no protection at all.”
      This is a direct quote from the state guarantee Association.
      Our goal is to be transparent as much as possible.

    • @Jasper-h9o
      @Jasper-h9o 8 месяцев назад

      Thanks for your reply. Can you kindly advise in what cases there would be ‘no protection at all’? Also, do you recommend limiting each policy to the relevant State’s limits? Thx!

  • @Wayneman50
    @Wayneman50 4 месяца назад +1

    I would bet that a "Hybrid pension" comes with penalties if you want to cash out. You didn't mention anything about penalties. Hmmm, how convenient. I know my Fia has penalties in years 1-5 of a 7 yr annuity.

    • @kciis
      @kciis  4 месяца назад +1

      Thank you for being so candid. Please keep in mind. This is just one video. We have multiple videos where we do to discuss that topic. The focus is not on all the features of annuities. The focus of this video is specifically bankruptcy. We hope you get a chance to go to our playlist and take a look at all of our other videos. Thank you!