I appreciate your description beginning at marker 13:43, I have an FIA and have been struggling with taking out my money; however, I feel more confident in keeping it there after listening to your defense of lifetime income you can't outlive. Thank you
Thank you for the video. Great information. Dave's advice is tied to a conflict of interest and who he promotes. His advice for consumer debt and budgeting is great. That's about the extent of his good advice.
Great video Stan! As a CFP, I hpe I can contribute some value to a couple of things Dave Ramsey doesn't mention. First and foremost - what are the client's goals?? How can you say that anything is "no good" if the goals of the customer haven't been established clearly? Perhaps he did, but that should be reiterated when discussing the suitability of any investment. Second, when he says the money going into the "annuity that costs 2%" (which, as you point out is false because fixed annuities typically carry no fees) is coming from a 403b, doesn't he know that the overwhelming majority of 403b programs are in fact group annuities? They also typically have no cost for the chassis. So which is it, Dave? Also, for future reference, you might find it handy to compare Dave's statement of "no situation ever where a fixed annuity makes sense" to saying, for example, "It never makes sense to buy an automatic can opener. There are manual ones that are less expensive." Uh... what is you have rheumatoid arthritis? What if you are older and don't have very good finger strength? What if your sight isn't great and you have trouble lining up the teeth on a manual one? One could easily make a similar comparison by saying, "there is no reason anyone would ever buy a pick-up truck. Sedans are cheaper..." Again, what's the goal? Mission? Objective? Keep the videos coming and don't be afraid to call Dave out when he is, in fact, wrong.
Thanks for the video and you showed better restraint than I would have for sure. Dave a non/licensed financial celebrity advisor knows very little about the product that he condemns. I noticed he seemed to prefer variable annuities which are a very expensive way of buying mutual funds and income guarantees that annuities provide. I wonder if it’s because his sponsor just so happen to be broker dealers??? 🤔 Conflict of interest Dave??
Dave’s argument would always be that investing in mutual funds will get you more money and that the markets long term track record is always good and therefore you are leaving money on the table by adopting a low risk low return product
You know, you could have torn Dave apart and called him a bunch of names, but you chose to show class by illustrating his correct and incorrect statements with an open mind to his expertise. We need more RUclipsrs like yourself, Sir! Thank you for this video, you have my subscription!
Good education. I was "raised" on Dave Ramsey's advice for saving and debt reduction, and it served me well for the most part. However, now as I transition to retirement and looking for withdrawal strategies and income for life, I realize Dave's bias against annuities needs to be exposed. I appreciate your education and FAIR BALANCE.
Thank you for sharing your journey and kind words! I'm glad you're finding value in this balanced approach, and I’m here to help as you transition into this new chapter. If you have any specific questions, don’t hesitate to reach out! www.stantheannuityman.com/book-a-call
Stan bottom line is people want to make sure their original money is still there at the end and have income stream that beats any CD or why would anyone buy an annuity. So please answer that because that's the reality of what people want, We all know you make HUGE commissions on Annuities so Guarantee the cash is going to be there or no point to it,@@StanTheAnnuityMan
It was EXACTLY Dave Ramsey videos like that which steered me away from annuities for many years. But I've seen BIG swings in the market and mutual funds over the years, and the closer I got to retirement, the more nervous I got about having all my money at risk in mutual funds. And while CD rates have been good these last couple years, I also know they're going to go down again.. They already have started to dip down. After watching Stan's videos, and many others, I put some of my money in a fixed index annuity with a rider, that will pay me a decent monthly income with no worries. Once I wrapped my head around the idea that I was "Buying myself a lifetime pension", it was a lot easier. Thanks Stan !!
Where Dave lost me, is when he talks about variable annuities. Of all the types of annuities, Immediate and fixed are the ones I have the least problem with. With those, it is straight forward and the client understands what they are getting. If you have a client who has so little money and time that they have NO OTHER CHOICE. Then that's a route I would say is appropriate. Variable annuities are almost always downright horrible. They are insanely expensive, and almost never the best option for the client.
I think Dave Ramsey blocks the callers who call back in to say they went bankrupt following his advice. Telling people with meager savings to invest in the stock market and they can use his '10% rule' for withdrawals! He should not only be ashamed, he should be sued.
Yes, you know they screen the callers before they are put on the air and probably edit it but it is broadcasted? He only airs the ones he thinks agree with him?
The truth of the matter is annuities only work for a very small percentage of people, yet the financial advisors try to sell to everyone because of the commission.
You haven't watched many of my videos. I often say annuities are not for everyone. Annuities bring value to anyone who wants to guarantee lifetime income or guarantee their principal. If you don't need the guarantees, you don't need an annuity.
@@robert-ku7zr as compared to what. Most current portfolios have fees of 1% per year at least. That is every year. Even if someone made 8% on an annuity sale. They would make more managing your money over time. A lot more.
She used the term "traditional" in her call with Dave. It makes me thinking she probably moved some of her 403B money into TIAA Traditional (one could do a lot worse, as long as it's a sensible part of the overall portfolio allocation). I don't see where Stan is thinking that this is probably an indexed annuity.
Dave confused CAGR with average returns. Average returns in a volatile asset like stocks overstate the rate of growth. He also doesn’t seem to have any comprehension of sequence of returns risks or that there have been decades where the stock market did very little. Now it’s also true that other assets (unless you got lucky in a commodity) didn’t do much, but you can’t count on 10% returns, or even 7% returns if you mean inflation adjusted There are 20 years periods where the a cagr of the stock market was like 4%.
Bingo! Dave used to have financial certifications from what I understand. He's not dumb. That's why I can't understand why he continually oversimplifies and uses the average when he should be using the compounded growth rate.
@@rogergrinde7321 It has to be because or his sponsors. I remember watching a video with an 83-year-old woman who called in and said I don't want to lose a penny of my money I want it all to go to my grandchildren if I were to pass. Dave's answer: buy a mutual fund.
😅 mutual funds in the 90's ah just put it in and it's 14% returns no brainer. No one had to be good The Market was good Today 2024 completely different animal. Just listen to Bogel - Vanguard On one of his videos he explained why the returns will significantly go down in all index/ managed funds Average returns are just that weather in a index or mutual fund. Buyer beware
Dan - You are correct. Saying that a lifetime income annuity can be set up to return the full account to the beneficiaries upon death so no loss of funds. Thanks for watching.
And that's why you should buy an annuity if you need one but never be sold one. It's no different than a new car dealership they want to sell you things you don't need or a restaurant upselling dessert. Companies are in business to make money and they definitely up sell and make everything look Rosy.
so explain after cash flows to the person who bought the annuity that the original principle will still be there like owning a CD,,please explain, I bet you cant do it, WHY the fees will destroy your cash ,, thats why annuities are hard sales@@StanTheAnnuityMan
how so, still cant see how my money is secure and have an income stream to it, BOTTOM line is HOW is my original cash still going to be there at the end without the commissions and fees eating up my funds
I have to quibble a bit about the assertion that social security is an annuity. Social security is not guaranteed, because it’s based on the tax revenue stream. More and more data is coming out that shows, on the current trend we’re on with continued borrowing and raising of the debt ceiling, that social security is likely to become insoluble at some point. Happy to hear your thoughts on that.
I found this informative, I agree Dave makes a few assumptions that aren’t necessarily true in all cases. I still feel like I don’t want to get into any annuities until I’m at a later stage of life, when I want more guaranteed income
you now see how your money is burnt up,, COMMSIONS he makes and fees his company makes,, means you will be paying for their lifestyle since they are in the business of making money
S & P 500 index 1/01/1969 = 102.00, S & P 500 index 1/01/1979 = 99.71, even historically a bad 10 year run has the potential to happen in the stock market.
You missed the most important part of that call. She had $577k in her account and having sleepless nights seeing fluctuations sometimes of up to $20k. They took only 30% to be put into the annuity to protect it and ease her mind. She still has 70% that’s in the market fluctuating in the 403b and they used the annuity to give her a contract that would give her piece of mind. Dave completely ignored her need to sleep better. I love Dave Ramsey, but he is to closed minded to listen to what she wanted in this case and is putting her back at risk. Here is the FULL segment of that call. If you listen to the full call, I bet Stan may have done the same thing her advisor did. It makes sense and still gives her chance for growth. Also, Dave should never assume and say it like a guarantee that 10% will continue. That’s irresponsible in my opinion when she really needs some of her money safe as she states her risk tolerance to be low now. Here’s the full call that Dave took: ruclips.net/video/aiTKSpMvCpc/видео.htmlsi=clt4kGlqlZi57ey7
I understand that social security and pensions are forms of annuities. However, the complexities involving these annuities are completely transparent to the individual. All that one has to do is earn a paycheck and a portion is held back to fund these buckets - easy peasy. On the other hand, an annuity from an insurance company is really a contract that aims to supply income in retirement - essentially a hedge against one's income. It's a complex product with large upfront fees/commissions. Nine times out of ten, the individuals don't really understand what they're getting.
Roderick - the annuity you describe (income in retirement) is a SPIA. It does not have fees and is not complex. You give the insurance company a lump sum of money and they pay you an income for life. Commissions are paid by the insurance company and do not come out of the funds you pay to the insurance company. Yes, some annuities (FIAs, VAs, etc.) are complex and some have fees, but many are not. Thanks for watching.
You're mixing up annuity products. As Stan said this isn't the case with a Immediate annuities. I'm not saying the products right for you but it's not complex.
@@StanTheAnnuityMan why do i need to give my cash to have them give me an allowance only,, is my principle coming back to me after i am gone as will my beneficiaries get it or does the INS company Keep it in the end ,,,please answer it
You need a Rider . Do you due diligence and read instead of wanting a quick answer. Lack of intelligence is the main reason you respond the way you Did
Actually, Dave wasn't talking about "double-deferral," he's talking about "double-penalty" (surrender penalty, AND the withdrawal penalty from the IRA (before 59 1/2) at 7:18 "...you got 2 sets of penalties on this money now if you need to get to it" Again, some assumptions here: is she under 59 1/2? Would she not qualify for emergency withdrawal? ...and that's only if she needs it before 59 1/2. But like you say, I'd need to know more details... but he didn't giver her any details either (that's the way he rolls, keeping it simple but it's lacking comprehensive advice like you give)
I'm planning on retiring soon at age 59. I have a nice lump sum I want to invest. What would be the best annuity for me to buy to receive a monthly payment for the rest of my life?
Greg, that is called a SPIA (Single Premium Immediate Annuity). You can run quotes on our site at www.stantheannuityman.com/spia-calculator. Thanks for watching.
How is it you refer to an Indexed annuity as a CD rate when it plays in the market (generally the S&P 500) with caps of 7 to 10 % and recently some with no caps? The whole advantage of an Indexed Annuity is to participate in market gains while eliminating market losses. Did I miss something?
Sal - what I mean is historically over the life of the annuity the returns are in the CD/MYGA range. Yes caps can be 7% - 10%, but that is most you can get in any one year and you aren't going to get that every year. Some years will be a 0% credit. On average the return is 2% - 4% per year. Thanks for watching.
David. There are no upfront fees for starting an annuity. Most fixed annuities do not have any fees. Some do, but only if a rider is purchased. Thanks for watching!
Dave Ramsey must assume that 100% of your savings/investments be in stocks to make these kind of statements. Not sure Any advisor would tell a client over 50 yrs old to have that kind of allocation. Dave is comparing stock type risks with annuities that are BOND replacements. AND annuities provide a good alternative to some Bond assets, especially when you know that if interest rates go Up..your Bond portfolio will go down. Not so in an annuity. Funny how Dave likes Variable annuities, which can Lose money, and have the highest fees. If you are going to have stocks And Bonds, then the bond part of your portfolio is going to return less, but give you perceived stability.. but will go down when rates go up. Right now , a big bond fund , AGG pays 2.45% dividend, but will lose money if rates go up. You can lock up that rate or better in a 5 yr MYGA with NO downside risk.
Dave has a bad habit of never admitting when he is misinformed on a topic. Like many financial decisions it's never as black and white as Dave thinks things are. He has done the same on several mortgage topics including VA loans, reverses, all in one and a few other topics.
In june 2024 MYGA are paying 5.75% 1yr all the way to 20 yrs all the same rate. CDs are paying up to 5% for 1 yr but then drops to 3% 2yr 2% for 3yr CD. MYGA make good cents!
lol just write covered calls on healthy dividend equities and never work a day in your life. These businesses are too big to fail and will outlive all of us. Stay diversified though folks
You may want to get a basic understanding. Because for some things insurance companies are great. But they're not for everybody or every situation. (But when they are they are a great option)
Love your channel but PLEASE don't tarnish your integrity by putting the likes of Dave Ramsey in your videos. He is like the male version of Suze Orman.
Thank you for saying that. He has good advice in some areas and horrid advice in others, primarily stock investments from what I can tell. And he yells at people. Yuk.
Trying to educate myself some more about annuity, because I am 65. And I have listened to Dave Ramsey for years.my insurance man is trying to get me into an annuity. He states much more intrest than 2 to 3 percent, maybe it is because of the current date. But this was very hard to listen to and understand because you talked way to fast! Disappointed
Michele - I'm sorry you found my videos hard to listen to. I offer books about annuities that you can read at your convenience. You can request all 6 of my Annuity Owner's Manuals at www.stantheannuityman.com/how-do-annuities-work. I will send them to you at no cost or obligation.
Just because some people sell annuities to those who don't need them, that does not mean annuities are bad products. I'm just here to try and educate. Thanks for watching.
Thank you for your video to challenge Dave Ramsey. I like Dave, but he's just so wrong about a lot of things and he's not giving people the big picture.
Dave is even more incorrect in 2025. Since myga's and even Cd's are still between 4-5 % now and have been for the past few years. 10% on etf's ? Pfft.... smh.
Dave R Rants againt 4% Rule! He claims 8% withdrawl because he also claims the markets go up 12% p year? Even his daughter tried to say it was too high? He Shouted at Rachel - bis daughter On Air! Sad and also Funny.
Dave Ramsey declared bankruptcy a number of years ago. Taking advice from Ramsey would be like taking swimming lessons from someone who doesn't know how to swim.
That was in 1988 when he was 28 years old. I don't understand what happened with the banks that allowed them to recall his loans, but I am looking into it now.
@@gardenfairy351 You would be wiser to spend your time searching for a good finance advisor who has NEVER filed for bankruptcy. Better yet, just follow the Golden Rule of Finance and you won't need a finance advisor: Never spend more than you make, and don't take out loans for things other than a house, a car or education (although grants and working your way through college are better).
@@steveolive9991 I am blessed to have had very wise and frugal parents. I've never had a bankruptcy and paid close to none in credit card interest. I also don't expect people to be perfect and certainly hope people mature as they get older but what I read was that the bank recalled loans because of some law that changed which resulted in Ramsey's bankruptcy. If there is something unsound about the advice he is giving I would like to know. And since I'm seeking out whether to buy life insurance for my older husband I am looking for advice that goes well beyond what is just common sense teaching from my parents.
@@gardenfairy351 Ramsey overextended himself with credit, which is something no wise person would do. As for buying life insurance for an older person, just determine how much you would pay in monthly premiums vs how much $ you would receive upon his passing; generally speaking, premiums are quite expensive for older people. That is, if your husband is able to pass the medical exam that MOST insurance companies require before writing policy. Just make certain that the insurance company you select is an A rated (A+, A, or A-) by A.M. Best. Here's an article to help you decide > aginginplace.org/life-insurance-for-seniors-over-70-what-they-dont-tell-you/ If anything, you need a trusted insurance advisor, not a finance advisor.
Dave's get out of debt advice is sound. His investing advice is consistently awful. He keeps promoting "good growth stock mutual funds" but says nothing beyond that, except that he routinely makes "10-12%" CAGR. So somehow Dave is able to achieve returns 3% higher than the S&P year over year over year. It's not mathematically possible. I'm not just saying it's hard. I'm saying it cannot be done with any consistency without taking much higher levels of risk than is responsible for average people with average net worth. I suspect the reason he does not promote any products other than "good growth stock mutual funds" is because he has no financial interest in doing so.
It's definitely possible if you're looking back in hindsight. Dave is telling you what the one of the best funds in the past did. It's not actionable because we don't know the best funds in the future.
I just feel that Dave Ramsey doesn’t have anything to gain by telling us to invest in mutual funds but YOU who sell annuities have everything to gain by telling people to buy these products bc you will profit off people buying it from you. I think Dave is tried and true. Sorry
@@steveolive9991 I'm trying to figure out some investment possibilities and figure out what advice to trust, but your comment about something that happened in 1988 isn't helpful. He was 28 then unless something has happened recently and I would like to know about it since I didn't see anything recent.
@@gardenfairy351 It's your money, do as you wish. I would NOT feel comfortable taking financial advice from a person who has filed for bankruptcy, regardless of how many years ago it was.....too many GOOD financial advisors out there that have NEVER filed for bankruptcy. Just remember the axiom: a leopard can never change its spots.
@Melissa Michaels - could it be that DR answers mutual funds to any question because he was burned early in life with debt recall on over extended loans? and his only remedy was to absolve himself of all responsibility? Court ordered debt discharge becomes public record. Could it be DR is now doing a radio gig because A. no one will hire him due to his Chap.7/13 decree? B. Starting a substantial advisor business is a no-go due to having to borrow funds for capital investment and that ain't happening? DR spewed three verifiable falsehoods about annuities and barely knew the caller's intent and anxiety over what she agreed to. Stan offers a master's degree self-study in free publications. Let me guess... you make financial decisions based upon what your astrologer says about your life, or what CNN pontificates about the markets? fear is a hell of an obsession.
How Much Income Do I Need In Retirement? ruclips.net/video/p5C_nXMTxbA/видео.html
I appreciate your description beginning at marker 13:43, I have an FIA and have been struggling with taking out my money; however, I feel more confident in keeping it there after listening to your defense of lifetime income you can't outlive. Thank you
Thanks for watching!
Thank you for the video. Great information. Dave's advice is tied to a conflict of interest and who he promotes. His advice for consumer debt and budgeting is great. That's about the extent of his good advice.
Great video Stan! As a CFP, I hpe I can contribute some value to a couple of things Dave Ramsey doesn't mention. First and foremost - what are the client's goals?? How can you say that anything is "no good" if the goals of the customer haven't been established clearly? Perhaps he did, but that should be reiterated when discussing the suitability of any investment. Second, when he says the money going into the "annuity that costs 2%" (which, as you point out is false because fixed annuities typically carry no fees) is coming from a 403b, doesn't he know that the overwhelming majority of 403b programs are in fact group annuities? They also typically have no cost for the chassis. So which is it, Dave? Also, for future reference, you might find it handy to compare Dave's statement of "no situation ever where a fixed annuity makes sense" to saying, for example, "It never makes sense to buy an automatic can opener. There are manual ones that are less expensive." Uh... what is you have rheumatoid arthritis? What if you are older and don't have very good finger strength? What if your sight isn't great and you have trouble lining up the teeth on a manual one? One could easily make a similar comparison by saying, "there is no reason anyone would ever buy a pick-up truck. Sedans are cheaper..." Again, what's the goal? Mission? Objective? Keep the videos coming and don't be afraid to call Dave out when he is, in fact, wrong.
Thank you for the comment and watching!
Very well said!!!!
Thanks for the video and you showed better restraint than I would have for sure. Dave a non/licensed financial celebrity advisor knows very little about the product that he condemns. I noticed he seemed to prefer variable annuities which are a very expensive way of buying mutual funds and income guarantees that annuities provide. I wonder if it’s because his sponsor just so happen to be broker dealers??? 🤔 Conflict of interest Dave??
@@sportsbuckswithsteve That's exactly it. In my mind, I can make a strong argument against variable annuities for income simply because of the fees.
Dave’s argument would always be that investing in mutual funds will get you more money and that the markets long term track record is always good and therefore you are leaving money on the table by adopting a low risk low return product
You know, you could have torn Dave apart and called him a bunch of names, but you chose to show class by illustrating his correct and incorrect statements with an open mind to his expertise. We need more RUclipsrs like yourself, Sir! Thank you for this video, you have my subscription!
Thanks Trey! Welcome to the channel.
Totally agree
Good education. I was "raised" on Dave Ramsey's advice for saving and debt reduction, and it served me well for the most part. However, now as I transition to retirement and looking for withdrawal strategies and income for life, I realize Dave's bias against annuities needs to be exposed. I appreciate your education and FAIR BALANCE.
Thank you for sharing your journey and kind words! I'm glad you're finding value in this balanced approach, and I’m here to help as you transition into this new chapter. If you have any specific questions, don’t hesitate to reach out!
www.stantheannuityman.com/book-a-call
Really great video !! I learned a lot, thanks !
Glad it was helpful!
Outstanding period of instruction. Thank you.
You are welcome!
They were talking about a Life insurance plan. An IUL
Thanks for watching!
Stan bottom line is people want to make sure their original money is still there at the end and have income stream that beats any CD or why would anyone buy an annuity. So please answer that because that's the reality of what people want, We all know you make HUGE commissions on Annuities so Guarantee the cash is going to be there or no point to it,@@StanTheAnnuityMan
It was EXACTLY Dave Ramsey videos like that which steered me away from annuities for many years. But I've seen BIG swings in the market and mutual funds over the years, and the closer I got to retirement, the more nervous I got about having all my money at risk in mutual funds. And while CD rates have been good these last couple years, I also know they're going to go down again.. They already have started to dip down. After watching Stan's videos, and many others, I put some of my money in a fixed index annuity with a rider, that will pay me a decent monthly income with no worries. Once I wrapped my head around the idea that I was "Buying myself a lifetime pension", it was a lot easier. Thanks Stan !!
You finally woke up. Great move. You made the correct decision
Stan...love it...."annuities were put on the planet in Roman times"....
Where Dave lost me, is when he talks about variable annuities. Of all the types of annuities, Immediate and fixed are the ones I have the least problem with. With those, it is straight forward and the client understands what they are getting. If you have a client who has so little money and time that they have NO OTHER CHOICE. Then that's a route I would say is appropriate. Variable annuities are almost always downright horrible. They are insanely expensive, and almost never the best option for the client.
I think Dave Ramsey blocks the callers who call back in to say they went bankrupt following his advice. Telling people with meager savings to invest in the stock market and they can use his '10% rule' for withdrawals! He should not only be ashamed, he should be sued.
When in the last 30 years would investing in indexed stock market funds have "bankrupted" a person?
@@bassgroove3861You've decided to start a new topic?
Yes, you know they screen the callers before they are put on the air and probably edit it but it is broadcasted? He only airs the ones he thinks agree with him?
The truth of the matter is annuities only work for a very small percentage of people, yet the financial advisors try to sell to everyone because of the commission.
You haven't watched many of my videos. I often say annuities are not for everyone. Annuities bring value to anyone who wants to guarantee lifetime income or guarantee their principal. If you don't need the guarantees, you don't need an annuity.
@@robert-ku7zr as compared to what. Most current portfolios have fees of 1% per year at least. That is every year. Even if someone made 8% on an annuity sale. They would make more managing your money over time. A lot more.
Can see why you are successful at sales. Just honest and factual. Make a decision after that. Love watching your videos.
Thank you!
Excellent video! Educate the people Stan. Keep up the great work 👍
That's the plan!
She used the term "traditional" in her call with Dave. It makes me thinking she probably moved some of her 403B money into TIAA Traditional (one could do a lot worse, as long as it's a sensible part of the overall portfolio allocation). I don't see where Stan is thinking that this is probably an indexed annuity.
🎉🎶💫 Congratulations on sharing such an excellent report and detailed information regarding Anuity. Outstanding
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Thanks for watching!
Dave confused CAGR with average returns. Average returns in a volatile asset like stocks overstate the rate of growth. He also doesn’t seem to have any comprehension of sequence of returns risks or that there have been decades where the stock market did very little. Now it’s also true that other assets (unless you got lucky in a commodity) didn’t do much, but you can’t count on 10% returns, or even 7% returns if you mean inflation adjusted
There are 20 years periods where the a cagr of the stock market was like 4%.
Bingo! Dave used to have financial certifications from what I understand. He's not dumb. That's why I can't understand why he continually oversimplifies and uses the average when he should be using the compounded growth rate.
@@rogergrinde7321 It has to be because or his sponsors. I remember watching a video with an 83-year-old woman who called in and said I don't want to lose a penny of my money I want it all to go to my grandchildren if I were to pass. Dave's answer: buy a mutual fund.
😅 mutual funds in the 90's ah just put it in and it's 14% returns no brainer. No one had to be good The Market was good
Today 2024 completely different animal. Just listen to Bogel - Vanguard
On one of his videos he explained why the returns will significantly go down in all index/ managed funds
Average returns are just that weather in a index or mutual fund.
Buyer beware
Are anuiteys safe in a bank bail in?
For me to give you an answer about your specific situation, please feel free to book a call with me!
www.stantheannuityman.com/book-a-call/
Annuities are guaranteed lifetime income no matter how long or how short . Sales people rarely emphasize the short side disadvantages of an annuity.
Dan - You are correct. Saying that a lifetime income annuity can be set up to return the full account to the beneficiaries upon death so no loss of funds. Thanks for watching.
And that's why you should buy an annuity if you need one but never be sold one.
It's no different than a new car dealership they want to sell you things you don't need or a restaurant upselling dessert. Companies are in business to make money and they definitely up sell and make everything look Rosy.
so explain after cash flows to the person who bought the annuity that the original principle will still be there like owning a CD,,please explain, I bet you cant do it, WHY the fees will destroy your cash ,, thats why annuities are hard sales@@StanTheAnnuityMan
Stan wins by a knockout!
Thanks Steven!!
Why? Stan agrees she should try to get out. Why?
how so, still cant see how my money is secure and have an income stream to it, BOTTOM line is HOW is my original cash still going to be there at the end without the commissions and fees eating up my funds
Am I correct to say that the difference between Stan the Annuity Man vs Dave Ramsey is licensing?
No not at all. Dave isn’t giving correct advice
I have to quibble a bit about the assertion that social security is an annuity. Social security is not guaranteed, because it’s based on the tax revenue stream. More and more data is coming out that shows, on the current trend we’re on with continued borrowing and raising of the debt ceiling, that social security is likely to become insoluble at some point. Happy to hear your thoughts on that.
Not a fan of Dave
He has become a legend in his own mind
Stan is the best and tells the truth about the greatness of annuities
Thanks for watching!
I found this informative, I agree Dave makes a few assumptions that aren’t necessarily true in all cases. I still feel like I don’t want to get into any annuities until I’m at a later stage of life, when I want more guaranteed income
Benjamin - that sounds like a good strategy. Thanks for watching!
You sell shares means you’ll burn your money faster than living off interest and having access for you to make your own judgement
you now see how your money is burnt up,, COMMSIONS he makes and fees his company makes,, means you will be paying for their lifestyle since they are in the business of making money
I have annuities that make around 10 percent. One has a point to point with 47 percent and a zero floor. What’s not to like.
Great to hear! Thanks for watching!
You have made a smart move.
S & P 500 index 1/01/1969 = 102.00, S & P 500 index 1/01/1979 = 99.71, even historically a bad 10 year run has the potential to happen in the stock market.
Dee , you are correct. Thank you for watching.
CN you place the fixed index annuity outside of the Ira?
Yes - you can use already taxed funds AKA non-qualified funds in an annuity. Thanks for the question and for watching!!
you can get 4.6 percent on 1 year CD
You missed the most important part of that call. She had $577k in her account and having sleepless nights seeing fluctuations sometimes of up to $20k. They took only 30% to be put into the annuity to protect it and ease her mind. She still has 70% that’s in the market fluctuating in the 403b and they used the annuity to give her a contract that would give her piece of mind. Dave completely ignored her need to sleep better. I love Dave Ramsey, but he is to closed minded to listen to what she wanted in this case and is putting her back at risk.
Here is the FULL segment of that call. If you listen to the full call, I bet Stan may have done the same thing her advisor did. It makes sense and still gives her chance for growth. Also, Dave should never assume and say it like a guarantee that 10% will continue. That’s irresponsible in my opinion when she really needs some of her money safe as she states her risk tolerance to be low now.
Here’s the full call that Dave took:
ruclips.net/video/aiTKSpMvCpc/видео.htmlsi=clt4kGlqlZi57ey7
I understand that social security and pensions are forms of annuities. However, the complexities involving these annuities are completely transparent to the individual. All that one has to do is earn a paycheck and a portion is held back to fund these buckets - easy peasy. On the other hand, an annuity from an insurance company is really a contract that aims to supply income in retirement - essentially a hedge against one's income. It's a complex product with large upfront fees/commissions. Nine times out of ten, the individuals don't really understand what they're getting.
Roderick - the annuity you describe (income in retirement) is a SPIA. It does not have fees and is not complex. You give the insurance company a lump sum of money and they pay you an income for life. Commissions are paid by the insurance company and do not come out of the funds you pay to the insurance company. Yes, some annuities (FIAs, VAs, etc.) are complex and some have fees, but many are not. Thanks for watching.
You're mixing up annuity products. As Stan said this isn't the case with a Immediate annuities. I'm not saying the products right for you but it's not complex.
@@StanTheAnnuityMan why do i need to give my cash to have them give me an allowance only,, is my principle coming back to me after i am gone as will my beneficiaries get it or does the INS company Keep it in the end ,,,please answer it
You need a Rider .
Do you due diligence and read instead of wanting a quick answer.
Lack of intelligence is the main reason you respond the way you Did
Actually, Dave wasn't talking about "double-deferral," he's talking about "double-penalty" (surrender penalty, AND the withdrawal penalty from the IRA (before 59 1/2) at 7:18 "...you got 2 sets of penalties on this money now if you need to get to it"
Again, some assumptions here: is she under 59 1/2? Would she not qualify for emergency withdrawal? ...and that's only if she needs it before 59 1/2. But like you say, I'd need to know more details... but he didn't giver her any details either (that's the way he rolls, keeping it simple but it's lacking comprehensive advice like you give)
Great points! Thanks for watching!
Great job !
I'm planning on retiring soon at age 59. I have a nice lump sum I want to invest. What would be the best annuity for me to buy to receive a monthly payment for the rest of my life?
Greg, that is called a SPIA (Single Premium Immediate Annuity). You can run quotes on our site at www.stantheannuityman.com/spia-calculator. Thanks for watching.
How is it you refer to an Indexed annuity as a CD rate when it plays in the market (generally the S&P 500) with caps of 7 to 10 % and recently some with no caps? The whole advantage of an Indexed Annuity is to participate in market gains while eliminating market losses. Did I miss something?
Sal - what I mean is historically over the life of the annuity the returns are in the CD/MYGA range. Yes caps can be 7% - 10%, but that is most you can get in any one year and you aren't going to get that every year. Some years will be a 0% credit. On average the return is 2% - 4% per year. Thanks for watching.
Are there any fees associated with initiating an annuity?
David. There are no upfront fees for starting an annuity. Most fixed annuities do not have any fees. Some do, but only if a rider is purchased. Thanks for watching!
And I too love Dave Ramsey.
I rather fixed because I don't want to worry about losing what I'm getting.
Dave Ramsey must assume that 100% of your savings/investments be in stocks to make these kind of statements. Not sure Any advisor would tell a client over 50 yrs old to have that kind of allocation.
Dave is comparing stock type risks with annuities that are BOND replacements. AND annuities provide a good alternative to some Bond assets, especially when you know that if interest rates go Up..your Bond portfolio will go down. Not so in an annuity. Funny how Dave likes Variable annuities, which can Lose money, and have the highest fees.
If you are going to have stocks And Bonds, then the bond part of your portfolio is going to return less, but give you perceived stability.. but will go down when rates go up.
Right now , a big bond fund , AGG pays 2.45% dividend, but will lose money if rates go up. You can lock up that rate or better in a 5 yr MYGA with NO downside risk.
Paul - you are exactly right! Thanks for watching.
Dave has a bad habit of never admitting when he is misinformed on a topic. Like many financial decisions it's never as black and white as Dave thinks things are.
He has done the same on several mortgage topics including VA loans, reverses, all in one and a few other topics.
In june 2024 MYGA are paying 5.75% 1yr all the way to 20 yrs all the same rate. CDs are paying up to 5% for 1 yr but then drops to 3% 2yr 2% for 3yr CD. MYGA make good cents!
Dave Ramsey is more entertainer then financial expert. He's made a fortune doling out questionable advice to the Christian market who worships him.
Thanks for watching!
lol just write covered calls on healthy dividend equities and never work a day in your life. These businesses are too big to fail and will outlive all of us. Stay diversified though folks
Dave is an entertainer.
5.5% now.
Thanks for watching!
I own several annuities and feel very secure financially. Dave is so wrong. Please have a conversation with this guy to clear this up.
Thanks for watching! If you have any questions about your annuity, please don’t hesitate to reach out:
www.stantheannuityman.com/book-a-call/
I do not understand annuities, so I would not get involved in them.
Steven - that is smart. Never purchase anything you do not fully understand.
You may want to get a basic understanding. Because for some things insurance companies are great. But they're not for everybody or every situation. (But when they are they are a great option)
"For the dutiful Roman Soldiers".....Fact....
Love your channel but PLEASE don't tarnish your integrity by putting the likes of Dave Ramsey in your videos. He is like the male version of Suze Orman.
Dave R is not a financial expert. He needs to stick to what he knows. Real Estate and getting out of debt.
Thank you for saying that. He has good advice in some areas and horrid advice in others, primarily stock investments from what I can tell. And he yells at people. Yuk.
@@lstansbury10000 I listened to DR for years while in my work truck and he is a jerk. Not the kind of person one would want to be around for long.
Sounds like the Agent totally took advantage of her
201K....thanks Dave R...
It looks like you forget the part when Dave says the annuities are the worst option.
Trying to educate myself some more about annuity, because I am 65. And I have listened to Dave Ramsey for years.my insurance man is trying to get me into an annuity. He states much more intrest than 2 to 3 percent, maybe it is because of the current date. But this was very hard to listen to and understand because you talked way to fast! Disappointed
Michele - I'm sorry you found my videos hard to listen to. I offer books about annuities that you can read at your convenience. You can request all 6 of my Annuity Owner's Manuals at www.stantheannuityman.com/how-do-annuities-work. I will send them to you at no cost or obligation.
@@StanTheAnnuityMan thank you so much. I look forward to reciving them.
Dave is right. Most annuities only benefit those that sell Annuities.
Just because some people sell annuities to those who don't need them, that does not mean annuities are bad products. I'm just here to try and educate. Thanks for watching.
Thank you for your video to challenge Dave Ramsey. I like Dave, but he's just so wrong about a lot of things and he's not giving people the big picture.
Dave is even more incorrect in 2025. Since myga's and even Cd's are still between 4-5 % now and have been for the past few years. 10% on etf's ? Pfft.... smh.
I think that Dave Ramsey's advise and assumptions were horrible.
Thanks for watching!
Dave R Rants againt 4% Rule! He claims 8% withdrawl because he also claims the markets go up 12% p year? Even his daughter tried to say it was too high? He Shouted at Rachel - bis daughter On Air! Sad and also Funny.
Whoa ho 3%!
I must be the only person who doesn't like Dave Ramsey
Nope
No, you're not!!!
Dave Ramsey declared bankruptcy a number of years ago. Taking advice from Ramsey would be like taking swimming lessons from someone who doesn't know how to swim.
That was in 1988 when he was 28 years old. I don't understand what happened with the banks that allowed them to recall his loans, but I am looking into it now.
@@gardenfairy351 You would be wiser to spend your time searching for a good finance advisor who has NEVER filed for bankruptcy. Better yet, just follow the Golden Rule of Finance and you won't need a finance advisor: Never spend more than you make, and don't take out loans for things other than a house, a car or education (although grants and working your way through college are better).
@@steveolive9991 I am blessed to have had very wise and frugal parents. I've never had a bankruptcy and paid close to none in credit card interest. I also don't expect people to be perfect and certainly hope people mature as they get older but what I read was that the bank recalled loans because of some law that changed which resulted in Ramsey's bankruptcy. If there is something unsound about the advice he is giving I would like to know. And since I'm seeking out whether to buy life insurance for my older husband I am looking for advice that goes well beyond what is just common sense teaching from my parents.
@@gardenfairy351 Ramsey overextended himself with credit, which is something no wise person would do. As for buying life insurance for an older person, just determine how much you would pay in monthly premiums vs how much $ you would receive upon his passing; generally speaking, premiums are quite expensive for older people. That is, if your husband is able to pass the medical exam that MOST insurance companies require before writing policy. Just make certain that the insurance company you select is an A rated (A+, A, or A-) by A.M. Best. Here's an article to help you decide > aginginplace.org/life-insurance-for-seniors-over-70-what-they-dont-tell-you/
If anything, you need a trusted insurance advisor, not a finance advisor.
@@steveolive9991 What if the insurance company is B+ rated by AM Best. Would you avoid buying an annuity from them
Dave's get out of debt advice is sound. His investing advice is consistently awful. He keeps promoting "good growth stock mutual funds" but says nothing beyond that, except that he routinely makes "10-12%" CAGR. So somehow Dave is able to achieve returns 3% higher than the S&P year over year over year. It's not mathematically possible. I'm not just saying it's hard. I'm saying it cannot be done with any consistency without taking much higher levels of risk than is responsible for average people with average net worth. I suspect the reason he does not promote any products other than "good growth stock mutual funds" is because he has no financial interest in doing so.
It's definitely possible if you're looking back in hindsight. Dave is telling you what the one of the best funds in the past did.
It's not actionable because we don't know the best funds in the future.
I just feel that Dave Ramsey doesn’t have anything to gain by telling us to invest in mutual funds but YOU who sell annuities have everything to gain by telling people to buy these products bc you will profit off people buying it from you. I think Dave is tried and true. Sorry
No worries Melissa. Thanks for watching!
Ramsey is tried and true,,,,,for declaring bankruptcy.
@@steveolive9991 I'm trying to figure out some investment possibilities and figure out what advice to trust, but your comment about something that happened in 1988 isn't helpful. He was 28 then unless something has happened recently and I would like to know about it since I didn't see anything recent.
@@gardenfairy351 It's your money, do as you wish. I would NOT feel comfortable taking financial advice from a person who has filed for bankruptcy, regardless of how many years ago it was.....too many GOOD financial advisors out there that have NEVER filed for bankruptcy. Just remember the axiom: a leopard can never change its spots.
@Melissa Michaels - could it be that DR answers mutual funds to any question because he was burned early in life with debt recall on over extended loans? and his only remedy was to absolve himself of all responsibility? Court ordered debt discharge becomes public record. Could it be DR is now doing a radio gig because A. no one will hire him due to his Chap.7/13 decree? B. Starting a substantial advisor business is a no-go due to having to borrow funds for capital investment and that ain't happening? DR spewed three verifiable falsehoods about annuities and barely knew the caller's intent and anxiety over what she agreed to. Stan offers a master's degree self-study in free publications. Let me guess... you make financial decisions based upon what your astrologer says about your life, or what CNN pontificates about the markets? fear is a hell of an obsession.
Dave is a clown, he should end up getting sued for bad advice tbh
Awesome stuff man. Hit you with a hashtag on my insta ;)
Thanks for watching!