We’re so glad you enjoyed it. If I elaborate on the commission fees, it would be too complicated since it’ll be different based on each product type and also the state you’re in and your age. The bottom line is, nothing comes out of your pocket, like your car insurance agent.
Dave Ramsey probably has the best formula for getting out of debt and establishing good financial stability and growth. I do agree that his investment advice is sort of one size fits all but in general he is talking to folks who are financially not sophisticated. Having said that every time I have been presented with a Fixed index Annuity or any annuity it has never been from a fiduciary. It's still a product to be sold, like whole life, inappropriate for most folks. Just my opinion as a non professional investor. Thanks though for the presentation and sorting out some facts.
You are right. We actually just like the whole industry. Both sides. Some who are licensed fiduciaries, but are not truly transparent, cannot represent or sell companies that their broker dealer does not allow them to sell or count towards their assets under management goal. Therefore, they barely educate on annuities, or have the right knowledge of them. Then to come when you have the insurance who are just money hungry or do not specialize is selling them. Many insurance agents also captive to just the firm that they work with for companies that they represent. This is why we created this video in our channel. We wanted to give the expertise and knowledge along with full transparency. Thanks for commenting!
nice thing about Fixed index commission, is that the insurance company pays it out, not the customer. Don't know why people are so bent out of shape about commissions sometimes, theyre not paying it out. a one time 3% commission paid by the insurance company sounds a whole lot better than a yearly 1% fee paid from the customers account to the advisor
Thank you for your comment. So true! People are only bent out of shape because they don't understand how it works. The commissions are no different than car insurance, life insurance, or health insurance. The consumer never pays it. It's mainly Wall Street and advisors that make it a big deal. Kai & Ann Chung
Although it is not an investment product, in many cases they are promoted like investment products by the sellers. The index word immediately implicitly links to investment.
This is why we create a channel. We want to cut through all that marketing gimmick. These products actually really great, but they are a hybrid is what confuses people, even Dave Ramsey himself! 🤣
I've lost in a FI annuity. There was a 2% fee to get a better participation rate. Index was negative so awarded zero less the fee. This fee lowered my principal and I have lost any earning potential of that fee! I will get the fee back in another 8 yrs but I have lost the earning potential on that portion of my capital.
Sorry to hear that. This is why we’re making these videos because there are good fixed index annuity‘s and also bad ones too. Like stocks, there are more bad ones than good. We also look for no fees, or at the most a spread. Feel free to give us a call so we can review any questions or options you have. Thanks for watching! Kai and Ann Chung 408-502-7080
Thank you for this video. Very informative and easy to understand. I didn't fully understand annuities until I seen this on youtube. I have also seen Stan the Annuity man youtube videos.
My wife and I each have a FIA for the last 8 years..........with 2 years left with no withdrawal fees. Both have around $250k. The caps and or participation rates were ok during the 1st 4 years but the last 4 years the caps or participation rate has sucked. They get your money in the beginning but wasn't they have you then you can't get out without a penalty and then they screw you. The companies are American Equity and Midland National. In 2 years we will be out of the penalty stage in 2 years and after that we will take it out and never get another one again. We are both 66. Terrible experience.
Sorry to hear that. This is why we are very picky with which companies we work with. American equity has been one of the worst. We’ve had FIA’s for 18 years and we’ve seen the good ones and the bad ourselves. That’s why we hate it when people do not know about this ahead of time. Once you have a bad taste in your mouth, it’s hard to get it out. But it is no different than having bad stocks. It does not necessarily mean you will never buy stocks again. You’ll just be more careful and do more research. We hope you allow us to one day help educate you guys. If you get a chance, watch our other videos on the Hybrid Pensions and I made one specifically called “Scams.”
I am an advisor/agent with one of the cream of the crop life insurers which is a Mutual by structure. The handful of mutual life insurers remaining in our country are by far the strongest financially and is it not so interesting that none of the mutual life insurance carriers will never offer a fixed indexed annuity. The reasons are various one big one is that the illustrations are just too complicated and until the NAIC leans heavily on the states department of insurance to restructure the illustrations to be more simple and clear and along with other issues like some commenters sharing here and the participation rates in cap rates squeezing down on them we are prohibited from offering these instruments. They look good from the hundred foot view but once you look under the hood well it becomes a different scenario.
I bet you were talked into buying these and they collected 5-7% commissions upfront already. That’s why you can’t back out with insurance 😅. Learn a lesson.
I feel the main problem with fixed index Annuities is that , you can never tell how much you will earn even if the market did very good in the future. The insurance companies have a very good control on what you can earn by changing the cap rate and the participation rate. So its very hard to predict how much you will actually get in the future even if you consider different market scenarios play out
You have a valid point. Many FIAs we wouldn’t buy or sell. However, the same can be said about stocks, CD, bonds, and so forth. We are also clients with FIAs and have done well. We know who are the good ones and not so good. Also, the good ones in the past may be good for those that bought it back then, but not good today. Regarding the caps and participation rates, please watch this video we created: “Don’t Buy Fixed-Indexed Annuities” ruclips.net/video/OZEIZQ-A5HA/видео.htmlsi=9fcjKQQ7bHAWitYu We hope you give our office a call to clarify any questions you may have.
Someone please show me a history of an actual account.....Why is it so hard to get this data. over say 5 years. The hypothetical spread sheets look good on paper only. Participation rates Caps and indexes can change yearly....This is what holds me back.....what is contractually guaranteed?
We would love to show you. By the way, depending on the company, the participation in caps did not change every year. Anyway, too much explain the comments. Please give us a call if you would like to discuss more. Kai Chung 408-502-7080
An annuity is the _only_ investment you can make that will guarantee you a lifetime income. Is it for everyone? No. Can annuities be tricky? Yes, but so are most other investments. The fact that so few people know what an annuity is, or understand them, says something about our educational system.
I have two fixed index annuities. Both 5 year contracts. I like mine. No yearly fees. No loss from a downed market, etc. I got sick and tired of trying to guess the markets and make money. I am not trying to use them as an income rider at this either, so no expense there. I remember the losses from 2008. It took 2 years to just get back to where I was and I was still contributing to it through my work. I wish my money would of been in a couple of annuities back then.
Invest a small portion into annuity is fine but never all in your money. You will get better returns buying index funds along the way to your retirement
You’re absolutely right! However, keep in mind comparing the market and comparing fixed index annuities it’s like comparing a knife and a spoon. They are designed for different purposes. We just made a new video on the five different types and the purpose of each. We hope you enjoy it. ruclips.net/video/8-dL0gR7gaw/видео.htmlsi=YHpUE4sx0Vs1GWrt
The principle cannot be reduced because of the index. You might be thinking of a variable annuity. And not everybody needs to choose a rider. There are many times when we do not recommend a rider. We are on quite a few as well. Thanks for watching ! Kai & Ann Chung
Yes, however much depends on your state. Historically tracking the S&P has a lower participation or lower Caps. Feel free to give me a call if you’d like to discuss this further. It’s too much to discuss further. Thanks for watching! Kai Chung 408-502-7080
You didn't explain how the insurance company can give index based credits. Yes, the insurance company has their own investments, and those investments can give a fixed interest credit to the policy or annuity. The "Indexing" is buying and selling options on the index, often called a "bull call" spread, so you can get indexed linked investment performance without taking market risks. The buget for those options come from the interest earned from the general accoutn fund, or the "fixed interest" credit you would have gotten anyway. You forgo the fixed interest, so the insurance company can buy those options. Index goes up = options are in the money = credit given. Index goes down = options are out of the money = no credit given.
Thanks for your comment! we do not want to confuse the public with too detailed of an explanation. Right now the fixed rate has gone up from 0% around 2% as the new floor. The buying and selling options of the index is strictly for the insurance company and not the consumer. What you described is accurate but very difficult for most to understand. Keep in mind, they may or may not even buy the Index that index annuity is tracking. The interest credit strictly based on the tracking the index. Not always buying and selling those options. (We’ve spoken to the engineers and actuary Departments). To be clear, we are not arguing with you, as your comment is pretty good !
Please! You do not provide detailed explanation because with the annuity CAP the annuity return is significantly reduced than what an index like S&P 500 earns. Retirees / young investors simply need to buy Vanguard ETF VOO and over the long run earn 2 times the return of the fixed indexed annuity. @@kciis
Ramsey is generally correct. Avoid all annuities except Fixed Rate or Immediate. However, these days you can do as good with ZERO costs to you by using BROKERED CDs, Treasuries or Money Market Accounts and earn OVER 5%. Avoid fees at all cost when your retired and wanting to preserve capital. It's that simple.
Thanks for your comment. We would like to just add to your list Fixed Indexed to your list as most of these have 0% fees. Also, one must be careful with Immediate as you do give up control of your principal.
@@kciis Never consider a FIXED INDEX ANNUITY unless you know the potential limitations and volatility. There are also surrender charges if you change your mind and want out. Here's what smart people do today. Use a Money Market fund paying over 5%. You have access any day of the week. Only buy short term brokered cds and short term treasuries. It's really quite simple.
Thanks David. I believe you are referring to Variable annuities since there are no volatility issues with FIAs. I agree with know the pitfalls, and we made a video you can watch here: ruclips.net/video/eXgcR6YP7ik/видео.html
Oh and by the way, the fixed rate annuities and the fixed index annuities surrender charges are about the same. There are companies that I would steer away from through.
@@kciis FIA are NOT FDIC insured. They never capture the full upside to the stock market. Cap, spreads and fixed interest rates are subject to change. There are surrender charges and they lack flexibility. However, there are advantages. Retired people should just use MYGA annuities. I would simply avoid all annuities.
Actually my experience is that Dave Ramsey is correct. My parents bought an annuity and 12 months later they needed the money because my father had a stroke. Of course there was a 5 year penalty clause. This would not have been the case had the investment been in the S and P 500 through Fidelity or Charles Schwab or even bonds. My advice is run, run from annuities. Any insurance product is full of many fees as Dave has stated many times.
Sorry to hear about your father. Yes many annuities have fees…BUT there are many without. I hope you get to watch our other videos that discuss the 5 different types of annuities.
Its unfortunate that some representatives don't do the right thing, this is true. But its also our job as fiduciaries to place clients in the right products based off of their needs. I'm sorry to hear about your father, and it appears he was placed in a product that wasn't best for his specific needs. That doesn't mean Dave was correct in this video, as he wasn't. There are also several annuity companies that allow 10% free withdrawals during the surrender periods and clients need to also pass suitability to qualify for this product. Which typically anyone that has less than $30k saved in IMMEDIATE liquid funds would NOT be suitable for a product like this due to the surrender charge in the event of something like an emergency and needs to access the money.
Every annuity I have ever looked at clearly stated to NOT put money, you might need, in it. And clearly shows the fees involved with early withdrawals Sorry about your folks, but what happened to them was not the insurance companies fault !
You would think that a good sales person dealing with an elderly couple would what is right for them. Maybe the blame is on my father. But I have a feeling it was the salesman in this case who wanted their commission and cared very little about my parents and their needs. I have had this experience with financial product sales people and basically why I don't deal with them at all even though at one time I was licensed to sell annuities.
Paying a fee for zero risk. Might as well just buy a CD. Never heard of a fixed index annuity so loved this video. Ramsey has Zander Insurance so I am not surprised.
It's barely better than a certificate of deposit at a bank. Get an index fund. Look at what it has gained historically over 10, 20, 30 years. There's no comparison. Fact.
True! There is no comparison. It’s like comparing a fork and a knife! Buy Annuties for what they are designed for and investments for what they are designed for. Also, they are 5 types of Annuties and each of those types are also designed with a different purpose. Many do not realize the 5 types out there.
As a fairly new agent, never sold anything yet, I find it interesting how people like Ramsey have issues with the commissions earned on annuities. He has no issues with commissions earned by real estate agents, car salesmen, financial advisors or anything else like that. I'm glad I'm learning this early to prepare myself to rebuke this and your explanation vs financial advisors is spot on. And indeed Health = Wealth.
I have a Variable Indexed Annuity with Prudential. I had the insurance guy over explaining my parents life insurance plans when they passed and he sold me the VIA because (at the time) I was scared to lose the money. It had a initial purchase price of 200k. it is 10% buffer 20% cap 100 % tier 1 par 130% tier 2. Im assuming what that means is that I have a 10 % protection. if the index loses 10% im safe and get 0.. if the index goes down 40% I lose 30%. if the index gained 30% id get 130% of 20% cap, so 26%. If thats then case I am fine with that and my account has grown from 200k to 350k in 3 years. Anyway I do not want to stay in this product cause I am too young.. it has a 6 year term. opened in 2020 and ends in 2026. when the term comes can I pull my full contract value out? Im only 43 and want to put it in actual ETFS with a brokerage and benefit from the FULL return of the market. I rather transfer it to a company like T ROWE Price where my jobs 401k is. So i can have everything in one place. input?
Sorry, we are just catching up on some comments. We are not big fans are variable annuities either. Please give our office a call. We can discuss this further. Kai & Ann Chung 408-502-7080
It depends on the type of index in annuity and also what it is designed for. Just like asking what is the realistic gas mileage of a car. Different cars will have different gas mileage, depending on the purpose of the car. Once we know your purpose, we can easily give you a quote for the past years. Also, will tell you which companies play games with which ones do not. Some even show you their track record. Feel free to give us a call. Kai & Ann Chung 408-502-7080
@@kciis Love your stories, but it would take no effort to post the real world historic returns of a few FIA's. You need to find a job where you don't have to rook people.
Unfortunately, the markets were not so good the last few years, but at least you did not lose any money. In 2021 the participation rates were probably only 90% to 150%. Did you buy a lifetime income rider with it?
@@kciis JP Morgan as in Chase bank one of the biggest banks in the world. I would have done better putting it into one of their savings accounts. I think it was at 130% I shouldn’t have to be concerned with the sequence of returns in an annuity. 3 years and not even a dollar? To me it looks like they averaged out any gain I had over the 3 years. They are using my pension money to get gains for JP Morgan while I get zero. Or shall I say “but you didn’t lose any money” which I totally disagree with. I lost time which is money. Then when I need this annuity they will base it on what I have in the account. So JP Morgan and Nationwide are looking out for each other and not me. JP Morgan averages out any gain over 3 years… Balance doesn’t change Nationwide doesn’t have to increase the monthly annuity payout. Totally understand Ken Fisher right now. I learned the hard way….
@@kciis Lifetime Income Rider that’s a good question. Says I didn’t but it also has income charts and graphs in the contract. I fully expect to only get the minimum contract promised. 1% of the total 87% balance over 12 years. Which they are well on their way…
That’s like asking can I fork cut like a knife. Saying can a tablet ever be as powerful as a desktop PC computer. We do not compare annuities to investments. The only one that comes close to investments are variable annuities, and we do not recommend them. We help people comparing annuities to investments. they have their place. There are also five different annuities that you should be aware of. ruclips.net/video/8ke5GA7Py20/видео.htmlsi=CcJ0sm64Oiol-DtU
Dave is right. You do not emphasize that with the annuity CAP the annuity return is significantly reduced than what an index like S&P 500 earns. Retirees / young investors simply need to buy Vanguard ETF VOO and over the long run earn 2 to 3 times the return of the fixed indexed annuity.
No, he is not right, sorry. He doesn't explain plans with NO cap. I'm assuming you didn't watch the entire video. See 09:03 How the Ins. Co. Limits Your Earnings, and how we show people FIAs with NO cap and HIGH Participation rates. We appreciate your comment, but please watch the entire video before you give an accusation. Kai & Ann Chung
I have one of my annuities based on the S&P 500. It did really well last year. My other deferred index didn't go up, but it didn't lose any money either. And no fees!
Why do people keep trying to sell me these insurance policies as though they are investments? Could it be because they are trying to scam people into giving them money?
I’m glad you mentioned this point. In all of our videos we do not mention them as investments. In many videos, we have actually mentioned these are NOT investments. Yes other people are trying to scam you. This is why we made these videos. Feel free to give us a call if you would like to learn more. You can also make sure to watch our entire playlist where we breakdown which annuities you should not buy and how they work.
Here is the entire playlist to answer your questions. Feel free to call us if you’d like to get things clarified. Again, there’s no need to attack us for no good reason. ruclips.net/p/PLhy55v5WCqkAmvcJtMqy2g6VsCSknV7vy&si=f44udYnFjXMk985D
Here is the entire playlist to answer your questions. Feel free to call us if you’d like to get things clarified. Again, there’s no need to attack us for no good reason. ruclips.net/p/PLhy55v5WCqkAmvcJtMqy2g6VsCSknV7vy&si=f44udYnFjXMk985D
We’re not sure why there’s any need for prejudice or racism, but we can also understand where you might think that. Just to let you know, we have a very small percentage of clients that are Asian. Also, we did not get paid by any clients. We get paid the same as your car insurance agent gets paid. Directly from the insurance company.
Ha gang it's very still f...confusing you Two do this every day and know both sides and please tell your viewers you change the annuity rules each yr 😮 I got more from Stan the Annuity man I one video than you garden to day 😮
Please explain now! How could there be no downside risk with only upside potential? This makes less than zero sense!!! You two are scammers!!! You're telling me that I would lose no money in fees during the downside years? Please explain!
I understand if you’re upset because other people are trying to scam you. But we have never met, and there’s no need for you to attack us like this. we have been doing this for going on 19 years and also have many clients that are satisfied with us. There’s no downside risk with the stock market because you’re NOT invested IN the market. These are NOT investment products. Your money is in a cash account, waiting to get a credit based on the performance of the index. Rather than explaining all this through the comments. Please watch our entire playlist where we explain how these work.
Here is the entire playlist to answer your questions. Feel free to call us if you’d like to get things clarified. Again, there’s no need to attack us for no good reason. ruclips.net/p/PLhy55v5WCqkAmvcJtMqy2g6VsCSknV7vy&si=f44udYnFjXMk985D
Here is the entire playlist to answer your questions. Feel free to call us if you’d like to get things clarified. Again, there’s no need to attack us for no good reason. ruclips.net/p/PLhy55v5WCqkAmvcJtMqy2g6VsCSknV7vy&si=f44udYnFjXMk985D
Person complaining might watch this same video again, and pay attention to the part where you talk about someone saying he'll pay his friend based on how his favourite team is doing. I thought that was a great analogy. Also, i am wondering if the companies link these to the stock market SO THAT the customer is comparing it to that and wants to avoid risk; are they more popular when there is lots of volatility, by any chance ;)?
We look foward to hearing your thoughts after you watch the video this Thursday! 5pm PST, 7 PM CST, 9 PM EST
Be sure to click on the "Save" Button next to the "like" button!
Great video, I learned a lot. However, I wish you would have elaborated a touch more on the commission fees. Again, awesome video
We’re so glad you enjoyed it. If I elaborate on the commission fees, it would be too complicated since it’ll be different based on each product type and also the state you’re in and your age. The bottom line is, nothing comes out of your pocket, like your car insurance agent.
Dave Ramsey probably has the best formula for getting out of debt and establishing good financial stability and growth. I do agree that his investment advice is sort of one size fits all but in general he is talking to folks who are financially not sophisticated. Having said that every time I have been presented with a Fixed index Annuity or any annuity it has never been from a fiduciary. It's still a product to be sold, like whole life, inappropriate for most folks. Just my opinion as a non professional investor. Thanks though for the presentation and sorting out some facts.
You are right. We actually just like the whole industry. Both sides. Some who are licensed fiduciaries, but are not truly transparent, cannot represent or sell companies that their broker dealer does not allow them to sell or count towards their assets under management goal. Therefore, they barely educate on annuities, or have the right knowledge of them.
Then to come when you have the insurance who are just money hungry or do not specialize is selling them. Many insurance agents also captive to just the firm that they work with for companies that they represent.
This is why we created this video in our channel. We wanted to give the expertise and knowledge along with full transparency.
Thanks for commenting!
To many of these people on RUclips try to cover aspect of money making and go way out of their range
nice thing about Fixed index commission, is that the insurance company pays it out, not the customer. Don't know why people are so bent out of shape about commissions sometimes, theyre not paying it out. a one time 3% commission paid by the insurance company sounds a whole lot better than a yearly 1% fee paid from the customers account to the advisor
Thank you for your comment. So true! People are only bent out of shape because they don't understand how it works. The commissions are no different than car insurance, life insurance, or health insurance. The consumer never pays it. It's mainly Wall Street and advisors that make it a big deal.
Kai & Ann Chung
Although it is not an investment product, in many cases they are promoted like investment products by the sellers. The index word immediately implicitly links to investment.
This is why we create a channel. We want to cut through all that marketing gimmick. These products actually really great, but they are a hybrid is what confuses people, even Dave Ramsey himself! 🤣
It's an income product. You do fixed with a Ryder for income. I don't want a maybe I want an exact.
I've lost in a FI annuity. There was a 2% fee to get a better participation rate. Index was negative so awarded zero less the fee. This fee lowered my principal and I have lost any earning potential of that fee! I will get the fee back in another 8 yrs but I have lost the earning potential on that portion of my capital.
Sorry to hear that. This is why we’re making these videos because there are good fixed index annuity‘s and also bad ones too. Like stocks, there are more bad ones than good.
We also look for no fees, or at the most a spread. Feel free to give us a call so we can review any questions or options you have. Thanks for watching!
Kai and Ann Chung
408-502-7080
Thank you for this video. Very informative and easy to understand. I didn't fully understand annuities until I seen this on youtube. I have also seen Stan the Annuity man youtube videos.
Thank you for the compliment.
Here’s our playlists for you to check out if you like.
youtube.com/@kciis?si=b4f4luUs5nTzv9Qd
My wife and I each have a FIA for the last 8 years..........with 2 years left with no withdrawal fees. Both have around $250k. The caps and or participation rates were ok during the 1st 4 years but the last 4 years the caps or participation rate has sucked. They get your money in the beginning but wasn't they have you then you can't get out without a penalty and then they screw you. The companies are American Equity and Midland National. In 2 years we will be out of the penalty stage in 2 years and after that we will take it out and never get another one again. We are both 66. Terrible experience.
Sorry to hear that. This is why we are very picky with which companies we work with. American equity has been one of the worst. We’ve had FIA’s for 18 years and we’ve seen the good ones and the bad ourselves.
That’s why we hate it when people do not know about this ahead of time. Once you have a bad taste in your mouth, it’s hard to get it out.
But it is no different than having bad stocks. It does not necessarily mean you will never buy stocks again. You’ll just be more careful and do more research.
We hope you allow us to one day help educate you guys.
If you get a chance, watch our other videos on the Hybrid Pensions and I made one specifically called “Scams.”
Here is a playlist on Hybrid Pensions
ruclips.net/p/PLhy55v5WCqkBbebnWQrfWGdLMhOA1geXM
Oh, and you might like this playlist too.
What is an Annuity? How Does It Work?
ruclips.net/p/PLhy55v5WCqkAmvcJtMqy2g6VsCSknV7vy
I am an advisor/agent with one of the cream of the crop life insurers which is a Mutual by structure. The handful of mutual life insurers remaining in our country are by far the strongest financially and is it not so interesting that none of the mutual life insurance carriers will never offer a fixed indexed annuity. The reasons are various one big one is that the illustrations are just too complicated and until the NAIC leans heavily on the states department of insurance to restructure the illustrations to be more simple and clear and along with other issues like some commenters sharing here and the participation rates in cap rates squeezing down on them we are prohibited from offering these instruments. They look good from the hundred foot view but once you look under the hood well it becomes a different scenario.
I bet you were talked into buying these and they collected 5-7% commissions upfront already. That’s why you can’t back out with insurance 😅. Learn a lesson.
I feel the main problem with fixed index Annuities is that , you can never tell how much you will earn even if the market did very good in the future. The insurance companies have a very good control on what you can earn by changing the cap rate and the participation rate. So its very hard to predict how much you will actually get in the future even if you consider different market scenarios play out
You have a valid point. Many FIAs we wouldn’t buy or sell. However, the same can be said about stocks, CD, bonds, and so forth.
We are also clients with FIAs and have done well. We know who are the good ones and not so good. Also, the good ones in the past may be good for those that bought it back then, but not good today.
Regarding the caps and participation rates, please watch this video we created:
“Don’t Buy Fixed-Indexed Annuities”
ruclips.net/video/OZEIZQ-A5HA/видео.htmlsi=9fcjKQQ7bHAWitYu
We hope you give our office a call to clarify any questions you may have.
Someone please show me a history of an actual account.....Why is it so hard to get this data. over say 5 years. The hypothetical spread sheets look good on paper only. Participation rates Caps and indexes can change yearly....This is what holds me back.....what is contractually guaranteed?
We would love to show you. By the way, depending on the company, the participation in caps did not change every year.
Anyway, too much explain the comments.
Please give us a call if you would like to discuss more.
Kai Chung
408-502-7080
An annuity is the _only_ investment you can make that will guarantee you a lifetime income. Is it for everyone? No. Can annuities be tricky? Yes, but so are most other investments.
The fact that so few people know what an annuity is, or understand them, says something about our educational system.
Love it. Also, the Broker Dealers spend millions each year to advertise against it as well!
I have two fixed index annuities. Both 5 year contracts. I like mine. No yearly fees. No loss from a downed market, etc. I got sick and tired of trying to guess the markets and make money. I am not trying to use them as an income rider at this either, so no expense there. I remember the losses from 2008. It took 2 years to just get back to where I was and I was still contributing to it through my work. I wish my money would of been in a couple of annuities back then.
Any gains?
Invest a small portion into annuity is fine but never all in your money. You will get better returns buying index funds along the way to your retirement
@@theonesandwich8706 index funds absolutely have outperformed the annuities in the gains
I’m glad you commented on good Annuities! Thanks for your input!
You’re absolutely right! However, keep in mind comparing the market and comparing fixed index annuities it’s like comparing a knife and a spoon. They are designed for different purposes. We just made a new video on the five different types and the purpose of each. We hope you enjoy it.
ruclips.net/video/8-dL0gR7gaw/видео.htmlsi=YHpUE4sx0Vs1GWrt
The truth will set you free. Thanks for your wonderful channel.
Thanks 🙏 for your kind words.
Principle can be reduced if index is negative or flat. Income rider reduces premium
The principle cannot be reduced because of the index. You might be thinking of a variable annuity.
And not everybody needs to choose a rider. There are many times when we do not recommend a rider. We are on quite a few as well.
Thanks for watching !
Kai & Ann Chung
Can you give an example of a zero fee fixed annuity that tracks S&P500.
Yes, however much depends on your state. Historically tracking the S&P has a lower participation or lower Caps.
Feel free to give me a call if you’d like to discuss this further. It’s too much to discuss further. Thanks for watching!
Kai Chung
408-502-7080
You didn't explain how the insurance company can give index based credits. Yes, the insurance company has their own investments, and those investments can give a fixed interest credit to the policy or annuity. The "Indexing" is buying and selling options on the index, often called a "bull call" spread, so you can get indexed linked investment performance without taking market risks. The buget for those options come from the interest earned from the general accoutn fund, or the "fixed interest" credit you would have gotten anyway. You forgo the fixed interest, so the insurance company can buy those options. Index goes up = options are in the money = credit given. Index goes down = options are out of the money = no credit given.
Thanks for your comment! we do not want to confuse the public with too detailed of an explanation. Right now the fixed rate has gone up from 0% around 2% as the new floor.
The buying and selling options of the index is strictly for the insurance company and not the consumer.
What you described is accurate but very difficult for most to understand.
Keep in mind, they may or may not even buy the Index that index annuity is tracking.
The interest credit strictly based on the tracking the index. Not always buying and selling those options. (We’ve spoken to the engineers and actuary Departments).
To be clear, we are not arguing with you, as your comment is pretty good !
Please! You do not provide detailed explanation because with the annuity CAP the annuity return is significantly reduced than what an index like S&P 500 earns.
Retirees / young investors simply need to buy Vanguard ETF VOO and over the long run earn 2 times the return of the fixed indexed annuity. @@kciis
Options. Not difficult to understand at all.
Ramsey is generally correct. Avoid all annuities except Fixed Rate or Immediate. However, these days you can do as good with ZERO costs to you by using BROKERED CDs, Treasuries or Money Market Accounts and earn OVER 5%. Avoid fees at all cost when your retired and wanting to preserve capital. It's that simple.
Thanks for your comment. We would like to just add to your list Fixed Indexed to your list as most of these have 0% fees. Also, one must be careful with Immediate as you do give up control of your principal.
@@kciis Never consider a FIXED INDEX ANNUITY unless you know the potential limitations and volatility. There are also surrender charges if you change your mind and want out. Here's what smart people do today. Use a Money Market fund paying over 5%. You have access any day of the week. Only buy short term brokered cds and short term treasuries. It's really quite simple.
Thanks David. I believe you are referring to Variable annuities since there are no volatility issues with FIAs.
I agree with know the pitfalls, and we made a video you can watch here:
ruclips.net/video/eXgcR6YP7ik/видео.html
Oh and by the way, the fixed rate annuities and the fixed index annuities surrender charges are about the same. There are companies that I would steer away from through.
@@kciis FIA are NOT FDIC insured. They never capture the full upside to the stock market. Cap, spreads and fixed interest rates are subject to change. There are surrender charges and they lack flexibility. However, there are advantages. Retired people should just use MYGA annuities. I would simply avoid all annuities.
Thanks for sharing Dave Ramsey’s video. He said No to annuity, then it is No to me.
Best wishes to you! I guess you did not hear Dave Ramsey’s contradiction…
Will you say no to Social Security? Because Social Security is an annuity. Just goggle it for confirmation.
Actually my experience is that Dave Ramsey is correct. My parents bought an annuity and 12 months later they needed the money because my father had a stroke. Of course there was a 5 year penalty clause. This would not have been the case had the investment been in the S and P 500 through Fidelity or Charles Schwab or even bonds. My advice is run, run from annuities. Any insurance product is full of many fees as Dave has stated many times.
Sorry to hear about your father. Yes many annuities have fees…BUT there are many without. I hope you get to watch our other videos that discuss the 5 different types of annuities.
Its unfortunate that some representatives don't do the right thing, this is true. But its also our job as fiduciaries to place clients in the right products based off of their needs. I'm sorry to hear about your father, and it appears he was placed in a product that wasn't best for his specific needs. That doesn't mean Dave was correct in this video, as he wasn't. There are also several annuity companies that allow 10% free withdrawals during the surrender periods and clients need to also pass suitability to qualify for this product. Which typically anyone that has less than $30k saved in IMMEDIATE liquid funds would NOT be suitable for a product like this due to the surrender charge in the event of something like an emergency and needs to access the money.
@@desireeolmos2131 thanks for adding your points and for agreeing Dave was not current.
Every annuity I have ever looked at clearly stated to NOT put money, you might need, in it. And clearly shows the fees involved with early withdrawals
Sorry about your folks, but what happened to them was not the insurance companies fault !
You would think that a good sales person dealing with an elderly couple would what is right for them. Maybe the blame is on my father. But I have a feeling it was the salesman in this case who wanted their commission and cared very little about my parents and their needs. I have had this experience with financial product sales people and basically why I don't deal with them at all even though at one time I was licensed to sell annuities.
Paying a fee for zero risk. Might as well just buy a CD. Never heard of a fixed index annuity so loved this video. Ramsey has Zander Insurance so I am not surprised.
Thanks for watching! BTW, There’s actually “no” fee for zero risk.
@@kciis Thats right. I caught that later. Good info.
It's barely better than a certificate of deposit at a bank. Get an index fund. Look at what it has gained historically over 10, 20, 30 years. There's no comparison. Fact.
True! There is no comparison. It’s like comparing a fork and a knife!
Buy Annuties for what they are designed for and investments for what they are designed for.
Also, they are 5 types of Annuties and each of those types are also designed with a different purpose. Many do not realize the 5 types out there.
@kciis Yep. You want to make money with an annuity, get a license to sell them.
As a fairly new agent, never sold anything yet, I find it interesting how people like Ramsey have issues with the commissions earned on annuities.
He has no issues with commissions earned by real estate agents, car salesmen, financial advisors or anything else like that.
I'm glad I'm learning this early to prepare myself to rebuke this and your explanation vs financial advisors is spot on.
And indeed Health = Wealth.
Thanks for your comment and your support! Sorry we’re just catching up on our comments!
Kai & Ann Chung
408-502-7080
I have a Variable Indexed Annuity with Prudential. I had the insurance guy over explaining my parents life insurance plans when they passed and he sold me the VIA because (at the time) I was scared to lose the money. It had a initial purchase price of 200k. it is 10% buffer 20% cap 100 % tier 1 par 130% tier 2. Im assuming what that means is that I have a 10 % protection. if the index loses 10% im safe and get 0.. if the index goes down 40% I lose 30%. if the index gained 30% id get 130% of 20% cap, so 26%. If thats then case I am fine with that and my account has grown from 200k to 350k in 3 years. Anyway I do not want to stay in this product cause I am too young.. it has a 6 year term. opened in 2020 and ends in 2026. when the term comes can I pull my full contract value out? Im only 43 and want to put it in actual ETFS with a brokerage and benefit from the FULL return of the market. I rather transfer it to a company like T ROWE Price where my jobs 401k is. So i can have everything in one place. input?
Sorry, we are just catching up on some comments. We are not big fans are variable annuities either.
Please give our office a call. We can discuss this further.
Kai & Ann Chung
408-502-7080
what are some sample real world historical returns on fixex indexec annuities.
It depends on the type of index in annuity and also what it is designed for. Just like asking what is the realistic gas mileage of a car. Different cars will have different gas mileage, depending on the purpose of the car.
Once we know your purpose, we can easily give you a quote for the past years.
Also, will tell you which companies play games with which ones do not. Some even show you their track record.
Feel free to give us a call.
Kai & Ann Chung
408-502-7080
@@kciis Love your stories, but it would take no effort to post the real world historic returns of a few FIA's. You need to find a job where you don't have to rook people.
June 2021 - June 2024 ZERO GAIN
Nationwide JP Morgan Mozaic 2
NYSE ZEBRA - 1.2%
Did we go through the great depression and I missed it?
Unfortunately, the markets were not so good the last few years, but at least you did not lose any money.
In 2021 the participation rates were probably only 90% to 150%.
Did you buy a lifetime income rider with it?
@@kciis JP Morgan as in Chase bank one of the biggest banks in the world. I would have done better putting it into one of their savings accounts.
I think it was at 130%
I shouldn’t have to be concerned with the sequence of returns in an annuity. 3 years and not even a dollar? To me it looks like they averaged out any gain I had over the 3 years. They are using my pension money to get gains for JP Morgan while I get zero. Or shall I say “but you didn’t lose any money” which I totally disagree with. I lost time which is money. Then when I need this annuity they will base it on what I have in the account. So JP Morgan and Nationwide are looking out for each other and not me.
JP Morgan averages out any gain over 3 years… Balance doesn’t change Nationwide doesn’t have to increase the monthly annuity payout.
Totally understand Ken Fisher right now. I learned the hard way….
@@kciis Lifetime Income Rider that’s a good question. Says I didn’t but it also has income charts and graphs in the contract.
I fully expect to only get the minimum contract promised. 1% of the total 87% balance over 12 years. Which they are well on their way…
Can someone get wealthy from an annuity? A friend put $600k into an annuity and was promised $3mil at ttend of 10 years
That’s like asking can I fork cut like a knife.
Saying can a tablet ever be as powerful as a desktop PC computer.
We do not compare annuities to investments. The only one that comes close to investments are variable annuities, and we do not recommend them.
We help people comparing annuities to investments. they have their place. There are also five different annuities that you should be aware of.
ruclips.net/video/8ke5GA7Py20/видео.htmlsi=CcJ0sm64Oiol-DtU
Dave is right. You do not emphasize that with the annuity CAP the annuity return is significantly reduced than what an index like S&P 500 earns.
Retirees / young investors simply need to buy Vanguard ETF VOO and over the long run earn 2 to 3 times the return of the fixed indexed annuity.
No, he is not right, sorry. He doesn't explain plans with NO cap. I'm assuming you didn't watch the entire video. See 09:03 How the Ins. Co. Limits Your Earnings, and how we show people FIAs with NO cap and HIGH Participation rates. We appreciate your comment, but please watch the entire video before you give an accusation.
Kai & Ann Chung
I have one of my annuities based on the S&P 500. It did really well last year. My other deferred index didn't go up, but it didn't lose any money either. And no fees!
yes.. No investment will offer more than VOO/VTI in long run. annuities or IUls are horrible. They are good for selling not for buying.
Nicely done.
Thank you! Cheers!
Dave! You have NO clue what you are talking about with fixed index annuities…..holy cow!🤦♀🙄😳
Thanks for your reply!
I agree you guys!
Thanks! Let me know if there’s other topic you would like us to discuss.
Why do people keep trying to sell me these insurance policies as though they are investments? Could it be because they are trying to scam people into giving them money?
I’m glad you mentioned this point. In all of our videos we do not mention them as investments. In many videos, we have actually mentioned these are NOT investments. Yes other people are trying to scam you. This is why we made these videos. Feel free to give us a call if you would like to learn more. You can also make sure to watch our entire playlist where we breakdown which annuities you should not buy and how they work.
Here is the entire playlist to answer your questions. Feel free to call us if you’d like to get things clarified. Again, there’s no need to attack us for no good reason.
ruclips.net/p/PLhy55v5WCqkAmvcJtMqy2g6VsCSknV7vy&si=f44udYnFjXMk985D
Here is the entire playlist to answer your questions. Feel free to call us if you’d like to get things clarified. Again, there’s no need to attack us for no good reason.
ruclips.net/p/PLhy55v5WCqkAmvcJtMqy2g6VsCSknV7vy&si=f44udYnFjXMk985D
That guy has no clue what he’s talking. WITH NO DUE RESPECT: He’s wrong. Misguiding everyone…. He shouldn’t be talking.
Thanks for you comment! That was our thinking too!
Such comments are from either your employees or sellers of fixed income annuities@@kciis
these two are annuity sales couple who make $ off asian people who buy the f annuities
We’re not sure why there’s any need for prejudice or racism, but we can also understand where you might think that. Just to let you know, we have a very small percentage of clients that are Asian.
Also, we did not get paid by any clients. We get paid the same as your car insurance agent gets paid. Directly from the insurance company.
Ha gang it's very still f...confusing you Two do this every day and know both sides and please tell your viewers you change the annuity rules each yr 😮 I got more from Stan the Annuity man I one video than you garden to day 😮
Hi!
Here’s our playlists for you to check out if you like.
youtube.com/@kciis?si=b4f4luUs5nTzv9Qd
Please explain now! How could there be no downside risk with only upside potential? This makes less than zero sense!!! You two are scammers!!!
You're telling me that I would lose no money in fees during the downside years? Please explain!
I understand if you’re upset because other people are trying to scam you. But we have never met, and there’s no need for you to attack us like this. we have been doing this for going on 19 years and also have many clients that are satisfied with us.
There’s no downside risk with the stock market because you’re NOT invested IN the market. These are NOT investment products.
Your money is in a cash account, waiting to get a credit based on the performance of the index. Rather than explaining all this through the comments. Please watch our entire playlist where we explain how these work.
Here is the entire playlist to answer your questions. Feel free to call us if you’d like to get things clarified. Again, there’s no need to attack us for no good reason.
ruclips.net/p/PLhy55v5WCqkAmvcJtMqy2g6VsCSknV7vy&si=f44udYnFjXMk985D
Here is the entire playlist to answer your questions. Feel free to call us if you’d like to get things clarified. Again, there’s no need to attack us for no good reason.
ruclips.net/p/PLhy55v5WCqkAmvcJtMqy2g6VsCSknV7vy&si=f44udYnFjXMk985D
Person complaining might watch this same video again, and pay attention to the part where you talk about someone saying he'll pay his friend based on how his favourite team is doing. I thought that was a great analogy.
Also, i am wondering if the companies link these to the stock market SO THAT the customer is comparing it to that and wants to avoid risk; are they more popular when there is lots of volatility, by any chance ;)?