What’s The Highest Paying Annuity?

1Interviewer (00:01):

So what is the highest paying annuity?

Ron Adams (00:08):

When someone asks me that, it’s kind of like, if you call a car dealer, say I want the best car you’ve got. 

They’ll say “I have a great car. It only gets about 15 miles to the gallon, but it goes zero 60 in one second”. And it turns out, the person isn’t interested in that kind of car. 

What happens is, you didn’t tell the dealer what you needed the car for. So the better way is, tell them your situation first, you’re 55 or 65 or 75. If you retired or not retired, if you’re wanting to retire and what you want the car to do for you. 

If you wanted a car just to drive on Saturdays to the store and something like that, you probably don’t need the $75,000 car to do that and it gets 15 miles a gallon. So when someone calls me and says what’s the highest paying annuity, I say, well, let me ask you a question…

Ron Adams (00:57):

The question you asked me is too broad of a question. As an example, Christie and I have an annuity. It happens to be in her name. I always have to say it’s not my annuity, but in 2017. 

When the market was really up, we made 25% on it. Now we still have that 25%, it didn’t go away when the market turned around and went down. 

25% was a pretty good return for that year for safe money. CDs might’ve been paying 3%. Right now they’re paying about 1/2%. A lot of you have a lot of money in CDs out there, there are over a trillion dollars in CDs out there.

What is Safe Money?

Interviewer (01:34):

What do you mean by safe money?

Ron Adams (01:36):

Safe money is a CD. That’s safe money. Okay. Bonds, there are some problems with bonds where you can lose money. I don’t really consider that ultra-safe. 

Now in an annuity, we use an indexed annuity because linked to some of the different things in the market. You go down and buy a mutual fund. You bought a mutual fund in the S&P 500. 

We could do the same kind of thing. We have mutual funds that are turned into indexed annuities. And when the market goes up, you can get really good returns. 

Gains made on a Fixed Indexed Annuity are locked in

But the good thing is that any gains you make on your annuity are locked in. So that 25%, we made, that’s locked in. That’s our money.

Ron Adams (02:27):

It doesn’t matter what the market does after that. But a lot of people have been up a hundred percent in a 401k or some other strictly stock market product and lose half of it. 

Let’s say for example, you’re in the market and you put a hundred thousand dollars in it, and in 10 years, it goes and doubles for you. You make $10,000 on that hundred thousand, every single year. Now 10 years go by and you have $200,000. 

The problem is even one day before that 10th year is up and you lose 50% because of a market crash. You have the same money you started with. 

That hundred thousand dollars. Because it’s come down. It’s gone. Now that doesn’t happen in indexed annuities, that’s why I liked them so much. And anytime somebody says something like, “Oh, annuities are just no good, don’t do that”. You really need a better explanation, than “that’s no good for you”.

Why people say annuities are not a good investment

Interview (03:26):

Let’s talk about that for a second, because I’ve heard a lot, annuities aren’t good. People have heard stories about annuities not being good, where do those come from?

Ron Adams (03:39):

They mainly come from our competition because if somebody comes to you and says, what’s better a 401k or an indexed annuity, and you don’t sell indexed annuities, you probably just sell 401k’s and you like them, you trust it, and you think it’s pretty good. But that’s all they have, so that’s what a lot of them will say.

Not too many years ago. I called one company and just asked them, to see what they would tell me. And they said, well, we can get an indexed annuity for you. We have it. I said, tell me how they work. Well, we got to call Scottsdale. That’s where our main office is, and our main annuity person is in Scottsdale. 

So I said, you really don’t know how they work. Well, I don’t really know, but I don’t think it’s good for you as the market. Well, for a highly qualified person who has gone to a lot of education, to give you that kind of answer is kind of ridiculous.

Ron Adams (04:33):

You know, one friend of mine was with his broker out on the golf course. And he asked him the same thing. Well, what’s wrong with annuities? Tell me about it. 

Well, they’re no good. And he says to the broker, I think you’re going to have to come up with a better answer than that. You have this license and everything to do all the things that you can do. And you don’t seem to understand how the indexed annuities work. 

Fixed index annuities can be linked to the market and have no cap

They’re linked to the market. Let’s say you want the S&P 500. That’s a wonderful thing to link to that. We have others. If you have all kinds, you can link to, you can have several you link to. And we have annuities that have no cap on them. 

A lot of people out there now, hundreds, thousands of people out there have annuities that have a cap of 2% and 3%, and they don’t know it. Someone’s never told them. Or they just haven’t spent that time finding out. 

It doesn’t cost much to find out, come in and see us. There’s no charge or obligation. 

We’ll show you right in your contract. It comes out on your statement that comes out every year, whether you’ve got one, that’s a 2% to 3% cap. Most of them have that.

That’s not even keeping up with inflation now. Now the 4.1%, thanks to our country’s spending trillions of dollars of phony money. There’s nothing to back it up that makes inflation come up really bad.

How to evaluate an existing annuity

Interview (05:59):

So somebody has an annuity and they want to know if they’ve got a cap on it and they’re not sure they can bring it to you and you can give them an evaluation of their existing annuity?

Ron Adams (06:08):

All you have to bring is your statement. And that’s all you gotta do. And if you don’t want to bring your statement, we can call the company with you here in the room. And they’ll tell you what kind of cap you have on your annuity. Whether you have a cap or don’t have a cap.

Most annuities are capped, and that is not good

I would say 99 out of 100 have a small-cap on them. And the insurance companies, a lot of them know, and sure they’ll tell you that. 

But it’s really up to the agent, to explain it to you, and let you know that’s what you have. 

We talk to everyone that comes in here. We look at their older annuities and tell them the repercussions of what’s going to happen with this annuity. If you have 3% a year cap. It doesn’t matter if the market does 20% for you. You’d only get 3%.

Ron Adams (06:53):

See that should worry you. Because it worries me. Anytime. I see that with someone, I do everything I can to get them to change that because that’s all they can make no matter what. What good is that? 

Of course, it’s better CDs which are about half a percent now. So you’ve got to look at all these things. This is your retirement money. This is your money for the rest of your life. 

Let’s say you’re 60 years old and decide you want to retire now. And maybe you got enough money to retire and you’ve got it all in the market. 

We’ve been a big bull market, we have. And a lot of times those go away. And sometimes like in 2000 when the market went down, it was 13 years before people actually got even again. 13 years. It would go up and down, up and down.

Ron Adams (07:42):

Extremely volatile. We’re in a volatile market now and things go up and they go down and sometimes they go down. They go down for a while last February or March. The pandemic started when the S&P 500 went down 38%, 38% just overnight. It was down 38%. 

It did come back up. But the thing is why be in a position to lose a good part of your money when you don’t have to?

Averaging just 5% a year return will out produce most people

Most people that average, even 5% a year, outproduce most people. Because they’re getting that money in regularly. 

Now we have annuities with very strong companies that have been around since 1934. We will show you 10-year and 20-year historical returns, not hypothetical returns, but real returns.

Historic returns have shown us that one of the products they have has averaged between 7% and 9% over that time period.

Ron Adams (08:54):

Look at your statements. Most people don’t look at their statements, and if they call your broker. They say, you are doing great, you’re in wonderful shape. 

That doesn’t really tell you much. You need to know the ramifications of, of all your money being in something that’s 100% at risk. 

Take some of that money off the table and put it in something that will protect you. Because the money that’s gone will not buy even one hamburger at the Sonic, not even one. So you’ve got to protect that hamburger, money, whatever you do. 

So come in and see us. Look us up on our website 1FamilyFinancial.com. Call us at 423-710-2009. 

We’ll give you some free information. We’re happy to do it. If you look up something on the internet and someone says this and this and this and that.

Why a lot of information found on the internet is not correct

Ron Adams (09:50):

They don’t have to prove that, they don’t have to do anything. There’s no real liability for them. If they say something and it doesn’t happen.

We give you results that have been proven and show what they’ve actually done and what these products will do by the state insurance commission. Now they can shut insurance companies down. They can shut me down, if we don’t tell the truth, we’re under serious obligation because it’s a trust obligation, with your best interests in mind. 

Here you get the true story. So you don’t have to worry. Now there’s no guarantee unless you get a product that has a stated guarantee, but those don’t pay an awful lot 3%-5%.

The bottom line is, we can show you something that will give you not only safety, because all the money you put in an indexed annuity with an insurance company, is put in a trust account, basically that you can’t lose that money.

The insurance company has to put a dollar in for every dollar you put in. So the money will be there when you’re ready for it.

Protect, Grow, and manage the savings you’ve accumulated

So give us a call. We can help you more with protecting, growing, and managing any savings you’ve accumulated. We can also help you create a wealth plan, and there’s no charge or obligation.

It’s amazing how reducing things to writing and seeing it written down can be an eye-opener. And that’s what we provide for you. We provide it free of charge. So give us a call at 423-710-2009. We’ll be glad to help you.