Apr 19, 2023
In this episode, The Annuity Man discussed:
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Will there be a “run” on an annuity company?
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How annuity companies manage bonds
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There’s no run on lifetime income
Key Takeaways:
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Annuity companies are not smarter or better than banks; they are just more regulated. They also put things in place so there can’t be a run on the annuity company.
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Annuity companies and banks are buying the same investment-grade bonds. However, unlike banks, annuity companies don’t have to sell them, so they hold on to them.
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Contractual lifetime income is irrevocable, the annuity company is on the hook to pay as long as you are breathing, and when you die, 100% of any unused money goes to your beneficiaries. The income stream amount is a combination of a return of principal plus interest.
"The bottom line: the annuity industry has put in place features to not only protect you, the consumer, which is their ultimate goal period but to protect the industry as well." — Stan The Annuity Man.
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
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