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Comparing Myga Interest Rates to Spia Rates: Shootin' It Straight With Stan
Manage episode 521280641 series 2798004
In this episode, The Annuity Man discussed:
Distinguishing annuity types
Applying the PILL strategy
Interpreting annuity yields
Securing contractual understanding
Key Takeaways:
Understanding the purpose of different annuities is crucial: MYGAs provide guaranteed interest on principal like a CD, while SPIAs deliver a lifetime income stream tailored to longevity. Each serves a distinct financial goal.
The "PILL" framework—Principal protection, Income for life, Legacy, Long-term care—helps determine whether an annuity aligns with your needs and long-term planning priorities.
Evaluating yields requires nuance: MYGA interest compounds tax-deferred without reducing principal, whereas SPIA "rates" reflect life expectancy and combine principal with interest, making direct comparisons misleading.
Before purchasing, ensure you fully understand an annuity's contractual guarantees, avoid relying on hypothetical rates, and seek reliable sources for accurate information to make informed decisions.
"We're looking at a principal-protected product and an income product. Now right there. You should say, I'm not sure we can compare those two… because [they're] two different categories." — Stan The Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: [email protected]
Book: Owner's Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
382 episodes
Manage episode 521280641 series 2798004
In this episode, The Annuity Man discussed:
Distinguishing annuity types
Applying the PILL strategy
Interpreting annuity yields
Securing contractual understanding
Key Takeaways:
Understanding the purpose of different annuities is crucial: MYGAs provide guaranteed interest on principal like a CD, while SPIAs deliver a lifetime income stream tailored to longevity. Each serves a distinct financial goal.
The "PILL" framework—Principal protection, Income for life, Legacy, Long-term care—helps determine whether an annuity aligns with your needs and long-term planning priorities.
Evaluating yields requires nuance: MYGA interest compounds tax-deferred without reducing principal, whereas SPIA "rates" reflect life expectancy and combine principal with interest, making direct comparisons misleading.
Before purchasing, ensure you fully understand an annuity's contractual guarantees, avoid relying on hypothetical rates, and seek reliable sources for accurate information to make informed decisions.
"We're looking at a principal-protected product and an income product. Now right there. You should say, I'm not sure we can compare those two… because [they're] two different categories." — Stan The Annuity Man
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: [email protected]
Book: Owner's Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!
382 episodes
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