John Lenz: Annuity Insider Strategies for Rising Rates & Inflation

“Fun With Annuities” The Annuity Man Podcast

In this episode, The Annuity Man and John Lenz discuss:

• How inflation affected annuities
• Return On Premium MYGA’s
• The cost of not having a pivot feature
• Advantages of a guaranteed base

Key Takeaways:

• The rise in interest rates has been a positive for the annuity space in general. SPIAs have responded nicely where the Single Premium Immediate Annuity is now buying more robust monthly income.
• A better name for ROPs or Return On Premium is Pivot MYGA since it gives you the option to pivot, which means to take your money and go to another company with a higher rate.
• Suppose interest rates go up and you want to go out of your annuity, and you don’t have this return on premium feature. In that case, you’ll pay a penalty to the insurance company because they’ll have to liquidate the investments that they purchased with your money at a loss in addition to the surrender charge.
• You’ll be able to invest your portfolio for long-term growth if you have a guaranteed base.

"A lot of people get a little bit antsy about that, ‘what if I die early?’ why don’t I hear anybody complaining about, ‘what if I pay into social security my whole life then die at 66.’ Was that a bad deal? No, because you don’t need social security anymore. Cause you’re dead!" — John Lenz

 

Connect with John Lenz:

Website: https://www.lenzfinancial.com/

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