What Is an Annuity?

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  • Опубліковано 11 лип 2024
  • Learn more about annuities at getrevise.com
    This video explains what annuities are, how they work, the different types available, and the benefits they offer, including their tax advantages and guaranteed income for life. The video also compares annuities to traditional stock market investments, and discusses the costs associated with annuities and how to manage them. If you're interested in securing a stable income for your retirement, this video is a must-watch.
    Learn more at getrevise.com a platform offering personalized guidance on choosing the right annuity for you.
    Connect with me on...
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    Chapters:
    00:00:00 - The Power of Annuities
    00:01:23 - The Basics of Equity Indexed Annuities
    00:02:34 - The Power of Compounding with Annuities.
    00:05:07 - The Benefits of Equity Index Annuities
    00:06:23 - Understanding Annuity Participation Rates
    00:07:30 - Different Types of Annuity Premiums
    00:08:36 - Options for Cashing Out Annuities
    00:09:44 - The Tax Advantages of Annuities
    00:10:57 - Annuities Master Class

КОМЕНТАРІ • 87

  • @AmateurSuperFan
    @AmateurSuperFan 7 місяців тому +76

    Insurance guy talking about insurance products is always red flag, but i'll listen

    • @GRINDEATSLEEPREPEAT
      @GRINDEATSLEEPREPEAT 5 місяців тому +8

      Red flag? I guess you would prefer your neighbor who dosnt know much tell you how bad it is.

    • @freddyfilms15
      @freddyfilms15 5 місяців тому

      I bet your that person that talks so much but have no facts just talk out your ass and have nothing

    • @trogers8180
      @trogers8180 5 місяців тому +6

      Make up artist talk about make up. Hairstylist talk about hair. Soooo doesn’t it make sense for a life insurance agent to talk about life insurance??

    • @atomicswoosh
      @atomicswoosh 4 місяці тому +6

      You should always have a level of incredulity when it comes to someone selling you a financial product

    • @Jor0716
      @Jor0716 4 місяці тому +1

      Had the same thought when he put that disclaimer out there

  • @cityofhypocrisy6956
    @cityofhypocrisy6956 7 місяців тому +4

    I had not even heard of an annuity before watching your videos, thank you so much for the info! Your videos are very good, look forward to investing in annuities 😂

  • @Nnatti_lawn
    @Nnatti_lawn 7 місяців тому

    Thank you for the info here!!

  • @thesmokinhypnotist8978
    @thesmokinhypnotist8978 7 місяців тому +2

    Simply amazing brother.

  • @bkbinj6320
    @bkbinj6320 7 місяців тому +16

    Thanks for the annuities class Nick. Very informative and helpful.

  • @russellstewart9012
    @russellstewart9012 7 місяців тому +1

    Thank you sir.

  • @9elitemarketingservicesllc575
    @9elitemarketingservicesllc575 7 місяців тому +1

    THANK YOU FOR THIS INSIGHTFUL & CONCISE EXPLANATION!!

  • @matthewsvorinic9149
    @matthewsvorinic9149 4 місяці тому +6

    If you buy an annuity don’t buy from an annuity salesman. Buy from a financial advisor who takes a wholistic approach towards your life and can offer multiple solutions to best fit your needs. Annuities are complicated, fee ridden, generally lack performance, and lock your money up with surrender charges for 7-10 years. Beware of the bonuses they offer and know the difference between the real cash value and the income base

    • @samhutchins7884
      @samhutchins7884 16 днів тому

      As if financial advisors arent paid to manage their clients’ portfolios the same way insurance agents are paid to manage their insurance policies. Financial advisors and insurance brokers are twp sides to the same coin.

    • @matthewsvorinic9149
      @matthewsvorinic9149 16 днів тому

      @@samhutchins7884 what if an annuity is not the right solution for a client? Will an annuity only salesperson have the incentive to tell them? I would rather go to someone with multiple tools in their belt than a one trick pony. Is it perfect? No, but the odds of a suitable investment increase

  • @rossbearson3761
    @rossbearson3761 7 місяців тому +7

    I recently purchased a variable annuity along with a handful of riders to go along with it. Could you do a high level overview over the difference between fixed and variable as well the situations that make the most sense for both? Are there financial scenarios where one would want a “balanced portfolio” of annuity types?

  • @starek1701
    @starek1701 5 місяців тому

    I never heard about this, thanks for bringing this information to everyone.

  • @LuisMendoza-oz7lt
    @LuisMendoza-oz7lt 7 місяців тому +9

    I always noticed the value in annuities from the moment I started working with the product when I worked as an assistant in wealth management. I thought why don’t more people know about this, thank you for shedding light on something like this.

  • @Garret-cain
    @Garret-cain 6 місяців тому +2

    This is actually so valuable info across the board well paced info delivered well and simple and with low enough number that its not intimating very well done

    • @datbio7302
      @datbio7302 6 місяців тому +1

      get roth ira

    • @bidmcms3
      @bidmcms3 4 місяці тому

      Except the whole pitch is bullshit when you remember things like just keeping your money in the S&P in a Roth. Why does he keep assuming their are all these taxes every year?

  • @chadf9030
    @chadf9030 7 місяців тому +1

    As someone that’s been burned by rookie stock market trading, this is definitely something that I’ll be looking into in the near future.

  • @DynastyDadda
    @DynastyDadda 4 місяці тому +1

    this helped prepare me for my interview with an annuities company. Appreciate you Nick! Hire ya boi

  • @pabloseykata6930
    @pabloseykata6930 3 місяці тому +1

    I'm too close to retirement for an Annuity, but I sure wish I had known about them in my 20's or 30's. It's little wonder all those Financial advisors don't talk about Annuities. Rule #1 for investing: the biggest Con Artists out there are the guys selling the chumps like I was investments. Nicholas Crown is the EXACT opposite of these Con Artists. Crown here is a straight u, straight shooting advisor. He gives good advice and he's honest. You don't find that everywhere in the Investment World.

  • @KONClipz
    @KONClipz 7 місяців тому

    Thx helps with DECA

  • @austinkopp9811
    @austinkopp9811 5 місяців тому +2

    5:28 but the market came back though... you only took a loss if you sold your position at the bottom

  • @jadanotice5727
    @jadanotice5727 7 місяців тому

    Wow you are really rich for real!

  • @zinic53000
    @zinic53000 7 місяців тому +4

    What happens to the annuity if the insurance company goes belly up?

    • @stoneypatchkid7734
      @stoneypatchkid7734 7 місяців тому +1

      Your policy is insured by whatever state’s insurance commissioner, similar to FDIC

  • @user-zd8yc3fi8c
    @user-zd8yc3fi8c 5 місяців тому

    Are you able to take loans from annuities?

  • @1dgizzo
    @1dgizzo 5 місяців тому +1

    I may be misunderstanding. But if the tax is deferred and the interest compounds, won’t I ultimately end up earning more but also pay more in taxes?

    • @AdrianButler86
      @AdrianButler86 26 днів тому +1

      Uhh yea, more income more income tax. Same thing happens with any other tax deffered investment account. Tip!, move to a no income tax state when u ready to take distribution and u won't have to pay tax

  • @florabamabear2058
    @florabamabear2058 2 місяці тому

    Is there a way to use an annuity or other principal guaranteed vehicle to mirror the investments of Congress at lag, but with power to change when they change or deviate?

  • @russellstewart9012
    @russellstewart9012 7 місяців тому +2

    Mr. Crowne I hope one day to converse with you in person. If you are ever in the Memphis area and have time to hang with a newby. You should let me buy you a drink. Just friendly conversation nothing else.

  • @NiklasAndersson7
    @NiklasAndersson7 2 місяці тому

    I can't see how 'annuities' are different from buying an Index fund, and protect it with buying sell-options (limit downside)

  • @robertoalvarez88
    @robertoalvarez88 7 місяців тому +1

    I think I just saw you (or your doppelganger) at Tomasitas in Santa Fe. 😂😂😂

    • @NicholasCrownYouTube
      @NicholasCrownYouTube  7 місяців тому +2

      No, that was me.

    • @robertoalvarez88
      @robertoalvarez88 7 місяців тому +1

      @@NicholasCrownUA-cam Damn it! It was one of those "is that him....?" situation.
      Enjoy your time in NM! I'll be sure to say hi next time I randomly bump into you.

  • @Annaann3713
    @Annaann3713 7 місяців тому

    I have a question; I have a lawsuit on my job, we are going through negotiations. But my job wants to add my annuity to the settlement, is that even legal to do?

    • @johnmcgraw3568
      @johnmcgraw3568 6 місяців тому +1

      Curious, what did you find out? Seems like your attorney would know.

  • @jacobframe8769
    @jacobframe8769 7 місяців тому +2

    This is interesting. It leaves me wondering how people who offer these annuities make money.

    • @zijabox
      @zijabox 7 місяців тому +3

      He said it. Basically you're not taxed that much but you're always paying fees. Is it worth it ? You're the one to decide

    • @shaunsheppard
      @shaunsheppard 3 місяці тому +1

      They keep your capital when you die…

  • @signedelacroix7213
    @signedelacroix7213 2 місяці тому

    I need a suite like that, but I won't do the moustache.

  • @robertcarlson6816
    @robertcarlson6816 4 місяці тому

    What about 5 years after 2008? still winning versus the s&P

  • @sandevmackoon765
    @sandevmackoon765 7 місяців тому

    Hey Nick....hard chance you read this but I'll still give it a shot.....in nearly all of the sketches the "rich" guy leans on his Educational Background, the Harvard Jokes the MBA jokes....and I'm not American but I understand them 100%...the "Really Rich Character" down plays Education quite alot which I think isn't great. Cause even the really rich still hold education in some regard they just aren't dicks about it...would love your take on that.
    Love the Porche and looking forward to more content

    • @NicholasCrownYouTube
      @NicholasCrownYouTube  7 місяців тому +2

      Is my character downplaying education or status? Two very different things.

    • @sandevmackoon765
      @sandevmackoon765 7 місяців тому

      @NicholasCrownUA-cam status for sure.

  • @slickrick412
    @slickrick412 7 місяців тому +3

    Who takes the losses on the index annuity in your example.?.

    • @NicholasCrownYouTube
      @NicholasCrownYouTube  7 місяців тому +2

      The insurance company is responsible for managing their collective downside risk across all customers

  • @WendingWayfarer
    @WendingWayfarer 7 місяців тому

    What about counterparty risk?

  • @lieutenantpi
    @lieutenantpi 7 місяців тому

    question: how are people able to provide this?

    • @slickrick412
      @slickrick412 7 місяців тому

      Its an insurance product

    • @lieutenantpi
      @lieutenantpi 7 місяців тому +1

      @@slickrick412 but how it is profitable?

    • @LumiLunar
      @LumiLunar 7 місяців тому

      @@lieutenantpieasy. They charge you a fee for setting this up and managing your portfolio for you. A quick Google search shows around a 0.3% annual expense ratio. On top of any other fees. Meaning they sell off 0.3% of your portfolio every year and keep it as annual payment.

  • @expelleddux
    @expelleddux 4 місяці тому

    If you’re saving for retirement why the hell would you take the lower return?

  • @licenze2killu927
    @licenze2killu927 5 місяців тому

    Insurance agents always get a bad rep all thanks to those agents who are the “salesmen” that you expect who just want your money. But theres a good few agents who are truly in the business to help. I believe that insurance is great. You want to have good coverage but for a good price. The company I work for really pounds only doing what is best for the client. Every licensing test I took either had a question on the test or in the material to study that the clients best interest should be the number one thing in mind. Some people just get greedy and ruin the name of the rest. I get awful looks from people when I tell them what I do and I literally quote people with the same coverages that they have and only ask them to switch when they save money (home and auto) and people are hesitant even then with it.

  • @jessehurxD
    @jessehurxD 7 місяців тому

    Isn't this just index universal life insurance

    • @NicholasCrownYouTube
      @NicholasCrownYouTube  7 місяців тому +3

      No, an IUL is life insurance, meaning it pays someone else when you die (a beneficiary). An annuity pays out an income when you retire.

  • @jamiejennings7361
    @jamiejennings7361 6 місяців тому

    He’s a bit off on capital gains but I’ll hit the play button.

  • @jamalfontenot8834
    @jamalfontenot8834 3 місяці тому

    Love how he threw in that it’s after tax money being invested in a tax DEFERRED product.. meaning you’ll be taxed twice … two words.. Roth IRA

  • @noahwilliams8918
    @noahwilliams8918 7 місяців тому +1

    Sure sounds like a traditional 401k with a lot more fees and your kids don’t get to keep the money you put into it when you pass. Can’t see the use case.

    • @NicholasCrownYouTube
      @NicholasCrownYouTube  7 місяців тому +2

      An annuity is entirely different from a 401k, although they’re both primarily for retirement/longterm accumulation. A 401k has market exposure/risk, is tied to an employer, and limited to $20k annual contributions. They’re taxed differently. Neither are primarily used for death benefit - that’s what life insurance is for. Although you could simply add a death benefit to an annuity (called a refund or survivorship in annuity terms).

    • @danielolsen9375
      @danielolsen9375 5 місяців тому

      I had the same thought. With a 401k or IRA you can invest in a managed mutual fund, let it grow tax free, and manage where your money is invested based off of what you desire. A good mutual fund with Vanguard, some CDs, and a few Bonds has brought good returns for me without the balancing hassle. All I had to do was set up the automatic reinvestment on my account. Hassle gone.
      There is always a rub and I think I found it. While annuities guarantee a specific payout, your growth is set, right? So, if the growth was more, then then insurance company pockets the rest? They took the most risk, so they get the most reward. Also, if they charge fees on that, the insurance company makes more as well. They wouldn't offer this if they weren't making money on top of it, right?
      So, I guess the question is, would my annuities outgrow my Vanguard fund, but charge less fees, and ultimately give me more money? It's hard for me to see that it would and wouldn't my family lose out on my networth once I die?
      Also, since I remember 2008 and the craziness of that, what happens to our money if the insurance company goes bankrupt?

  • @cameronlm
    @cameronlm 7 місяців тому +1

    1 view, uploaded 1 minute ago and now 1 comment

  • @Bacciagalupe
    @Bacciagalupe 6 місяців тому

    : )

  • @datbio7302
    @datbio7302 6 місяців тому

    if it is too good to be true, it is not

  • @zmack1830
    @zmack1830 3 місяці тому +1

    😂

  • @CadillacSlick
    @CadillacSlick 4 місяці тому

    SPIA?????

  • @iitalianii
    @iitalianii 2 місяці тому +2

    First we ship them the content - the rich vs really rich videos - then we unload the dogshit

  • @terminator1234546
    @terminator1234546 5 місяців тому

    misleading description

  • @CaKiteboarding
    @CaKiteboarding 3 місяці тому +2

    Hmm, smooth talker, I 1000% disagree with you, you never even mention what kind of yearly return can you expect from an annuity, it's like watching grass grow. you tell me you annuity outperformed the market in the last 15 years, you only quote 2008 and since then the market grew 5 to 6 folds. No way on earth would an annuity be better than the stock market. You don't have to rebalance anything, you can just buy the indices and go to sleep and they would have beaten any annuity. Every retirement plan is tax deferred and the growth is compounded. Come on. YAAAAAAWN. I hardly ever comment on a youtube video but this one really bothered me. you can say it's a good plan for some people but to really put it up against the stock market. Very false advertising. Anyways, all the best to everyone, do your homework and check out Mutual Fund returns and ETFs. Index Etfs that have grown ten folds in the last 15 years. QQQ was $29 in 2009 it is $443 now. That is up 15 folds. your annuity did that?

  • @datbio7302
    @datbio7302 6 місяців тому

    the index is bull S, you will only get your minium and come retirement time, you will never get more. Insurance guy ... never trust

  • @HelloWorld-dl4oy
    @HelloWorld-dl4oy 4 місяці тому

    He's kinda hot and I'm distracted 😀 Can't understand anything.

  • @nuevziel04
    @nuevziel04 4 місяці тому +1

    Looking at this from an investment engine. I believe you would have a better option Investing the money you would put into an Roth IRA or Roth 401k which grows tax free and penalty free when you withdraw earnings at 59 1/2. That's what you need to research, is an annuity better than a Roth IRA maxed out yearly with additional funds in a Roth 401k. . You can still invest in large scale index and mutual funds which scale in the market, you can invest in a whole host of investments through a brokerage firm. The fees would most likely be lower in your brokerage firm than an insurance firm, and most importantly for the Roth IRA i'm in control of the investment through my firm and can take out contributions any time I want, penalty free for a Roth IRA.
    The market is always a wild ride you but if you want big returns you would opt for capital gains in the market. Focusing on large scale funds helps mitigate the risk and you still reinvesting distributions to get more stock if thats the way you want to go.