Too good to be true,1035 exchange?
Hello Terry,
Just want to thank you for all your advice on WGN Radio and books for financial planning you wrote. I’m looking to do a 1035 exchange on three FIXED annuities. I took your advise and checked out “Stan the annuity man” web site.
I have 3 fixed (“jumbo”) annuities, 1 paying 3.5%, and 2 paying 3.25%. I’m over 59.5 years old and all 3 have reached past there maturity date.
Fidelity offers “jumbo” 3 year annuities @ 4.10%. Stan the annuity man has a 3 year annuity
@ 5.65%. I have three questions:
How can Stan the annuity man offer such a high rate of return?
Can I assume his higher rates of return are with Companies that have lower ratings with Moody’s, Standard & Poor’s, Weiss, NAIC e.c.t.?
Can I assume that there will be some type of a commission / compensation / fee?
I Have an appointment to speak with him, just wanted to to get your opinion.
Terry Says
Do speak with Stan and he can explain. There is no real commission in these annuities, and Stan has always said that in shorter-term annuities you can get higher rates, depending on the company, because you are not “marrying” the company, just “dating” for a short time!
He has access to all companies, knows which companies are seeking money to fill certain tranches of their balance sheet, and thus (maybe temporarily)offering higher rates.
I trust him completely.
Please write back after you speak. I’m betting he will use that “marrying” example in his explanation!!
