Episode Transcript
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Speaker 1 (00:00):
Fun, informative and interactive as well. Great opportunity if you've
got a question, love to have you join us on
the program this morning, Get some get some answers from
our retirement planning professionals from Class Financial, CJ. Closs and
Eric Schwartz. The telephon number to get on the air
six oh eight three two one thirteen ten. That's six
o eight three two one thirteen ten. Our retirement planning
(00:21):
professionals are here for you to answer your retirement related questions. Again.
Teleph number to get on the air six so eight
three two one thirteen ten. Learn more about Class Financial
on their website Coss Financial dot com. That's Coss k
Laasfinancial dot com. Not only can you learn more about
Class Financial on the website, you can also schedule a
complimentary chat, or of course, you can always call the
(00:43):
office right here in Madison at six oh eight four
four two five six three seven. Don't forget that initial
get to know you appointment at Class Financial. It will
be complementary to you again their number six oh eight
four four two five six three seven and the number
to get on the air this morning three two one
thirteen tens three two one thirteen ten and joining us
this morning our CJ Class and Eric Schwartz of Class
(01:04):
Financial CJ. How you doing this week?
Speaker 2 (01:07):
I'm doing great?
Speaker 1 (01:08):
How are you?
Speaker 2 (01:08):
Sean?
Speaker 1 (01:09):
I'm doing really good? And uh I mentioned the phone
numbers to get on the air. I know, and for
folks that don't know this, I know. One of the
things you absolutely love about doing this show is the
opportunity to answer folks questions live on the air. It's
one of your It's funny, it's one of your favorite
People don't know this, but one of your favorite things
to do on the program, isn't.
Speaker 2 (01:27):
It It is?
Speaker 3 (01:28):
Yeah, we love when people call in, and I kind
of every once in a while will say, try to
stump me.
Speaker 1 (01:33):
Yeah, but we enjoy that.
Speaker 2 (01:35):
We enjoy the call ins and certainly call it you have.
Speaker 1 (01:38):
Questions, Love to love to have you join us. Six
eight three two one thirteen ten. That's six eight three
two one thirteen ten. Eric. Do I hear you dialing
in in the background trying trying to stump CJ. How
you doing? Eric?
Speaker 4 (01:51):
Not too bad? Sean?
Speaker 2 (01:52):
How you doing doing really well?
Speaker 1 (01:54):
It's great to talk with both of you, and we've
got the conversation that had involves a word that I
think a lot of folks here and sometimes I would
say sometimes I'll speak for myself. I always wonder about
what annuities are exactly, and we're gonna kind of break
down what they are and what you need to understand
when it comes to annuities. We'll do that with ce
Jan Eric this morning on Money and Motion. Mention the
(02:16):
phone number to get on air six oh eight three
two one thirteen ten. The telephon number for COSS Financials
office to schedule that appointment six oh eight four four
two five six three seven. Don't forget that initial appointment
not going to cost you a thing. It'll be complimentary
to you. Their number six oh eight four four two
five six three seven. The website colssfinancial dot com. Before
we start talking annuities, one of the cool features of
(02:36):
the program is the Class Quiz Question the week your
chance to win a fantastic prize. This week, no exception,
our friends from Class Financial provided a twenty five dollars
gift card to Texas Roadhouse. We'll tell you a little
bit later on in the program in detail how you
can win that little tip. Though just about every show,
the question answer come up during the program, so you
want to pay close attention to the show. And before
we get rolling on this week's conversation, let's actually look
(02:59):
back at les last week's program and get the question
and answer there to the classquiz question the week.
Speaker 4 (03:03):
Eric, absolutely congratulations to our winner from last week, who
was Neriene from Sun Prairie. The question was question was
true or false? Medicare is structured in two parts, Part
A and part B, and the answer to that was true.
Speaker 1 (03:21):
Nice work, Lourene, very very cool and don't forget if
you missed any part of that program. There was a
ton of information. As always, you can listen back at
class financial dot com. As mentioned this week, we're going
to be talking about annuities, kind of one of those
buzzwords that you hear all the time when it comes
to retirement planning and it seems like everyone and I
see it on TV and social care, social media, those
(03:41):
influencers out there, they all have different opinions on it.
So today I think we're gonna break it all down
and Cej I guess the first question is what exactly
is an annuity and how do you know if they
make sense for you?
Speaker 2 (03:58):
Yeah, great question. On and you're right.
Speaker 3 (04:01):
Annuities are definitely having a moment in the retirement world.
Speaker 2 (04:05):
We'll call it.
Speaker 3 (04:06):
They've actually been around for centuries, but they're getting a
lot of attention right now because so many people are
trying to figure out how to create steady income in retirement.
Speaker 2 (04:16):
But here's the deal.
Speaker 3 (04:17):
While annuities can be helpful for the right person, they
are not a one size fits all solution. These are
actually complex contracts with a lot of moving parts, so
you really need to know what you're getting into before
signing on the dotted line.
Speaker 2 (04:33):
So let's start with the basics.
Speaker 3 (04:34):
An annuity is essentially a contract between you and an
insurance company. You pay them either a lump sum or
a series of payments, and in return, they agree to
send you regular income, usually during retirement. That income can
start right away those are known as often as SPIAZ
single Premium immediate annuities, or you can delay it until
(04:57):
a later retirement date. So think I give money now
ten years, I'll start my income stream at that time.
And clearly people are buying these contracts like big time.
In twenty twenty four, a loan Americans put over four
hundred and thirty two billion into annuities of all shapes
and sizes. That includes fixed annuities, indexed annuities, variable annuities,
(05:17):
immediate annuities. You name it, four hundred and thirty two
billion with a B. So certainly it's something that interests people,
and I guess kind of more broadly that people find attractive. Now,
at our firm, we do have some of our advisors
who are insurance license and we do certainly consult on annuities,
but we always stress well, but we do not sell
(05:41):
generally new annuities through a registered representative, and we are
very cautious about how we suggest people engage them. Now
that being said, there are circumstances that can absolutely have
an annuity fit your need. They can provide what it's
called longevity risk, a solution, So like if you're worried
(06:04):
about living too long and running out of income, annuities
can be a great solution to that. They can be
a way to kind of de risk markets over time.
So there can be great fits for annuities, but we
would say we think on average they can be over
sold at time, or maybe if not over sold, under
or misunderstood.
Speaker 2 (06:23):
But before you even consider an annuity here.
Speaker 3 (06:25):
Are a few key things to understand. Number one, they're
built for retirement. If you take money out before age
fifty nine and a half, you'll face a ten percent
IRS penalty plus potential surrender charges. So if you're under fifty,
an annuity might not be the best fit for you
unless you're planning on leaving it alone until after fifty
(06:47):
nine and a half. Now some of you are saying, wait, wait,
but I have IRA money that can't be touched to
fifty nine and a half anyways.
Speaker 2 (06:53):
That's true.
Speaker 3 (06:55):
So if you have IRA money and you can't touch
to fifty nine and a half anyways, then not as
big of a deal. Referencing non retirement after tax dollars.
If you take those non retirement after tax dollars and
put them in into an annuity, generally speaking, they're locked
up until fifty nine and a half.
Speaker 2 (07:09):
So that's what you need to be cautious about.
Speaker 1 (07:11):
Fascinating stuff this morning, and as we talked this morning
with CJ. Closs and Eric Swortz, they are our retirement
planning professionals from Coss Financial. Don't forget if you've got
a question about annuity or anything related to retirement, they'd
love to answer your question this morning, get you on
the air. Six oh eight three two one thirteen ten.
That's six oh eight three two one thirteen ten. The
website cossfinancial dot com. That's Cossfinancial dot com. Teleph number
(07:33):
six oh eight four four two five six three seven.
No charge for that initial get to know you appointment
to at Coss Financial. That first appointment will be complimentary
to you again their number six oh eight four four
two five six three seven. So CJ laid out kind
of what the annuities are, and then I guess the
next question, Eric is what type of annuities are out there.
Speaker 4 (07:53):
That's a great question, Sean. There's basically two main categories.
I'd say one would be a deferred annuity. The other
would be an immediate annuity. So let's start with deferd annuities.
These are the more common ones that we see, and
they generally start in what we would call the accumulation phase,
so basically when you're putting money away for retirement or
(08:15):
just for use later in, letting it grow until you're
ready to start taking income later on. And if we
were to drill down a little bit more on deferred annuities,
it generally breaks down into two types, which would be
fixed annuities and variable annuities. Now, fixed annuities, just like
their name kind of suggests, they offer a guaranteed interest
(08:38):
rate for u set number of years, so they're very predictable,
pretty similar to the predictability of a CD. Now, variable annuities,
on the other hand, they let you choose from different
investment options, kind of like a four oh one K.
Your balance goes up and down based on market performance. Now,
these are not quite as straightforward as as fixed annuities.
(09:02):
They can be really complicated and come with a lot
of fees and optional add ons, So we really want
people to tread carefully when it when it comes to
those types of those types of products. Now, on the
other hand, we have immediate annuities, so those first those
first ones are really are deferred. Immediate annuities are some
sometimes called spias, so single premium immediate annuity. These these
(09:27):
skip the accumulation part altogether. Okay, so you're basically just
handing over a lump sum of money to the insurance
company and they're going to start sending you payments right away,
usually within thirty days, maybe up to a year.
Speaker 1 (09:41):
A year later.
Speaker 4 (09:42):
These can be helpful if you're retired and you don't
have any other steady income. They can they can kind
of behave kind of like a pension.
Speaker 1 (09:51):
Fast That's okay, I'm trying to hear you guys do
a great job explaining this stuff. I'm still trying to
fully wrap my head around this stuff, and we're going
to actually get get into some of those complexities and things.
Of course, when it comes to fees and other things
in the fine print of annuities. We will do that
in just a moment. If you get a chance, I
hope you do. As you're heading on into work this morning,
(10:12):
head on over to class financial dot com. That's coss
k l aas financial dot com mentioned earlier that you
can schedule a free complementary conversation right on the website. Also,
while you're there, you can get to know the team.
You can also get to know the separate divisions at
COSS Financial. Also an opportunity to sign up for the
weekly Market Pulse newsletter. It's a great weekly email arrives
in your inbox, gives a little snapshot of what's been
going on in the market. It also provides a link
(10:34):
to the most recent podcast again available to you at
cossfinancial dot com. Speaking of the podcast, you can listen there.
For example, if you miss part today's program or you
want to listen back to a previous show, you can
always head on over to class Financial dot com. There
telephone number six oh eight four four two five six
three seven. No charge for that initial get to know
your appointment at Colss Financial. It will be complimentary to
you again their number six oh eight four four two
(10:57):
five six three seven. We're going to continue our conversation
with CJ and Eric will talk a little bit more
about annuities and some of the complexities and some of
the things you just want to be aware of of
involving annuities. We'll get those details from Eric and CJ.
We will do that next as Money in Motion with
Coss Financial continues right here on thirteen ten. Wu Iba
and our phone lines are open for you if you
have a question for our retirement planning professionals. So I
(11:19):
got to do is dial in get you right on
the air six oh eight three two one thirteen ten.
That's six oh eight three two one thirteen ten, gets
you on the air with CJ Closs and Eric Schwartz,
speaking of telephone numbers, tell phing them for Coss Financials
office right here in Madison at six oh eight four
four two five six three seven. No charge for that
initial get to know your appointment at Loss Financial. It
will be complimentary to you again their number six oh
(11:41):
eight four four two five six three seven. Talking about
annuities this week on the program, and I was kind
of left speechless at the end of last that last
segment just by kind of mentally going through and trying
to just put this together. And I'm like, Eric did
a really good job laying it out, but I still
don't know that I fully understand all the complexities. And Eric,
(12:02):
let's talk a little bit about some of how complicated
these things can be. And also fees. What are we
talking about when it comes to fees with annuities.
Speaker 4 (12:12):
Yeah, there's a reason, Sean that insurance companies that sell
these annuities provide really really nice looking, fancy promotional materials
that try to simplify things and make them easier to understand.
But fees are probably the biggest knock on annuities from
consumers and frankly advisors too. And so I'm going to
(12:36):
go through there's usually layers layers of fees when it
comes to when it comes to annuities, the first one
I want to talk about is the commission. So most
annuities come with a sales commission, which can be anywhere
from one percent to ten percent depending on the product.
So that is a one percent to ten percent of
the amount that you put into the annuity. You won't
(12:58):
see it taken out directly, but it's baked into the
cost of the annuity. Now, usually a commission is compensating
the representative that's selling the product. The next fee that
we see a lot is a surrender charge. So if
you change your mind and you want your money back early,
you could face really steep penalties, often starting around seven
(13:23):
percent in the first year, in decreasing over time. But
these surrender periods can last seven to ten years. I've
seen even longer than that. And the thing about the
surrender period is, if you think about it, an insurance
company is paying a commission or is receiving the commission,
and they're paying an advisor. The insurance company wants to
(13:44):
recoup its money so that they want to keep people
in these annuities for a minimum amount of time, so
that's where the surrender charge is built in. And then
finally the annual fees, So especially with variable annuities, you
can expect to see even more layers of fees. You'll
see insurance charges which can be you know, often around
(14:06):
one and a quarter percent per year. You'll see investment
management fees which can be half a percent to upwards
of two percent, and then what are called writer fees,
which can be you know, zero point six percent up
to one and a half or even two percent. And
these are basically fees for just add on, add on
(14:26):
options you can you can put in there, so very
quickly you can you can find yourself paying you know,
two to three percent or even more each year, and
that is a big drag on returns. And in general,
these are not cheap products and in a lot of
cases the cost really can outweigh the benefits.
Speaker 1 (14:46):
It's really important to understand that stuff, as you talk
about kind of you know, weighing things out and kind
of understanding what you're getting into. Obviously, a fact of
life is any service, it is reasonable do you expect
that there'll be some fees and some charges, But when
you start digging into some of this stuff and realizing
some of the complexity and realizing fees upon fees, I
think a lot of people's eyes really start to start
(15:09):
to open up, like, oh, my goodness, and really important
stuff on that front. And CJ. And bring you in
on this conversation as well. I've talked about the tax word,
and I know, as we talk about for every service
there's a fee, and for every interaction there seems to
be a tax and an obligation there. How does the
IRS treat annuity income?
Speaker 2 (15:28):
CJ. Yeah, good question, Sean.
Speaker 3 (15:31):
And I'll before I jump into the kind of taxes,
how taxes are handled with an annuity, I'll just say
we try to do our best to be balanced in
the way that we present information, and so you know
you're hearing in our voices, we are very cautious of annuities,
not because they're bad by definition. As a matter of fact,
they're They're neither good nor bad by definition. They just
(15:53):
are They just are something. But what we would say
is that because of the complexity, if you were to
look at the number of customer complaints or lawsuits related
to annuities versus say an advisory investment account or a
brokerage account or a money market fund. You know, the
(16:13):
answer is a vast majority of the confusion lawsuits customer
complaints come from complex products, no surprise right now. Again,
just because there's fees, does that mean it's a bad thing?
Well no, I mean every I have to buy a
car and I got to pay a commission to somebody there.
So commissions and sales charges and.
Speaker 2 (16:33):
Things like that don't mean something is bad.
Speaker 3 (16:35):
It just means customer beware. I think that's what we
would say as it relates to this whole topic, is
just like, hey, not good or bad, just customer beware
because of the layers of complexity, the lock up periods,
everything Eric was talking about. That's our main takeaway. Okay,
now shifting over to taxes, this is another area where
you have to be cautious. So how you pay taxes
(16:57):
on an annuity depends on how you fund the annuity.
I kind of hinted at this earlier. If you buy
an annuity, whether that be a fixed ade equity indexed,
a variable annuity, or any other type of annuity, if
you buy one of these with IRA or four oh
one k money, like, roll over your four one k
(17:17):
into an IRA. All the money you take out will
be taxed as ordinary income, just as it would have
been if you had just left it in a you know,
a custodial iray or an advisory IRA. So when you
put it into the annuity, you get all the features
of the annuity aka the guaranteed income stream, you know,
whatever they're guaranteeing you in the annuity, but the income
(17:40):
is treated the same way is if you hadn't put
the money in the annuity, which is as long as
you pull it out after fifty nine and a half,
there's no penalty, but you're going to pay taxes as
ordinary income. Where it gets complicated is that a lot
of people will say, well, the annuity doesn't have as
much advantage to me with IRA or four one K money,
so I'm going to put after tax or what we
(18:01):
will often refer to as taxable dollars. Think of this
as money that's not in a retirement account, but it's
just extra savings that you have sitting off off to
the side. When you put that money into an annuity,
only the growth is taxed. Your original contribution comes back
tax free. But here's something people often miss. Annuities don't
(18:22):
get the favorable capital gains tax treatment. We've talked a
lot about capital gains taxes on this show, where we say, hey,
you buy a stock and it grows over time, and
then you sell it later on, you could pay zero,
fifteen or twenty percent. We did a whole show on
this with Jenny Doty, our accountant or internal accountant. Well
what if I take those same after tax dollars, put
(18:42):
them in an annuity and then it grows? Well, wank
wonk That capital gains tax, that favorable capital gains tax
treatment goes away.
Speaker 2 (18:52):
All of the.
Speaker 3 (18:52):
Growth as it comes out to you is taxed as
ordinary income.
Speaker 2 (18:56):
And here's one final kicker.
Speaker 3 (18:57):
You also don't get a step up on basis at
So back to that original situation, I buy a stock,
it grows, I die with that stock, my children can
sell it and pay no tax. When that same money
as inside of the annuity, the step up in basis
goes away. Now, for those insurance agents out there, because
I know some of you are going, yeah, but but
but but okay, there is one positive though. When you
(19:20):
take taxable dollars and put them in an annuity and
allow them to differ in growth, you also don't pay
tax on the growth, so it compounds. Okay, Well, if
your heads aren't spinning, or if they weren't spinning before
they are now, certainly you can understand a lot of complexity,
lots of pros, lots of coms related to this. You
(19:42):
just really need to be mindful of how it fits
into your financial plan.
Speaker 1 (19:46):
Important stuff and of course important time to have those
conversations I mentioned. Also, CJ mentioned our conversation with Jenny
Dowdy the other week. You can always listen back to
that podcast and all the previous shows up at Clossfinancial
dot com. That's coss kl AASO financial dot com. You
can schedule a complimentary chat right online as well. Speaking
of complementary things, that appointment that initial gets no you
(20:07):
appoyment at Coss Financially, it will be complementary to you.
Set that up. All I can do is give them
a call six oh eight four four two five six
three seven again the number for Class Financial Office right
here in Madison six oh eight four four two five
six three seven. Will wrap up our conversation on annuities.
We will also head on over to the Money in
Motion listener question corner and if that's not enough. We'll
also do our class quiz question a week. We got
(20:28):
an action pack. Final segment next right here on Money
in Motion with COSS Financial on thirteen ten wib A
talking this morning with our retirement planning professionals c J.
Closs and Eric Schwartz. They come to us from class Financial,
the website COSS financial dot com. That's Coss k l
a A S Financial dot com. Telphone number six oh
eight four four two five six three seven. No charge
(20:50):
for the initial gets know you appoyment at COLSS Financial.
It will be complementary to you again their number six
oh eight four four two five six three seven. Talking
this week about annuities and Eric, are there situations out
there and when might that situation be where an annuity
might make sense for someone?
Speaker 4 (21:08):
Yeah, it's a great question, Sean and s. CJ said,
we don't We don't believe that annuities are inherently good
or bad. And there certainly are situations where annuities can
fit nicely into a retirement plan. For example, if you
if you don't have a pension in retirement a lot
a lot of folks don't have pensions, an annuity can
act like a pension, it gives you predictable income for
(21:29):
your entire life, and it pays as long as you live,
so it helps reduce the stress of outliving your money.
Along with that, if you have if you have good genes,
you have a lot of longevity in your family and
you expect to live into your nineties, an annuity can
really provide a lot of peace of mind because again,
it's going to pay as long as you live, no
(21:51):
matter how long that is. Another way to look at
an annuity is it can help you control your spending.
So some people like to have a structured income and
retur hirement so that they don't overspend. To be honest,
if someone really wants to access the money, they'll probably
find a way to do it, even if there are penalties,
but it can be a good guardrail to put in place,
(22:12):
at least initially. And finally, for people who are really
uncomfortable with investing in the market, an annuity can provide
some benefits as well. So if you're someone who panics
during market tips and you want to stay away from risk,
an annuity might help prevent kind of those emotional investing mistakes.
(22:33):
That said, we always recommend that you explore other lower cost,
more flexible options before jumping into an annuity, get a
second opinion, and always always read that fine print. Now,
one other piece of well, the last piece I'll touch
on here related to annuities is what happens to the
money when someone passes away? Okay, So the short answer
(22:58):
is it depends on the type of contract. Some annuities
will stop payments at death, while others let you name
a beneficiary who continues to receive payments. There can also
often be a standard death benefit. But again those details
are all decided upfront and they kind of vary based
on the contract. But one important thing to know is
(23:18):
if you inherit an annuity, know that to some extent
that money is taxable. So be cautious when just you know,
drawing out the whole balance and consider spreading out the
withdrawals over time just to help manage that tax hit.
And really seek out advice in the space. These products
are really complicated and it's just good to have a
(23:40):
second set of eyes.
Speaker 1 (23:41):
It seems like like an area we could do like
a whole series of programs on and talk about because
there is exactly there is so much to know about
these and that's one of the importances of having those
conversations and of course understanding what you're getting into before
you sign on the dotted line. Great opportunity today, speaking
of really great information, classfinancial dot com. They've got a
(24:02):
lot of great information about Class Financially. You can learn
more about the team, their separate divisions. You can also
schedule a complimentary chat right online classfinancial dot Com. Also,
while you're there, you can submit a question to be
answered in our Money in Motion listener question corner. Alex
wrote in this week it says, Hi, I'm about five
years away from retirement. I've got about seventy five thousand
(24:23):
dollars in credit card debt. I'm still contributing to my
four oh one K, but I don't really have any
emergency savings built up. What should I be focusing in
on right now? And CJ, we'll let you take this
one away.
Speaker 3 (24:38):
Yeah, well, Alex, thanks so much for submitting the question.
As as Sean just said, others can do the same
on our website or by calling in certainly during the show.
But yeah, so, Alex, one thing that I was noticing
as we were I was reading this before the show
is that you didn't say your exact age, which is fine.
I don't expect you to submit your exact age, but
therefore I won't be able to be as specific in
(25:01):
my response. But you mentioned having seventy five thousand dollars
in credit card. You're still contributing to your four to
one K. So how do you get kind of an
emergency reserve built up? We would say, based on what
you have given us, tackling that debt and getting rid
of that credit card debt.
Speaker 2 (25:17):
Alex is going to be paramount.
Speaker 3 (25:19):
The main reason is because credit card debt will often
grow at a pace that is higher than anything you
could ever hope for in your four to one K.
So Alex, as you can imagine, you put money into
your four to one K, and even if it grows
ten percent a year, that's going to be a far
cry from the average of twenty to twenty five percent
on your credit card.
Speaker 2 (25:39):
So we would say, probably reduce.
Speaker 3 (25:40):
Down that four to one K contribution to whatever the
minimum amount is to still get some employer match. So
if your employer matches the first four percent of your contributions,
maybe just reduce your contribution down to four percent and
then all of your excess cash flow needs to go
towards knocking down that credit card debt. Now, obviously, when
(26:00):
you don't have an emergency reserve, Alex, that's the reason
why you have credit card debt, because anytime an emergency
pops up, you have to use a credit card. So
we would say, try to build up one to two
thousand dollars in a savings account, So reduce the flow
and K contribution. Build up one to two thousand dollars
in a savings account, and then every dollar above and
beyond that should just go towards eliminating that credit card debt.
(26:22):
Once that credit card debt is gone, then certainly you
can go back and start saving again into your four
one K plan to build that up. And finally, you know, Alex,
this is going to sound self serving, but it's really
not meant to be. When we hear these types of situations,
we would say there's probably some systemic items inside of
your financial plan that need to be addressed as it
relates to cash flow and savings and income and housing
(26:44):
and cars. There's potentially a lot more than you submitted
in your question here, and so we would say, potentially
consider working with a financial advisor to kind of put
together a plan.
Speaker 1 (26:53):
Really great to guidance and really good information. You two
can be like Alex. If you've got a question like
right right here on the program, you could set right
at class Financial dot com. That's coss k l Aasfinancial
dot com as CJ Magic. You can also call the
office right here in Madison at six oh eight four
four two five six three seven. Don't forget as well,
no charge for that initial gets to know you appointment
at Loss Financial. It is complimentary to you their number
(27:15):
six oh eight four four two five six three seven.
You're going to want to hold on to that telephone
number as well. It's time now for the coss Quiz
Question of the week. It works like this. In just
a moment, I will ask you the coss Quiz question
of the week. You will then have thirty minutes from
the end today's program to call the Class Financial office
right here in Madison at six oh eight four four
two five six three seven. If you are the first
call correct answer, you win this week's prize, which is
(27:36):
a twenty five dollars gift card to Texas Roadhouse. This
week's coss Quiz question week, is this true? Or false.
An annuity is a contract between you and an insurance company.
Is that true or is that false? Telephone number six
oh eight four four two five, six three seven, first
call correct answer when this week's prize. Don't forget as well.
That's Class Financial's office right here in Madison. That number
(27:59):
six oh eight four four two five six three seven
CJ Eric. Great chatting with both of you. Guys. Have
a most fantastic day.
Speaker 2 (28:07):
Thanks Sean, Sean, take.
Speaker 1 (28:08):
Care, guys. News comes your way next year. I'm thirteen
ten wu ib A
Fun, informative and interactive as well. Great opportunity if you've
got a question, love to have you join us on
the program this morning, Get some get some answers from
our retirement planning professionals from Class Financial, CJ. Closs and
Eric Schwartz. The telephon number to get on the air
six oh eight three two one thirteen ten. That's six
o eight three two one thirteen ten. Our retirement planning
(00:21):
professionals are here for you to answer your retirement related questions. Again.
Teleph number to get on the air six so eight
three two one thirteen ten. Learn more about Class Financial
on their website Coss Financial dot com. That's Coss k
Laasfinancial dot com. Not only can you learn more about
Class Financial on the website, you can also schedule a
complimentary chat, or of course, you can always call the
(00:43):
office right here in Madison at six oh eight four
four two five six three seven. Don't forget that initial
get to know you appointment at Class Financial. It will
be complementary to you again their number six oh eight
four four two five six three seven and the number
to get on the air this morning three two one
thirteen tens three two one thirteen ten and joining us
this morning our CJ Class and Eric Schwartz of Class
(01:04):
Financial CJ. How you doing this week?
Speaker 2 (01:07):
I'm doing great?
Speaker 1 (01:08):
How are you?
Speaker 2 (01:08):
Sean?
Speaker 1 (01:09):
I'm doing really good? And uh I mentioned the phone
numbers to get on the air. I know, and for
folks that don't know this, I know. One of the
things you absolutely love about doing this show is the
opportunity to answer folks questions live on the air. It's
one of your It's funny, it's one of your favorite
People don't know this, but one of your favorite things
to do on the program, isn't.
Speaker 2 (01:27):
It It is?
Speaker 3 (01:28):
Yeah, we love when people call in, and I kind
of every once in a while will say, try to
stump me.
Speaker 1 (01:33):
Yeah, but we enjoy that.
Speaker 2 (01:35):
We enjoy the call ins and certainly call it you have.
Speaker 1 (01:38):
Questions, Love to love to have you join us. Six
eight three two one thirteen ten. That's six eight three
two one thirteen ten. Eric. Do I hear you dialing
in in the background trying trying to stump CJ. How
you doing? Eric?
Speaker 4 (01:51):
Not too bad? Sean?
Speaker 2 (01:52):
How you doing doing really well?
Speaker 1 (01:54):
It's great to talk with both of you, and we've
got the conversation that had involves a word that I
think a lot of folks here and sometimes I would
say sometimes I'll speak for myself. I always wonder about
what annuities are exactly, and we're gonna kind of break
down what they are and what you need to understand
when it comes to annuities. We'll do that with ce
Jan Eric this morning on Money and Motion. Mention the
(02:16):
phone number to get on air six oh eight three
two one thirteen ten. The telephon number for COSS Financials
office to schedule that appointment six oh eight four four
two five six three seven. Don't forget that initial appointment
not going to cost you a thing. It'll be complimentary
to you. Their number six oh eight four four two
five six three seven. The website colssfinancial dot com. Before
we start talking annuities, one of the cool features of
(02:36):
the program is the Class Quiz Question the week your
chance to win a fantastic prize. This week, no exception,
our friends from Class Financial provided a twenty five dollars
gift card to Texas Roadhouse. We'll tell you a little
bit later on in the program in detail how you
can win that little tip. Though just about every show,
the question answer come up during the program, so you
want to pay close attention to the show. And before
we get rolling on this week's conversation, let's actually look
(02:59):
back at les last week's program and get the question
and answer there to the classquiz question the week.
Speaker 4 (03:03):
Eric, absolutely congratulations to our winner from last week, who
was Neriene from Sun Prairie. The question was question was
true or false? Medicare is structured in two parts, Part
A and part B, and the answer to that was true.
Speaker 1 (03:21):
Nice work, Lourene, very very cool and don't forget if
you missed any part of that program. There was a
ton of information. As always, you can listen back at
class financial dot com. As mentioned this week, we're going
to be talking about annuities, kind of one of those
buzzwords that you hear all the time when it comes
to retirement planning and it seems like everyone and I
see it on TV and social care, social media, those
(03:41):
influencers out there, they all have different opinions on it.
So today I think we're gonna break it all down
and Cej I guess the first question is what exactly
is an annuity and how do you know if they
make sense for you?
Speaker 2 (03:58):
Yeah, great question. On and you're right.
Speaker 3 (04:01):
Annuities are definitely having a moment in the retirement world.
Speaker 2 (04:05):
We'll call it.
Speaker 3 (04:06):
They've actually been around for centuries, but they're getting a
lot of attention right now because so many people are
trying to figure out how to create steady income in retirement.
Speaker 2 (04:16):
But here's the deal.
Speaker 3 (04:17):
While annuities can be helpful for the right person, they
are not a one size fits all solution. These are
actually complex contracts with a lot of moving parts, so
you really need to know what you're getting into before
signing on the dotted line.
Speaker 2 (04:33):
So let's start with the basics.
Speaker 3 (04:34):
An annuity is essentially a contract between you and an
insurance company. You pay them either a lump sum or
a series of payments, and in return, they agree to
send you regular income, usually during retirement. That income can
start right away those are known as often as SPIAZ
single Premium immediate annuities, or you can delay it until
(04:57):
a later retirement date. So think I give money now
ten years, I'll start my income stream at that time.
And clearly people are buying these contracts like big time.
In twenty twenty four, a loan Americans put over four
hundred and thirty two billion into annuities of all shapes
and sizes. That includes fixed annuities, indexed annuities, variable annuities,
(05:17):
immediate annuities. You name it, four hundred and thirty two
billion with a B. So certainly it's something that interests people,
and I guess kind of more broadly that people find attractive. Now,
at our firm, we do have some of our advisors
who are insurance license and we do certainly consult on annuities,
but we always stress well, but we do not sell
(05:41):
generally new annuities through a registered representative, and we are
very cautious about how we suggest people engage them. Now
that being said, there are circumstances that can absolutely have
an annuity fit your need. They can provide what it's
called longevity risk, a solution, So like if you're worried
(06:04):
about living too long and running out of income, annuities
can be a great solution to that. They can be
a way to kind of de risk markets over time.
So there can be great fits for annuities, but we
would say we think on average they can be over
sold at time, or maybe if not over sold, under
or misunderstood.
Speaker 2 (06:23):
But before you even consider an annuity here.
Speaker 3 (06:25):
Are a few key things to understand. Number one, they're
built for retirement. If you take money out before age
fifty nine and a half, you'll face a ten percent
IRS penalty plus potential surrender charges. So if you're under fifty,
an annuity might not be the best fit for you
unless you're planning on leaving it alone until after fifty
(06:47):
nine and a half. Now some of you are saying, wait, wait,
but I have IRA money that can't be touched to
fifty nine and a half anyways.
Speaker 2 (06:53):
That's true.
Speaker 3 (06:55):
So if you have IRA money and you can't touch
to fifty nine and a half anyways, then not as
big of a deal. Referencing non retirement after tax dollars.
If you take those non retirement after tax dollars and
put them in into an annuity, generally speaking, they're locked
up until fifty nine and a half.
Speaker 2 (07:09):
So that's what you need to be cautious about.
Speaker 1 (07:11):
Fascinating stuff this morning, and as we talked this morning
with CJ. Closs and Eric Swortz, they are our retirement
planning professionals from Coss Financial. Don't forget if you've got
a question about annuity or anything related to retirement, they'd
love to answer your question this morning, get you on
the air. Six oh eight three two one thirteen ten.
That's six oh eight three two one thirteen ten. The
website cossfinancial dot com. That's Cossfinancial dot com. Teleph number
(07:33):
six oh eight four four two five six three seven.
No charge for that initial get to know you appointment
to at Coss Financial. That first appointment will be complimentary
to you again their number six oh eight four four
two five six three seven. So CJ laid out kind
of what the annuities are, and then I guess the
next question, Eric is what type of annuities are out there.
Speaker 4 (07:53):
That's a great question, Sean. There's basically two main categories.
I'd say one would be a deferred annuity. The other
would be an immediate annuity. So let's start with deferd annuities.
These are the more common ones that we see, and
they generally start in what we would call the accumulation phase,
so basically when you're putting money away for retirement or
(08:15):
just for use later in, letting it grow until you're
ready to start taking income later on. And if we
were to drill down a little bit more on deferred annuities,
it generally breaks down into two types, which would be
fixed annuities and variable annuities. Now, fixed annuities, just like
their name kind of suggests, they offer a guaranteed interest
(08:38):
rate for u set number of years, so they're very predictable,
pretty similar to the predictability of a CD. Now, variable annuities,
on the other hand, they let you choose from different
investment options, kind of like a four oh one K.
Your balance goes up and down based on market performance. Now,
these are not quite as straightforward as as fixed annuities.
(09:02):
They can be really complicated and come with a lot
of fees and optional add ons, So we really want
people to tread carefully when it when it comes to
those types of those types of products. Now, on the
other hand, we have immediate annuities, so those first those
first ones are really are deferred. Immediate annuities are some
sometimes called spias, so single premium immediate annuity. These these
(09:27):
skip the accumulation part altogether. Okay, so you're basically just
handing over a lump sum of money to the insurance
company and they're going to start sending you payments right away,
usually within thirty days, maybe up to a year.
Speaker 1 (09:41):
A year later.
Speaker 4 (09:42):
These can be helpful if you're retired and you don't
have any other steady income. They can they can kind
of behave kind of like a pension.
Speaker 1 (09:51):
Fast That's okay, I'm trying to hear you guys do
a great job explaining this stuff. I'm still trying to
fully wrap my head around this stuff, and we're going
to actually get get into some of those complexities and things.
Of course, when it comes to fees and other things
in the fine print of annuities. We will do that
in just a moment. If you get a chance, I
hope you do. As you're heading on into work this morning,
(10:12):
head on over to class financial dot com. That's coss
k l aas financial dot com mentioned earlier that you
can schedule a free complementary conversation right on the website. Also,
while you're there, you can get to know the team.
You can also get to know the separate divisions at
COSS Financial. Also an opportunity to sign up for the
weekly Market Pulse newsletter. It's a great weekly email arrives
in your inbox, gives a little snapshot of what's been
going on in the market. It also provides a link
(10:34):
to the most recent podcast again available to you at
cossfinancial dot com. Speaking of the podcast, you can listen there.
For example, if you miss part today's program or you
want to listen back to a previous show, you can
always head on over to class Financial dot com. There
telephone number six oh eight four four two five six
three seven. No charge for that initial get to know
your appointment at Colss Financial. It will be complimentary to
you again their number six oh eight four four two
(10:57):
five six three seven. We're going to continue our conversation
with CJ and Eric will talk a little bit more
about annuities and some of the complexities and some of
the things you just want to be aware of of
involving annuities. We'll get those details from Eric and CJ.
We will do that next as Money in Motion with
Coss Financial continues right here on thirteen ten. Wu Iba
and our phone lines are open for you if you
have a question for our retirement planning professionals. So I
(11:19):
got to do is dial in get you right on
the air six oh eight three two one thirteen ten.
That's six oh eight three two one thirteen ten, gets
you on the air with CJ Closs and Eric Schwartz,
speaking of telephone numbers, tell phing them for Coss Financials
office right here in Madison at six oh eight four
four two five six three seven. No charge for that
initial get to know your appointment at Loss Financial. It
will be complimentary to you again their number six oh
(11:41):
eight four four two five six three seven. Talking about
annuities this week on the program, and I was kind
of left speechless at the end of last that last
segment just by kind of mentally going through and trying
to just put this together. And I'm like, Eric did
a really good job laying it out, but I still
don't know that I fully understand all the complexities. And Eric,
(12:02):
let's talk a little bit about some of how complicated
these things can be. And also fees. What are we
talking about when it comes to fees with annuities.
Speaker 4 (12:12):
Yeah, there's a reason, Sean that insurance companies that sell
these annuities provide really really nice looking, fancy promotional materials
that try to simplify things and make them easier to understand.
But fees are probably the biggest knock on annuities from
consumers and frankly advisors too. And so I'm going to
(12:36):
go through there's usually layers layers of fees when it
comes to when it comes to annuities, the first one
I want to talk about is the commission. So most
annuities come with a sales commission, which can be anywhere
from one percent to ten percent depending on the product.
So that is a one percent to ten percent of
the amount that you put into the annuity. You won't
(12:58):
see it taken out directly, but it's baked into the
cost of the annuity. Now, usually a commission is compensating
the representative that's selling the product. The next fee that
we see a lot is a surrender charge. So if
you change your mind and you want your money back early,
you could face really steep penalties, often starting around seven
(13:23):
percent in the first year, in decreasing over time. But
these surrender periods can last seven to ten years. I've
seen even longer than that. And the thing about the
surrender period is, if you think about it, an insurance
company is paying a commission or is receiving the commission,
and they're paying an advisor. The insurance company wants to
(13:44):
recoup its money so that they want to keep people
in these annuities for a minimum amount of time, so
that's where the surrender charge is built in. And then
finally the annual fees, So especially with variable annuities, you
can expect to see even more layers of fees. You'll
see insurance charges which can be you know, often around
(14:06):
one and a quarter percent per year. You'll see investment
management fees which can be half a percent to upwards
of two percent, and then what are called writer fees,
which can be you know, zero point six percent up
to one and a half or even two percent. And
these are basically fees for just add on, add on
(14:26):
options you can you can put in there, so very
quickly you can you can find yourself paying you know,
two to three percent or even more each year, and
that is a big drag on returns. And in general,
these are not cheap products and in a lot of
cases the cost really can outweigh the benefits.
Speaker 1 (14:46):
It's really important to understand that stuff, as you talk
about kind of you know, weighing things out and kind
of understanding what you're getting into. Obviously, a fact of
life is any service, it is reasonable do you expect
that there'll be some fees and some charges, But when
you start digging into some of this stuff and realizing
some of the complexity and realizing fees upon fees, I
think a lot of people's eyes really start to start
(15:09):
to open up, like, oh, my goodness, and really important
stuff on that front. And CJ. And bring you in
on this conversation as well. I've talked about the tax word,
and I know, as we talk about for every service
there's a fee, and for every interaction there seems to
be a tax and an obligation there. How does the
IRS treat annuity income?
Speaker 2 (15:28):
CJ. Yeah, good question, Sean.
Speaker 3 (15:31):
And I'll before I jump into the kind of taxes,
how taxes are handled with an annuity, I'll just say
we try to do our best to be balanced in
the way that we present information, and so you know
you're hearing in our voices, we are very cautious of annuities,
not because they're bad by definition. As a matter of fact,
they're They're neither good nor bad by definition. They just
(15:53):
are They just are something. But what we would say
is that because of the complexity, if you were to
look at the number of customer complaints or lawsuits related
to annuities versus say an advisory investment account or a
brokerage account or a money market fund. You know, the
(16:13):
answer is a vast majority of the confusion lawsuits customer
complaints come from complex products, no surprise right now. Again,
just because there's fees, does that mean it's a bad thing?
Well no, I mean every I have to buy a
car and I got to pay a commission to somebody there.
So commissions and sales charges and.
Speaker 2 (16:33):
Things like that don't mean something is bad.
Speaker 3 (16:35):
It just means customer beware. I think that's what we
would say as it relates to this whole topic, is
just like, hey, not good or bad, just customer beware
because of the layers of complexity, the lock up periods,
everything Eric was talking about. That's our main takeaway. Okay,
now shifting over to taxes, this is another area where
you have to be cautious. So how you pay taxes
(16:57):
on an annuity depends on how you fund the annuity.
I kind of hinted at this earlier. If you buy
an annuity, whether that be a fixed ade equity indexed,
a variable annuity, or any other type of annuity, if
you buy one of these with IRA or four oh
one k money, like, roll over your four one k
(17:17):
into an IRA. All the money you take out will
be taxed as ordinary income, just as it would have
been if you had just left it in a you know,
a custodial iray or an advisory IRA. So when you
put it into the annuity, you get all the features
of the annuity aka the guaranteed income stream, you know,
whatever they're guaranteeing you in the annuity, but the income
(17:40):
is treated the same way is if you hadn't put
the money in the annuity, which is as long as
you pull it out after fifty nine and a half,
there's no penalty, but you're going to pay taxes as
ordinary income. Where it gets complicated is that a lot
of people will say, well, the annuity doesn't have as
much advantage to me with IRA or four one K money,
so I'm going to put after tax or what we
(18:01):
will often refer to as taxable dollars. Think of this
as money that's not in a retirement account, but it's
just extra savings that you have sitting off off to
the side. When you put that money into an annuity,
only the growth is taxed. Your original contribution comes back
tax free. But here's something people often miss. Annuities don't
(18:22):
get the favorable capital gains tax treatment. We've talked a
lot about capital gains taxes on this show, where we say, hey,
you buy a stock and it grows over time, and
then you sell it later on, you could pay zero,
fifteen or twenty percent. We did a whole show on
this with Jenny Doty, our accountant or internal accountant. Well
what if I take those same after tax dollars, put
(18:42):
them in an annuity and then it grows? Well, wank
wonk That capital gains tax, that favorable capital gains tax
treatment goes away.
Speaker 2 (18:52):
All of the.
Speaker 3 (18:52):
Growth as it comes out to you is taxed as
ordinary income.
Speaker 2 (18:56):
And here's one final kicker.
Speaker 3 (18:57):
You also don't get a step up on basis at
So back to that original situation, I buy a stock,
it grows, I die with that stock, my children can
sell it and pay no tax. When that same money
as inside of the annuity, the step up in basis
goes away. Now, for those insurance agents out there, because
I know some of you are going, yeah, but but
but but okay, there is one positive though. When you
(19:20):
take taxable dollars and put them in an annuity and
allow them to differ in growth, you also don't pay
tax on the growth, so it compounds. Okay, Well, if
your heads aren't spinning, or if they weren't spinning before
they are now, certainly you can understand a lot of complexity,
lots of pros, lots of coms related to this. You
(19:42):
just really need to be mindful of how it fits
into your financial plan.
Speaker 1 (19:46):
Important stuff and of course important time to have those
conversations I mentioned. Also, CJ mentioned our conversation with Jenny
Dowdy the other week. You can always listen back to
that podcast and all the previous shows up at Clossfinancial
dot com. That's coss kl AASO financial dot com. You
can schedule a complimentary chat right online as well. Speaking
of complementary things, that appointment that initial gets no you
(20:07):
appoyment at Coss Financially, it will be complementary to you.
Set that up. All I can do is give them
a call six oh eight four four two five six
three seven again the number for Class Financial Office right
here in Madison six oh eight four four two five
six three seven. Will wrap up our conversation on annuities.
We will also head on over to the Money in
Motion listener question corner and if that's not enough. We'll
also do our class quiz question a week. We got
(20:28):
an action pack. Final segment next right here on Money
in Motion with COSS Financial on thirteen ten wib A
talking this morning with our retirement planning professionals c J.
Closs and Eric Schwartz. They come to us from class Financial,
the website COSS financial dot com. That's Coss k l
a A S Financial dot com. Telphone number six oh
eight four four two five six three seven. No charge
(20:50):
for the initial gets know you appoyment at COLSS Financial.
It will be complementary to you again their number six
oh eight four four two five six three seven. Talking
this week about annuities and Eric, are there situations out
there and when might that situation be where an annuity
might make sense for someone?
Speaker 4 (21:08):
Yeah, it's a great question, Sean and s. CJ said,
we don't We don't believe that annuities are inherently good
or bad. And there certainly are situations where annuities can
fit nicely into a retirement plan. For example, if you
if you don't have a pension in retirement a lot
a lot of folks don't have pensions, an annuity can
act like a pension, it gives you predictable income for
(21:29):
your entire life, and it pays as long as you live,
so it helps reduce the stress of outliving your money.
Along with that, if you have if you have good genes,
you have a lot of longevity in your family and
you expect to live into your nineties, an annuity can
really provide a lot of peace of mind because again,
it's going to pay as long as you live, no
(21:51):
matter how long that is. Another way to look at
an annuity is it can help you control your spending.
So some people like to have a structured income and
retur hirement so that they don't overspend. To be honest,
if someone really wants to access the money, they'll probably
find a way to do it, even if there are penalties,
but it can be a good guardrail to put in place,
(22:12):
at least initially. And finally, for people who are really
uncomfortable with investing in the market, an annuity can provide
some benefits as well. So if you're someone who panics
during market tips and you want to stay away from risk,
an annuity might help prevent kind of those emotional investing mistakes.
(22:33):
That said, we always recommend that you explore other lower cost,
more flexible options before jumping into an annuity, get a
second opinion, and always always read that fine print. Now,
one other piece of well, the last piece I'll touch
on here related to annuities is what happens to the
money when someone passes away? Okay, So the short answer
(22:58):
is it depends on the type of contract. Some annuities
will stop payments at death, while others let you name
a beneficiary who continues to receive payments. There can also
often be a standard death benefit. But again those details
are all decided upfront and they kind of vary based
on the contract. But one important thing to know is
(23:18):
if you inherit an annuity, know that to some extent
that money is taxable. So be cautious when just you know,
drawing out the whole balance and consider spreading out the
withdrawals over time just to help manage that tax hit.
And really seek out advice in the space. These products
are really complicated and it's just good to have a
(23:40):
second set of eyes.
Speaker 1 (23:41):
It seems like like an area we could do like
a whole series of programs on and talk about because
there is exactly there is so much to know about
these and that's one of the importances of having those
conversations and of course understanding what you're getting into before
you sign on the dotted line. Great opportunity today, speaking
of really great information, classfinancial dot com. They've got a
(24:02):
lot of great information about Class Financially. You can learn
more about the team, their separate divisions. You can also
schedule a complimentary chat right online classfinancial dot Com. Also,
while you're there, you can submit a question to be
answered in our Money in Motion listener question corner. Alex
wrote in this week it says, Hi, I'm about five
years away from retirement. I've got about seventy five thousand
(24:23):
dollars in credit card debt. I'm still contributing to my
four oh one K, but I don't really have any
emergency savings built up. What should I be focusing in
on right now? And CJ, we'll let you take this
one away.
Speaker 3 (24:38):
Yeah, well, Alex, thanks so much for submitting the question.
As as Sean just said, others can do the same
on our website or by calling in certainly during the show.
But yeah, so, Alex, one thing that I was noticing
as we were I was reading this before the show
is that you didn't say your exact age, which is fine.
I don't expect you to submit your exact age, but
therefore I won't be able to be as specific in
(25:01):
my response. But you mentioned having seventy five thousand dollars
in credit card. You're still contributing to your four to
one K. So how do you get kind of an
emergency reserve built up? We would say, based on what
you have given us, tackling that debt and getting rid
of that credit card debt.
Speaker 2 (25:17):
Alex is going to be paramount.
Speaker 3 (25:19):
The main reason is because credit card debt will often
grow at a pace that is higher than anything you
could ever hope for in your four to one K.
So Alex, as you can imagine, you put money into
your four to one K, and even if it grows
ten percent a year, that's going to be a far
cry from the average of twenty to twenty five percent
on your credit card.
Speaker 2 (25:39):
So we would say, probably reduce.
Speaker 3 (25:40):
Down that four to one K contribution to whatever the
minimum amount is to still get some employer match. So
if your employer matches the first four percent of your contributions,
maybe just reduce your contribution down to four percent and
then all of your excess cash flow needs to go
towards knocking down that credit card debt. Now, obviously, when
(26:00):
you don't have an emergency reserve, Alex, that's the reason
why you have credit card debt, because anytime an emergency
pops up, you have to use a credit card. So
we would say, try to build up one to two
thousand dollars in a savings account, So reduce the flow
and K contribution. Build up one to two thousand dollars
in a savings account, and then every dollar above and
beyond that should just go towards eliminating that credit card debt.
(26:22):
Once that credit card debt is gone, then certainly you
can go back and start saving again into your four
one K plan to build that up. And finally, you know, Alex,
this is going to sound self serving, but it's really
not meant to be. When we hear these types of situations,
we would say there's probably some systemic items inside of
your financial plan that need to be addressed as it
relates to cash flow and savings and income and housing
(26:44):
and cars. There's potentially a lot more than you submitted
in your question here, and so we would say, potentially
consider working with a financial advisor to kind of put
together a plan.
Speaker 1 (26:53):
Really great to guidance and really good information. You two
can be like Alex. If you've got a question like
right right here on the program, you could set right
at class Financial dot com. That's coss k l Aasfinancial
dot com as CJ Magic. You can also call the
office right here in Madison at six oh eight four
four two five six three seven. Don't forget as well,
no charge for that initial gets to know you appointment
at Loss Financial. It is complimentary to you their number
(27:15):
six oh eight four four two five six three seven.
You're going to want to hold on to that telephone
number as well. It's time now for the coss Quiz
Question of the week. It works like this. In just
a moment, I will ask you the coss Quiz question
of the week. You will then have thirty minutes from
the end today's program to call the Class Financial office
right here in Madison at six oh eight four four
two five six three seven. If you are the first
call correct answer, you win this week's prize, which is
(27:36):
a twenty five dollars gift card to Texas Roadhouse. This
week's coss Quiz question week, is this true? Or false.
An annuity is a contract between you and an insurance company.
Is that true or is that false? Telephone number six
oh eight four four two five, six three seven, first
call correct answer when this week's prize. Don't forget as well.
That's Class Financial's office right here in Madison. That number
(27:59):
six oh eight four four two five six three seven
CJ Eric. Great chatting with both of you. Guys. Have
a most fantastic day.
Speaker 2 (28:07):
Thanks Sean, Sean, take.
Speaker 1 (28:08):
Care, guys. News comes your way next year. I'm thirteen
ten wu ib A
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