Do rich people buy annuities?
The Annuity Man
Most rich people are wealthy for a reason. They are smart. I'm not talking about "inheritance babies" or deadbeat life insurance recipients, I'm referring to hard working industrious people who made it on their own. Most of those successful people also understand risk, and how to transfer it if needed.
Regardless of the level of wealth, rich people like to transfer risk. Annuity contracts are the perfect fit to achieve that goal because annuities are pure transfer of risk strategies. Annuities primarily solve for 4 transfer of risk goals. I use an easy to remember acronym called P.I.L.L. P stands for principal protection. I stands for income for life. L stands for legacy. And the other L stands for long term care/confinement care.
If you don't need to transfer risk to contractually solve for one or more of the P.I.L.L., then you do not need an annuity of any type. It's really that simple.
I find that most wealthy people transfer risk to primarily solve for lifetime income or principal protection. Annuities are the only financial product type on the planet that will pay a lifetime income stream regardless of how long you live. That's the unique benefit proposition that separates annuities in the financial world, and a client-friendly monopoly that is unmatched. Rich people get that, and take advantage of the transfer of risk benefit for themselves, their spouses, and their kids.
You can contact Stan if you have any questions or want to see quotes on your specific situation or to see a live feed of the best MYGA fixed rates for your state of residence.