I missed reading about the 12 months time horizon.
On the flip side, my post was not intended as suggestions on what he should do. I merely listed my thought process when dealing with NQ money when clients whom are under 60 in my experience.
The shorter duration I had in mind was typically 2 to 3 years.
Regarding to the 10k dump in statement, i was referring to the distribution would most likely be from the surrender charge free from the initial contribution years ago. Not counting the surrender charge free window contract typically allows. It does not get rid of the 10% penalty or the taxable gain.
The MEC rule was always in mind when dumping money in life policy. Again, I am merely pointing out some of the options out there. I said I looked at my client's existing policy and see if it can be a place to put money in. Very often, they do not know the options or has not taken advantage of it. Sometimes, we would create small base with big room to dump in money for that purpose. There are options to put in SPWL-like without it being a MEC. It is product specific and situation specific. I cannot give product specific recommendations without knowing the person. That is dangerous.
So bottom line is I missed the 12 months time horizon. So ignore what I said :p
On the flip side, my post was not intended as suggestions on what he should do. I merely listed my thought process when dealing with NQ money when clients whom are under 60 in my experience.
The shorter duration I had in mind was typically 2 to 3 years.
Regarding to the 10k dump in statement, i was referring to the distribution would most likely be from the surrender charge free from the initial contribution years ago. Not counting the surrender charge free window contract typically allows. It does not get rid of the 10% penalty or the taxable gain.
The MEC rule was always in mind when dumping money in life policy. Again, I am merely pointing out some of the options out there. I said I looked at my client's existing policy and see if it can be a place to put money in. Very often, they do not know the options or has not taken advantage of it. Sometimes, we would create small base with big room to dump in money for that purpose. There are options to put in SPWL-like without it being a MEC. It is product specific and situation specific. I cannot give product specific recommendations without knowing the person. That is dangerous.
So bottom line is I missed the 12 months time horizon. So ignore what I said :p
