Best use of $5k annual premium for retirement cash?

Jan 31, 2019

  1. Golfnut2112
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    Golfnut2112 Guru

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    Once again this is one of the most ridiculous one side bunch of BS I’ve ever heard.
    The first part can be handled with a Roth IRA or life insurance but I already know which one is going to be sold. The second part is nothing more than being a fear monger. I wonder if they ever heard of a tactical money manager who puts stop loss provisions in place. If not, any advisor worth a damn would move the money.
     
  2. Golfnut2112
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    Golfnut2112 Guru

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    I just realized the second comment was from a State Farm agent. Why would you even post that??? He may know auto,home and life insurance but based on his comment on losses he knows NOTHING about investing. HE’S A FEAR MONGER!!! I wonder if he has ever heard of risk tolerance or asset allocation. I can already hear him telling people you don’t want to invest in the market you can lose half your money like in 2008 then you need to make 100% to get it back. You will be dead by then and your wife with have a new boyfriend because you were a dumb a$$ and invested in the market. The reality is most people older than 50 usually have a stock and BOND portfolio which may be as high as 60 to 90% bonds. BTW I golf once a week with two local State Farm guys and neither one did much security work except for the occasional IRA.
     
    Last edited: Feb 8, 2019
  3. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Actually, it was me writing the notes of what's going on at that time-stamped section, not a State Farm agent.

    Here's what I'm gathering: You take an investment advisor approach - hence your discussion of risk tolerance, and then recommending either FIA or ETF portfolio. You use life insurance purely as a death benefit and primarily use whole life for permanent needs.

    Nothing wrong with that.

    He (and I) are taking an economic, tax, and insurance contract provisions approach through questions being asked to help people protect, preserve, and grow the assets they do have.

    He sees a different economic future than most investment advisors do. It's that economic perspective that directs the recommendations.

    We're simply going to be seeing our roles differently because of our experience and our perspective of the future and motivate our clients to make decisions, partly based on those perspectives.

    At least we both know where we're coming from.
     
    DHK, Feb 8, 2019
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  4. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    He was with Banker's life for 16 years before leaving for New England Financial / Met Life. He was with Met Life for a long time before the MassMutual merger.

    He's not a State Farm agent.
     
    DHK, Feb 8, 2019
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  5. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    But... he has a Series 6! You already said that he must not be trying to fit a square peg in a round hole! He must understand asset allocation, right? /end sarcasm

    Even Guy Baker will tell you about -50% losses and needing 100% returns to get back to where you were. You know Guy Baker, PhD, MSFS, CFP, ChFC, CLU, etc., right? And he has written about investing and has an RIA firm.

    This is Guy Baker guest-lecturing at Loyola University. I set the time for right when he's talking about risk tolerance and returns.

     
    DHK, Feb 8, 2019
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  6. Golfnut2112
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    Golfnut2112 Guru

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    You are definitely right about me, except tax planning is a large part of my business. I actually prepared taxes until a few years ago. If I write an annuity ( that’s only when the client wants an absolute guarantee of principal) I will almost always take the interest out and put it into a fee based account set up as a TOD. If they are healthy and do not need the money for income I love using a fully underwritten participating whole life policy either with a SPIA or a single premium it’s a great wealth transfer tool. BTW most of my clients are over 50 with the majority being over 70.
     
    Last edited: Feb 9, 2019
  7. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    That's right. You have mentioned that wealth transfer planning is certainly a part of your process.

    I'll share with you one more clip. You *might* like it (but I won't hold my breath). :)



    Pinney Insurance publishes Van Mueller's newsletter. Here's the one he referenced from February, 2017:
    Pinney Insurance
     
    Last edited: Feb 8, 2019
    DHK, Feb 8, 2019
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  8. Golfnut2112
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    Golfnut2112 Guru

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    You post to many videos, if I were to watch them I would need to get a bag of popcorn and a six pack, no maybe a bottle of Rum. But anyway that’s what I said, a 50% loss requires a 100% return to get your principal back. I knew that without 10 designations!!! What I am saying is that the fear mongers use 2008 exclusively to scare people ( which is very sad considering how well the market has done over the past 35 years) instead of talking about risk tolerance, asset allocation and tactical money management they prefer to scare people and talk about life insurance as the ultimate end all savings vehicle. ( I will say this again, life insurance can be a good saving vehicle after a Roth is max funded, very rarely before). One commercial that drives me absolutely nuts is that bank on yourself.com which airs on sirrius radio, you talk about a fear mongering jerk off. Do you know anyone who actually loss 50% in 2008 who was working with an advisor? The only people I’ve met who lost that kind of money was in their 401K.
     
    Last edited: Feb 9, 2019
  9. Blr19
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    Blr19 New Member

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    Does make it any less significant? Or painful? That's why I'm asking about Permanent Insurance. So back to the original question:

    Which would be better for cash accumulation with a 15 year horizon: Par WL or IUL? The plan would not be to raid it after 15 years, just have it available.
     
    Blr19, Feb 9, 2019
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  10. Golfnut2112
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    Golfnut2112 Guru

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    Two different products.The IUL will offer you flexible premium payments and a flexible death benefit, but the cost of insurance goes up significantly at older ages. WL offers less flexibility with guaranteed values and the possibility of dividends enhancing both the cash value and death benefit. With either one you should break even in 13 to15 years but if it were me I would go with a Max funded WL. I believe you stated you do not need the death benefit if that is the case you may want to consider a flexible premium indexed annuity set up as a Roth IRA . You will get tax free income without insurance cost weighing down your returns. I can’t believe it has taken 10 pages of comments before getting back to your original question.
     
    Last edited: Feb 9, 2019
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