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

[pfg1]

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.

I agree....most people lost alot in 08-09, but the market is back up 300% since then. So unless you sold out upon the low, you have substantially more now. Being in the market with a good strategy is prudent, imo. So is PLI, especially when used appropriately.

With that time horizon and that funding level....they won't be far apart really, assuming a modest interest rate in the IUL. If the IUL were to max out every year obviously it would be higher. The WL offers guarantees which many people like. Its slower and steady but does very well when designed properly.
It really comes down to what would be the best fit for you considering your overall financial picture, which obviously nobody here knows. Based on what you have mentione, this could be a good solution for you. You would need someone that can work with you to design the policy to fit your goals and needs. Its not an off the shelf product like term.

As golfnut said, an annuity could be another option...personally I like the PLI over the annuity for several reasons, based on the brief amount you have told us. I hope this helps

 

[Allen Trent]

I could not imagine sending the 68 year old down the street because I did not have the proper license

I think you actually did great with both of these clients. however, if you are not PC licensed and assist him with his proper auto, home & umbrella protection you failed to protect his investments & assets from loss or liability. So, when you say you cant imagine sending him down the street because you don't have proper license, you don't have to imagine it because you actually did send him driving down the street to possibly lose his investments in a car crash if he killed a young surgeon.

See, there is no end to these comparisons of who is able to offer all the insurance & financial tools under the spectrum whether it be because of licensing, product access or merely it would be too overwhelming.

 

[Golfnut2112]

You are right Allen I never thought of it that way. I got licensed in P&C when I was 24 and that was the hardest test I have taken including college courses. I could never figure out the homeowners insurance I think I failed it twice before passing. I golf with a State Farm guy and an independent who does health and I refer them business all the time.

 

[DHK]

Do you know anyone who actually loss 50% in 2008 who was working with an advisor?

Back at the time, I was selling American Funds - primarily CAIBX and CWGIX. These were tame, moderate funds. I was promoting them as less volatile than the index, with a higher rate of return... which was true through 2007.

In 2008, CAIBX lost 30%. CWGIX lost 40%. True, it wasn't 50%... but it was still a significant amount of loss.

It took CAIBX 4.5 years to recover (assuming people didn't liquidate out of fear or needing income or whatever). It took CWGIX 5.5 years to recover.

These clients were put into that position because they came to me looking for investment advice. Now, obviously, the crash of 2008 wasn't my fault... but they lost the use of their capital (if they want it to rebound) and they lost the compounding they could've had if they had it invested differently.

No, I never got a regulatory complaint. There was ONE person where it could've become an issue (it was my only "one-call" close in 2007), but my recommendation was the same CAIBX fund, but C-shares... it was well-documented and the firm dismissed it.

But I didn't like that, for reasons out of their control, someone could lose 20% - 50% (or maybe more?) through no fault of their own. I could understand a certain amount of volatility... but 2008 made ME realize that *I* didn't want to have to apologize for anything that was outside of our control. I never want to have a "client apology meeting" or a "recommendation defense meeting".

Now, you're right - there are tactical asset management strategies... and yes, that's almost always an option. I still debate on it. But I love knowing that, through insurance products and strategies, I never have to return any "panic calls" due to the market fluctuation (or the latest 'Trump tweet').

The cost of doing business this way, is that you won't have a solution that fits everyone and you may have to prospect more. That's the price of being a specialist. Only two ways to get around that: Continuously prospect or become a 'people pleaser' (get the securities license) rather than be a specialist. Which means turning down business that you otherwise could've had.

As for posting a lot of videos... I'm an audio/visual learner. I learn far more from videos than I do from books (although I have quite a kindle library). And videos are quite easy to share and time-stamp. And out of everything we've talked about, you certainly can't say that I'm not a "student of the business."

 

[pfg1]

you certainly can't say that I'm not a "student of the business."

I was thinking you were more like an automated online encyclopedia information database instant recall guru. Not sure how you have time to get any actual business done... LOL

I'm having a hard time finding what I was looking at yesterday

 

[DHK]

I WISH it was automated.

But in a way it is, because when I find a quality video, I upload it to my own YouTube channel, for myself and others. (Almost have 1,000 subscribers!)

 

[Golfnut2112]

I was joking about the videos I would post some if I knew how. But back to the early 2000’s and 2008 I also sold a lot of income fund of America but I actually moved my people out of the market during the year. You have to be very proactive in turbulence times. But I can see your point it can get very frustrating sometimes.

 

[DHK]

I created my own video (45 minutes) about risk tolerance and recapturing losses... and one of the points I made was about advisors making market moves.

If the advisor (it's probably more accurate to call them a broker) doesn't have discretionary authority, then he has to call his entire book of business in order to get permission to make a move. If you have a book of 300 clients, who gets called first? Who gets called last? How long would it take? How do you explain that to them why they were called last? (Of course, they'd probably be just happy to get a call.)

While making these pro-active (or reactive) calls, what happens to production? It suffers, depending on the size of the book of business. If you have staffing, that may help, or hinder THEIR production, depending on their roles and licensing.

Obviously a good remedy is 3rd party tactical asset management and/or insurance products... for the right kinds of investors.


As far as posting videos - just post the URL and the forum does the rest!

 

[DHK]

I'm having a hard time finding what I was looking at yesterday

Quit clearing your browser history!

 

[Golfnut2112]

I called the ones that were most aggressively invested and went from there and it took around two weeks. I now have discretion and use third party money managers.