- 477
Why would you even be considering life insurance for a savings vehicle when you don’t need the death benefit? In my 32 years I’ve NEVER had someone say sell me life insurance I need to save money. By any chance did an agent give you the idea?
Best use of $5k annual premium for retirement cash?
- Thread starter Blr19
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Why would you even be considering life insurance for a savings vehicle when you don’t need the death benefit? In my 32 years I’ve NEVER had someone say sell me life insurance I need to save money. By any chance did an agent give you the idea?
- 11,272
Best quote of the LIVE from NAIFA National: Fast & Furious Sales Ideas featuring the Life Insurance Legends Panel with Van Mueller: "Don't ever get caught in the dilemma of thinking that you have to compete with life insurance being an investment. It's not an investment. That's demeaning to life insurance. Life insurance is a flexible foundational product that allows you to do multitudes of things on behalf of prospects, clients, and businesses."
- 477
I actually agree with you!! I think life insurance is a great tool and life insurance should never be competing with an investment, they have two different objectives.
When I get my emergency fund all beefed up .. I thought I would transfer a portion of it to a cash value life insurance.. should I give up now?
- Thread starter
- #65
Ok, a little more background. I am not an agent. My wife and I will both have pensions, so our basic needs will be covered. We earn too much to contribute to a Roth. I don't like the losses from the volatile stock market. Guaranteed growth is what I'm looking for and I like the tax advantages of Life Insurance.
I want to create a source of money that I can use to supplement income, or store up for LTC expenses, or whatever.
I suppose we should consult with a financial planner, but how do we pick one out? There's no stat sheet to compare - like on fantasy football players; and it's not fantasy cash we'd be paying! We got one quote for $2000 to make us a plan. We wonder if it would be better to use that money IN the plan.
The original question came about because of the expenses inherent in WL and IUL and I wanted opinions on which would be better to grow cash value. Or perhaps an Indexed Annuity would be better?
Thanks for all your input. There's a lot of good information on this site so I will be doing a lot more reading.
I want to create a source of money that I can use to supplement income, or store up for LTC expenses, or whatever.
I suppose we should consult with a financial planner, but how do we pick one out? There's no stat sheet to compare - like on fantasy football players; and it's not fantasy cash we'd be paying! We got one quote for $2000 to make us a plan. We wonder if it would be better to use that money IN the plan.
The original question came about because of the expenses inherent in WL and IUL and I wanted opinions on which would be better to grow cash value. Or perhaps an Indexed Annuity would be better?
Thanks for all your input. There's a lot of good information on this site so I will be doing a lot more reading.
- 477
What is your age and do you need life insurance? Life insurance takes a long time just to break even.
Since its not something you appear to need, (and you make too much money for a Roth) possibly LI as a vehicle to put money in, may be a good choice for you. Having money in that bucket can certainly be a good thing for a number of reasons - some you listed. I use them all the time for my clients when its a good fit. Just keep in mind, at your age - funding for approx 15yrs, a realistic break even is probably around 8-9yrs, depending on company, product, design, health rating. That is not a bad thing but it takes a while to be flush, and you have addl DB. A realistic income stream possibly around 150% of your annual funding amount is possible...again, depending on the parameters above.
- 11,272
Assuming that you're in the state of Washington (based on the state selected in your posting profile), there are two names that "jump out" at me.
1. Kerry Wallingford, CLU, ChFC, RICP is in Seattle and has been interviewed by @Brian Anderson, who is the Executive Editor of Insurance Forums and has presented her strategies to industry peers at the Million Dollar Round Table.
https://insurance-forums.com/life-i...ing-retirement-how-one-advisor-helps-clients/
Kerry Wallingford | InsuranceNewsNetMagazine.com
Insurance, College & Financial Services Seattle | Wallingford Financial
2. Brandon Roberts @BNTRS does a lot of these kinds of cases nationwide. He's the author of The Insurance Pro Blog and is an excellent resource for these. You'd just work with him by phone and/or web-conference.
The Insurance Pro Blog - Best whole life insurance
I'm sure there are others, even on this forum, but these are the two that I could think of for you.
Btw, expect them to help you "dig a little deeper" into your financial situation. You may find that there are other assets and resources that could be repositioned to help you accelerate your financial progress.
- 11,272
I won't disagree. Of course, he's not securities licensed. Actually, he is quite the prolific financial author who USED to espouse for BTID in the 90's... and now does more of an infinite banking scenario. He was actually the first person who exposed me to a kind of financial planning career that got me into this industry back in the late 90's.
In fact, that's where you can have your "interest earn interest". If you were paying 18% to a credit card company on a $10,000 loan... what he's saying is you take out a loan against your whole life insurance for $10,000... pay off the credit card. Pay the much lower loan interest PLUS the credit card interest you were paying... all to the life insurance loan to pay it off faster. All while the policy continues to earn interest.
Most of these "infinite banking" guys use various (and often confusing) terminology... which is why I've heard of some of these guys being terminated from their captive career contracts because they don't like it.
I know I'm biased, but I think I've outlined it very clear (and in a compliant way) in my article:
https://davidkinderfinancial.wixsit...le-post/2018/09/21/Infinite-Banking-Explained
As far as hypotheticals on mutual funds, the problem is that they don't incorporate the future. I don't see MPT statistics on funds to give any predictions of the future. Only the stats compared to benchmark indexes for a given 1-year, 3-year, 5-year, and 10-year time periods. Therefore, the stats are assuming that the economic, political, and demographic conditions continue. Which essentially means "Past performance IS an indication of future returns." Of course, no hypothetical will say that. They all say "past performance is NOT an indication of future returns."
"The Tax Train is Coming" documentary trailer:
- 477
Yes I agree past performance is not guaranteed. If you look at past history and do 13 to 15 year intervals, since that’s when life insurance may show a very very small gain and compare it to the income fund of America ,there is no comparison. You can skip the 80’s and 90’s since that’s a waste of time since life insurance would not come close. Try running a hypo say from 1995-2010, 1996-2011 etc and look at the results. Please remember whole life dividends are not guaranteed and an IUL returns are based on an index without dividends. I do agree with you on the credit card interest but not as using life insurance as a bank, I much prefer having my money in a mutual fund and just take what I need for a purchase.
My best friend and I are completely at odds about politics so we agree to disagree, I know your a nice guy from the time we spent on the phone and I don’t think we will ever convince each other to change our opinions, maybe we should to the same Lol
My best friend and I are completely at odds about politics so we agree to disagree, I know your a nice guy from the time we spent on the phone and I don’t think we will ever convince each other to change our opinions, maybe we should to the same Lol
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