Hi Everyone,
In order to max out the distribution from IUL at age 65 while trying to minimize the growth of the cost(COI, admin fees and so on) every year. Which options below can perform better in the long run?
1. do withdrawal first then do index loan (cap at 6%) since it can lower the DB so that the cost can be lower?
2. do withdrawal first then do fixed loan since it can lower the DB so that the cost can be lower?
3. do straight index loan (cap at 6%) since the long term IRR is higher than 6%?
4. do straight fixed loan?
5. do fixed loan most of the time, then switch to index loan right after market big crash?
6. plan early purchase both IUL and WL (50/50 split), assuming WL long term IRR (5.3% ish) with a nice set up. When the market is up or sideway, do fixed loan from IUL. When the market is down, don't take out money from IUL. If you already have loan from IUL before, then switch fixed loan to indexed loan, and take out money from WL instead during the downturn.
Feel free to add more distribution strategies if you have other ideas.
In order to max out the distribution from IUL at age 65 while trying to minimize the growth of the cost(COI, admin fees and so on) every year. Which options below can perform better in the long run?
1. do withdrawal first then do index loan (cap at 6%) since it can lower the DB so that the cost can be lower?
2. do withdrawal first then do fixed loan since it can lower the DB so that the cost can be lower?
3. do straight index loan (cap at 6%) since the long term IRR is higher than 6%?
4. do straight fixed loan?
5. do fixed loan most of the time, then switch to index loan right after market big crash?
6. plan early purchase both IUL and WL (50/50 split), assuming WL long term IRR (5.3% ish) with a nice set up. When the market is up or sideway, do fixed loan from IUL. When the market is down, don't take out money from IUL. If you already have loan from IUL before, then switch fixed loan to indexed loan, and take out money from WL instead during the downturn.
Feel free to add more distribution strategies if you have other ideas.