College Funding market

Oct 20, 2018

  1. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    If I were to use life insurance for "late college planning" (high school sophomore and juniors)... I'd have to use an IUL with waiver of surrender charges on the parents, so there's 100%+ liquidity of what is being contributed. Of course, there may be a higher risk of chargeback and that's included in the commission agreement up to 3 years... but that would be the only way I could ethically do it.
     
    DHK, Mar 13, 2019
    #71
  2. Allen Trent
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    Allen Trent Guru

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    and those early values/surrender waiver riders tend to also have long term impact to the policy performance in exchange for the early values buildup/surrender waiver. So, it is bit of tight rope
     
  3. pfg1
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    When I have use the no surrender penalty option, it didn't affect the policy values, it affected my commission.
     
    pfg1, Mar 13, 2019
    #73
  4. Allen Trent
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    that is good. I do know some of the commissions are spread out over 3-5 years to compensate for the lack of surrender protection, but I had also seen CV performance impacted I believe on a Minnesota Life IUL case involving a business needing early values for their balance sheet.

    not a big noticeable impact, but a $2-3k difference in year 10 or 15 compounds to be $40k lower on both CV & DB in year 35. upload_2019-3-13_18-42-15.png
     
  5. Allen Trent
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    Allen Trent Guru

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    on the cases I am talking about, it has only made a fraction of a % difference in year 5/10/15 of $2-3k, but after year 35-40, that has become a $50k difference in cash value--still only a small difference when talking about a projected $1.5M CV. basically, a small tradeoff for client for early values without surrender charge. Really only needed for the most part in those large business cases that need a cash asset to retain its value on the balance sheet
     
  6. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Waiver of surrender charges are different than a high early cash value policy. It sounds like semantics, but the commission is the same as "traditional" policies for waiver of surrender than high early cash value policies.
     
    DHK, Mar 13, 2019
    #76
  7. MedicareMillionair
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    MedicareMillionair Guru

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    It should be included in this conversation that the cost of college has increased beyond the value of the education provided in many cases. I will not send my child to 99% of all universities in this country for anything other than a STEM education. That is being compromised as well.

    Teachers at universities in this country should be embarrassed at the situation they created. There are exceptions, but few. Yes, the teachers are at fault. They are not the noble educators of our children they and others make them out to be. smh
     
    Last edited: Mar 13, 2019
  8. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Most students and parents don't "financially underwrite" their educational pursuits. That's one area where the government can actually HELP! The Bureau of Labor Statistics Occupational Outlook Handbook can help parents and students make more informed decisions about what fields they should be looking into to help ensure a quality income for the money spent.

    In short - computer programming is in far more demand than a philosophy degree.

    Home : Occupational Outlook Handbook: : U.S. Bureau of Labor Statistics
     
    DHK, Mar 13, 2019
    #78
  9. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    DHK, Mar 13, 2019
    #79
  10. WinoBlues
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    WinoBlues Guru

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    [
    Same for Skilled Carpenter, Plumber and Electrician. I would venture to say equal or higher ay and less stress. at the end of the day you shower, have a beer and do fun stuff until tomorrow.
     
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