How to reduce these expenses

[mespinosa]

LOL - and you think I see you as a threat to my livelihood? lol. You're in PA and I'm in CA. And after 3 weeks, you think you know what I know about financial planning?

I've been in this business 15 years and I am more analytical than most. I know how to treat MY clients. And you think that, after 3 weeks of looking at your (probably improper) illustration that you can lecture on my profession - or at least on me PERSONALLY??

You are funny.

Misrepresentation and ignorance: A dangerous blend for ethics | ThinkAdvisor

I am not sure if you think I said I am an agent and that's why I am threat to your livelihood. What I meant was that even if a few potential buyers think twice about buying, that is a threat to your profession, maybe not to you directly, but agents in general.

 

[mespinosa]

I've been in this business 15 years and I am more analytical than most.

Now, I am really scared. If you are the most analytical in this industry without your college education, I dread to think about those, without even analytical skills, designing policies for grandmas.... oooohhh, aaahhaaa..

zombie apocalypse!

 

[mespinosa]

This has been fun, Mr.DHK but I got a real job to get back to...

 

[DHK]

Now, I am really scared. If you are the most analytical in this industry without your college education, I dread to think about those, without even analytical skills, designing policies for grandmas.... oooohhh, aaahhaaa..

zombie apocalypse!

Fair point.

 

[mespinosa]

However, covered calls do not produce results each year. They can expire worthless.

Couldn't resist this. Covered calls expiring worthless is a good thing. Your stock won't be called away and you keep the premium you received. You are a financial advisor and you don't know this? A CFA would know.

 

[DHK]

If you need income from a portfolio... and it doesn't produce a return, are you going to invade your principal? Yes, you are.

But you are making my other point for me. Principal protection (as available through insurance products such as life insurance and annuities) helps provide capital preservation with a decent enough return.

 

[mespinosa]

But you are making my other point for me. Principal protection (as available through insurance products such as life insurance and annuities) helps provide capital preservation with a decent enough return.

Index returns less than 6.3% and you are wiped out. You call that principal protection?
""Not my circus. Not my monkeys." - Polish proverb"
You are right! Not your policy, not your worry

 

[DHK]

In one year or over time?

You do realize that the S&P 500 index is a managed index, right? Companies are brought in and taken out on a fairly regular basis. Which means that, with an indexed insurance strategy, you're going to have some 0% return years, and some years that will hit the annual caps (whatever it is, subject to that year's interest rates, etc.).

But having a 50% drop in one year can wipe you out and cause one to not have the liquidity, use, and control of their money for 5-6 years - and that's not including taking ANY income so all the shares are intact. We've already seen that.

 

[mespinosa]

In one year or over time?

You do realize that the S&P 500 index is a managed index, right? Companies are brought in and taken out on a fairly regular basis. Which means that, with an indexed insurance strategy, you're going to have some 0% return years, and some years that will hit the annual caps (whatever it is, subject to that year's interest rates, etc.).

But having a 50% drop in one year can wipe you out and cause one to not have the liquidity, use, and control of their money for 5-6 years - and that's not including taking ANY income so all the shares are intact. We've already seen that.

Not true! 50% or 80%, you dont lose unless you sell and give up. You hold on and write covered calls, you will be fine.In EIUL, you dont have anything after it lapses.

 

[mespinosa]

In one year or over time?

Over a few short years. Once it goes under, its really fast.