- 15,041
Try something stronger, it might help.
Looking For a Whole Life Policy
- Thread starter stevew7
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- disability whole life
Try something stronger, it might help.
You need to stop while you are behind. So the way you see it, my client who owns a convenience store chain had 5.4 million in revenues last year, and according to you, he's growing. In reality, he also had 5.7 million in expenses, so he lost money that year, i.e. he had an operating LOSS. But because he had good years previously, he was able to absorb the loss from reserves. BTW, that's how an insurance company can pay higher dividends in any year than their OPERATING GAIN OR LOSS for that same year.
Another client who owns a cleaning supplies company only had $940k in revenue, so he's not growing compared to my other client. BUT... his expenses were $320k, so he had an operating GAIN of $620k. Who did better that year?
So in a word... REVENUES alone are NOT an indicator of ANYTHING.
- 220
Larry,
I respect you man, but your example is absolutely nothing like what I was pointing out. I am talking about GAIN in revenues year over year, as spelled out very clearly in my original post. So GAIN in revenues are a very good indication of growth and health. They also are not tapping reserves for their dividends which is plainly evident if you look at the report.
Now if in that same year they have those gains their expenses go up that much as well then it can be a wash as far as profit. I never mentioned profit though. All i was talking about was growth. If you take in more money one year over the next you are growing, no two ways around it.
My analysis stands, how can a company be writing so many more permanent policies and paying a dividend in the first year of those contracts and be paying so much less overall dividend? The answer is that they lower their dividend rate, right. I agree, but even with this being lowered having all those new policies pulling a dividend and all the in force policies still pulling one, a drop of this magnitude does not make sense unless they are charging more expenses to the policies.
None of these are good signs for future performance. They all spell bad news.
Bluefin646
Expert
- 41
Gents,
250k wl 3700 vs 250k blend 3900 vs 500k wl
7270.
Talk to me about these policies. Am thinking of the 250k and overfunding it when i can. Will that policy paying an extra prem payment per year look exactly like the 500k policy from a cv and db perspective, or different?
Can u overfund the 250k blend? Wud uever do that?
How does the blend only cost 300$ more, as u end up with double the wl? Doesnt make sense.
Again, i am 39 year old 3 kids. I will be also taking out 20yr term as db is just not enuf to protect my fAmily but feel having some wl is a smart move to round out our financials. Esp cause i have ability to overfund and/or convert some of the term.
Thx gents for your time and advice and of course Wisdom!
We all know timing the stock mkt is virtually impossible, but we are so due for a correction, imho.
Nite.
250k wl 3700 vs 250k blend 3900 vs 500k wl
7270.
Talk to me about these policies. Am thinking of the 250k and overfunding it when i can. Will that policy paying an extra prem payment per year look exactly like the 500k policy from a cv and db perspective, or different?
Can u overfund the 250k blend? Wud uever do that?
How does the blend only cost 300$ more, as u end up with double the wl? Doesnt make sense.
Again, i am 39 year old 3 kids. I will be also taking out 20yr term as db is just not enuf to protect my fAmily but feel having some wl is a smart move to round out our financials. Esp cause i have ability to overfund and/or convert some of the term.
Thx gents for your time and advice and of course Wisdom!
We all know timing the stock mkt is virtually impossible, but we are so due for a correction, imho.
Nite.
- 10,588
A correction from what???
From the 6%+ gain for the year so far... ?
From the 12%+ gain last year?
Or how about from the 24%+ gain the year before that??
Whoever is telling you the market is "due" for a positive correction might need to rethink that philosophy.
I am not saying that the market won't do well this year, there is opportunity as always.
But 09 was a correction; this years gains are being pushed by a weak dollar, cheap money, and over spending.... all the makings of a correction.... downwards!
When it will come is up to the fed
Bluefin646
Expert
- 41
Imo, its due for correction lower, not higher.
- 220
What company are you looking to do this with?
Well, since my 3:00 didnt show today
I figured I would show a college funding scenario using PI.
Rex,
This is why PI makes better sense economically.
You take $12K/year for 16 years and put it into a policy and get 6%; you have $310,000 and some change.
You pay for 4 years of college starting at year 17 (you dont liquidate the policy, you just loan out the money needed each year)
I take $80K per year for 4 years totaling $320K
Now with a 529, its gone.
With PI, you have a little over $75K left in your account (this is after the loan calculations and free for use or continued growth)
Tell me again why a 529 is better than WL??????
Hi, I'm trying to understand this and may also do something similar for my daughter, but if you take a $80K policy loan, it starts accruing interest immediately whereas the 529 there is no interest. After the 4 years, for the WL route you would start repaying the policy loan. In the 529 route wouldn't you make the same "repayment" including interest into some other investment?
termlifeinsuranceus
Expert
Hey Steve,
After you're done buying your policy, do you want to come sell insurance for me? Wow. I'm very impressed by the amount of research you did before posting at this forum.
After you're done buying your policy, do you want to come sell insurance for me? Wow. I'm very impressed by the amount of research you did before posting at this forum.
- 7,790
Be careful what you wish for! I think Steve's research is an example of overkill. Too, too much analysis.
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