Pacific Life Policy Performed 22%

[scagnt83]

They have been reducing costs so you are saying that they are going to do something completely antithetical to how they have been running their business for decades.

Pac Life has increased internal expenses ON EXISTING POLICIES on many different policy blocks of UL/IUL/VUL.

That piece you posted talked about new product lines compared to old product lines.

But that is just year 1 expenses.... it speaks nothing about renewals... which is what I am talking about.

 

[scagnt83]

Also, you know that if charges are raised to the max you can always pack your bags and take your business elsewhere via 1035 exchange. This mitigates that possibility from actually coming to fruition since they won't get the money they are trying to "price gouge" out of policyholders.

Assuming you can still get through UW.... you will still pay a higher cost because you are an older age. And that is also assuming this happens after the surrender period is up.

 

[ejbarraza]

you are 100% correct, as long:

So, yes, I think IUL can be a great product when max funded for decades & used to possibly supplement a well rounded portfolio of many products, but your current passion for it is forgetting to look at just a few of the possible things that can & will happen as decades go by. if this is for you only, great. But be careful letting your excitement, risk tolerance & financial situation spill over onto others that may not have your knowledge, money or ability to stick to a 70-100 year plan

That's a fair response. If you had to guesstimate by looking at my illustration what would you say is a reasonable real-world return over the next 20 years given where we are in the market cycle, interest rates, DCA, etc? Just for my own edification.

 

[ejbarraza]

I am still trying to work out the math of Getting and Keeping a Life Insurance license in California for the sole purpose of selling one policy - to yourself.
What is that about $188 a year, plus E&O, plus a GL policy. [Not considering CE]
That has got to be about a $1,000 a year or so? But for 14 years.
Admittely - you have received commissions.

I am not asking, and I do not want to know the exact details, but this is fascinating to me..

Good Luck.

I am planning on having at least 5 ( currently have 3) and the tax advantages I think offset the costs over a lifetime being in one of the highest tax states in the country. I like the diversification of returns and accretive leverage internally and externally. Way better than a 401k.

 

[Lloyds of Lubbock]

There is this, all that glitters ain't gold

 

[Lloyds of Lubbock]

upload did not seem to work

 

[Lloyds of Lubbock]

I give up, supposed to be a copy of class action lawsuit against pac life.
if anyone want it send me an email

 

[Allen Trent]

That's a fair response. If you had to guesstimate by looking at my illustration what would you say is a reasonable real-world return over the next 20 years given where we are in the market cycle, interest rates, DCA, etc? Just for my own edification.

View attachment 7977

I would hope 5-7%.

However, the illustration software must have a broken calculator. It says it is using 5.18% to project values (non-guaranteed. If in year 19, it projects $275,606 to be the beginning CV, shouldnt the real world return of 5.18% make the following year CV be $289,883? where did the other $4,620 of 5.18% returns go? this projection sure appears to show about 3.5% real world return in year 19/20-----assuming it grossed 5.18% & no internal fees or cost of insurance has changed.

 

[scagnt83]

View attachment 7980

This is showing a 0.90% internal expense at age 46. HORRIBLE compared to the competition. Literally 2x more expensive.

When they increase expenses on that policy, it will easily be 3x-5x more expensive than competitors.

One of the many reasons I dont sell Pac Life, the worst case scenario possibilities are some of the worst on the market.

 

[ejbarraza]

This is showing a 0.90% internal expense at age 46. HORRIBLE compared to the competition. Literally 2x more expensive.

When they increase expenses on that policy, it will easily be 3x-5x more expensive than competitors.

One of the many reasons I don't sell Pac Life, the worst-case scenario possibilities are some of the worst on the market.

I would like to see the competition have triple-digit returns. You get what you pay for right? I would gladly pay 7.5% for 150% returns in one year. Also, if I put $70k in and pull $70k out as a loan, am I not in a risk-free position? If I put $70k into real estate and get a $70k cash-out refi, does that not imply that my risk is virtually zero? Whatever I get over and above $70k is playing with the house's money isn't it? That is the way I look at recursive leverage.