- 14,808
We were just going to discuss the charges for whole life - should be interesting.
Selling Life Insurance...
- Thread starter James
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- 9,744
- 10,275
"it's whole life insurance at the exclusion of every other financial product available."
Yes. That's it. Certainly WL has its place in today's marketplace. But it is not a fit-all solution.
Yes. That's it. Certainly WL has its place in today's marketplace. But it is not a fit-all solution.
- 7,790
There was this old philosopher, Will Rogers, who said, "I'm more interested in the return of my money than the return on my money."
- 14,808
if that's case grab yourself some CDs.
- 9,744
Even that's not a panacea of safety. If banks go bust, how long do you think the FDIC has to give you your money?
- 9,744
I guess I would opt for Dave Matthews Band...and I also love Toni Braxton...
- 9,744
The LEAPers use these worksheets (or at least they used to) to show these "moves" that show how you end up with more by owning nothing but whole life insurance.
They call it "financial engineering". While they do introduce some good topics like "lost opportunity cost", I always felt the it was not intellectually valid, but confusing and convoluted.
- 14,808
I wonder how many agents selling whole life and annuities have these plans for themselves.
I have a feeling it's more "do as a I say..."
I have a feeling it's more "do as a I say..."
Sadly, this is probably true. In case your wondering, the answer is simple. You can withdraw money from an IRA anytime you want, no event required. Of course, 98 agents will still get the penalties of doing the withdraw wrong. The discussion isn't whether you can withdraw the money, just how much the penalties will be.
Funny thing about this, probably the same 98 agents would get the penalties wrong for withdrawing cash value from a whole life policy. Here, let me ask a few questions:
- What is the penalty for withdrawing cash value in the 3rd year of the policy?
- What is the tax penalty for withdrawing all cash value prior to age 59 1/2? Pretend you are 20 years into the policy.
- What is the penalty for having a $50K loan on the policy when the policy goes out of force?
- What percentage of cash value policies survive 20 years? (actually, I have no idea, probably about the same as a 20 year term policy).
Dan
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