Should I roll into an annuity?

[KRobby]

are you saying the reason caps & spreads exists is because it is further down risk/reward continuum?

They exist because how could they possibly pay the full market return and also limit the downside loss? By limiting the potential return, they can limit the downside risk, and still profit while doing all their behind the scene activities to meet their obligations for the buyers. The result is a different spot on the risk/reward continuum from that of an index fund.

 

[Tahoe Ray]

do any EIA guarantee the 1 or 2% like IUL guarantee as a worst case calculation at time of death or surrender?

NY products all have a 1% minimum. There are also non-ny products with a "true-up" if you don't make money for the surrender which can be 1%+.

You can also buy roll-up death benefits which are guaranteed.

Keep in mind that it is easier for IULs to offer guaranteed floors since they can mess with not only caps but also charges (which the FIA carrier doesn't have the luxury of doing).

 

[CALTCAgent]

She's got over 1.5MM windfall if I croak early. This is just money I don't know what to do with :/

Please never tell her this. I don't want to see you on a dateline show.

Good discussion by the way.

 

[DayTimer]

She's got over 1.5MM windfall if I croak early.

1.5MM invested at 1% will give her a “windfall” of $15,000/year in income to raise your kids. Life insurance proceeds for young fathers are not meant to be spent. They are meant to be capitalized to replace your income, or at least replace as much of it as you think they will need to stay in the house, in the same schools, eat three squares a day, go to college ...

Josh, you need more life insurance brother.

 

[HoosierLife]

1.5MM invested at 1% will give her a “windfall” of $15,000/year in income to raise your kids. Life insurance proceeds for young fathers are not meant to be spent. They are meant to be capitalized to replace your income, or at least replace as much of it as you think they will need to stay in the house, in the same schools, eat three squares a day, go to college ...

Josh, you need more life insurance brother.

She’d get more than that. Buyouts from 2 businesses (that increase year to year). Social Security. Plus rental income.

She should be alright.

 

[Golfnut2112]

1.5MM invested at 1% will give her a “windfall” of $15,000/year in income to raise your kids. Life insurance proceeds for young fathers are not meant to be spent. They are meant to be capitalized to replace your income, or at least replace as much of it as you think they will need to stay in the house, in the same schools, eat three squares a day, go to college ...

Josh, you need more life insurance brother.

Insurance proceeds invested at 1%??

 

[Allen Trent]

Buyouts from 2 businesses

How will those buyers come up with the money to pay for the buyout? insurance is cheapest mechanism if the dont have cash. You should talk to a good insurance agent about that.

Social Security

Yeah, only for a couple years. She only gets a check until your youngest offspring is 16

 

[HoosierLife]

How will those buyers come up with the money to pay for the buyout? insurance is cheapest mechanism if the dont have cash. You should talk to a good insurance agent about that.


Yeah, only for a couple years. She only gets a check until your youngest offspring is 16

We have life insurance for the business partnerships and stipulations to pay out excess over 5 years.