Northwestern Vs Mass for Whole Life Policies?
So my financial adviser is also a broker (for MassMutual?) and is starting to push whole life on me pretty hard. Not sure if this is the best forum to discuss this, but how do yall usually compare and project this? I'm trying to run projections and it seems at best to be equal to a 5.5% RoR on an after-tax account.
Thoughts? I have a lot I can talk about.
Hey, here's some more details.
So I'm in a pretty good financial situation and am looking for ways to create a well balanced portfolio. I understand really well the concepts of Whole Life (personal banking, dividend, loans, etc). With the new baby and being young, I definitely need to up my insurance levels. I am looking at at least $2M for myself & $500k on the wife.
So I'm looking at 2 main conversations here:
For Item #1, I dunno, I just don't know if I'm convinced that it is an equal or better investment vs BTID. I see that the Current Value projections, it is showing 12 years just to break even and reach 0% IRR and a long term 4.6% IRR for 30+ years.
I will try to attach some projections I made.
For #2, they are proposing something big, like a 10-pay $2M policy on baby (~$20k/yr premium) to then use as a college tuition investment & long term gift to child.
Which item can we discuss first?
also:
So my insurance broker is pushing Mass Mutual, claiming they have the best returns and dividends. However, it looks like Northwestern is better. Is this a one-off statistic or am I splitting hairs?
20 year returns: bleakes report:
--Northwestern Mutual, 4.44%
--New York Life, 3.37%
--Thrivent, 3.20%
--MassMutual, 3.01%
--The Guardian, 2.62%
So my financial adviser is also a broker (for MassMutual?) and is starting to push whole life on me pretty hard. Not sure if this is the best forum to discuss this, but how do yall usually compare and project this? I'm trying to run projections and it seems at best to be equal to a 5.5% RoR on an after-tax account.
Thoughts? I have a lot I can talk about.
Hey, here's some more details.
- Age 30, male
- Married, wife is 30 y/o
- new baby born, 3 months old
- $150k/yr income (wife stays at home)
- Live in TX, own a home. $410k mortgage (about 75% LtV)
- maxing out all tax-advantaged retirement accounts (401k, IRA, HSA), I'd say maybe $250k between wife & I in tax-advantaged accounts
- due to recent windfall inheritance, we have about $600k in after-tax accounts
- currently have $250k TERM policy with MassMutual that can be converted.
- Group insurance & ADD through employer, 2x salary free (option upto 8x but its expensive)
So I'm in a pretty good financial situation and am looking for ways to create a well balanced portfolio. I understand really well the concepts of Whole Life (personal banking, dividend, loans, etc). With the new baby and being young, I definitely need to up my insurance levels. I am looking at at least $2M for myself & $500k on the wife.
So I'm looking at 2 main conversations here:
- BTID vs permanent insurance for wife & I. Converting my existing $250k term and buying new policy w/ higher DB.
- buying large permanent policy on new baby to use as investment tool for college education.
For Item #1, I dunno, I just don't know if I'm convinced that it is an equal or better investment vs BTID. I see that the Current Value projections, it is showing 12 years just to break even and reach 0% IRR and a long term 4.6% IRR for 30+ years.
I will try to attach some projections I made.
For #2, they are proposing something big, like a 10-pay $2M policy on baby (~$20k/yr premium) to then use as a college tuition investment & long term gift to child.
Which item can we discuss first?
also:
So my insurance broker is pushing Mass Mutual, claiming they have the best returns and dividends. However, it looks like Northwestern is better. Is this a one-off statistic or am I splitting hairs?
20 year returns: bleakes report:
--Northwestern Mutual, 4.44%
--New York Life, 3.37%
--Thrivent, 3.20%
--MassMutual, 3.01%
--The Guardian, 2.62%
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