Whole Life... Why Not to Love It?

Discussion in 'Life Insurance Forum' started by SouthernComfort, Jul 8, 2013.

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  1. scagnt83
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    scagnt83 Well-Known Member

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    So im not a series 7 and I dont own any dividend paying stocks. You got me. :swoon: (learn something new everyday)


    But I do know that some "very reliable" blue chips suspended and reduced dividends back in 08' & 01'.
    I also know that dividends are not guaranteed unless you own preferred stock.


    And technically any 401k can invest in most any security it wants to as long as the Trustee allows it.
    But in the real world 99% of 401k plans do not offer individual stocks.

    Yes, there are SoloKs that do. But they are still not the majority.
    And if the 25 year old we are talking about actually owns a business and has a soloK as an option; at $6k per year they would be much better off with a SEP until they can afford to contribute real money.
    And yes, they could do blue-chips in a SEP.

    To outperform the income from PI you would need over an 8% return in a 401k.

    (and Im glad you like my posts. I usually like your ltc posts... cant say the same thing for LI though)
     
    Last edited: Jul 10, 2013
  2. Mr_Ed
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    Mr_Ed Well-Known Member

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    ... and GE is the only blue chip company that pays dividends.

    gimmeabreak....



    geez, can't any of you guys come up with a half way decent refutation of my arguments?
     
  3. scagnt83
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    scagnt83 Well-Known Member

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    Great points.

    I had a very large chargeback once in 2008 that would not have happened if I had sold UL.

    UL also allows Guideline Premium Testing in lieu of CVAT. Which allows for a higher income percentage.
     
    Last edited: Jul 10, 2013
  4. Tahoe Ray
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    Tahoe Ray Well-Known Member

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    I think that this was in reference to the accumulation phase, not the distribution.

    Besides, doesn't everyone move their retirement accounts to annuities when taking distributions?:-)
     
  5. scagnt83
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    scagnt83 Well-Known Member

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    You ignored my post before the blue chip post. (It refuted most everything you said)
    And instead called me out on the one thing that has very little to do with the conversation.

    It is obvious you are extremely ignorant about permanent insurance. And it is even more obvious that you have never done a true comparison with a properly designed overfunded policy.

    (would you care to refute my refutation? or just ignore it and try to attack people...?)
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    To get a 5.5% guaranteed lifetime payout at age 65 she must have!!! It obviously isnt in stocks anymore!
     
    Last edited: Jul 10, 2013
  6. Mr_Ed
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    Mr_Ed Well-Known Member

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    #1) You don't even understand the most basic concept of how stock dividends work. You think that the amount of the stock dividend is based upon the stock price! You think the dividends goes down when the stock price goes down. This is basic stuff... Investing 101 and you don't even know this simple truth.

    #2) Please post (or email to me) an illustration for a properly designed overfunded permanent life policy for a 25 year old male. And we'll do some comparisons with real numbers.


    good nite... almost 1am...way past bedtime.
    mrsed
     
  7. scagnt83
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    scagnt83 Well-Known Member

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    Again, you put down and ignore.

    I gave you real numbers and compared them to your numbers you put out.

    So I have already done a comparison for you. You just chose to ignore it and attack the one factual error I posted. (Which had very little to do with the overall conversation) But since you have no argument based on the math I guess you feel you must personally attack and harp on the one thing you are able to.


    And I have done comparisons many times in the past for clients and on this site.

    If you really care about being objective on the issue then use the search button and your two eyes. Illustrations are posted on here too.


    Obviously, based on the math, you have no argument. So instead you resort to name calling.
    Very classy lady .... I hope your ego feels better
     
    Last edited: Jul 10, 2013
  8. BNTRS
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    BNTRS Well-Known Member

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    At what point in time did I suggest that GE was the only Blue Chip stock?

    There was a subtly to where I was going with this, and you took the bait. We never know which blue chip will be a winner and which a loser. Once well regarded blue chips aren't blue chip anymore.

    This is the problem that the investment salespeople always have when they make this argument. You come to the table preaching theory, I can come to the table with a handful of very specific products I can talk about.

    Stock market investing on the other hand is all about which investment idea is hot right now. And when it turns out to be a dud tomorrow, you all move on and pretend like it never existed.

    I meet people on a very frequent basis who did it your way for most of their life. Now they want out. They've lived what you're preaching far longer than you've been preaching it. And you can dream up whatever numbers you want. I'm taking their experience over your theory based on hypotheticals every day of the week.
     
  9. Tahoe Ray
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    Tahoe Ray Well-Known Member

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    We all use different strategies in planning for our clients' futures.

    Roths are a powerful tool but so is WL.

    All of the numbers we use are conjecture. I can make or break any plan with different assumptions...no one can win this thread.
     
  10. Larry Tew
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    Larry Tew Well-Known Member

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    Yes, that happened in the early 1800's. But the interesting thing about this example of conventional wisdom isn't what the people of the 15th century believed, but rather what the average person of today believes the average person of the 15th century believed.

    In other words, most people today believe that most people in Columbus's day thought the earth was flat. "Enlightened" people know better, but enlightened people aren't the masses. By definition conventional wisdom IS the masses.

    Point here is that following the conventional financial wisdom of maxing 401's, buying 30-year term, hanging your hat on ONE blue-chip stock, etc will not produce the desired outcome. If you want a different outcome than the masses, you have to do different than the masses.
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    Thanks. There's always more to learn. And it's what you learn AFTER you thought you knew it all that counts the most.
     
    Last edited: Jul 10, 2013
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