Comments on: What’s Black & White And Better All Over Than A 401(k)? http://www.bawldguy.com/whats-black-white-and-better-all-over-than-a-401k/ Real Estate Investing through Purposeful Planning Tue, 02 Dec 2008 03:08:05 +0000 http://wordpress.org/?v=2.0.11 by: BawldGuy http://www.bawldguy.com/whats-black-white-and-better-all-over-than-a-401k/#comment-2285 Fri, 27 Jul 2007 18:16:52 +0000 http://www.bawldguy.com/whats-black-white-and-better-all-over-than-a-401k/#comment-2285 Thanks TJ Thanks TJ

]]> by: TJ http://www.bawldguy.com/whats-black-white-and-better-all-over-than-a-401k/#comment-2284 Fri, 27 Jul 2007 17:58:07 +0000 http://www.bawldguy.com/whats-black-white-and-better-all-over-than-a-401k/#comment-2284 An expert? Well, I wouldn't consider myself an expert (I've been told that "expertise" requires some 50,000 hours of experience depending on the area of study!), but I'd venture to guess that I know more than the average consumer. I've been in the financial services business for about 2 1/2 years and in that time I've written a fair share of insurance policies (of all types). In that same time, I have gone through enough professional development and read enough actual policies to understand the "moving parts" that make them tick. I know the details of the "investment strategy" that the insurance companies use to "link the crediting method to an index". I also have a good handle on the pitfalls of the "indexed" (UL or annuity) products. So, does that make me an "expert"? Not by my definition, but I do know something of which I speak. By the way, I typically prefer VUL to FIUL policies when cash value policies are indicated, but that is a topic for another day. An expert? Well, I wouldn’t consider myself an expert (I’ve been told that “expertise” requires some 50,000 hours of experience depending on the area of study!), but I’d venture to guess that I know more than the average consumer.

I’ve been in the financial services business for about 2 1/2 years and in that time I’ve written a fair share of insurance policies (of all types). In that same time, I have gone through enough professional development and read enough actual policies to understand the “moving parts” that make them tick. I know the details of the “investment strategy” that the insurance companies use to “link the crediting method to an index”. I also have a good handle on the pitfalls of the “indexed” (UL or annuity) products.

So, does that make me an “expert”? Not by my definition, but I do know something of which I speak.

By the way, I typically prefer VUL to FIUL policies when cash value policies are indicated, but that is a topic for another day.

]]> by: BawldGuy http://www.bawldguy.com/whats-black-white-and-better-all-over-than-a-401k/#comment-2283 Fri, 27 Jul 2007 17:42:02 +0000 http://www.bawldguy.com/whats-black-white-and-better-all-over-than-a-401k/#comment-2283 TJ - I'll have him contact you. He's currently floating around in the Med - and didn't even ask me if it was ok. :) Do you consider yourself an expert on FIULs? TJ - I’ll have him contact you. He’s currently floating around in the Med - and didn’t even ask me if it was ok. :)

Do you consider yourself an expert on FIULs?

]]> by: TJ http://www.bawldguy.com/whats-black-white-and-better-all-over-than-a-401k/#comment-2282 Fri, 27 Jul 2007 17:32:10 +0000 http://www.bawldguy.com/whats-black-white-and-better-all-over-than-a-401k/#comment-2282 Sure, have him contact me. Jeff, keep in mind that I am not totally opposed to this strategy, I've actually sold a few of these policies myself so I know the right way to structure them. The thing is, most illustrations are bogus pieces of c**p that have nothing to do with reality. When you factor in the potential problems created IF the COI gets out of control AND/OR the performance (especially in the later years) lags, the risks sometimes outweigh the potential rewards. Sure, have him contact me. Jeff, keep in mind that I am not totally opposed to this strategy, I’ve actually sold a few of these policies myself so I know the right way to structure them. The thing is, most illustrations are bogus pieces of c**p that have nothing to do with reality.

When you factor in the potential problems created IF the COI gets out of control AND/OR the performance (especially in the later years) lags, the risks sometimes outweigh the potential rewards.

]]> by: BawldGuy http://www.bawldguy.com/whats-black-white-and-better-all-over-than-a-401k/#comment-2281 Fri, 27 Jul 2007 16:58:37 +0000 http://www.bawldguy.com/whats-black-white-and-better-all-over-than-a-401k/#comment-2281 TJ - I have your emai, and with your permission, I'll forward it to my expert. He'll then contact you can ask him the appropriate questions. I'm confident he'll be able to clear things up for you. TJ - I have your emai, and with your permission, I’ll forward it to my expert. He’ll then contact you can ask him the appropriate questions. I’m confident he’ll be able to clear things up for you.

]]> by: BawldGuy http://www.bawldguy.com/whats-black-white-and-better-all-over-than-a-401k/#comment-2279 Fri, 27 Jul 2007 16:19:54 +0000 http://www.bawldguy.com/whats-black-white-and-better-all-over-than-a-401k/#comment-2279 TJ - Call your local planner. Make sure he is an expert on the subject. My job isn't to convince you TJ - it's to make you aware of a potential option. If you don't believe it, don't do it. TJ - Call your local planner. Make sure he is an expert on the subject.

My job isn’t to convince you TJ - it’s to make you aware of a potential option. If you don’t believe it, don’t do it.

]]> by: TJ http://www.bawldguy.com/whats-black-white-and-better-all-over-than-a-401k/#comment-2278 Fri, 27 Jul 2007 15:40:23 +0000 http://www.bawldguy.com/whats-black-white-and-better-all-over-than-a-401k/#comment-2278 Well, I got curious so I ran an illustration for the AIG IUL policy...no way to make it work @ $500/mo in for 40 years and $200,000 per year out for life. Now, I know AIG's IUL policy isn't the best performing (i.e. conservative), but is Indy Life's that much better? Maybe I should get appointed with them so I can run an illustration. As I said earlier, I'd love to see the assumptions at work to make this happen. Well, I got curious so I ran an illustration for the AIG IUL policy…no way to make it work @ $500/mo in for 40 years and $200,000 per year out for life. Now, I know AIG’s IUL policy isn’t the best performing (i.e. conservative), but is Indy Life’s that much better? Maybe I should get appointed with them so I can run an illustration. As I said earlier, I’d love to see the assumptions at work to make this happen.

]]> by: TJ http://www.bawldguy.com/whats-black-white-and-better-all-over-than-a-401k/#comment-2272 Fri, 27 Jul 2007 06:51:12 +0000 http://www.bawldguy.com/whats-black-white-and-better-all-over-than-a-401k/#comment-2272 "But by putting in a lousy $500 a month for 40 years, she’ll retire with over $200,000 a year in retirement income — none of it subject to income tax." I'd love to see the illustration generated to show this. “But by putting in a lousy $500 a month for 40 years, she’ll retire with over $200,000 a year in retirement income — none of it subject to income tax.”

I’d love to see the illustration generated to show this.

]]> by: bawldguy http://www.bawldguy.com/whats-black-white-and-better-all-over-than-a-401k/#comment-2027 Fri, 06 Jul 2007 22:03:19 +0000 http://www.bawldguy.com/whats-black-white-and-better-all-over-than-a-401k/#comment-2027 Your question was so good, you've inspired a post -- thanks again Chris. Your question was so good, you’ve inspired a post — thanks again Chris.

]]> by: Chris Smith http://www.bawldguy.com/whats-black-white-and-better-all-over-than-a-401k/#comment-2026 Fri, 06 Jul 2007 21:47:13 +0000 http://www.bawldguy.com/whats-black-white-and-better-all-over-than-a-401k/#comment-2026 That's why we ask the questions. That’s why we ask the questions.

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