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Re: Question about options for annuities

There are rare people who are happy with their index annuity. I try not to rain on their parade but it should be clear that anyone who got a good deal such as a higher income riders needs to realize those offers have been removed so trying to promote the purchase of them today is a different situati...
by dhodson
Tue Nov 25, 2014 3:20 pm
 
Forum: Investing - Theory, News & General
Topic: Question about options for annuities
Replies: 9
Views: 549

Re: Question about options for annuities

You should look at what the insurance company does to guarantee no loss. Even without considering fees/commissions, they invest almost all of the money in their typical heavily bond/treasury portfolio. They take a very small percentage and invest in options to credit you some market participation. I...
by dhodson
Tue Nov 25, 2014 8:24 am
 
Forum: Investing - Theory, News & General
Topic: Question about options for annuities
Replies: 9
Views: 549

Re: Whole Life Transfer Questions

Maybe just have them surrender it

Have them gift 1/2 of it this year via a 529 plan and 1/2 in January
by dhodson
Mon Nov 24, 2014 6:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life Transfer Questions
Replies: 10
Views: 433

Re: Whole Life Transfer Questions

I'm not sure the value of the gift is the cash value. Seems I remember something about interpolated terminal reserve. Maybe an insurance person can clarify. I wouldn't worry about a $1,000 gift. It could be given to the couple resolving that. You might consider keeping the policy for a while. Might...
by dhodson
Mon Nov 24, 2014 6:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life Transfer Questions
Replies: 10
Views: 433

Re: Bumped out of first class at boarding - compensation?

I bet you find the rules for cash paying and rewards are written into the contracts. You probably will get something but less than what you are asking.
by dhodson
Mon Nov 24, 2014 4:48 pm
 
Forum: Personal Consumer Issues
Topic: Bumped out of first class at boarding - compensation?
Replies: 41
Views: 3971

Re: Appropriate amount of term life insurance

I'd go 1.5 to 2 million on her for 20 years and 500k for 10 years on him. He is older and likely more expensive. After 10 years, he isn't really contributing much to taking care of the kid. This assumes no further kids (which seems likely based on ages) and that they are both healthy and qualify for...
by dhodson
Mon Nov 24, 2014 4:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Appropriate amount of term life insurance
Replies: 10
Views: 985

Re: Jim Cramer dad & LTCI

Insurance companies already have lawyers on their books. Likely little extra costs for them.
by dhodson
Sun Nov 23, 2014 2:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: Jim Cramer Dad & LTCI
Replies: 30
Views: 3363

Re: Jim Cramer dad & LTCI

The question will be how much harder will it be to get paid if business is still going poorly for these companies.
by dhodson
Sat Nov 22, 2014 7:17 pm
 
Forum: Personal Finance (Not Investing)
Topic: Jim Cramer Dad & LTCI
Replies: 30
Views: 3363

Re: Jim Cramer dad & LTCI

In my view, SPIAs are less risky bc the assumptions the insurance company is making are fewer and they have better data. Of course im not aware of a company that just sells SPIAs so it might be possible that some products could take a company down unrelated to the SPIA one purchased.
by dhodson
Sat Nov 22, 2014 8:19 am
 
Forum: Personal Finance (Not Investing)
Topic: Jim Cramer Dad & LTCI
Replies: 30
Views: 3363

Re: Jim Cramer dad & LTCI

i think its a shame he doesn't list the name of the company. The only way these issues disappear is if it becomes very painful for the insurance company when exposed.
by dhodson
Fri Nov 21, 2014 10:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Jim Cramer Dad & LTCI
Replies: 30
Views: 3363

Re: Child's Education Savings (529) and life insurance plan

By the way nwm isn't typically competitively priced for term
by dhodson
Thu Nov 20, 2014 2:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: Child's Education Savings (529) and life insurance plan
Replies: 18
Views: 1626

Re: Selecting Charities for Donation

I agree that it is difficult to find ones that meet all the best criteria. I in particular don't like it when a large percentage goes to "overhead". I like the Fisher House stuff bc of its military association and Ronald McDonald house as well. Not perfect. I use these for my deductible ch...
by dhodson
Wed Nov 19, 2014 6:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Selecting Charities for Donation
Replies: 55
Views: 3287

Re: Pension buyout offer - Accept or reject

Unless I felt for some reason that they wouldn't be able to meet their obligations with the pension, then id personally keep it. Could you do better on your own? Sure but obviously they don't think they can.
by dhodson
Wed Nov 19, 2014 1:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pension buyout offer - Accept or reject
Replies: 45
Views: 3984

Re: Insurance Company Protection

That's also why you can't use insurance as an investment. They have no method to really guarantee results. When they have good actuarial knowledge with fewer assumptions like term life insurance then they can do a good job for both you and them. But in the real world even Bogleheads need to rely, l...
by dhodson
Wed Nov 19, 2014 10:22 am
 
Forum: Personal Finance (Not Investing)
Topic: Insurance Company Protection
Replies: 14
Views: 1032

Re: 20 Year Term Life Policies

It clearly says fraud there thus it's inappropriate to claim they will pay if fraud even after 2 years

They only have access to records if you tell them where you had care.
by dhodson
Tue Nov 18, 2014 10:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: 20 Year Term Life Policies
Replies: 14
Views: 1447

Re: Insurance Company Protection

That's also why you can't use insurance as an investment. They have no method to really guarantee results. When they have good actuarial knowledge with fewer assumptions like term life insurance then they can do a good job for both you and them.
by dhodson
Tue Nov 18, 2014 8:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Insurance Company Protection
Replies: 14
Views: 1032

Re: 20 Year Term Life Policies

Could you please find that in writing. Many insurance sites say the opposite. http://www.insureme.com/life-insurance/can-my-life-insurance-company-deny-claim-after-i-die Notice it says fraud any time. I don't doubt that first 2 years is the most scrutiny. I'll have to see if I can find that article ...
by dhodson
Tue Nov 18, 2014 8:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: 20 Year Term Life Policies
Replies: 14
Views: 1447

Re: Private Placement Life Insurance

All permanent insurance can "work" that way. Doesn't mean you should do it. These are typically variable universal life insurance polices.
You might want to Google unmet promises life insurance to get an idea how likely things are to work out as illustrated.
by dhodson
Tue Nov 18, 2014 7:19 pm
 
Forum: Investing - Theory, News & General
Topic: New Tony Robbins Book on Financial Freedom
Replies: 66
Views: 11408

Re: 20 Year Term Life Policies

Well last time I looked there were cases post two years but they involved lying and not just accidental. If I'm not mistaken the article written about it was in California. Also I don't think insurance companies should pay in cases of fraud.
by dhodson
Tue Nov 18, 2014 7:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: 20 Year Term Life Policies
Replies: 14
Views: 1447

Re: Self Employed Retirement options

Depends on how much money you wish to put away. SEP IRA is one of the easiest to use.
by dhodson
Mon Nov 17, 2014 10:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: Self Employed Retirement options
Replies: 9
Views: 875

Re: Third Year into Whole Life Insurance - Cutting the Loss

The recent thread on whole life reminded me that my husband bought a small whole life insurance for each of us through his work in January 2012. I have been trying to get him to cancel it for the last year, and finally got him to consider it this week. The policy is (of course) almost 100 page each...
by dhodson
Mon Nov 17, 2014 10:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Third Year into Whole Life Insurance - Cutting the Loss
Replies: 4
Views: 610

Re: Whole Life Insurance vs. 401k Contributions

Ps if you can tell me where I can get a SAFE compounded----and TAX FREE 7% rate of return.....I am all ears..... I haven't seen it yet. Whole life returned 6%-7% in the past... during the time that bonds returned 9% There is no whole life product today that is returning a guaranteed 7%. Even when w...
by dhodson
Mon Nov 17, 2014 8:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Whole Life Insurance vs. 401k Contributions
Replies: 59
Views: 3681

Re: Insurance Company Protection

They can also sell the block of business if they desire. As mentioned above, this type of situation isn't limited to insurance companies.
by dhodson
Mon Nov 17, 2014 8:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: Insurance Company Protection
Replies: 14
Views: 1032

Re: Whole Life Insurance vs. 401k Contributions

Whole life isn't really safe. You lose purchasing power compared to investing in bonds without the insurance company but if you want tax free then Roth. The problem is that tax free is a false goal. You want the most money after taking taxes into consideration and that isn't perm insurance.
by dhodson
Mon Nov 17, 2014 4:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Whole Life Insurance vs. 401k Contributions
Replies: 59
Views: 3681

Re: "The dangers of long-term care insurance"

There really aren't any funds. They have the power to get the other solvent companies to pony up at least up to the limits. One of the problems with a big company having problems is that there aren't a bunch of other strong ltci companies to bail them out if necessary. Nobody knows what will or wont...
by dhodson
Mon Nov 17, 2014 3:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: "The dangers of long-term care insurance"
Replies: 132
Views: 12933

Re: Whole Life Insurance vs. 401k Contributions

If you want a death benefit to go to your loved ones if you live to old age-----then term insurance solely is not the answer. If you have confidence in your market returns and a life insurance death benefit is not a consideration for you when and if you reach an older age, then whole life is not a ...
by dhodson
Mon Nov 17, 2014 1:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Whole Life Insurance vs. 401k Contributions
Replies: 59
Views: 3681

Re: "The dangers of long-term care insurance"

Neither state nor federal money is used with the state guaranty association. These polices have daily limits on what they pay so it wouldn't matter if health care skyrocketed (at least beyond the inflation rider offered). Yes the interest rate matters bc they invest very conservatively. If they coul...
by dhodson
Mon Nov 17, 2014 10:47 am
 
Forum: Personal Finance (Not Investing)
Topic: "The dangers of long-term care insurance"
Replies: 132
Views: 12933

Re: Having trouble finding joint term life insurance

If definitely get separate polices

Just bc of risk of divorce alone

But also allows you to drop one if desired.

There can't be much savings worth it.
by dhodson
Sun Nov 16, 2014 9:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Having trouble finding joint term life insurance
Replies: 1
Views: 214

Re: "The dangers of long-term care insurance"

There are several reasons but not all states have approved the rate increases and when they do increase rates there seems to be a selection issue where healthier people are more likely to drop the policy which further puts their assumptions out of whack. All these companies need new money as well to...
by dhodson
Sun Nov 16, 2014 9:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: "The dangers of long-term care insurance"
Replies: 132
Views: 12933

Re: "The dangers of long-term care insurance"

Genworth, a big LTC player, has recently had its bonds downgraded to junk. The story goes that their LTC business is worthless. Apparently, bad underwriting is the cause. I wonder how much of it was bait and switch—they kept raising the premiums. Also, Genworth policies were very popular with the s...
by dhodson
Sun Nov 16, 2014 8:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: "The dangers of long-term care insurance"
Replies: 132
Views: 12933

Re: Whole Life Insurance vs. 401k Contributions

In case people dont recognize it, if you look at his other posts you will realize, Deapsea sells life insurance.
by dhodson
Sun Nov 16, 2014 8:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Whole Life Insurance vs. 401k Contributions
Replies: 59
Views: 3681

Re: Whole Life Insurance vs. 401k Contributions

Whole life IF any gains is also taxed as income when surrendered. Most whole life currently has a zero return at 17 years WITH the non guaranteed dividends. As mentioned in the above linked article, it doesn't make sense to invest in such a manner over your entire life. The power of compounding make...
by dhodson
Sun Nov 16, 2014 1:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Whole Life Insurance vs. 401k Contributions
Replies: 59
Views: 3681

Re: Whole Life Insurance vs. 401k Contributions

It's easy to compare a bad choice to a poor choice. I suppose there are folks who wish they had bought whole life insurance instead of Enron stock. Actually you are being generous. About 1/3 of people surrender WL within the first few years and get about the same return as those who purchased Enron.
by dhodson
Sun Nov 16, 2014 1:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Whole Life Insurance vs. 401k Contributions
Replies: 59
Views: 3681

Re: Whole Life Insurance vs. 401k Contributions

dhodson wrote:after around 30 years the returns actually get worse

EE bonds are guaranteed by the U.S. govt. whole life isn't and even the insurance company's guarantee is a lot worse than those numbers.


Of course If one sells insurance they typically have a positive view on it.
by dhodson
Sun Nov 16, 2014 12:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Whole Life Insurance vs. 401k Contributions
Replies: 59
Views: 3681

Re: Whole Life Insurance vs. 401k Contributions

after around 30 years the returns actually get worse

EE bonds are guaranteed by the U.S. govt. whole life isn't and even the insurance company's guarantee is a lot worse than those numbers.
by dhodson
Sun Nov 16, 2014 12:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Whole Life Insurance vs. 401k Contributions
Replies: 59
Views: 3681

Re: Whole Life Insurance vs. 401k Contributions

Whole is front loaded with expenses in the beginning. If you have bought it---then it is very tempting to drop it in the beginning. Over a long period of time 10 years plus....generally it makes more sense to keep it, as it becomes a better and better deal. If you can afford to keep it over the lon...
by dhodson
Sun Nov 16, 2014 8:46 am
 
Forum: Investing - Help with Personal Investments
Topic: Whole Life Insurance vs. 401k Contributions
Replies: 59
Views: 3681

Re: Whole Life Insurance vs. 401k Contributions

Why do you want to pay interest to access your money?
by dhodson
Thu Nov 13, 2014 2:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Whole Life Insurance vs. 401k Contributions
Replies: 59
Views: 3681

Re: Whole Life Insurance vs. 401k Contributions

Might want to read the insurance posts at whitecoatinvestor.com
by dhodson
Thu Nov 13, 2014 11:46 am
 
Forum: Investing - Help with Personal Investments
Topic: Whole Life Insurance vs. 401k Contributions
Replies: 59
Views: 3681

Re: Insurance is a bad investment - My policy as example

In your graph you say that you ignore the value of the insurance. That really isn't reasonable you should subtract out what the cost of a similar term policy would have been. No, this is an investment analysis. The purpose was to show that permanent life insurance is a very bad investment for colle...
by dhodson
Tue Nov 11, 2014 10:45 pm
 
Forum: Investing - Theory, News & General
Topic: Insurance is a bad investment for college saving - My policy
Replies: 14
Views: 1140

Re: Insurance is a bad investment - My policy as example

In your graph you say that you ignore the value of the insurance. That really isn't reasonable you should subtract out what the cost of a similar term policy would have been. No, this is an investment analysis. If you are investing for college you don't need life insurance. Even if you did, its not...
by dhodson
Tue Nov 11, 2014 10:16 pm
 
Forum: Investing - Theory, News & General
Topic: Insurance is a bad investment for college saving - My policy
Replies: 14
Views: 1140

Re: Insurance is a bad investment - My policy as example

Unfortunately, agents will try to convince folks that your experience is atypical or that a policy can be crafted such that you will be happy. As long as they guarantee it one will know if it is good. And when they won't guarantee good returns, one should buy term and invest the rest. Well as you n...
by dhodson
Tue Nov 11, 2014 9:15 pm
 
Forum: Investing - Theory, News & General
Topic: Insurance is a bad investment for college saving - My policy
Replies: 14
Views: 1140

Re: Insurance is a bad investment - My policy as example

Unfortunately, agents will try to convince folks that your experience is atypical or that a policy can be crafted such that you will be happy.
by dhodson
Tue Nov 11, 2014 8:17 pm
 
Forum: Investing - Theory, News & General
Topic: Insurance is a bad investment for college saving - My policy
Replies: 14
Views: 1140

Re: In-Laws took out a Universal Variable Life Insurance for

He uses an in force illustration to make his statements so get that first and then decide IF you need his assistance.

I've used his services myself in the past.
by dhodson
Tue Nov 11, 2014 1:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: In-Laws took out a Universal Variable Life Insurance for...
Replies: 3
Views: 464

Re: In-Laws took out a Universal Variable Life Insurance for

You need to call the insurance company and ask for an in force illustration. It will show you what is guaranteed and what is currently illustrated in regards to performance/lapse.

Paying monthly by the way may have additional charges instead of paying yearly.
by dhodson
Tue Nov 11, 2014 11:23 am
 
Forum: Personal Finance (Not Investing)
Topic: In-Laws took out a Universal Variable Life Insurance for...
Replies: 3
Views: 464

Re: "The dangers of long-term care insurance"

If I'm not mistaken, today they announced suspension of sales in 2 states.
by dhodson
Mon Nov 10, 2014 8:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: "The dangers of long-term care insurance"
Replies: 132
Views: 12933

Re: Lincoln Financial Fixed fund

Ask for the prospectus
by dhodson
Mon Nov 10, 2014 5:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Lincoln Financial Fixed fund
Replies: 3
Views: 333

Re: One Person Defined Benefit Plan

The ease is that if you had a large amount in your sep then the conversion is more costly or if you had a sep and we're starting this process but only converting new Ira money that the conversion is more complicated
by dhodson
Mon Nov 10, 2014 1:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: One Person Defined Benefit Plan
Replies: 49
Views: 3607

Re: One Person Defined Benefit Plan

The main reason in my view to go 401k/ps (which is what I have) is ease of doing a backdoor Roth. That is what I have done with my entire SEP IRA money over time- and that is why all of my retirement savings at this point are post-tax. I will do the same with the SEP IRA part of the combined plan. ...
by dhodson
Mon Nov 10, 2014 10:06 am
 
Forum: Personal Finance (Not Investing)
Topic: One Person Defined Benefit Plan
Replies: 49
Views: 3607

Re: One Person Defined Benefit Plan

Ubermax, Good summary! I am leaning toward the combo DB Plan / SEP IRA- I realize I am leaving potential tax deductions "on the table" by not setting up a solo 401k, but I have the SEP IRA already in place. For the sake of simplicity I will probably just continue to fund it, albeit at a r...
by dhodson
Mon Nov 10, 2014 8:53 am
 
Forum: Personal Finance (Not Investing)
Topic: One Person Defined Benefit Plan
Replies: 49
Views: 3607
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