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Re: disconcerting insurance company downgrade

you cant which is actually the same for most company statements.
No matter what you do, its really hard to predict far into the future.
I think your strategy will work just fine in the short run. But if you expect it to protect you decades into the future then id say it just wont do that.
by dhodson
Sun Aug 31, 2014 5:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: disconcerting insurance company downgrade
Replies: 16
Views: 1113

Re: disconcerting insurance company downgrade

Well then id say they shouldnt have a case at all. The assoc is supposed to protect consumers not do the job of a company looking to partner with this insurance company. They need to do their own due diligence and not pretend its the job of the state to help them make money. Looks like they didnt kn...
by dhodson
Sun Aug 31, 2014 4:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: disconcerting insurance company downgrade
Replies: 16
Views: 1113

Re: disconcerting insurance company downgrade

According to the article you linked the concern isn't with claims-paying ability, but with the ability to pay interest and principal on time to holders of senior debt. ... A.M. Best said its revised ratings takes into consideration the Bermuda insurer and reinsurer’s recent regulatory filing that d...
by dhodson
Sun Aug 31, 2014 3:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: disconcerting insurance company downgrade
Replies: 16
Views: 1113

Re: disconcerting insurance company downgrade

Ratings are backwards looking so they don't predict far into the future.

I find the weaker companies need to have cheaper rates.

For items where one can easily pick up new insurance, I don't worry much about it. For items where it might be difficult to get new insurance then it's more concerning.
by dhodson
Sun Aug 31, 2014 11:33 am
 
Forum: Personal Finance (Not Investing)
Topic: disconcerting insurance company downgrade
Replies: 16
Views: 1113

Re: Colleague being fleeced by insurance agent / Ponzi Schem

Tell this person to get an inforce illustration

They will soon see what actually is guaranteed


Bottom line is that if it's whole life then the return isn't guaranteed to be a real 4% once you subtract fees etc.
by dhodson
Sat Aug 30, 2014 9:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Colleague being fleeced by insurance agent / Ponzi Scheme?
Replies: 9
Views: 1282

Re: Ideas for thanking a doctor

Over the years I've gotten a lot of things. None of it was necessary and as mentioned by others just saying thanks or a card is great. Now if you for some reason want to go way beyond then I'll suggest something original or creative. Most of the time if u bring cookies or candies it gets passed on t...
by dhodson
Sat Aug 30, 2014 1:31 pm
 
Forum: Personal Consumer Issues
Topic: Ideas for thanking a doctor
Replies: 58
Views: 2495

Re: should I buy a 5 yr annuity to get me to 70

You sure it's a variable annuity?

Is it lifetime payments or just 5 years?
by dhodson
Fri Aug 29, 2014 4:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: should I buy a 5 yr annuity to get me to 70
Replies: 8
Views: 704

Re: should I buy a 5 yr annuity to get me to 70

May wish to tell us what kind of annuity you are considering
by dhodson
Fri Aug 29, 2014 3:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: should I buy a 5 yr annuity to get me to 70
Replies: 8
Views: 704

Re: When, if ever, should an annuity be used in retirement p

I don't believe you learn the full truth at these dinners. Those "Captain Obvious" commercials come to mind here. Trouble is that there are some here who feel if you go to enough of them that you will eventually. It's actually more likely that you will become brainwashed with 1/2 truths.
by dhodson
Fri Aug 29, 2014 9:22 am
 
Forum: Investing - Help with Personal Investments
Topic: When, if ever, should an annuity be used in retirement plans
Replies: 32
Views: 2304

Re: When, if ever, should an annuity be used in retirement p

I don't believe you learn the full truth at these dinners.
by dhodson
Fri Aug 29, 2014 8:33 am
 
Forum: Investing - Help with Personal Investments
Topic: When, if ever, should an annuity be used in retirement plans
Replies: 32
Views: 2304

Re: Berkshire Hathaway Inc. or a Vanguard Variable Annuity

i find it interesting that you can be so close that the dividend pushes you over. Any little bit such as a raise then would be considered a major negative event. In any event, these arent comparable investments. With BRK you have a single stock and thus more risk. Remember i own BRK so i realize its...
by dhodson
Thu Aug 28, 2014 10:07 pm
 
Forum: Investing - Theory, News & General
Topic: Berkshire Hathaway Inc. or a Vanguard Variable Annuity
Replies: 33
Views: 2301

Re: When, if ever, should an annuity be used in retirement p

What are your thoughts on using a variable annuity as a long-term tax deferred investment with minimum fees? For instance, I I'm young and have a large amount of cash to invest, far too much for a typical retirement account. I believe vanguard fees can get around .5% for a variable annuity (not cou...
by dhodson
Thu Aug 28, 2014 10:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: When, if ever, should an annuity be used in retirement plans
Replies: 32
Views: 2304

Re: Berkshire Hathaway Inc. or a Vanguard Variable Annuity

That's still just taxes and doesn't change things much unless you have some additional reason.
by dhodson
Wed Aug 27, 2014 4:52 pm
 
Forum: Investing - Theory, News & General
Topic: Berkshire Hathaway Inc. or a Vanguard Variable Annuity
Replies: 33
Views: 2301

Re: Permanent life insurance after maxing out IRA, 401K

You don't need an annuity now to have an income stream later. Just buy the spia at that later point in time.
by dhodson
Wed Aug 27, 2014 3:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: Permanent life insurance after maxing out IRA, 401K
Replies: 6
Views: 491

Re: Life insurance with Long term care rider

bluemarlin08 wrote:It is a freebie, the company priced as such.



When even the agents agree, you know there is a problem
by dhodson
Wed Aug 27, 2014 2:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: Life insurance with Long term care rider
Replies: 34
Views: 1847

Re: Berkshire Hathaway Inc. or a Vanguard Variable Annuity

It's not really a great reason to pick something bc of no dividends. It's too much letting the tax angle force a less optimal decision. The annuity also is taxed as income on gains. If I were to purchase a stock in taxable then I like brk but I understand that still it's just a stock and not diversi...
by dhodson
Wed Aug 27, 2014 1:13 pm
 
Forum: Investing - Theory, News & General
Topic: Berkshire Hathaway Inc. or a Vanguard Variable Annuity
Replies: 33
Views: 2301

Re: Term to Perm Insurance

I have the option to convert some or all of my 15-year term policy to permanent at the end of the level premium term, which is next year. I figured it would be ridiculously expensive but actually it's not totally absurd; the universal life premium is about 10x what the term premium was, and of cour...
by dhodson
Wed Aug 27, 2014 11:21 am
 
Forum: Personal Finance (Not Investing)
Topic: Term to Perm Insurance
Replies: 4
Views: 227

Re: Term to Perm Insurance

As a general rule it's only a good idea if your health has substantially declined and you are likely to die within a few years after the term expired. Otherwise bad idea. The policy should allow conversion through the entire term if you want this option.
by dhodson
Wed Aug 27, 2014 9:01 am
 
Forum: Personal Finance (Not Investing)
Topic: Term to Perm Insurance
Replies: 4
Views: 227

Re: Permanent life insurance after maxing out IRA, 401K

Hi all, I've been doing some Googling around and searching on the forums, and haven't seen much advice regarding whole/permanent life insurance for someone who is maxing out their 401K/IRA. My sister was talked into buying a policy for $250 per month. I've talked to the salesman, who is also a fina...
by dhodson
Wed Aug 27, 2014 12:21 am
 
Forum: Personal Finance (Not Investing)
Topic: Permanent life insurance after maxing out IRA, 401K
Replies: 6
Views: 491

Re: Life insurance with Long term care rider

He means likely the term will be over when you need ltc so the rider won't help you then.
by dhodson
Tue Aug 26, 2014 7:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Life insurance with Long term care rider
Replies: 34
Views: 1847

Re: Life insurance with Long term care rider

That last line is so true in every insurance contract situation.
by dhodson
Tue Aug 26, 2014 4:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Life insurance with Long term care rider
Replies: 34
Views: 1847

Re: Inflation-indexed SPIAs: A Good Deal?

I know but the gist is the same. I forget which insurance-annuity company said it in the prospectus that if you take the option, the option fee will be used to buy hedging strategies. You think that the insurance-annuity company would take most or all of the risk? not really. There are no possibili...
by dhodson
Sun Aug 24, 2014 9:16 pm
 
Forum: Investing - Theory, News & General
Topic: Inflation-indexed SPIAs: A Good Deal?
Replies: 22
Views: 2905

Re: Best nose hair trimmer (is this okay to ask?)

These are a hit or miss item since they are mostly low cost with low quality control. I've used the first two ones listed in the review article and found them to be fine. Just going with most stars on amazon also works fine. These things have variable lifespans.
by dhodson
Sun Aug 24, 2014 9:00 am
 
Forum: Personal Consumer Issues
Topic: Best nose hair trimmer (is this okay to ask?)
Replies: 36
Views: 2647

Re: Inflation-indexed SPIAs: A Good Deal?

A good deal? Compared to What? When we bought VA and deferred Index, 5 years ago (2008), I only made conservative assumptions the annuity company guaranteed for 5 years. and I made nebulous guesses for 10 years. So now, we are at 5+ year mark, and the annuity values greatly have exceeded the guaran...
by dhodson
Sat Aug 23, 2014 6:07 pm
 
Forum: Investing - Theory, News & General
Topic: Inflation-indexed SPIAs: A Good Deal?
Replies: 22
Views: 2905

Re: Do the mega wealthy need life insurance?

That's why the quote says if you are talking permanent insurance
by dhodson
Thu Aug 21, 2014 3:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do the mega wealthy need life insurance?
Replies: 32
Views: 2546

Re: Why aren't annuities better than investment drawdowns?

You are only talking about a lifetime SPIA. That is just one type of annuity. There are several other types of annuities. A SPIA is more useful when you don't care about leaving money behind. That is not true. Let's assume you have $4M at the start of retirement. Buy an SPIA with $2M and live it up...
by dhodson
Wed Aug 20, 2014 10:35 pm
 
Forum: Investing - Theory, News & General
Topic: Why aren't annuities better than investment drawdowns?
Replies: 46
Views: 2909

Re: Why aren't annuities better than investment drawdowns?

However, your comparison of the percentages isn't right. A "drawdown rate" usually assumes that the principal won't be depleted, or not too quickly. The "annuity rate" includes both the return ON your initial money and the return, slowly over the years, OF your initial money, so...
by dhodson
Wed Aug 20, 2014 10:04 pm
 
Forum: Investing - Theory, News & General
Topic: Why aren't annuities better than investment drawdowns?
Replies: 46
Views: 2909

Re: Why aren't annuities better than investment drawdowns?

As mentioned above by researchmd that includes a return of principal and thus isn't a real 6.3% yield. Besides that you have to realize what the insurance company does. It takes the money and invests it within its general accounts which are primarily bonds/treasuries. The insurance company can't cur...
by dhodson
Wed Aug 20, 2014 8:46 pm
 
Forum: Investing - Theory, News & General
Topic: Why aren't annuities better than investment drawdowns?
Replies: 46
Views: 2909

Re: Why aren't annuities better than investment drawdowns?

It is very very unlikely that what you found is a guaranteed 6.3%.

You may wish to link the product since there are a lot of different types of annuities and then someone can tell you why you aren't getting 6.3% yearly.
by dhodson
Wed Aug 20, 2014 7:51 pm
 
Forum: Investing - Theory, News & General
Topic: Why aren't annuities better than investment drawdowns?
Replies: 46
Views: 2909

Re: Unlimited cell plans dropping in price?

Web browsing doesn't use much but video watching does.
by dhodson
Wed Aug 20, 2014 6:49 pm
 
Forum: Personal Consumer Issues
Topic: Unlimited cell plans dropping in price?
Replies: 40
Views: 3263

Re: Do the mega wealthy need life insurance?

For a standard risk, not standard plus or preferred or preferred plus, rates would be closer to 4 million per year per year on a NLUL policy. I just wrote a 4 million policy on a 70 year old and he made preferred plus rating. OK, but how long can he keep renewing that (term?) policy at reasonable r...
by dhodson
Wed Aug 20, 2014 12:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do the mega wealthy need life insurance?
Replies: 32
Views: 2546

Re: Do the mega wealthy need life insurance?

I would disagree with cheap form. I do not work in the finance or insurance industry and these are my personal views. If you are talking term then while it is cheap then it likely wont be in force when you die (which is why it is cheap)... Why wouldn't it be in force when you die? Is it too expensi...
by dhodson
Wed Aug 20, 2014 10:44 am
 
Forum: Personal Finance (Not Investing)
Topic: Do the mega wealthy need life insurance?
Replies: 32
Views: 2546

Re: Do the mega wealthy need life insurance?

TN_INVEST wrote:[quote="danieljquirk"
Obviously, the need to provide for your family is not a reason. Maybe, if your assets aren't liquid (i.e. it is mostly land)? But lets assume most of your assets are liquid. Are there tax or estate-planning reasons to do it?



Some folks like to give/pledge their assets to charity to avoid paying capital gains taxes while they are alive and "replace" that pledged asset with tax free life insurance death benefit.[/quote]


Stocks get a step up basis at death.
by dhodson
Wed Aug 20, 2014 10:13 am
 
Forum: Personal Finance (Not Investing)
Topic: Do the mega wealthy need life insurance?
Replies: 32
Views: 2546

Re: Do the mega wealthy need life insurance?

See http://www.elderlawanswers.com/make-sure-your-life-insurance-is-not-taxed-at-your-death-8296 for a discussion of the estate tax issue with life insurance. Anything owned outside the estate like in an irrevocable trust avoids estate taxes. That isn't unique to life insurance. Life insurance is t...
by dhodson
Wed Aug 20, 2014 9:31 am
 
Forum: Personal Finance (Not Investing)
Topic: Do the mega wealthy need life insurance?
Replies: 32
Views: 2546

Re: Do the mega wealthy need life insurance?

I would disagree with cheap form. I do not work in the finance or insurance industry and these are my personal views. If you are talking term then while it is cheap then it likely wont be in force when you die (which is why it is cheap). If you are talking permanent insurance then likely you could ...
by dhodson
Wed Aug 20, 2014 8:47 am
 
Forum: Personal Finance (Not Investing)
Topic: Do the mega wealthy need life insurance?
Replies: 32
Views: 2546

Re: Do the mega wealthy need life insurance?

Depends on your health but it could easily be more than that. Let's just say they anticipate you will live around the average and thus 10 years. The premiums you pay they invest in their general account primarily of bonds/treasuries and have fees/commissions to pay but still come up with 100 million...
by dhodson
Tue Aug 19, 2014 11:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do the mega wealthy need life insurance?
Replies: 32
Views: 2546

Re: Do the mega wealthy need life insurance?

I would disagree with cheap form. I do not work in the finance or insurance industry and these are my personal views. If you are talking term then while it is cheap then it likely wont be in force when you die (which is why it is cheap). If you are talking permanent insurance then likely you could h...
by dhodson
Tue Aug 19, 2014 10:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do the mega wealthy need life insurance?
Replies: 32
Views: 2546

Re: Inflation-indexed SPIAs: A Good Deal?

The insurance company has to take the money they receive and minus all their expenses invest it in the manner which they think will provide the greatest return but providing the type of stability they need to ensure their operations aren't jeopardized by swings. Even though TIPS match inflation, doe...
by dhodson
Mon Aug 18, 2014 10:09 pm
 
Forum: Investing - Theory, News & General
Topic: Inflation-indexed SPIAs: A Good Deal?
Replies: 22
Views: 2905

Re: Inflation-indexed SPIAs: A Good Deal?

These products have caps and thus don't necessarily keep up with inflation. No, they don't. Or not necessarily. Please try not to say important things like that, casually, without checking your facts. It took me all of ten minutes to get this information from Vanguard's insurance partner: http://s3...
by dhodson
Mon Aug 18, 2014 8:45 pm
 
Forum: Investing - Theory, News & General
Topic: Inflation-indexed SPIAs: A Good Deal?
Replies: 22
Views: 2905

Re: Parents bought universal life — what next?

Those are good questions but add guaranteed to keep in force
by dhodson
Mon Aug 18, 2014 3:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Parents bought universal life — what next?
Replies: 11
Views: 1630

Re: Defined Benefit Plan Costs?

You have two choices, each will carry it's own set of reactions - make the pitch for the "car allowance" (personally, I don't think that will get you any positive traction and may create ill will with your employer putting you high on the list for the first to go in a layoff) or start loo...
by dhodson
Mon Aug 18, 2014 12:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: Defined Benefit Plan Costs?
Replies: 36
Views: 1816

Re: Stubhub/Ticketmaster Credit Card Entry

I believe it depends on the original ticket purchase as to which ones are sent via email or snail mail since this is a resale.
by dhodson
Mon Aug 18, 2014 11:02 am
 
Forum: Personal Consumer Issues
Topic: Stubhub/Ticketmaster Credit Card Entry
Replies: 8
Views: 1174

Re: Inflation-indexed SPIAs: A Good Deal?

These products have caps and thus don't necessarily keep up with inflation.
by dhodson
Mon Aug 18, 2014 8:40 am
 
Forum: Investing - Theory, News & General
Topic: Inflation-indexed SPIAs: A Good Deal?
Replies: 22
Views: 2905

Re: Tax deferred annuity [Withdrawal strategy questions]

while the OP likely could take a lump sum instead of a "payment plan", then all the gains would be taxed as income that year. I believe the OP is trying to avoid that.
by dhodson
Sun Aug 17, 2014 7:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax deferred annuity [Withdrawal strategy questions]
Replies: 5
Views: 424

Re: Cost of Medical Records

If this hospitalization was long or involved significant surgery or ICU type care then those charges are appropriate. Its a lot of pages. It might seem like an excessive number of pages at this time but during the hospitalization, these are important.
by dhodson
Sun Aug 17, 2014 1:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Cost of Medical Records
Replies: 16
Views: 1067

Re: How much do you plan to save in your 529 plan?

The only wrinkle I see is your retirement plans. The reason I say that is I assume your income would be a lot less when your child goes to college. I normally think playing the aid game is a bad idea and doesn't work out but id be considering putting my money into non or less likely to count assets ...
by dhodson
Sun Aug 17, 2014 1:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: How much do you plan to save in your 529 plan?
Replies: 60
Views: 6793

Re: which insurance company?

The problem becomes unfortunately that ratings reflect current operations. Just think about how quickly ratings for other very big companies have gone down in your lifetime. The other issue is that sometimes the payout is less for a good one and you have to decide how to value that. As several menti...
by dhodson
Sat Aug 16, 2014 4:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: which insurance company?
Replies: 7
Views: 675

Re: How to "fix" bad investments? (Whole Life & Annuity Roth

Paying monthly on whole life has additional fees compared to paying yearly. This impacts the low return. I am not in the finance or insurance industry but if it were me, I'd immediately dump your WL. For your husband, request an in force illustration to evaluate his policy. Look at the guaranteed an...
by dhodson
Thu Aug 14, 2014 9:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to "fix" bad investments? (Whole Life & Annuity Roth)
Replies: 5
Views: 499

Re: MDs should I contest hospital privileges?

Unless you are willing to continue CME and prove continued competency and activity within medicine, they pretty much need to cancel your privileges.

I understand how it seems like a kick in the teeth but they shouldn't allow people to remain on the books who aren't practicing medicine.
by dhodson
Thu Aug 14, 2014 11:18 am
 
Forum: Personal Finance (Not Investing)
Topic: MDs should I contest hospital privileges?
Replies: 16
Views: 1784
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