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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: 1
Views: 21

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: 5
Views: 280

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: 26
Views: 1404

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: 26
Views: 1404

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: 2875

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: 2604

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: 2875

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: 2538

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: 2886

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: 2886

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: 2886

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: 2886

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: 3248

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: 2538

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: 2538

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: 2538

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: 2538

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: 2538

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: 2538

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: 2538

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: 2875

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: 2875

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: 1629

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: 1787

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: 1162

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: 2875

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: 421

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: 6723

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: 673

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: 498

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: 1781

Re: Medical practice buy-in

In emergency medicine the "buy-in" is generally working for a lower salary during your partnership track (1-3 years.) The buy out is generally a function of accounts receivable. But there's not much in the way of equipment. Even our office building is owned by a separate partnership than ...
by dhodson
Wed Aug 13, 2014 2:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: Medical practice buy-in
Replies: 43
Views: 4486

Re: Medical practice buy-in

I'm not sure how familiar you are with lasers but lasers are like cars where the value goes down and down each year. I frequently find that people over estimate the value of the laser they want to sell. Way too many of my friends have lost money taking on lasers that didn't generate the revenue they...
by dhodson
Wed Aug 13, 2014 1:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: Medical practice buy-in
Replies: 43
Views: 4486

Re: What to do with old Annuity

I bought the annuity because of a high pressure Metlife sales rep when I was in my early 20s. As far as death benefits, I'm single and have other insurance policies, so that's not an issue. I sense many of you recommend not adding to the annuity. Why is this? I'm not an expert, but I thought annuit...
by dhodson
Wed Aug 13, 2014 10:44 am
 
Forum: Investing - Help with Personal Investments
Topic: What to do with old Annuity
Replies: 12
Views: 1079

Re: Too Good to be True? Universal Life

That's why he won't be able to increase the face value. Why would they without confirming his health? Even if he did then not all of that 100k would go into the subaccounts. He would need to keep paying for more insurance then he currently carries. Overfunding up to the Mec limt is as far as he coul...
by dhodson
Tue Aug 12, 2014 10:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Too Good to be True? Universal Life
Replies: 11
Views: 1081

Re: What to do with old Annuity

I'm not sure I would contribute more

A taxable account isn't evil

Somethings are reasonably tax efficient. You can also tax loss harvest, pay capital gains instead of income tax rates, and have improved liquidity with cheaper investment options.
by dhodson
Tue Aug 12, 2014 5:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: What to do with old Annuity
Replies: 12
Views: 1079

Re: Why would anyone buy a deferred income annuity?

while i understand what you are saying, if it was near 1:1 offset then they wouldnt "need" to use different tables? It may be they offset and the insurance company has decided to use the table that provides them the most money and was approved at the state insur comm level (maybe thats an ...
by dhodson
Sun Aug 10, 2014 7:22 pm
 
Forum: Investing - Theory, News & General
Topic: Why would anyone buy a deferred income annuity?
Replies: 59
Views: 4605

Re: Spreadsheet calculating returns of IUL / 7702 Pension Pl

Social Security is the only "forced savings" plan there is. But an interesting thought. Won't customers of a mutual insurance company (one owned by the policy holders) want a high lapse rate? All that "dumb money" left on the table eventually will trickle into the benefits of th...
by dhodson
Sun Aug 10, 2014 4:46 pm
 
Forum: Investing - Theory, News & General
Topic: Spreadsheet calculating returns of IUL / 7702 Pension Plan
Replies: 19
Views: 1275

Re: Physician Long term Disability- Premium pre or post tax

If you look at the math then the math says better deal pretax........but i still wouldnt do it that way. The reason is primarily as noted above that IF you ever become disabled, you will in essence be much closer to your previous salary (since its tax free if done post taxes). You have such a good d...
by dhodson
Sun Aug 10, 2014 4:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Physician Long term Disability- Premium pre or post tax
Replies: 12
Views: 748

Re: Why would anyone buy a deferred income annuity?

for immediate annuities, you start getting money right away so no chance practically

well ill say the insurance companies use different tables for life insurance then they do for annuities so they at least believe there is adverse selection issues.
by dhodson
Sun Aug 10, 2014 2:23 pm
 
Forum: Investing - Theory, News & General
Topic: Why would anyone buy a deferred income annuity?
Replies: 59
Views: 4605

Re: Why would anyone buy a deferred income annuity?

In the later years, once mortality credits become sufficiently large, an SPIA might make sense to help with longevity risk. Jim Jim, I think your general approach makes sense, but I notice that you don't seem to give much value to the mortality credits between say 70 and 85. I'm confused by this. B...
by dhodson
Sun Aug 10, 2014 12:06 pm
 
Forum: Investing - Theory, News & General
Topic: Why would anyone buy a deferred income annuity?
Replies: 59
Views: 4605

Re: Spreadsheet calculating returns of IUL / 7702 Pension Pl

exactly if anything permanent insurance only aggravates a known problem where people get out of an investment at the wrong time bc it isnt living up to expectations. I have yet to see any actual evidence that insurance changes behavior and the truth is it just aggravates a known problem where people...
by dhodson
Sun Aug 10, 2014 12:04 pm
 
Forum: Investing - Theory, News & General
Topic: Spreadsheet calculating returns of IUL / 7702 Pension Plan
Replies: 19
Views: 1275

Re: Flooring for home gym

probably it will but the question is does it really matter? likely most of the mats over time would do similar id guess and its either that or go "bare" and just see what happens regarding the current surface without any protection. to me it doesnt seem worth it to rip whats out unless/unt...
by dhodson
Sun Aug 10, 2014 11:59 am
 
Forum: Personal Consumer Issues
Topic: Flooring for home gym
Replies: 19
Views: 1266

Re: Spreadsheet calculating returns of IUL / 7702 Pension Pl

Just google unmet promises life insurance
by dhodson
Sun Aug 10, 2014 12:29 am
 
Forum: Investing - Theory, News & General
Topic: Spreadsheet calculating returns of IUL / 7702 Pension Plan
Replies: 19
Views: 1275

Re: Why would anyone buy a deferred income annuity?

The criticism implies that annuities are nothing but flawed. How about some diversification of various risks using a variety of products in spite of their known flaws? As I tried to show in my post above, if the goal is a relatively safe real retirement income, these products just can't do the job ...
by dhodson
Sat Aug 09, 2014 4:53 pm
 
Forum: Investing - Theory, News & General
Topic: Why would anyone buy a deferred income annuity?
Replies: 59
Views: 4605

Re: Modified Endowment Contract Work Around

good for you. You must have found a secret passage to wealth that involves better returns with lower risks..... Keep going. Dont ask for the illustration as ive mentioned several times. If you dont care about taxes then you really shouldnt care if you MEC it. Im not sure why you made this post since...
by dhodson
Sat Aug 09, 2014 1:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: Modified Endowment Contract Work Around
Replies: 9
Views: 300

Re: Modified Endowment Contract Work Around

Well DoD approved means there office is on a DoD installation, no other company that solicits to military members is behind the wire. That's what that means and they are allowed to solicit DoD personnel. But, correct nothing is guaranteed, but both companies are A+++ approved as their risk pool is ...
by dhodson
Sat Aug 09, 2014 12:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Modified Endowment Contract Work Around
Replies: 9
Views: 300

Re: Vanguard quietly adds longevity annuities

well the guarantee you are talking about is only as good as the insurance company's ability to pay.
by dhodson
Sat Aug 09, 2014 11:40 am
 
Forum: Investing - Theory, News & General
Topic: Vanguard quietly adds longevity annuities
Replies: 85
Views: 6800
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