Search found 3884 matches

by dhodson
Wed Jul 01, 2015 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: Drop a 3 year old Indexed Universal Life Insurance policy?
Replies: 44
Views: 2431

Re: Drop a 3 year old Indexed Universal Life Insurance policy?

You very likely only looked at the next few years at 0%. It would not have stayed in force indefinitely at 0%. If you looked up the article I mentioned, you would likely have realize that when she takes money out in retirement, down years in combination with those loans make the unrealistic x% per y...
by dhodson
Wed Jul 01, 2015 7:41 am
Forum: Personal Finance (Not Investing)
Topic: Drop a 3 year old Indexed Universal Life Insurance policy?
Replies: 44
Views: 2431

Re: Drop a 3 year old Indexed Universal Life Insurance policy?

It isn't savings. It's life insurance. Over time the cost of insurance increases and the cash value goes down paying for it especially if you use unrealistic assumptions on returns of such a policy and doubly so if u take loans. Then not only do you lose the death benefit, you get taxed all at once ...
by dhodson
Tue Jun 30, 2015 9:30 pm
Forum: Personal Finance (Not Investing)
Topic: Drop a 3 year old Indexed Universal Life Insurance policy?
Replies: 44
Views: 2431

Re: Drop a 3 year old Indexed Universal Life Insurance policy?

Right she would have been in the 20% that keep it in force. She would have been able to navigate the loan situation in retirement. Might want to google unmet promises life insurance and read the article written by people who sell this. You will find out that the chance of meeting that illustration i...
by dhodson
Tue Jun 30, 2015 8:53 pm
Forum: Personal Finance (Not Investing)
Topic: Drop a 3 year old Indexed Universal Life Insurance policy?
Replies: 44
Views: 2431

Re: Drop a 3 year old Indexed Universal Life Insurance policy?

Forced savings is bs.

Agents say that all the time but people surrender these polices the majority of the time so it doesn't work as forced savings.
by dhodson
Tue Jun 30, 2015 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: Buying disability insurance--how do you actually do it?
Replies: 1
Views: 147

Re: Buying disability insurance--how do you actually do it?

You should read over at whitecoatinvestor.com

No you can't buy direct and it wouldn't save you anything any way.

Just be sure to avoid permanent life insurance and don't buy term insurance either from them since there are much cheaper alternatives.
by dhodson
Mon Jun 29, 2015 9:32 pm
Forum: Investing - Help with Personal Investments
Topic: TFFR/Whole Life Question/Advise
Replies: 13
Views: 805

Re: TFFR/Whole Life Question/Advise

You want a cheaper company for term
by dhodson
Mon Jun 29, 2015 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Drop a 3 year old Indexed Universal Life Insurance policy?
Replies: 44
Views: 2431

Re: Drop a 3 year old Indexed Universal Life Insurance policy?

People who don't invest the difference surrender permanent insurance for a large loss. They don't keep it in force and typically pay huge fees for "investing" monthly instead of paying premiums yearly. There is nothing wrong with buy term and invest the difference. It's very rare permanent...
by dhodson
Sun Jun 28, 2015 6:05 pm
Forum: Personal Finance (Not Investing)
Topic: Drop a 3 year old Indexed Universal Life Insurance policy?
Replies: 44
Views: 2431

Re: Drop a 3 year old Indexed Universal Life Insurance policy?

That's not exactly true. She can surrender to basis and thus no taxes bc no gains or she can get a loan from the insurance company against and this costs interest. All loans in this country are tax free. As the cost of insurance increases over years and the loan plus interest increases, it will be ...
by dhodson
Sun Jun 28, 2015 4:25 pm
Forum: Investing - Help with Personal Investments
Topic: Do I need "own occupation" on LTDI?
Replies: 13
Views: 1191

Re: Do I need "own occupation" on LTDI?

Might want to read the disability articles at whitecoatinvestor.com

I'd look at the article on non can
by dhodson
Sun Jun 28, 2015 3:58 pm
Forum: Personal Consumer Issues
Topic: Learning Guitar
Replies: 22
Views: 1852

Re: Learning Guitar

Guitarsmith is interesting.
I've barely used it so can't fully review
by dhodson
Sun Jun 28, 2015 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Drop a 3 year old Indexed Universal Life Insurance policy?
Replies: 44
Views: 2431

Re: Drop a 3 year old Indexed Universal Life Insurance policy?

She needs to decide if she wants a permanent death benefit. If not then it will be hard to love logically decide to keep this. Keep in mind even if u had gains, they would be taxed as income if surrendered so unless kept until death, the tax advantages disappear. Investing in a taxable allows you t...
by dhodson
Fri Jun 26, 2015 8:16 pm
Forum: Personal Finance (Not Investing)
Topic: Drop a 3 year old Indexed Universal Life Insurance policy?
Replies: 44
Views: 2431

Re: Drop a 3 year old Indexed Universal Life Insurance policy?

She needs to decide if she wants a permanent death benefit. If not then it will be hard to love logically decide to keep this. Keep in mind even if u had gains, they would be taxed as income if surrendered so unless kept until death, the tax advantages disappear. Investing in a taxable allows you to...
by dhodson
Fri Jun 26, 2015 5:33 pm
Forum: Personal Finance (Not Investing)
Topic: Drop a 3 year old Indexed Universal Life Insurance policy?
Replies: 44
Views: 2431

Re: Drop a 3 year old Indexed Universal Life Insurance policy?

statements are NOT the same as illustrations. you might want to google unmet promises life insurance to get an idea how likely the policy is to perform as the agent originally pretended. That article by the way was written by pro insurance folks. Unfortunately there is no easy solution, she has lost...
by dhodson
Fri Jun 26, 2015 5:07 pm
Forum: Investing - Help with Personal Investments
Topic: Disability insurance
Replies: 2
Views: 312

Re: Disability insurance

im not in the insurance industry but i believe you are going to have a hard time getting disability insurance without income. They want to see that you are protecting income.
by dhodson
Mon Jun 22, 2015 9:24 pm
Forum: Personal Finance (Not Investing)
Topic: Pacific Life FuturePlan Life Insurance?? What is it?
Replies: 5
Views: 409

Re: Pacific Life FuturePlan Life Insurance?? What is it?

The statement would be true IF she had any phantom gains but like you mentioned she might not have taken out any loans so doesn't likely have true gains. I just can't tell about the loans given how poorly the policy is currently performing but of course we don't know how much was placed into the pol...
by dhodson
Mon Jun 22, 2015 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Pacific Life FuturePlan Life Insurance?? What is it?
Replies: 5
Views: 409

Re: Pacific Life FuturePlan Life Insurance?? What is it?

The difference is as follows: Current interest rate is what they are currently crediting the account based on how their investments are doing. Their investments have been going down for a long time since they invest in primarily bonds. In this low interest rate environment, one can expect it to stay...
by dhodson
Mon Jun 22, 2015 7:34 pm
Forum: Personal Finance (Not Investing)
Topic: Pacific Life FuturePlan Life Insurance?? What is it?
Replies: 5
Views: 409

Re: Pacific Life FuturePlan Life Insurance?? What is it?

She has a universal life insurance policy. Cost of insurance rises as she gets older. If cash value goes to zero then she gets nothing and is taxed on any phantom gains she had. You should check to see if those are illustrated or guaranteed numbers to keep the policy in force. Keep in mind life insu...
by dhodson
Mon Jun 22, 2015 5:04 pm
Forum: Personal Consumer Issues
Topic: Will I regret using Composite Decking instead of PT Decking
Replies: 23
Views: 2103

Re: Will I regret using Composite Decking instead of PT Decking

Our new deck is made of Ipe. Super hard wood. No splinters and wears well. It however doesn't keep a stain bc it's so hard. We go natural with color at this point.
by dhodson
Mon Jun 22, 2015 8:31 am
Forum: Investing - Help with Personal Investments
Topic: Role of annuities in low SWR situations
Replies: 29
Views: 3223

Re: Role of annuities in low SWR situations

Well there really is NO NEED here for a SPIA. Sure one could use it and one can pretend that the only other options are being ripped off or keeping it all in cash or that some how buying a SPIA magically changes someone from hoarding money to now being willing to spend it. Now in this situation, any...
by dhodson
Sun Jun 21, 2015 11:52 am
Forum: Personal Consumer Issues
Topic: Blue Apron
Replies: 63
Views: 6605

Re: Blue Apron

i purchased for a friend a month trial and he really thought it was good. Ill be trying it again as a gift for a family member
by dhodson
Sat Jun 20, 2015 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: Issuing a single $590 payment to avoid 1099 reporting
Replies: 13
Views: 1735

Re: Issuing a single $590 payment to avoid 1099 reporting

If it were me, id go below the limit if that close.
by dhodson
Thu Jun 18, 2015 8:17 am
Forum: Personal Finance (Not Investing)
Topic: Dependent Life claim denied
Replies: 40
Views: 3603

Re: Dependent Life claim denied

I wouldn't wait on decisions. They have already decided. They don't need time. I also wouldn't accept just a refund.
by dhodson
Wed Jun 17, 2015 9:30 pm
Forum: Personal Finance (Not Investing)
Topic: Dependent Life claim denied
Replies: 40
Views: 3603

Re: Dependent Life claim denied

Get the state commissioner involved immediately with the arguments noted above. Don't wait any longer. If they can't force the issue I'd take them to court.

Sorry for your loss.
by dhodson
Tue Jun 16, 2015 2:11 pm
Forum: Investing - Help with Personal Investments
Topic: Cash in old insurance policy?
Replies: 6
Views: 672

Re: Cash in old insurance policy?

A new VA still changes income tax free into gains taxed as income. Costs of those guarantees and the difference between CSV and death benefit at his age make that a questionable scenario. He already has another whole life policy. Buying term at his age is rarely a good idea. Dividends from whole lif...
by dhodson
Tue Jun 16, 2015 10:24 am
Forum: Investing - Help with Personal Investments
Topic: Cash in old insurance policy?
Replies: 6
Views: 672

Re: Cash in old insurance policy?

While I don't doubt that the financial situation has changed, WL should only be purchased if you want a permanent death benefit. Otherwise its a huge mistake. While its a mistake to buy, its often also a mistake to get rid of an old policy since the costs are sunk and returns going forward are bette...
by dhodson
Tue Jun 16, 2015 8:12 am
Forum: Investing - Help with Personal Investments
Topic: SPIA or Vanguard fund for income at 80?
Replies: 35
Views: 3893

Re: SPIA or Vanguard fund for income at 80?

Something for Auntie to think about - I was reading a thread here on the forum (best place to learn!) and someone asked the question: "Why wait to give to your heirs?" It caused me to think. I have started to fund my 29 YO daughter's ROTH. Why should she have to wait for financial securit...
by dhodson
Mon Jun 15, 2015 5:40 pm
Forum: Investing - Help with Personal Investments
Topic: Cash in old insurance policy?
Replies: 6
Views: 672

Re: Cash in old insurance policy?

I'd say your plan doesn't make sense. You have an old whole life policy where in essence the major costs are now in the past and you plan to have your wife use this money after you die but instead of taking the income tax free return of the death benefit, you will 1035 exchange and now have to pay i...
by dhodson
Sun Jun 14, 2015 6:32 pm
Forum: Investing - Help with Personal Investments
Topic: SPIA or Vanguard fund for income at 80?
Replies: 35
Views: 3893

Re: SPIA or Vanguard fund for income at 80?

If she has lots of assets including lots of cash then she doesn't need a SPIA. Insurance works best if u need the insurance. Agree. She could easily draw down on large assets, but prefers to preserve and even grow the bulk of them for heirs. Annuity appeal is getting a return of nearly 10% (even th...
by dhodson
Sun Jun 14, 2015 3:22 pm
Forum: Investing - Help with Personal Investments
Topic: SPIA or Vanguard fund for income at 80?
Replies: 35
Views: 3893

Re: SPIA or Vanguard fund for income at 80?

If she has lots of assets including lots of cash then she doesn't need a SPIA. Insurance works best if u need the insurance.
by dhodson
Sun Jun 14, 2015 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: Salvaging help please after Whole Life misrepresentation
Replies: 41
Views: 4431

Re: Salvaging help please after Whole Life misrepresentation

Given your further posting, i am likely right and you have little to no PUAs. Most of us dont consider that a dump in. We call it paying yearly and that is the only way to pay WL in my view bc otherwise there are huge fees. It isnt a discount to pay yearly. Its a fee to pay monthly. Its like buying ...
by dhodson
Sun Jun 14, 2015 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Variable Annuity - Does it become part of inheritance?
Replies: 38
Views: 2766

Re: Variable Annuity - Does it become part of inheritance?

There are two kinds of lifetime payouts with such annuities. One is standard annuitization where you get payments for either life or a limited time period. The other is an income rider which allows you to withdrawn x% for your life. It allows you though to "leave" with whatever is left at ...
by dhodson
Sat Jun 13, 2015 11:38 pm
Forum: Personal Finance (Not Investing)
Topic: Variable Annuity - Does it become part of inheritance?
Replies: 38
Views: 2766

Re: Variable Annuity - Does it become part of inheritance?

there are different types of annuities. some folks are assuming your parent has an "income annuity" or be in an annuitize/income phase. He might have that and it might be that it is sending him payments for a specific period of time or lifetime. He however could have a deferred annuity and...
by dhodson
Fri Jun 12, 2015 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: Salvaging help please after Whole Life misrepresentation
Replies: 41
Views: 4431

Re: Salvaging help please after Whole Life misrepresentation

Hopefully he puts up an illustration but I bet there is little to no overfunding. I doubt he is mistaken on the csv since that's easy to figure out.

No it won't. He just says the op wanted guarantees against market like he posted above. Slam dunk for the agent.
by dhodson
Fri Jun 12, 2015 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Salvaging help please after Whole Life misrepresentation
Replies: 41
Views: 4431

Re: Salvaging help please after Whole Life misrepresentation

A standard WL has zero cash value for 1-2 years so this isn't uncommon.

RIA means nothing they just say they are practicing under their insurance hat when selling insurance. Believe me I know.....
by dhodson
Fri Jun 12, 2015 1:07 pm
Forum: Personal Finance (Not Investing)
Topic: Salvaging help please after Whole Life misrepresentation
Replies: 41
Views: 4431

Re: Salvaging help please after Whole Life misrepresentation

You are not getting your money back. They already have teams of lawyers on the books. Cost them nothing at this point Your case is too weak since you seem to have asked for this. Trying to reduce the face value won't help. Costs are already sunk and you aren't getting anything back by doing it. Payi...
by dhodson
Fri Jun 12, 2015 12:07 pm
Forum: Investing - Help with Personal Investments
Topic: New USAA IRA
Replies: 12
Views: 876

Re: New USAA IRA

I use usaa for banking and insurance

I have a small investment account with them. Their mutual funds aren't stellar. I'd use vanguard, schwab or fidelity.
by dhodson
Fri Jun 12, 2015 8:59 am
Forum: Personal Finance (Not Investing)
Topic: Defined Benefit Plan vs 401K
Replies: 7
Views: 794

Re: Defined Benefit Plan vs 401K

I have one as well

About 2k to start and 1.5k per year but schwab is cheaper if I remember

Works best if u are like 50 years old

One of the problems with the tax idea is that if u are saving that much then it isn't a given that you will be in a lower tax rate at retirement.
by dhodson
Thu Jun 11, 2015 8:56 am
Forum: Personal Finance (Not Investing)
Topic: Defined Benefit Plan vs 401K
Replies: 7
Views: 794

Re: Defined Benefit Plan vs 401K

A DB plan does NOT have to include insurance components. In fact its typically a horrible idea to do one that has insurance such as 412i or 412e. If someone tries to talk you into one of those then run. DB plans WITHOUT insurance in them can be useful and can be done in addition to a 401k although t...
by dhodson
Tue Jun 09, 2015 7:35 pm
Forum: Investing - Theory, News & General
Topic: Substituting Income Annuities For Bond Funds in Retirement
Replies: 27
Views: 2588

Re: Substituting Income Annuities For Bond Funds in Retirement

Income annuities can still be a grab bag of different products. SPIAs (lifetime payment ones with or without inflation adjustment) are an easier product to understand and compare the value of. You are getting something you can't get on your own which are mortality credits and at what age are those m...
by dhodson
Tue Jun 09, 2015 6:59 am
Forum: Personal Finance (Not Investing)
Topic: When can an early FI person drop disability insurance?
Replies: 10
Views: 1126

Re: When can an early FI person drop disability insurance?

I assume you are still working and this is in part at least bc you feel you need the income that your job provides. You likely should keep the DI in place for as long as you need to protect this income stream.
by dhodson
Mon Jun 08, 2015 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: Are there any merchants that accept only Amex?
Replies: 25
Views: 2282

Re: Are there any merchants that accept only Amex?

Currently it's super rare.

In the future, who knows?
by dhodson
Sun Jun 07, 2015 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: Healthcare cost - Office Visit - negotiated insurance rate higher than cash rate?
Replies: 53
Views: 4061

Re: Healthcare cost - Office Visit established patient

I wouldn't waste much time. it just isn't outrageous for the work.
by dhodson
Fri Jun 05, 2015 1:04 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance As Forced Savings?
Replies: 9
Views: 767

Re: Life Insurance As Forced Savings?

There are two groups that study this. LIMRA and society of Actuaries. Just google that and lapse and you will find it. Keep in mind if you come across some single digit number, thats an average annually. A vanilla WL policy at the moment will take 16 years to break even and that's including non guar...
by dhodson
Fri Jun 05, 2015 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance As Forced Savings?
Replies: 9
Views: 767

Re: Life Insurance As Forced Savings?

Horrible idea promoted by agents.

First off paying monthly incurs about a 15% charge vs yearly.

2nd it almost never works. Over 80% surrender/lapse most with huge losses.
by dhodson
Wed Jun 03, 2015 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Whole life question about additional paid up insurance
Replies: 40
Views: 3596

Re: Whole life question about additional paid up insurance

While I agree the returns stink, once purchased, one should focus on obtaining the death benefit which is always a better return then cash value.

You have to really cherry pick numbers to find instances when owning whole life comes out better especially for cash value.
by dhodson
Tue Jun 02, 2015 10:30 pm
Forum: Personal Finance (Not Investing)
Topic: Whole life question about additional paid up insurance
Replies: 40
Views: 3596

Re: Whole life question about additional paid up insurance

Depends on dividends. They have been going down for decades which is kmurp has indirectly noticed.
by dhodson
Tue Jun 02, 2015 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: Whole life question about additional paid up insurance
Replies: 40
Views: 3596

Re: Whole life question about additional paid up insurance

You need to compare an in force illustration with both dividend options and decide
by dhodson
Mon Jun 01, 2015 7:46 pm
Forum: Investing - Help with Personal Investments
Topic: Annuities the Fixed Index Annuity FIA
Replies: 30
Views: 2024

Re: Annuities the Fixed Index Annuity FIA

I am glad you are happy with your purchase and I mean that. If you aren't interested in replies then don't post about it. As you know several of us could point out "issues " with it. I'm not buying the just show the OP validity angle.

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