Search found 3659 matches

Return to advanced search

Re: REITs and Bonds, Little tax advantaged space. Var annuit

If it were me personally, id just avoid REITs but if you feel you must have very tax unfriendly items and are willing to wait a few decades then sure within a VA can make it useful especially if you value the other features associated with VAs.
by dhodson
Wed Mar 04, 2015 1:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: REITs and Bonds, Little tax advantaged space. Var annuity?
Replies: 5
Views: 241

Re: Have I made a terrible mistake? - whole life

No it didn't

A guardian vanilla whole life takes 16 years just to break even using current dividends which are going down That isn't performing better.

Good luck with those loans in retirement. All loans in the US are tax free.
by dhodson
Mon Mar 02, 2015 9:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: Have I made a terrible mistake? - whole life
Replies: 52
Views: 5996

Re: Have I made a terrible mistake? - whole life

I wouldn't immediately surrender the annuitu bc of the step wise doctrine


I'd keep it a year or so
by dhodson
Mon Mar 02, 2015 4:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: Have I made a terrible mistake? - whole life
Replies: 52
Views: 5996

Re: Have I made a terrible mistake? - whole life

No it wasnt mentioned exactly when, just the policy years. As you briefly alluded too, the interest rates were higher during that conversation but it wasnt in the text you quoted unless i missed it the exact years. You cant use that to compare to now period. It isnt useful data. And no the sbli poli...
by dhodson
Sun Mar 01, 2015 5:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Have I made a terrible mistake? - whole life
Replies: 52
Views: 5996

Re: Have I made a terrible mistake? - whole life

Meaningless without the time period and when WL looks good there are better options.

Sure even sbli had guaranteed returns like that

There is no magic with WL

They invest in bonds minus huge fees, commissions and cost of insurance.
by dhodson
Sun Mar 01, 2015 4:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Have I made a terrible mistake? - whole life
Replies: 52
Views: 5996

Re: Have I made a terrible mistake? - whole life

I'll tell you from my own personal experience that's unlikely to get the reissue at near year time period. I couldn't get it to happen at 6 months. Of course others may have better luck than I did. If it's real early then they will do it bc otherwise they lose money just based on costs of underwriti...
by dhodson
Sun Mar 01, 2015 2:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Have I made a terrible mistake? - whole life
Replies: 52
Views: 5996

Re: Have I made a terrible mistake? - whole life

Given the low cash accretion in the first year, it sounds like you have a pure whole life policy, which almost never the right design as far as maximizing the cash growth within the policy due to commissions load and other factors. Generally, if you want a whole life policy, you will want to blend ...
by dhodson
Sun Mar 01, 2015 12:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Have I made a terrible mistake? - whole life
Replies: 52
Views: 5996

Re: Have I made a terrible mistake? - whole life

That's not the idea

You maintain cost basis

You just keep it until gains equal premiums paid

Tax free gains that way

No taxes or penalties bc no true gains
by dhodson
Sat Feb 28, 2015 11:17 am
 
Forum: Personal Finance (Not Investing)
Topic: Have I made a terrible mistake? - whole life
Replies: 52
Views: 5996

Re: Have I made a terrible mistake? - whole life

What other info would you say is needed to answer the question about what to do now, other than the tax impact on the scenario where I drop the whole policy, buy term, and invest the rest? I'd want to know more about the internal costs. I'm not an insurance expert, but conceptually I think each pre...
by dhodson
Sat Feb 28, 2015 9:56 am
 
Forum: Personal Finance (Not Investing)
Topic: Have I made a terrible mistake? - whole life
Replies: 52
Views: 5996

Re: Have I made a terrible mistake? - whole life

Just as a counterpoint: Whole life is often a bad deal because of the high up-front costs. But you've already incurred a lot of those costs. The real question isn't "have I made a mistake?" but "what should I do now, ignoring sunk costs?" I don't think we have enough information...
by dhodson
Sat Feb 28, 2015 9:53 am
 
Forum: Personal Finance (Not Investing)
Topic: Have I made a terrible mistake? - whole life
Replies: 52
Views: 5996

Re: Have I made a terrible mistake? - whole life

The op did say already 1.7 million in term.
by dhodson
Wed Feb 25, 2015 10:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Have I made a terrible mistake? - whole life
Replies: 52
Views: 5996

Re: Have I made a terrible mistake? - whole life

Sorry for your mistake.

I lost a lot more myself from a similar.
by dhodson
Wed Feb 25, 2015 9:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Have I made a terrible mistake? - whole life
Replies: 52
Views: 5996

Re: Recommend a quality (and reasonably priced) knife set

We have cutco and my wife seems to like them which means I seem to like them
by dhodson
Wed Feb 25, 2015 12:59 pm
 
Forum: Personal Consumer Issues
Topic: Recommend a quality (and reasonably priced) knife set
Replies: 64
Views: 2431

Re: Exit Strategy VUL policy

bluemarlin08 wrote:If you want to stagger the taxes you could roll into an immediate annuity and choose a short period certain payout.


At his/her level of likely income, not sure if that would help although it would for those who the full amount would push them up a bracket.
by dhodson
Wed Feb 25, 2015 11:22 am
 
Forum: Investing - Help with Personal Investments
Topic: Exit Strategy VUL policy
Replies: 10
Views: 753

Re: What are Costco's best deals?

Yea but they switched from coke to Pepsi so the hotdog deal isn't the same any more

Frankly with Costco you can find great deals, ok deals, and bad ones all the time. Problem is that normally you go in looking for x but y which u don't need is a great deal.
by dhodson
Tue Feb 24, 2015 7:58 pm
 
Forum: Personal Consumer Issues
Topic: What are Costco's best deals?
Replies: 176
Views: 12928

Re: Buy and Hold Forever Stocks

I own a few including BRK which I sort of like in a taxable account

It's gambling

I do it for fun

I wouldn't recommend it as sound advice

Some people have all kinds of tilts, individual stocks, alternative investments like peer lending but for the most part there is little evidence for it.
by dhodson
Tue Feb 24, 2015 3:34 pm
 
Forum: Investing - Theory, News & General
Topic: Buy and Hold Forever Stocks
Replies: 101
Views: 7631

Re: Experience with Vanguard Annuities?

...The contracts themselves say that the guarantee is based on the claims ability of the company period. Says so in the contracts I have had and Id bet a lot others do... We'd have to parse the exact language. If you like, the policy itself is only backed by the claims-paying ability of the insurer...
by dhodson
Tue Feb 24, 2015 1:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Experience with Vanguard Annuities?
Replies: 44
Views: 2635

Re: Experience with Vanguard Annuities?

Taylor Larimore and dhodson, Thanks for all of the comments. I skimmed the reference, reading the conclusions carefully, and agree with the premise that it would be best to wait until age 80 to decide whether to purchase a SPIA. And now I understand better the idea of mortality credits and the type...
by dhodson
Tue Feb 24, 2015 1:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Experience with Vanguard Annuities?
Replies: 44
Views: 2635

Re: Private Placement Life Insurance/ TIAA-CREF

You will find that only people associated with the insurance industry recommend permanent insurance as an investment.
by dhodson
Tue Feb 24, 2015 11:50 am
 
Forum: Investing - Help with Personal Investments
Topic: Private Placement Life Insurance/ TIAA-CREF
Replies: 8
Views: 703

Re: Gerber life insurance as adults

These are whole life polices. Call the company and ask for an in force illustration. You will see guaranteed and projected/illustrated returns over time. Likely you will determine it isn't worth keeping. If one needs life insurance, its always best to get the new insurance in place prior to surrende...
by dhodson
Tue Feb 24, 2015 10:38 am
 
Forum: Personal Finance (Not Investing)
Topic: Gerber life insurance as adults
Replies: 8
Views: 598

Re: Experience with Vanguard Annuities?

For most folks it will be mortality credits. They really go up around then. Other factors would be fewer years for the company to go under or if you purchased a non inflation protected product then fewer years for inflation to take a bite of you. Keep in mind inflation protected products have a low...
by dhodson
Tue Feb 24, 2015 10:23 am
 
Forum: Personal Finance (Not Investing)
Topic: Experience with Vanguard Annuities?
Replies: 44
Views: 2635

Re: Exit Strategy VUL policy

I've used him as well. He was previously I believe the state insure com for Vermont if I'm not mistaken I found him to be a pleasant gentleman with a desire to provide accurate information. He also writes some articles from time to time which you can find links to on that site. While I don't want to...
by dhodson
Tue Feb 24, 2015 10:20 am
 
Forum: Investing - Help with Personal Investments
Topic: Exit Strategy VUL policy
Replies: 10
Views: 753

Re: Experience with Vanguard Annuities?

gasdoc: About 11 years ago at my age 80, we decided to purchase a SPIA (Single Premium Immediate Annuity). I, of course, contacted Vanguard first for pricing and service. I compared Vanguard's price with SPIAs at http://www.immediateannuities.com. They were cheaper than Vanguard for identical contr...
by dhodson
Tue Feb 24, 2015 9:42 am
 
Forum: Personal Finance (Not Investing)
Topic: Experience with Vanguard Annuities?
Replies: 44
Views: 2635

Re: Experience with Vanguard Annuities?

You don't transfer all investment risk with those contracts. If the insurance company can't make good then you still hold the risk. The insurance companies hold those same bonds and they can't pay if those don't produce. Insurance companies have teams of people to create contracts that put them at ...
by dhodson
Tue Feb 24, 2015 9:17 am
 
Forum: Personal Finance (Not Investing)
Topic: Experience with Vanguard Annuities?
Replies: 44
Views: 2635

Re: Exit Strategy VUL policy

You have some misconceptions but overall on the right path. First is if you surrender you pay income tax rates on the gains and not capital gains rates. 2nd you need to decide if you want a permanent death benefit. Request an In force illustration from the company. Anyone who evaluates your policy w...
by dhodson
Mon Feb 23, 2015 10:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Exit Strategy VUL policy
Replies: 10
Views: 753

Re: Experience with Vanguard Annuities?

I personally wouldn't do that. I plan to purchase a SPIA personally at an older age like 80 but definitely not one of the current longevity products. Like many insurance products, they come in different flavors so it depends on what you are really looking at. Keep in mind I don't work in the insura...
by dhodson
Mon Feb 23, 2015 10:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Experience with Vanguard Annuities?
Replies: 44
Views: 2635

Re: Experience with Vanguard Annuities?

You don't transfer all investment risk with those contracts. If the insurance company can't make good then you still hold the risk. The insurance companies hold those same bonds and they can't pay if those don't produce. Insurance companies have teams of people to create contracts that put them at v...
by dhodson
Mon Feb 23, 2015 9:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: Experience with Vanguard Annuities?
Replies: 44
Views: 2635

Re: Please Help Me Explain an Equity Index Annuity to a Rela

^ Worse is a relative term. What is offered today is worse than what was offered then. But What I was offered then, was better than, the then competing alternative products :annoyed If I market timed this product, good for me. I like to say that I know how to pick a good offer at the right time bec...
by dhodson
Mon Feb 23, 2015 3:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: Please Help Me Explain an Equity Index Annuity to a Relative
Replies: 31
Views: 1671

Re: Experience with Vanguard Annuities?

I personally wouldn't do that. I plan to purchase a SPIA personally at an older age like 80 but definitely not one of the current longevity products. Like many insurance products, they come in different flavors so it depends on what you are really looking at. Keep in mind I don't work in the insuran...
by dhodson
Mon Feb 23, 2015 3:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: Experience with Vanguard Annuities?
Replies: 44
Views: 2635

Re: Experience with Vanguard Annuities?

Keep in mind you are still really dealing with the insurance company. Don't have a false sense that the vanguard stamp provides much more. I like vanguard.

Also keep in mind most have caps on the inflation and just reduce your initial payments.
by dhodson
Mon Feb 23, 2015 2:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Experience with Vanguard Annuities?
Replies: 44
Views: 2635

Re: Experience with Vanguard Annuities?

If I recall, Vanguard only offers a basic income annuity, inflation adjusted if desired, either immediate or deferred, or a variable annuity, which i am not interested in. My intested would be in the immediate income annuity, with inflation increases, and I may not even do that. I was wondering if ...
by dhodson
Mon Feb 23, 2015 10:28 am
 
Forum: Personal Finance (Not Investing)
Topic: Experience with Vanguard Annuities?
Replies: 44
Views: 2635

Re: Experience with Vanguard Annuities?

The problem with your question is that annuities are a big group of products.
What type of annuity are you referring to?
What they have offered via insurance companies also seems to change over time(as expected).
by dhodson
Sun Feb 22, 2015 8:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: Experience with Vanguard Annuities?
Replies: 44
Views: 2635

Re: Please Help Me Explain an Equity Index Annuity to a Rela

Definitely the guarantees are now much worse. That's not even a question. In general they are bad deals. Sure maybe every once in a while someone market times the product before the insurance companies adjust prices but you have better odds with stock picking. Talking about some previous pricing/dea...
by dhodson
Sun Feb 22, 2015 8:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Please Help Me Explain an Equity Index Annuity to a Relative
Replies: 31
Views: 1671

Re: Experience with Vanguard Annuities?

Vanguard sells good and bad products.

Just bc it has a vanguard sticker doesn't mean the product is good or even the best for that product.

Now for low cost index funds they usually are hard to beat.
by dhodson
Sun Feb 22, 2015 8:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Experience with Vanguard Annuities?
Replies: 44
Views: 2635

Re: TIAA-CREF annuities.

Why do you want to put already qualified money in a variable annuity?
by dhodson
Sat Feb 21, 2015 8:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: TIAA-CREF annuities.
Replies: 30
Views: 1571

Re: Very Basic Variable Annuity Questions

Thanks for the responses, but I have a few follow-up questions: 1. Can the annuities be converted to another investment type if we switch her over to Vanguard? I.e. if she switches, does she have to stick with an annuity? 2. If she doesn't keep them as annuities, is any part of the conversion taxab...
by dhodson
Sat Feb 21, 2015 3:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Very Basic Variable Annuity Questions
Replies: 6
Views: 682

Re: Please Help Me Explain an Equity Index Annuity to a Rela

These are deferred annuities and will perform very similar to "standard" deferred annuities bc 95-98% of the investment is the same. They take the money and invest 95+% in their general accounts which is mostly bonds and use a small % in options. The caps and participation rates can be cha...
by dhodson
Fri Feb 20, 2015 8:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: Please Help Me Explain an Equity Index Annuity to a Relative
Replies: 31
Views: 1671

Re: Why do companies match 401K contributions?

As mentioned, it allows the employer to save. There can be vesting schedules to retain employees.
by dhodson
Thu Feb 19, 2015 9:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Why do companies match 401K contributions?
Replies: 50
Views: 4315

Re: 30 dollar difference in quote from Cinn. Life and State

Likely the lab work was different on one or something that made you get a lower rating for that company.

That agent wasn't interested in finding you the best rate.
by dhodson
Wed Feb 18, 2015 8:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: 30 dollar difference in quote from Cinn. Life and State Farm
Replies: 1
Views: 205

Re: Variable Annunity ??

Easily the commission pays for their new bed.

She should file a complaint but it isn't going to be successful. Might warn others.

They will claim the rider makes it okay that this was purchased with qualified funds.
by dhodson
Wed Feb 18, 2015 6:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Variable Annunity ??
Replies: 20
Views: 1237

Re: Hospice vs Long Term Care

How long is the delay period of the policy before triggering payment?

Does she actually qualify for payment from the policy yet?
by dhodson
Tue Feb 17, 2015 5:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Hospice vs Long Term Care
Replies: 13
Views: 1026

Re: Disability Insurance - MetLife vs The Standard

I'm not in the insurance industry but id go with standard in that situation.
That person might be recommended but they haven't given a good reason why to pay that much more.
by dhodson
Tue Feb 17, 2015 12:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Disability Insurance - MetLife vs The Standard
Replies: 6
Views: 387

Re: Life insurance company ratings - A+ vs A++

No some "specialize" in term but yes a lot will push you to other products as well. Typically then its a variable annuity or something for the "investment piece". In regards to the term vs permanent and mutuals, just look at the quotes from one of the search engines, you will not...
by dhodson
Sat Feb 14, 2015 4:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Life insurance company ratings - A+ vs A++
Replies: 9
Views: 784

Re: Life insurance company ratings - A+ vs A++

I would pay more attention to whether it is a mutual or a stock insurance company. I would personally be a bit more wary if the insurance company was owned by a private equity company, but that is my own personal prejudice. If you really want to get into the details you can ask for copies of the mo...
by dhodson
Sat Feb 14, 2015 3:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Life insurance company ratings - A+ vs A++
Replies: 9
Views: 784

Re: Became a Vanguard investor by way of WRL IUL

IUL is a very bad investment. You should google unment promises life insurance to see how unlikely the policy is to even perform as they illustrate (and that article is written by insurance folks). Index investing in a boglehead manner is completely unrelated to IULs. They dont have anything in comm...
by dhodson
Fri Feb 13, 2015 8:33 am
 
Forum: Personal Finance (Not Investing)
Topic: Became a Vanguard investor by way of WRL IUL
Replies: 11
Views: 635

Re: Defined Benefit Pension - How to use with Solo 401k

They are expensive and thus it isn't cost effective at 10k
by dhodson
Thu Feb 12, 2015 5:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Defined Benefit Pension - How to use with Solo 401k
Replies: 6
Views: 396

Re: Hancock increasing rates on LTC

It wasn't really optional. The options were to pay more for what you were getting or pay the same and get less (which is also an increase). Depending on ones age, the compounding effects of the inflation protection are significant.
by dhodson
Tue Feb 10, 2015 8:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Hancock increasing rates on LTC
Replies: 55
Views: 2988
Next

Return to advanced search