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Re: Term Life Insurance Dilemma

What you do is find an independent agent. Not a captive one. They will always pretend their product is best. He or she shops your case around and shows you a variety of company offers and the ratings from those companies. I'd go with any A personally. Ratings are just like stocks and don't predict f...
by dhodson
Sat Jan 31, 2015 4:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Term Life Insurance Dilemma
Replies: 11
Views: 397

Re: Northwestern Mutual Roth IRA

If you have other products with them then you might want to "thank them" and move those as well.
by dhodson
Sat Jan 31, 2015 4:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Northwestern Mutual Roth IRA
Replies: 8
Views: 252

Re: Term Life Insurance Dilemma

You will be paying too much again with those companies and for no benefit IMO.

Both in my view will also sucker you into whole life IMO. That's also why IMO they don't sell 30 year term.
by dhodson
Sat Jan 31, 2015 4:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: Term Life Insurance Dilemma
Replies: 11
Views: 397

Re: Making sense of my whole life insurance statement number

i meant guaranteed when i put current above. Guaranteed is sort of the worst case. The worst case actually is that the insurance company goes under and cant meet its obligation but assuming that doesnt happen then guaranteed is sort of the bottom results.
by dhodson
Fri Jan 30, 2015 9:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Making sense of my whole life insurance statement numbers
Replies: 7
Views: 515

Re: Making sense of my whole life insurance statement number

The primer is really this. Never purchase whole life insurance. If you happen to have a policy that is old then likely you should keep it assuming you are willing to keep it in force until death. This is because the major costs are sunk and nothing can change that. As you alluded to, the dividend is...
by dhodson
Fri Jan 30, 2015 7:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Making sense of my whole life insurance statement numbers
Replies: 7
Views: 515

Re: Asset allocation and annuity

The typical strategy is to keep the annuity just until you break even. In that case, whatever risk you are comfortable with. Personally I'd compare the fees vs my non annuitu accounts for similar and go lower fee. If you plan to keep the annuitu long term then realize gains are eventually taxed at i...
by dhodson
Thu Jan 29, 2015 1:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset allocation and annuity
Replies: 1
Views: 176

Re: Milevsky writes on longevity insurance in the journal

I'll still be investing in a normal bogle head approach with a possible SPIA later on. I'll also defer ss to age 70.
by dhodson
Thu Jan 29, 2015 1:22 pm
 
Forum: Investing - Theory, News & General
Topic: Milevsky writes on longevity insurance in the journal
Replies: 6
Views: 609

Re: Term Life - Return of Premium

It sure looks like whole life to me. It has a savings account built in. Its just that the return is 0 % on the savings part, and there is a severe penalty (100 %) for lapse. In return, the cost is not as high as "whole whole" life. It could be called "Half-Life". If you are goin...
by dhodson
Wed Jan 28, 2015 5:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Term Life - Return of Premium
Replies: 13
Views: 800

Re: Term Life - Return of Premium

My term life quotes were done 4 years back. They are not actual quotes but just provided as an example of what i remember then. Also, I went for the annual payment plan. Ins companies provide the monthly premium plan so that some people would not be shocked at premiums when looked at monthly basis ...
by dhodson
Wed Jan 28, 2015 3:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Term Life - Return of Premium
Replies: 13
Views: 800

Re: Term Life - Return of Premium

Also keep in mind the companies that do this aren't exactly offering the cheapest term so comparing it to their straight term product isn't a good comparison

http://whitecoatinvestor.com/return-of- ... qa-series/
by dhodson
Wed Jan 28, 2015 2:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: Term Life - Return of Premium
Replies: 13
Views: 800

Re: Term Life - Return of Premium

It is not whole life. I did get quotes when I was looking for term life as well. For example, if for say 500K and 30 year term life, the monthly premium is $25. If we pay $25 per month for 30 years and we dont use it, then we get nothing in return. The return of premium quote was at $45 per month. ...
by dhodson
Wed Jan 28, 2015 2:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: Term Life - Return of Premium
Replies: 13
Views: 800

Re: Is personal DB plan right for me?

Yes but typically you want it at 59.5 bc that allows both the highest contribution and allows the highest benefit range bc of the few additional years of payments. Thanks, dhodson, but just to clarify- Are you saying that a ten year period ending at 59.5 will allow higher contributions than a ten y...
by dhodson
Wed Jan 28, 2015 1:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is personal DB plan right for me?
Replies: 15
Views: 1157

Re: One Person Defined Benefit Plan

OK , so it'll be K with Vanguard & DB with Schwab ? Don't know anything about the back-door Roth but I'm curious to know from Dhodson why it works easier with the K plan rather than a SEP ? I've decided to use a third party administrator for both- and invest the money at Vanguard. Brian Keep in...
by dhodson
Wed Jan 28, 2015 1:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: One Person Defined Benefit Plan
Replies: 66
Views: 6746

Re: Term Life - Return of Premium

It isn't whole life. It is its own thing. Many folks never make it to all payments on time bc they forget to pay on time, don't have the funds, need a different insurance policy bc of other changes. The sucker part is thinking its free insurance. Nothing is given away for free with this. In this low...
by dhodson
Wed Jan 28, 2015 1:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Term Life - Return of Premium
Replies: 13
Views: 800

Re: What mutual fund companies do you use?

I use vanguard and usaa. With that said, I wouldn't get too hung up on the mutual. Just b/c the idea is that you are an owner doesn't mean its the best. Vanguard still sells products which aren't worth purchasing, sometimes usaa doesn't have the best rates, and some insurance company's which are mut...
by dhodson
Wed Jan 28, 2015 11:38 am
 
Forum: Investing - Theory, News & General
Topic: What mutual fund companies do you use?
Replies: 63
Views: 2887

Re: Is personal DB plan right for me?

This is why you commonly see people say do this when older. You have fewer years until 59.5 and thus the contributions are higher I agree with all of this. I would just add that ten years seems to be the ideal time frame. The retirement age is not necessarily 59.5- that apparently is just the minim...
by dhodson
Tue Jan 27, 2015 10:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is personal DB plan right for me?
Replies: 15
Views: 1157

Re: Is personal DB plan right for me?

Frankly they give you a range of what they think you should put in both min and max to reach the defined benefit with the typical earliest retirement being 59.5. The minimum retirement age acceptable by the IRS for defined benefit plans is key in this situation. If it is in fact 59.5 for the purpos...
by dhodson
Tue Jan 27, 2015 10:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is personal DB plan right for me?
Replies: 15
Views: 1157

Re: One Person Defined Benefit Plan

Either way you have to be very careful not to have the plan overfunded at that time because the penalties are brutual (some thing like 80%). I guess that is something you would have to be careful about if you use the strategy of maximally funding in some years so that you can have occasional years ...
by dhodson
Tue Jan 27, 2015 10:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: One Person Defined Benefit Plan
Replies: 66
Views: 6746

Re: One Person Defined Benefit Plan

bobby21 wrote:Is it ok to buy individual stocks in the DB plan? Or do we just buy mutual funds? I am going to fund my Schwab account in the next month or so for the first time.


I have individual stocks in mine as well
by dhodson
Tue Jan 27, 2015 10:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: One Person Defined Benefit Plan
Replies: 66
Views: 6746

Re: Is personal DB plan right for me?

Frankly they give you a range of what they think you should put in both min and max to reach the defined benefit with the typical earliest retirement being 59.5. The minimum retirement age acceptable by the IRS for defined benefit plans is key in this situation. If it is in fact 59.5 for the purpos...
by dhodson
Tue Jan 27, 2015 8:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is personal DB plan right for me?
Replies: 15
Views: 1157

Re: Is personal DB plan right for me?

If I don't contribute anything to the DB plan (bc it isn't necessary bc of previous contributions and growth) then I can max out the DC plan without the restriction. Have you accomplished this yet? Is it possible to overfund to the point where the low end of "the range" is zero? I might w...
by dhodson
Tue Jan 27, 2015 8:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is personal DB plan right for me?
Replies: 15
Views: 1157

Re: Term Life - Return of Premium

I'm pretty sure whitecoatinvestor.com has a blog on it IF you pay all the premiums on time without fail then at the end of the term you get your money back. This looks good who don't understand the time value of money. The premium is not the same as your regular term. Its much higher. You pay for yo...
by dhodson
Tue Jan 27, 2015 8:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Term Life - Return of Premium
Replies: 13
Views: 800

Re: Is personal DB plan right for me?

They can set these things up a variety of ways in regards to vesting and contributions but usually its level so that it doesn't actually increase as you get older. Frankly they give you a range of what they think you should put in both min and max to reach the defined benefit with the typical earlie...
by dhodson
Tue Jan 27, 2015 6:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is personal DB plan right for me?
Replies: 15
Views: 1157

Re: Is personal DB plan right for me?

I have one

If I had to do it again I'd wait until age 50

How many employees

My TPA told me all deductions would be void if I didn't keep it in place long enough and have a valid termination reason.

Thus all of my taxes would have been wrong for years.
by dhodson
Mon Jan 26, 2015 5:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is personal DB plan right for me?
Replies: 15
Views: 1157

Re: Term Life Insurance Decision

It's hard to game it so that one policy pays off. The 30 isn't some super bet over the 20.

Ensure the time you need which looks like 20 years. Also inflation decreases purchasing power.

Keep in mind that in 20 years that retirement savings for 2 now would just need to support one.
by dhodson
Mon Jan 26, 2015 2:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Term Life Insurance Decision
Replies: 5
Views: 315

Re: Should I overfund 529 plans for future generations?

If it were me I'd use a taxable account likely in the kids names for reasons mentioned above. I'd just put the max to be below gift rules likely yearly limits if it were me. It doesn't appear your kids need more college money so I wouldn't tie myself to such accounts. If I were guessing if any chang...
by dhodson
Mon Jan 26, 2015 9:15 am
 
Forum: Investing - Theory, News & General
Topic: Should I overfund 529 plans for future generations?
Replies: 12
Views: 880

Re: Is my term life policy quote too high?

That's putting it too kindly.

There isn't any reason to believe Obomacare has changed life insurance rates.
by dhodson
Sat Jan 24, 2015 9:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is my term life policy quote too high?
Replies: 39
Views: 2422

Re: Pricing Insurance Risks

i think they have some historical but that it isnt as good as lets say life/death. Because the data isnt as good, there is some additional risk for them and they make an educated guess of pricing that in giving themselves more buffer. If they are wrong by a little bit then probably no big deal. If t...
by dhodson
Fri Jan 23, 2015 4:00 pm
 
Forum: Investing - Theory, News & General
Topic: Pricing Insurance Risks
Replies: 1
Views: 191

Re: 529 tax advantage may go away

As has been mentioned, no telling if this will ever pass but frankly it just helps to reinforce that one should save for retirement first. It probably though would also get people concerned about changes to Roths.
by dhodson
Fri Jan 23, 2015 9:51 am
 
Forum: Investing - Theory, News & General
Topic: 529 Plans in Danger?
Replies: 21
Views: 1514

Re: Terrible ? but...How hard is it to receive life ins payo

+1 on telling beneficiaries and having copies. In our case, she told us about the one from the employer. Otherwise, we could have missed it but we might have thought to check since my employer has one for me. The other policy that she forgot to mention we found the policy in her safety deposit box ...
by dhodson
Fri Jan 23, 2015 9:45 am
 
Forum: Personal Finance (Not Investing)
Topic: Terrible ? but...How hard is it to receive life ins payout?
Replies: 15
Views: 1805

Re: Buying life insurance online

I'm in the process of purchasing via an agent through select quote. It hasn't been bad, but having grown up in an amazon.com world, the amount of phone tag required to make this purchase is insane. I know legally buying through an agent is the only option, but eventually the industry is going to ha...
by dhodson
Fri Jan 23, 2015 9:40 am
 
Forum: Personal Finance (Not Investing)
Topic: Buying life insurance online
Replies: 21
Views: 720

Re: Terrible ? but...How hard is it to receive life ins payo

Its very important to inform family or whomever would help you if you needed help of these contracts. Life insurance companies arent exactly looking to pay the claim. You have to make the effort. I would make a copy of the policy and have it kept with the will and other important documents.
by dhodson
Fri Jan 23, 2015 9:03 am
 
Forum: Personal Finance (Not Investing)
Topic: Terrible ? but...How hard is it to receive life ins payout?
Replies: 15
Views: 1805

Re: NYC Teachers' 403b: Fixed Annuity pays 8.25% guaranteed?

All guarantees are only as good as the entity making the claim ability to pay.
by dhodson
Thu Jan 22, 2015 1:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: NYC Teachers' 403b: Fixed Annuity pays 8.25% guaranteed?
Replies: 25
Views: 7027

Re: ANNUITY is unaccaptable & not a good word

Defer social security to age 70
by dhodson
Wed Jan 21, 2015 10:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: ANNUITY is unaccaptable & not a good word
Replies: 8
Views: 985

Re: Malware problem on new PC

Another vote for malwarebytes
by dhodson
Wed Jan 21, 2015 10:52 pm
 
Forum: Personal Consumer Issues
Topic: Malware problem on new PC
Replies: 42
Views: 2627

Re: Is a Traditional Annuity ever worth it?

Why lock yourself into the income stream now. Purchase a SPIA at a later date. Now of course you don't have to annuitize but that seems to be your reason to purchase an annuity now.
by dhodson
Tue Jan 20, 2015 9:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is a Traditional Annuity ever worth it?
Replies: 18
Views: 1387

Re: Are 529 plan withdrawals taxable in the future?

If these proposals happen, wouldn't that make 529 a little worse than taxable? If your investment in an index fund doubled in each place over 10 years, wouldn't taxable be due capital gains tax where as the 529 would be counted as income and added to your highest bracket? Pretty much. It would be t...
by dhodson
Tue Jan 20, 2015 2:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: Are 529 plan withdrawals taxable in the future?
Replies: 20
Views: 1689

Re: Continue to contribute to NQ annuity, or open Roth IRA?

Gains will be taxed as income with the annuity

Gains wont be taxed at all with the roth

Gains in a taxable account would be taxed at long term cap rates

The annuity is the worst of these and this doesn't even include the fees.
by dhodson
Tue Jan 20, 2015 2:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Continue to contribute to NQ annuity, or open Roth IRA?
Replies: 8
Views: 380

Re: urgent: how to identify top surgeons for a procedure

I don't work in a hospital

I realize how they get their data.
by dhodson
Tue Jan 20, 2015 12:19 am
 
Forum: Personal Consumer Issues
Topic: urgent: how to identify top surgeons for a procedure
Replies: 49
Views: 3994

Re: urgent: how to identify top surgeons for a procedure

At any rate, there is no database. But you're talking about a CABG for crying out loud. This is bread and butter CT surgery not an exotic procedure. Actually, you couldn't be more wrong. Not all surgical sub specialties collect or publish such data, but cardiac surgery does: http://www.sts.org/qual...
by dhodson
Mon Jan 19, 2015 11:10 pm
 
Forum: Personal Consumer Issues
Topic: urgent: how to identify top surgeons for a procedure
Replies: 49
Views: 3994

Re: urgent: how to identify top surgeons for a procedure

As a physician, the best way is to ask other doctors in the area who they would recommend. I strongly advise you not to go by "best doctors in America" or other ratings. As a matter of fact, many of these physicians have paid money to be listed as one of these "top 50" etc. Ever...
by dhodson
Mon Jan 19, 2015 11:08 pm
 
Forum: Personal Consumer Issues
Topic: urgent: how to identify top surgeons for a procedure
Replies: 49
Views: 3994

Re: is the pitch for index-based annuities childish?

i know index annuities are a hot topic right now, but it really struck me: isn't the entire premise childish? you're hoping for equity-like returns with no risk and no volatility? isn't this the investing equivalent of buying magic beans? You are paying 1%-1.5% option fee. Total fees will be quite ...
by dhodson
Mon Jan 19, 2015 10:18 pm
 
Forum: Investing - Theory, News & General
Topic: is the pitch for index-based annuities childish?
Replies: 15
Views: 781

Re: Risk of Losing Principal of Annuity

Most of the time it is recommended to keep the total below the state guarantee association limits which range but typically for annuities is 100k. Keep in mind the state doesn't actual back this but taxes other insurance companies to come up with the money or gets them to assume the contract up to t...
by dhodson
Mon Jan 19, 2015 8:31 pm
 
Forum: Investing - Theory, News & General
Topic: Risk of Losing Principal of Annuity
Replies: 2
Views: 358

Re: Advice: Considering surrendering newer Midland National

You need a NEW independent agent to shop your case and find how cheap you could get term. You should request an in force illustration. It will show you the guaranteed costs to keep in force. Loans can easily sink a policy especially one not overfunded. They cost interest. All loans in this country a...
by dhodson
Mon Jan 19, 2015 2:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice: Considering surrendering newer Midland National IUL
Replies: 7
Views: 452

Re: is the pitch for index-based annuities childish?

These things produce almost the same results as any typical deferred annuity bc 98% of the money is in the company's General fund with like 2% in options. It will do slightly better or slightly worse than a vanilla deferred annuity.
by dhodson
Mon Jan 19, 2015 1:32 pm
 
Forum: Investing - Theory, News & General
Topic: is the pitch for index-based annuities childish?
Replies: 15
Views: 781

Re: Milevsky's got me thinking immediate annuity????

Lynette wrote:Does one pay tax on the income generated by a SPIA? After all it is simply a return of one's money.

Lynette


With all annuities, income level tax on all gains

Insurance company will tell you how much is return vs gain
by dhodson
Mon Jan 19, 2015 1:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: Milevsky's got me thinking immediate annuity????
Replies: 28
Views: 2459

Re: Should I stop paying into my IUL policy?

Which of course he doesn't need.

You will notice the premium is a lot higher for that if you bother to look. The reason being is the rate can't be jacked up on you later on. It also won't have any value if you ever surrender it.
by dhodson
Sun Jan 18, 2015 11:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I stop paying into my IUL policy?
Replies: 7
Views: 606

Re: What do I have here? Metlife Var. Annnuity

you should call the company and ask those questions. Post what they tell you.
by dhodson
Sun Jan 18, 2015 12:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: What do I have here? Metlife Var. Annnuity
Replies: 21
Views: 1129

Re: Should I stop paying into my IUL policy?

You are not going to be happy. There is no free lunch with insurance. 1. Yes you can't lose more than you have paid. 2. Ask for an in force illustration and look at the guaranteed amounts to keep in force. 3. universal life has increasing insurance cost with age. If you don't fund the investment pie...
by dhodson
Sat Jan 17, 2015 10:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I stop paying into my IUL policy?
Replies: 7
Views: 606
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