Search found 24 matches

Return to advanced search

Re: Retirement Income from Life Insurance

The product that I was looking at is based on that product, however it is M Financial's version of the product. M Financial has a relationship with several carriers (JH, Pac, Pru, NW, TC Life) and all of these carriers offer products that are only available to M firms. In addition, the 7% that I use...
by mk2013
Fri Jun 28, 2013 4:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retirement Income from Life Insurance
Replies: 42
Views: 3169

Re: Retirement Income from Life Insurance

I dont have a link to the prospectus, but here is a link to the product that it is based on: http://www1.tiaa-cref.org/public/prospectuses/ivul_policy.pdf The product that I was looking at was M Financial's version of this product. Need a log in to access it. I agree with you that a down year, say 2...
by mk2013
Tue Jun 25, 2013 7:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retirement Income from Life Insurance
Replies: 42
Views: 3169

Re: Retirement Income from Life Insurance

I apologize to all who think that I am simply posting because they think I am a producer and are here just to talk up insurance and not "ask" any real questions. My intent was simple, to prove or disprove that life insurance could be used as a retirement income producing asset, as opposed ...
by mk2013
Tue Jun 25, 2013 6:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retirement Income from Life Insurance
Replies: 42
Views: 3169

Re: Retirement Income from Life Insurance

1. You assumed the same return in both the taxable and the VUL. There isn't a single VUL out there that has the same fees for investing. Most have outrageously high expenses for a "similar" investment from vanguard per say. This right there kills it and makes everything you say untrue but ...
by mk2013
Fri Jun 21, 2013 5:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retirement Income from Life Insurance
Replies: 42
Views: 3169

Re: Retirement Income from Life Insurance

What I am referring to is the tax-free nature of an income stream that can be provided by a life insurance product. As long as the policy is not a MEC (Modified Endowment Contract), then the withdrawals from the policy are taxed on a FIFO basis, meaning withdrawals are simply a return of basis (prem...
by mk2013
Thu Jun 20, 2013 5:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retirement Income from Life Insurance
Replies: 42
Views: 3169

Re: Retirement Income from Life Insurance

Fishndoc, what am I trying to show (or determine) is if the tax-free nature of life insurance performs outweighs the fees that are being charged on it, compared to a taxable investment account with management fees also on that. Dhodson, I completely agree that negative return years, especially durin...
by mk2013
Thu Jun 20, 2013 3:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retirement Income from Life Insurance
Replies: 42
Views: 3169

Re: Retirement Income from Life Insurance

Clearly, if the LI product returned 1%, then the brokerage account would be much greater. And I do remember that post, although I believe that post was referring to a whole life policy which more than likely had higher costs of insurance, was all base (higher commissions), and was not structured pro...
by mk2013
Wed Jun 19, 2013 6:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retirement Income from Life Insurance
Replies: 42
Views: 3169

Retirement Income from Life Insurance

Hi all, I have been analyzing using a permanent variable life insurance product as opposed to buying term and investing the difference. The need decreases over time, so I have used Prudential's 20 year term product to be able to decrease the death benefit. I then have used TC Life's best variable pr...
by mk2013
Wed Jun 19, 2013 6:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retirement Income from Life Insurance
Replies: 42
Views: 3169

Re: Life insurance (whole) and other strategies

To be honest, I don't sell insurance. I am simply a financial analyst that helps with case design as well as other financial modeling. I feel that the argument against outside people recommending insurance may be because whatever strategy or product they recommend earns them a commission. And I have...
by mk2013
Mon Jun 17, 2013 7:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Life insurance (whole) and other strategies
Replies: 42
Views: 2057

Re: Life insurance (whole) and other strategies

I'm curious, but do you most of you feel that it is better to only have ordinary and/or capital gain income during retirement or have a combination of ordinary, capital gain, and tax-free or exempt income? I just feel that when you talk about where cash is coming from during the retirement years, di...
by mk2013
Mon Jun 17, 2013 5:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Life insurance (whole) and other strategies
Replies: 42
Views: 2057

Re: Life insurance (whole) and other strategies

I should have mentioned that I work for a business consulting and estate planning firm that deals primarily with high net worth individuals who own their own operating business(es). These operating businesses are generally illiquid, therefore the need to have insurance to cover estate taxes or be ab...
by mk2013
Fri Jun 14, 2013 6:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Life insurance (whole) and other strategies
Replies: 42
Views: 2057

Re: Life insurance (whole) and other strategies

I apologize, but I did not mean that by investing in a life insurance product, one would become wealthy. Clearly, there must be a need to purchase life insurance, whether to provide income in retirement or a death benefit to cover estate taxes or pass more to heirs upon death. In my opinion, life in...
by mk2013
Fri Jun 14, 2013 10:52 am
 
Forum: Investing - Help with Personal Investments
Topic: Life insurance (whole) and other strategies
Replies: 42
Views: 2057

Re: Life insurance (whole) and other strategies

There may be a post on this already, but what is the feeling about interest rates? They are at historic lows and wouldn't there have to be an upwards adjustment sometime in the future? I realize that I may be speculating, but I cannot see interest rates staying this low for the life of a life insura...
by mk2013
Wed Jun 12, 2013 7:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Life insurance (whole) and other strategies
Replies: 42
Views: 2057

Re: Life insurance (whole) and other strategies

While I agree that life insurance should not be considered a hedge for the market, I find it odd that some people stay away from considering life insurance an investment. I have seen variable, index, and even current assumption products (not whole life) that provide a rate of return of anywhere betw...
by mk2013
Wed Jun 12, 2013 6:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Life insurance (whole) and other strategies
Replies: 42
Views: 2057

Re: Whole Life vs Term? Help please...

I may be mistaken, but if the policy collapses it will be due to not paying enough premiums or having enough cash value to cover the costs of insurance. Can you explain to me where the huge tax bill will come from if you have zero cash value? Additionally, a majority of products have a wash loan pro...
by mk2013
Thu Jun 06, 2013 7:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life vs Term? Help please...
Replies: 59
Views: 2841

Re: Whole Life vs Term? Help please...

Yes, it entirely depends on rates. additionally, there are some guarantees in variable and current assumption products.
by mk2013
Thu Jun 06, 2013 5:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life vs Term? Help please...
Replies: 59
Views: 2841

Re: Whole Life vs Term? Help please...

True, but you can obtain the same death benefit using a different type of product that will provide you with flexibility later on.
by mk2013
Thu Jun 06, 2013 5:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life vs Term? Help please...
Replies: 59
Views: 2841

Re: Whole Life vs Term? Help please...

Understandable. Just as a follow up to the guaranteed versus variable or current assumption products - no lapse gul products guarantee that costs of insurance will never increase and that crediting rates will never drop. why would anyone want to lock in their interest rate on their investment portfo...
by mk2013
Thu Jun 06, 2013 4:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life vs Term? Help please...
Replies: 59
Views: 2841

Re: Whole Life vs Term? Help please...

Great discussion. No one has mentioned anything about an Indexed Universal Life product. Reasons for and against?
by mk2013
Thu Jun 06, 2013 4:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life vs Term? Help please...
Replies: 59
Views: 2841

Re: Whole Life vs Term? Help please...

No lapse gul is overpriced considering many of the pricing increases that the carriers have been forced to make due to changes in reserve requirements. Not to mention that there is very little if any cash value in the policy to allow for flexibility in the future. And, depending on the carrier and f...
by mk2013
Thu Jun 06, 2013 11:11 am
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life vs Term? Help please...
Replies: 59
Views: 2841

Re: Whole Life vs Term? Help please...

Are you going to continue to purchase whole life policies? Have you entertained the idea of using a variable product? The only reason that I am asking is because it seems like your objective if for the death benefit with a little cash value. I personally feel that life insurance products can be extr...
by mk2013
Thu Jun 06, 2013 10:50 am
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life vs Term? Help please...
Replies: 59
Views: 2841

Re: Whole Life vs Term? Help please...

If you can do it financially, there are other types of insurance besides only term and/or whole life. You could look into purchasing a current assumption universal life (CAUL) or a variable universal life (VUL) product. The CAUL will credit your account whatever rate the insurance carrier is crediti...
by mk2013
Wed Jun 05, 2013 5:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: Whole Life vs Term? Help please...
Replies: 59
Views: 2841

Re: Efficient Frontier

Thanks! I came across the same issue Chris, in regards to attempting to blend projected returns with historical variances. I just wanted to make sure that I wasn't missing something.

Thanks again.
by mk2013
Wed Jun 05, 2013 4:39 pm
 
Forum: Investing - Theory, News & General
Topic: Efficient Frontier
Replies: 14
Views: 1465

Efficient Frontier

Hi Everyone, First post here, so I apologize if this question has been answered previously. My question is regarding how to calculate the efficient frontier. Specifically, lets say that I have 20 years of historical data for 20 asset classes and I calculate the variance and mean return for each asse...
by mk2013
Wed Jun 05, 2013 12:53 pm
 
Forum: Investing - Theory, News & General
Topic: Efficient Frontier
Replies: 14
Views: 1465

Return to advanced search