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by dhodson
Wed Oct 07, 2015 12:29 pm
Forum: Investing - Help with Personal Investments
Topic: Flexible Premium Adjustable Indexed Life
Replies: 23
Views: 1602

Re: Flexible Premium Adjustable Indexed Life

I'm not sure your friend understands how "risky" this policy will be. Its a substantial risk to take money out of or loans against a UL policy with increasing costs of insurance over long periods of time. If the policy ever lapses then not only will he stop getting money for income, he wil...
by dhodson
Tue Oct 06, 2015 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Yet another Whole Life Insurance Question, and paying debt.
Replies: 2
Views: 813

Re: Yet another Whole Life Insurance Question, and paying debt.

A couple of things First you are likely very under insured for term. I would make that a priority and I would get term NOT associated with work likely 20-30 years level term. 2nd, this is a small policy so it isn't a big deal one way the other what you do with it but it really is mostly worth keepin...
by dhodson
Tue Oct 06, 2015 12:07 pm
Forum: Investing - Help with Personal Investments
Topic: Flexible Premium Adjustable Indexed Life
Replies: 23
Views: 1602

Re: Flexible Premium Adjustable Indexed Life

Zero for interest doesn't factor in increasing NON guaranteed cost for insurance.
by dhodson
Mon Oct 05, 2015 7:33 pm
Forum: Personal Finance (Not Investing)
Topic: Permanent Insurance Advise
Replies: 8
Views: 630

Re: Permanent Insurance Advise

Unless one needs or wants a permanent death benefit (wants a guaranteed amount of money available at the time of their death) then unless they die premature to their health rating then its highly likely that a combination of term and investing appropriately will yield superior results but lets just ...
by dhodson
Mon Oct 05, 2015 5:55 pm
Forum: Investing - Help with Personal Investments
Topic: Flexible Premium Adjustable Indexed Life
Replies: 23
Views: 1602

Re: Flexible Premium Adjustable Indexed Life

Ask for an illustration with GUARANTEED minimum crediting and GUARANTEED maximum charges for insurance.

You will get the picture about what is actually guaranteed.
by dhodson
Mon Oct 05, 2015 5:16 pm
Forum: Personal Finance (Not Investing)
Topic: Permanent Insurance Advise
Replies: 8
Views: 630

Re: Permanent Insurance Advise

Might want to google unmet promises life insurance to see how unlikely the illustration is going to work out. That article was written by insurance folks.
by dhodson
Mon Oct 05, 2015 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: Northwestern Mutual Whole Life Insurance (65 Life)
Replies: 35
Views: 4556

Re: Northwestern Mutual Whole Life Insurance (65 Life)

While I think one should keep one of these. One has to want a death benefit. If sad2 has any bond portion in his/her portfolio, this policy is competitive with, probably superior to it, even without the death benefit, which of course is what underlies it in the first place. At this point in the lif...
by dhodson
Mon Oct 05, 2015 9:00 am
Forum: Personal Finance (Not Investing)
Topic: Northwestern Mutual Whole Life Insurance (65 Life)
Replies: 35
Views: 4556

Re: Northwestern Mutual Whole Life Insurance (65 Life)

Now I probably wouldn't 1035 in this case IF I didn't want to keep it.

That just defers the tax so it's sort of kicking the can down the road.

I like that better in an older person but IF done go with a low cost VA like through vanguard
by dhodson
Mon Oct 05, 2015 8:57 am
Forum: Personal Finance (Not Investing)
Topic: Northwestern Mutual Whole Life Insurance (65 Life)
Replies: 35
Views: 4556

Re: Northwestern Mutual Whole Life Insurance (65 Life)

All gains immediately taxed as income.

Most people lapse/surrender their policies.
by dhodson
Mon Oct 05, 2015 7:53 am
Forum: Personal Finance (Not Investing)
Topic: Northwestern Mutual Whole Life Insurance (65 Life)
Replies: 35
Views: 4556

Re: Northwestern Mutual Whole Life Insurance (65 Life)

As I've mentioned several times I would keep this but I want to point out: It is only tax free if kept in force until death. One needs to look at an in force illustration to see the actual guaranteed increase in CSV. Right now the CSV is increasing (illustrated) at around 5%. I bet if you look at th...
by dhodson
Sun Oct 04, 2015 8:56 pm
Forum: Personal Finance (Not Investing)
Topic: Indexed Deferred Income Annuities
Replies: 7
Views: 606

Re: Indexed Deferred Income Annuities

as you likely know, the term is used for a variety of things but im assuming for your thread that you are defining it as irrevocable contract where you give up a lump sum of money (or add to it during the deferral period) and then at some later date get an income stream. If you die before the income...
by dhodson
Sun Oct 04, 2015 6:21 pm
Forum: Personal Finance (Not Investing)
Topic: Indexed Deferred Income Annuities
Replies: 7
Views: 606

Re: Indexed Deferred Income Annuities

in my view the key to understanding these is to understand the insurance companies dont have magic. they can invest in things (which u could do without them), take out a huge chunk for their profit/fees/commissions/whatever, and pass on the rest to you. obviously this part isnt exciting. they can po...
by dhodson
Sun Oct 04, 2015 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: Northwestern Mutual Whole Life Insurance (65 Life)
Replies: 35
Views: 4556

Re: Northwestern Mutual Whole Life Insurance (65 Life)

Might want to look what happened in Japan with their similar strong companies after sustained low interest rates. Nobody has magic. If their assumptions don't hold then trouble will occur. Might want to also realize they no longer provide the highest dividends. As I've mentioned several times, I'd k...
by dhodson
Sun Oct 04, 2015 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: Northwestern Mutual Whole Life Insurance (65 Life)
Replies: 35
Views: 4556

Re: Northwestern Mutual Whole Life Insurance (65 Life)

although that isnt actually the worst case scenario. Guarantees are only as good as the company making them. I dont think that will happen but one needs to understand what guarantee means when talking about these products.
by dhodson
Sun Oct 04, 2015 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: 7702 plan
Replies: 3
Views: 321

Re: 7702 plan

additionally one should realize that transamerica just recently increased insurance costs on their INFORCE polices above the typical increases that occur with just increasing age in a UL policy. Given that mortality isnt increasing, i find that "interesting" myself and it would worry me pe...
by dhodson
Sun Oct 04, 2015 12:38 pm
Forum: Personal Finance (Not Investing)
Topic: Northwestern Mutual Whole Life Insurance (65 Life)
Replies: 35
Views: 4556

Re: Northwestern Mutual Whole Life Insurance (65 Life)

Thank you both for the replies. Dhodson, when you discuss PUA (paid up additions), is that the same thing as using the dividends to increase the cash value and coverage? I was unable to locate the PUA verbiage in my profile settings, but I do see that my dividends are being used to increase cash va...
by dhodson
Sun Oct 04, 2015 11:56 am
Forum: Personal Finance (Not Investing)
Topic: Northwestern Mutual Whole Life Insurance (65 Life)
Replies: 35
Views: 4556

Re: Northwestern Mutual Whole Life Insurance (65 Life)

thats not what i would do what i would do is calculate it currently (it changes and at the moment is going down) so id look at my return from 2014 to 2015 and id repeat this process every couple of years (assuming im keeping it which is what i would do but i would be ok with giving some money at my ...
by dhodson
Sun Oct 04, 2015 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Northwestern Mutual Whole Life Insurance (65 Life)
Replies: 35
Views: 4556

Re: Northwestern Mutual Whole Life Insurance (65 Life)

I am not a fan of whole life policies and advise people to avoid them. However this is an old policy and for $741 in premiums paid every year you are getting additional cash value of $2,400 a year. This is a 28 year old policy so the big commissions have already been paid. This policy was written w...
by dhodson
Fri Oct 02, 2015 7:36 am
Forum: Investing - Help with Personal Investments
Topic: Cash Balance Retirement Question
Replies: 4
Views: 684

Re: Cash Balance Retirement Question

You can also see how much in monthly payments that lump sum would get you if you purchased a SPIA.
by dhodson
Thu Oct 01, 2015 6:03 pm
Forum: Investing - Theory, News & General
Topic: Resources on Variable Annuities
Replies: 18
Views: 1767

Re: Resources on Variable Annuities

I guess that depends on what you mean by share of risk. Insurance companies priced these riders such that they would cover their end of the risk and make a profit. Well when that wasnt enough they have unilaterally forced clients into specific investments, removing the better options with folks bein...
by dhodson
Thu Oct 01, 2015 1:44 pm
Forum: Investing - Theory, News & General
Topic: Resources on Variable Annuities
Replies: 18
Views: 1767

Re: Resources on Variable Annuities

No need to purchase a VA.

He would be having higher costs, no tax loss harvesting, less liquidity, and no step up of basis at death.

Instead just purchase a SPIA at a later date IF "guaranteed" income is needed. Don't need a VA for the "pension" effect.
by dhodson
Thu Oct 01, 2015 1:38 pm
Forum: Investing - Help with Personal Investments
Topic: Nationwide Variable Annuity Navigator 2.0; Which funds to invest in?
Replies: 16
Views: 1095

Re: Nationwide Variable Annuity Navigator 2.0; Which funds to invest in?

There's "no free lunch" :annoyed and I will add, "for anything" :oops: The difference is whether how you can recognize it. :wink: No I'm well aware of the fees I can take the lump sum or purchase a SpIA at that time with its associated costs. Having a single person DB plan makes...
by dhodson
Wed Sep 30, 2015 8:21 pm
Forum: Investing - Help with Personal Investments
Topic: Nationwide Variable Annuity Navigator 2.0; Which funds to invest in?
Replies: 16
Views: 1095

Re: Nationwide Variable Annuity Navigator 2.0; Which funds to invest in?

What tax hit?

It lost money not even including surrender charges.
by dhodson
Wed Sep 30, 2015 7:24 pm
Forum: Investing - Help with Personal Investments
Topic: Nationwide Variable Annuity Navigator 2.0; Which funds to invest in?
Replies: 16
Views: 1095

Re: Nationwide Variable Annuity Navigator 2.0; Which funds to invest in?

Considering how much she has lost/paid for this, If her health is good I'd start the income rider at the earlier date. given the poor return so far, I'd go aggressive within this VA but as u know they limit your selection (on purpose). Bad purchase but likely should ride it out in my view.
by dhodson
Tue Sep 29, 2015 12:14 pm
Forum: Investing - Help with Personal Investments
Topic: Maxing out 401K, Backdoor Roth and Mega Backdoor Roth. What’s next?
Replies: 8
Views: 736

Re: Maxing out 401K, Backdoor Roth and Mega Backdoor Roth. What’s next?

529 if appropriate.

Don't get suckered into thinking tax deferral is the goal. Otherwise you will get sold products you really shouldn't purchase.
by dhodson
Tue Sep 29, 2015 9:16 am
Forum: Personal Finance (Not Investing)
Topic: Is private high school "worth it"?
Replies: 130
Views: 8689

Re: Is private high school "worth it"?

This is more kid dependent than anything else. Its important to make a guess at where they will exceed. I'd carefully consider more than just academics in the equation. I went to a small public HS which would be considered horrible from an education standpoint. That worked out awesome for me. I was ...
by dhodson
Mon Sep 28, 2015 5:53 pm
Forum: Investing - Help with Personal Investments
Topic: Help with maturing fixed annuity. Settlement options???
Replies: 9
Views: 848

Re: Help with maturing fixed annuity. Settlement options???

Only if there are fees/charges from the insurance contract that u didn't mention. I'd call vanguard for a direct transfer after confirming with insurance company no more fees.
by dhodson
Mon Sep 28, 2015 1:57 pm
Forum: Investing - Help with Personal Investments
Topic: White Coat Investing
Replies: 28
Views: 4810

Re: White Coat Investing

Stay away from people who sell insurance as an investment.
by dhodson
Mon Sep 28, 2015 9:50 am
Forum: Personal Finance (Not Investing)
Topic: Can employer raise health insurance payroll deduction midyear?
Replies: 20
Views: 2655

Re: Can employer raise health insurance payroll deduction?

Sure

Very likely costs went up for them as well

They should inform u though
by dhodson
Mon Sep 28, 2015 7:50 am
Forum: Personal Finance (Not Investing)
Topic: Survivorship Life Insurance
Replies: 10
Views: 565

Re: Survivorship Life Insurance

Terrible idea

The truth is he can't afford to do this and thus shouldn't

It is also a bad investment by the way

He isn't leaving you anything but a bill with this plan
by dhodson
Sat Sep 26, 2015 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: Should I Cash Out my Whole Life Policy?
Replies: 4
Views: 688

Re: Should I Cash Out my Whole Life Policy?

first sorry for your loss. it sounds like you dont NEED the death benefit but it isnt clear if you NEED this money or just would pass it on to someone or something else. If you want to pass money to someone or something else then id keep it in force bc all the serious commissions/fees/drags are gone...
by dhodson
Sat Sep 26, 2015 3:05 pm
Forum: Investing - Help with Personal Investments
Topic: Northwestern Mutual - investment advice
Replies: 39
Views: 3179

Re: Northwestern Mutual - investment advice

well you havent met many NWM agents then especially ones claiming to do a full analysis which you paid for. If he died tomorrow then he certainly would be underinsured since nobody can afford as much WL as they can term. Even in good health, 2 million in WL for him would be like 40k a year. Term of ...
by dhodson
Sat Sep 26, 2015 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: Northwestern Mutual - investment advice
Replies: 39
Views: 3179

Re: Northwestern Mutual - investment advice

i seriously doubt that the agent didnt also consider term insurance. I imagine the OP only mentioned the insurance products he didnt already own that the agent wanted him to purchase. In regards to disability insurance, group/work is vastly inferior to individual. That being said, it is also vastly ...
by dhodson
Sat Sep 26, 2015 11:29 am
Forum: Investing - Help with Personal Investments
Topic: Northwestern Mutual - investment advice
Replies: 39
Views: 3179

Re: Northwestern Mutual - investment advice

you should start off reading some of the boglehead recommended books unfortunately you wasted $1200 on that evaluation IMO. You were going to get a recommendation for insurance from an insurance company. I personally would cut ties with them. They are very good at selling and unless you are awesome ...
by dhodson
Fri Sep 25, 2015 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: Buying whole life insurance in NJ -- Tricky question
Replies: 3
Views: 442

Re: Buying whole life insurance in NJ -- Tricky question

If you are looking for an agent that sells LTCi either standalone or hybrid policy then while there are some decent agents here, i dont think any specialize in that particular situation but i dont know for sure. Might want to try one of the insurance agent forums on the web. They certainly have subf...
by dhodson
Fri Sep 25, 2015 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: Disagreements with future spouse over finances: advice for young adult?
Replies: 67
Views: 6606

Re: Disagreements with future spouse over finances: advice for young adult?

Every couple fights about money. Those who say they never did are liars. How you handle such fights will determine divorce or not (and other signs of happiness or lack there of). If you are looking for complete agreement on all monetary issues then good luck. That doesn't mean I would get involved w...
by dhodson
Fri Sep 25, 2015 10:14 am
Forum: Personal Finance (Not Investing)
Topic: I want to borrow against my house to buy land
Replies: 18
Views: 1867

Re: I want to borrow against my house to buy land

Leverage is a risk many shouldn't take

Now you might be completely fine with this but that's up to you.
by dhodson
Fri Sep 25, 2015 7:38 am
Forum: Personal Consumer Issues
Topic: Best Chromebook 2015
Replies: 61
Views: 7785

Re: Best Chromebook 2015

My son has the dell with touchscreen and likes it
by dhodson
Fri Sep 25, 2015 6:52 am
Forum: Investing - Help with Personal Investments
Topic: Help with maturing fixed annuity. Settlement options???
Replies: 9
Views: 848

Re: Help with maturing fixed annuity. Settlement options???

As mentioned, it looks taxes have not been paid on this money and it is an annuity within a qualified plan. Insurance company should be able to confirm this.
by dhodson
Thu Sep 24, 2015 6:02 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance: rights as insured, but not owner
Replies: 14
Views: 833

Re: Life Insurance: rights as insured, but not owner

In my opinion, you made the point to the "owner" of the policy - and, unless there are other extenuating circumstances, I would then just shut up. This is costing you nothing and if/when you become the "owner" of the policy - you can do whatever you want. x2 Regardless of your g...
by dhodson
Thu Sep 24, 2015 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance: rights as insured, but not owner
Replies: 14
Views: 833

Re: Life Insurance: rights as insured, but not owner

Interesting that as an adult they allowed the policy to be written on you without notification.

If it's an old policy then might be worth keeping at this point.
by dhodson
Mon Sep 21, 2015 8:44 pm
Forum: Personal Finance (Not Investing)
Topic: Whole life insurance policy?
Replies: 15
Views: 1380

Re: Whole life insurance policy?

please use the search engine you either misunderstood what he said, he phrased things in a way that got you thinking the actual return was guaranteed to be 6% or he just completely lied. The actual return on WL is NOT GUARANTEED to be 6% on either the cash surrender value or the death benefit (assum...
by dhodson
Mon Sep 21, 2015 5:41 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for advice. 24 yr/old young professional sold life insurance by NML.
Replies: 68
Views: 5950

Re: Looking for advice. 24 yr/old young professional sold life insurance by NML.

Yes he was hoping to sucker you into more WL. It would be WL that was again not "optimized". No favor to you.
by dhodson
Mon Sep 21, 2015 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: Level versus Escalating Term Life Insurance Premium
Replies: 4
Views: 479

Re: Level versus Escalating Term Life Insurance Premium

You need to look at IF the premium rates for the escalating are guaranteed not to increase and policy guaranteed renewable. The rates may not be. Then calculate total costs for each policy and evaluate investing the difference Likely u want level term unless u think it's highly likely u will cancel ...
by dhodson
Mon Sep 21, 2015 12:16 pm
Forum: Investing - Help with Personal Investments
Topic: Dave Ramsey Calls Out "Bogle-ites"
Replies: 61
Views: 7418

Re: Dave Ramsey Calls Out "Bogle-ites"

I don't see any reason to respond to him. Evidence supports a boglehead approach over managed. There isn't any evidence that looking at costs creates behavioral issues where one is paralyzed and doesn't save. Frankly (although also non scientific), learning about fees encourages one to focus more on...
by dhodson
Mon Sep 21, 2015 10:44 am
Forum: Investing - Help with Personal Investments
Topic: fixed-index annuity question
Replies: 2
Views: 497

Re: fixed-index annuity question

Fixed index annuities are deferred annuities. So if coming from a taxable you change long term capital to income rates on gains, you can't tax loss harvest, and no step up in basis at death. The gains are going to be very similar to regular fixed annuities since they take the money and invest 95+% i...
by dhodson
Sun Sep 20, 2015 2:38 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for advice. 24 yr/old young professional sold life insurance by NML.
Replies: 68
Views: 5950

Re: Looking for advice. 24 yr/old young professional sold life insurance by NML.

Most surrender within 15 years thus there isn't enough time for health issues to arise that would greatly influence this. Later on I believe yes which I also believe contributes to the IRR actually dipping later on instead of improving.
by dhodson
Sun Sep 20, 2015 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: Value annuity for estate, Maryland
Replies: 6
Views: 598

Re: Value annuity for estate, Maryland

i am not sure but believe fair market value is what JH should be giving you. Are they trying to pretend it has zero value....No wonder the court sees it differently.
by dhodson
Sun Sep 20, 2015 12:48 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for advice. 24 yr/old young professional sold life insurance by NML.
Replies: 68
Views: 5950

Re: Looking for advice. 24 yr/old young professional sold life insurance by NML.

The odds of this being your best performing asset in the distant future is very very low. You do realize that WL companies have been decreasing dividends for decades and likely will either continue to do so or stay low for the next several years. Did he tell you that the guaranteed values on the de...

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