Search found 1537 matches
- Tue Nov 27, 2007 8:24 pm
- Forum: Personal Investments
- Topic: NWM/whole life..part 2
- Replies: 9
- Views: 2336
- Tue Nov 27, 2007 6:27 pm
- Forum: Personal Investments
- Topic: NWM/whole life..part 2
- Replies: 9
- Views: 2336
Re: NWM/whole life..part 2
2. 1 year ago my current cash value was $49,200; the cash surrender value increase for the past year (ie, AFTER the premium has been paid) was $3382. So I calculate my "return" over the past year on this "investment" as 3382/49200=6.87%.
3. The total death benefit currently is $121,000.
To get an accurate return, deduct the premium from the gain in cash value, then figure the return. This is an old trick used by career shops. As far as taxable gain, you will be taxed on all gain above your premiums, assuming no loans this changes taxation. Ask for a written statement from the company on taxable gain. If you don't need the coverage, IMO, I would drop the policy
3. The total death benefit currently is $121,000.
To get an accurate return, deduct the premium from the gain in cash value, then figure the return. This is an old trick used by career shops. As far as taxable gain, you will be taxed on all gain above your premiums, assuming no loans this changes taxation. Ask for a written statement from the company on taxable gain. If you don't need the coverage, IMO, I would drop the policy
- Tue Nov 27, 2007 4:39 pm
- Forum: Investing - Theory, News & General
- Topic: Group disability insurance is bad?
- Replies: 96
- Views: 19692
Everything mephistophles stated is correct. I would add that most people rarely stay with the same employer through their working years and most all group insurance is not portible from one company to another. The problem comes in if you have a change in health, change jobs, become self employed or go to work where they don't offer DI, then you have no ability to get any insurance. In addition, group disability limits the amount of personal disability you can get and group DI claim payments are usually taxable. Group DI is very cheap, but there is always a reason. I write quite a bit of disability in my business and most people are unaware of the differences.
- Tue Nov 27, 2007 12:06 pm
- Forum: Personal Investments
- Topic: Are we about to make a big mistake? NWM & Whole Life
- Replies: 301
- Views: 71873
- Tue Nov 27, 2007 9:43 am
- Forum: Personal Investments
- Topic: Are we about to make a big mistake? NWM & Whole Life
- Replies: 301
- Views: 71873
- Tue Nov 27, 2007 9:03 am
- Forum: Personal Investments
- Topic: Are we about to make a big mistake? NWM & Whole Life
- Replies: 301
- Views: 71873
According to my agent, if I accumulate the $3 million any other way, my beneficiaries will get $1.5 million less. The federal estate tax exemption for 2007 is $2 million. That amount is scheduled to increase to $3.5 million in 2009. In theory, the exemption will fall back to $1 million in 2011 upon expiration of prior tax cuts. However, I think it's fair to say that most people don't expect that to happen. Without getting too deep into politics, I note that Hillary Clinton has indicated she is comfortable leaving the exemption at the 2009 level. Most of the experts in the field I know do believe it will fall back to the 1 million exemption. Very doubtfull any Congress is going to pass a new bill rolling back the exemption when we have the ...
- Mon Nov 26, 2007 8:30 pm
- Forum: Personal Investments
- Topic: Disability insurance: should I get it, and if so, how much?
- Replies: 18
- Views: 10422
Find an independent agent that represents several disability companies. NEVER depend on group disability, not portable or transferrable, is taxable and could be dropped by the company. Principal and Guardian and Assurity have decent policies as well as Ohio National, most important to find a good INDEPENDENT agent, not a career agent like NWM.
- Sun Oct 28, 2007 8:45 pm
- Forum: Personal Investments
- Topic: Long term care
- Replies: 44
- Views: 13792
- Sat Oct 27, 2007 8:29 pm
- Forum: Personal Investments
- Topic: Need advice regarding will
- Replies: 22
- Views: 5825
I NEVER recommend an individual as trustee of the children's money. I have way to many horror stories regarding this mistake. Depending on where you live, a Living Trust is not that important, most juristictions require attorneys to document their fees and not charge a % of the estate. Meet with a competent estate attorney, spend the 1000 they will probably charge to do the proper documents. You really do have alot of flexability in your planning, make sure someone explains it in a way you understand.
- Thu Oct 25, 2007 8:29 am
- Forum: Personal Investments
- Topic: Long term care
- Replies: 44
- Views: 13792
Custodial care rates are increasing an average of 7-8% annually, what if care is needed longer than 5 years, what if care is needed for husband and wife? Compare that with a LTC policy and some folks think LTCI is underpriced, ie the reason GE is increasing rates. Most underwriters were assuming a 6 to 7% lapse in policies, in reality it is more 1-2%, people aren't dropping their policies.
- Wed Oct 24, 2007 8:56 pm
- Forum: Personal Investments
- Topic: life insurance questions
- Replies: 10
- Views: 2581
With almost 30 years in the insurance business, my observations are that the majority of people underestimate the amount of coverage they need as well as the length of time they will need coverage. I continuously have clients come to me when their 10,15 and 20 year policies are about to expire and tell me they need longer coverage.
- Wed Oct 24, 2007 4:18 pm
- Forum: Personal Investments
- Topic: Long term care
- Replies: 44
- Views: 13792
- Wed Oct 24, 2007 2:43 pm
- Forum: Personal Investments
- Topic: Long term care
- Replies: 44
- Views: 13792
[As to the need for a policy - my research at the time (age 60) indicated that anyone with a networth under $0.5-$1M should consider using Medicaid and anyone with more than $2M should self-insure. Are you familiar with Medicaid and what they will and won't pay? I know many, many folks with net worths in excess of 2million that have LTC, they consider it smart risk management. Have you beenn personally involved with folks that need "custodial care"? Until one experiences the costs of this care it is difficult to understand the impact. 80% of all LTC claims are for other than nursing home care and Home Care can be the most expensive care one can receive. If you needed care would you want to stay at home or go to a NH. 16 hours of c...
- Sun Oct 14, 2007 9:09 pm
- Forum: Investing - Theory, News & General
- Topic: Article: Equity Indexed Annuities in Business Week
- Replies: 15
- Views: 3774
Been in the insurance business 28 years and never viewed any annuities worth much, with the xception of the early 80's when fixed annuity rates were better than CD rates and IRS let them be FIFO. EIA are all structured to put the insurance company in control, they are a total rip. Billions being sold to unsuspecting consumers as a safe way to get market type returns without any downside. DOI in most all states don't prosecute overzealous agents. VA are even worse in my opinion.
- Thu Sep 20, 2007 6:41 am
- Forum: Personal Investments
- Topic: Non-Qualified Deferred Compensation plans (NQDC)
- Replies: 2
- Views: 2586
- Fri Sep 14, 2007 8:47 am
- Forum: Investing - Theory, News & General
- Topic: Health care premiums up "only" 6.1% this year
- Replies: 42
- Views: 11810
- Thu Sep 13, 2007 9:14 pm
- Forum: Personal Investments
- Topic: Invest with Merrill Lynch??
- Replies: 28
- Views: 9020
- Thu Sep 13, 2007 5:35 pm
- Forum: Investing - Theory, News & General
- Topic: Health care premiums up "only" 6.1% this year
- Replies: 42
- Views: 11810
Unfortunately, the ability to continue raise rates is often called the death spiral. A company has a block of business that has unusual claims, raises rates, the healthy folks bailout to other policies and leave the block of business with abnormally high risk policyholders and the spiral begins, higher claims, higher rates, more drop out and it goes on and on till the policyholders left in that block of business can't afford the premium. Don't know what the answer is, but I don't think it is national health care.
- Wed Sep 12, 2007 8:40 pm
- Forum: Investing - Theory, News & General
- Topic: Health care premiums up "only" 6.1% this year
- Replies: 42
- Views: 11810
- Wed Sep 12, 2007 7:37 pm
- Forum: Investing - Theory, News & General
- Topic: Health care premiums up "only" 6.1% this year
- Replies: 42
- Views: 11810
- Wed Sep 12, 2007 3:35 pm
- Forum: Investing - Theory, News & General
- Topic: Health care premiums up "only" 6.1% this year
- Replies: 42
- Views: 11810
keeping up with the ever-increasing costs of my premiums. If I cannot pay, I will lose my coverage. Same as true with group, most employers pay a portion of employee cost and none for family coverage- cost increases happen with group in some cases more than individual Group plans run cheaper. That is only true if you are an unhealthy, or smoke, or take lots of meds, for healthy nonsmokers it is ALWAYS lesss expensive to have individual coverage. Posted: Wed Sep 12, 2007 3:54 pm Post subject: -------------------------------------------------------------------------------- bluemarlin08 wrote: One of the problems with group insurance is if you do have a serious medical condition, and can no longer work, you might be able to go on COBRA for 18 ...
- Wed Sep 12, 2007 2:17 pm
- Forum: Investing - Theory, News & General
- Topic: Health care premiums up "only" 6.1% this year
- Replies: 42
- Views: 11810
One of the problems with group insurance is if you do have a serious medical condition, and can no longer work, you might be able to go on COBRA for 18 months, and then what? What happens if the company decides to drop their group coverage and you have developed a uninsurable medical condition, I see this all the time. What if you get layed off, what if you decide to be self employed? Group coverage is not portable and is not guaranteed. IMO a very dangerous way manage insurance risk.
- Wed Sep 12, 2007 11:54 am
- Forum: Investing - Theory, News & General
- Topic: Health care premiums up "only" 6.1% this year
- Replies: 42
- Views: 11810
- Wed Sep 12, 2007 7:59 am
- Forum: Investing - Theory, News & General
- Topic: Health care premiums up "only" 6.1% this year
- Replies: 42
- Views: 11810
It is approaching that point now. I see businesses that are increasing deductibles , reducing their contributions etc etc. Many are getting out of group med completely. The individual market is pricing many people out of the market completely, more folks are going to HDHP like HSA even if they don't fund the HSA. Our hospitals are getting slammed with uninsured patients, many illegals, to the point they don't know what to do. In addition, IMO, pysicians are striving to justify every billing code available to increase revenue. Most people don't realize the potential hazard of relying on group health coverage................. to be continued.
- Tue Sep 11, 2007 10:12 pm
- Forum: Investing - Theory, News & General
- Topic: Health care premiums up "only" 6.1% this year
- Replies: 42
- Views: 11810
- Fri Sep 07, 2007 8:16 pm
- Forum: Personal Investments
- Topic: Where do I begin to look for a fee-based financial advisor?
- Replies: 76
- Views: 24744
I understand where you are coming from Paul. I no longer manage money, I did for a while but didn't enjoy it and moved more to insurance. I try to educate folks that they need to have objectives, and understand what they are trying to accomplish and hold their advisors accountable regarding those objectives. I must admit it is a difficult job. I have a doc client, NW 10 million, income 1 million and he jumps around from investment guy to investment guy. I think I have finally convinced him to study and do it himself, I think that is the best approach. Hope I didn't offend you, I quit investment management because with a little study one CAN do it themself.
- Fri Sep 07, 2007 6:10 pm
- Forum: Personal Investments
- Topic: Where do I begin to look for a fee-based financial advisor?
- Replies: 76
- Views: 24744
You are certainly entitled to your opinion, I stand by my statement that seeking advice from friends that are satisfied with their advisors is a good place to start. As long as the advisor is meeting the clients objectives, who cares about commissions and costs. As far as liking your advisor, I would think it would be difficult trusting an advisor that one didn't like. How would you suggest "ordinary" people choose their advisors? What do you consider "ordinary"?
- Fri Sep 07, 2007 4:33 pm
- Forum: Personal Investments
- Topic: Where do I begin to look for a fee-based financial advisor?
- Replies: 76
- Views: 24744
I generally advise a client that has lost a spouse to do nothing for 12 to 18 months, especially if they weren't involved in the family investment decision making. I know I have told my wife to do exactly what I mentioned if something happens to me. Truly your best path is to ask friends who they use and only consider those people that your friends have used for 10 years or more, IMO. I would want someone that has been through the storms as well as the good times.
- Fri Sep 07, 2007 8:03 am
- Forum: Personal Investments
- Topic: Where do I begin to look for a fee-based financial advisor?
- Replies: 76
- Views: 24744
I think the best thing you can do is ask others in your area who they use. Narrowing your choice to fee only, IMO, limits your choices. I would be more concerned if my advisor meets or exceeds my objectives regardless how they are compensated. In my practice we use a team approach with us being the quarterback. Interview advisors from all genres.
- Tue Sep 04, 2007 7:25 pm
- Forum: Investing - Theory, News & General
- Topic: Ben Stein apparently likes variable annuities??
- Replies: 29
- Views: 11173
- Mon Sep 03, 2007 9:15 am
- Forum: Personal Investments
- Topic: Selling Limited Partnerships
- Replies: 12
- Views: 2595
- Sun Sep 02, 2007 8:32 pm
- Forum: Personal Investments
- Topic: Selling Limited Partnerships
- Replies: 12
- Views: 2595
- Thu Aug 30, 2007 11:54 am
- Forum: Investing - Theory, News & General
- Topic: Berkshire Hathaway B Shares
- Replies: 13
- Views: 3369
Berkshire Hathaway B Shares
Do any of you own BH b shares? I have owned some for several years and they have outperformed all my other stocks.
- Wed Aug 29, 2007 10:26 pm
- Forum: Personal Investments
- Topic: Life Insurance Quotes
- Replies: 28
- Views: 7746
- Wed Aug 29, 2007 8:28 pm
- Forum: Personal Investments
- Topic: Life Insurance Quotes
- Replies: 28
- Views: 7746
As far as I could tell there was no way to apply for a policy without paying for the first month's estimated premium.
Not true with any company I know of.
I submit duplicate applications in many situations and explain that to each company. Companies don't give better deals to get the business, the majority use reinsurance and have to follow their UW guidelines. Curious why you chose NYL, their term products are never competitive.
Not true with any company I know of.
I submit duplicate applications in many situations and explain that to each company. Companies don't give better deals to get the business, the majority use reinsurance and have to follow their UW guidelines. Curious why you chose NYL, their term products are never competitive.
- Wed Aug 29, 2007 12:27 pm
- Forum: Personal Investments
- Topic: Charitable remainder trust
- Replies: 3
- Views: 1083
- Wed Aug 29, 2007 12:23 pm
- Forum: Personal Investments
- Topic: Life Insurance Quotes
- Replies: 28
- Views: 7746
One suggestion to consider, using a quote engine on the net, doesn't guarantee the best rate. An independent agent that represents most of the major term players will know who is the best UW fit, for example, if you take Cholesterol meds only one company will consider giving Preferred Plus rates, everyone else knocks you down to Preferred. Same is true if family history of cancer, only one company will consider their best rates. I could go on and on regarding this, find someone who really knows the market and will shop your rates annually, I have 6 companies that have reduced rates in the past 4 months.