@fritchdogg … @fritchdogg Passive aggressive statement.. I know that there is a huge commission involved. I recently went to a pitch for some kind of annuity where they specifically made a point of saying that there commission was paid from the ‘profits of the company’ and ‘not from your purchase amount’. Which is ridiculous – as the profits come from the purchases.
@fritchdogg Each … @fritchdogg Each company has different maintenance fees and yes the insurance cost increases the older you get. That is the reason for permanent insurance and a cash account that can earn a high rate of return, to cover the increase in cost and provide tax free retirement. Take a look at the you tube video titled The Truth Behind Hidden Fees in 401(k) Plans. It explains why you should not be so worried about the small maintenance fees the insurance companies charge.
What are the … What are the typical annual expenses and maintainance fees, as would be found on a prospectus? Does the cost of insurance increase as you get older…like an annual renewable term vs. a level 20 – 30 year term?
@fritchdogg Ted … @fritchdogg Ted Benna, a retirement benefits consultant, Was the one who invented the 401k while trying to find ways to maximize his clients savings. His client at the time was a bank that was seeking a way to replace cash bonuses with a deferred, profit sharing plan. Ted realized that Section 401(k) would allow his client to achieve their objective. The bank later rejected his plan and he later offered it to his employees. The plan was Intended for exec’s not the average lower paid employee.
@fritchdogg Read … @fritchdogg Read Missed Fortune 101 it explains how taking loans against the cash amount earns triple compound interest. Roth IRA has contribution Caps per year and if you and your spouse earn more than 160k combined income per year you don’t qualify. You can still lose money in a Roth IRA and in order to generate income you still have to withdrawn the money from the account. Causing you to lose the interest on the diminishing principle amount.
@dannozaki1 … @dannozaki1 Actually, a 401K by definition is a tax-deferred contribution retirement plan offered by an employer. This I got straight from Legg Mason’s Series 6 License Exam Manual. It is strictly for retirement and that is exactly what it was meant for. My reference to “vehicle” means that you can invest in many different type of funds in a 401k…it is not just stocks. And what about a Roth IRA…you pay no taxes at the end at all.
@dannozaki1 I have … @dannozaki1 I have made money in my 401k in the past two years. Last year my fund increased 38% (1/1/09 – 12/31/09). I had a minor position in 2008 so I wasn’t affected by the downturn. The end of 2008 I started to increase my positions.
@fritchdogg No one … @fritchdogg No one is predicting the tax rate but watch my video on the USA Today Jan. 14 where it talks about tax rates as high as 94% in 1944 then you will understand why there is a high probability of income tax being raised
@fritchdogg your … @fritchdogg your right it was never intended as a retirement investment. How much money have you lost in your 401k in the last 2 years? If your going to put your money in safer investments you might as well not invest, because of inflation and taxes you have to earn a high rate of return to have a retirement plan that you can live on.
@safetyscrewmarket … @safetyscrewmarket Geez, that is funny. Have you ever seen a prospectus on a quality mutual fund? Mine has earned over 15.1% avg annual returns since 12/1/1973. And there are many out there just like that.
Predicting the tax … Predicting the tax rate in the future is just wrong. This is a wild presumption. And I hate the “tax effect” speech. The truth is you can not access your cash from a UL policy unless you take out a LOAN, cancel your policy, or die. If you take out a loan you pay interest. If you cancel your policy you have to pay taxes on the gains like you would with a 401k. If you die you don’t pay interest or taxes…but you also can’t use it…cause your DEAD!
@rdr2445 RDR2445, … @rdr2445 RDR2445, I’m not sure if you were seriously inquiring or making a passive agressive statement. The truth is there are enormous commisions in these policies…that is why they sell them. They, however, do very little for the customer. Selling an IRA with a choice of different funds – money market, bonds, CDs, or Stocks have very low fees and commisions when compared to these policies. That is why this slick salesman is pitching Universal Life.
401K is not an … 401K is not an investment vehicle, it is a classification. You can have bonds, CDs, and/or mutual funds in a 401K. It depends on your employeer. My employer uses Fidelity and we have stock funds, mixed funds, bond funds, money markets, etc. It is the choice of the employee.
If obvious the proponents of IUL are not educated about the IUL.
They recommend Mutual Funds,when only 80% of Mutual Funds ever outperform the S&P.
They don’t understand that with gains and no losses the cost of insurance doesn’t even matter. because the componding over the life of the policy will reduce the cost to less than 2%. And who cares about when you can never loose. The cost is less than commissions and transaction fees.
We base our … We base our illustration on the last 23 year performance which is a little less than 8%. What do you have to base any stock portfolio on. The same thing any one else has,a projection a calculated guess. At least the insurance company guarantees the client won’t lose money. Find one stock broker that can say that all of his client in the last 2 year have not lost a penny in their portfolios. I can tell you that none of my clients have lost a penny.
Well i suppose if … Well i suppose if you base it all on the illustration that is not guaranteed then sure, it would work out in a perfect world. But i guess we’ll just have to wait for however many years to actually see if the eiul really turns out the way u say it will which i am highly doubtful it will. To me, its exactly the same as when UL’s and VUL’s first came out. Agents based everything on the non-guaranteed illustrations and in the end, the policies failed to perform to their expectations.
What happens is … What happens is that the illustration software calculates the payments so that is stays level over the life of the policy. When the cash value becomes big enough the client can stop paying and the interest pays for the policy till age 120 or till they die. Most clients will have enough money at age 66 to stop paying forever.
So you yourself do … So you yourself do offer both options a and b to your clients then im assuming? Thats good for you then. But the cos of insurance does go up every year and you suggest investing more money into the cash account. Meaning that the client needs to pay more. At least a few hundred dollars or so more. So let me ask, do your clients have issues with that? Do any of your clients get upset when they find out that they have to pay more?
Well mainong that … Well mainong that problem is not my problem that is a problem with the life insurance agents your dealing with. And yes the option b is a little more expensive but that is why the client receives both the cash value and the face amount.
That was exactly … That was exactly what i was trying to get to. Now most policies that i have come across, the agents never gave their clients either options. They told them that they would receive both death benefit and would sell them option a. Now, for option b, it is more expensive is it not?
have you purchased … have you purchased an IUL? because I have sold hundreds of IUL policies and they all have two options A & B level or increasing. If you chose B you receive both the face amount and the cash value. When you die they subtract the loans and interest from the cash value and the beneficiary will receive the the face amount and the rest of the cash value.
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Comparing your 401k with an IUL http://WWW.DanNozaki-FFS.COM
@fritchdogg …
@fritchdogg Passive aggressive statement.. I know that there is a huge commission involved. I recently went to a pitch for some kind of annuity where they specifically made a point of saying that there commission was paid from the ‘profits of the company’ and ‘not from your purchase amount’. Which is ridiculous – as the profits come from the purchases.
@fritchdogg Each …
@fritchdogg Each company has different maintenance fees and yes the insurance cost increases the older you get. That is the reason for permanent insurance and a cash account that can earn a high rate of return, to cover the increase in cost and provide tax free retirement. Take a look at the you tube video titled The Truth Behind Hidden Fees in 401(k) Plans. It explains why you should not be so worried about the small maintenance fees the insurance companies charge.
What are the …
What are the typical annual expenses and maintainance fees, as would be found on a prospectus? Does the cost of insurance increase as you get older…like an annual renewable term vs. a level 20 – 30 year term?
@fritchdogg better …
@fritchdogg better to pay interest then to pay taxes
@fritchdogg Good …
@fritchdogg Good for you, your one of the only ones that made money.
@fritchdogg Ted …
@fritchdogg Ted Benna, a retirement benefits consultant, Was the one who invented the 401k while trying to find ways to maximize his clients savings. His client at the time was a bank that was seeking a way to replace cash bonuses with a deferred, profit sharing plan. Ted realized that Section 401(k) would allow his client to achieve their objective. The bank later rejected his plan and he later offered it to his employees. The plan was Intended for exec’s not the average lower paid employee.
@fritchdogg Read …
@fritchdogg Read Missed Fortune 101 it explains how taking loans against the cash amount earns triple compound interest. Roth IRA has contribution Caps per year and if you and your spouse earn more than 160k combined income per year you don’t qualify. You can still lose money in a Roth IRA and in order to generate income you still have to withdrawn the money from the account. Causing you to lose the interest on the diminishing principle amount.
@dannozaki1 …
@dannozaki1 Actually, a 401K by definition is a tax-deferred contribution retirement plan offered by an employer. This I got straight from Legg Mason’s Series 6 License Exam Manual. It is strictly for retirement and that is exactly what it was meant for. My reference to “vehicle” means that you can invest in many different type of funds in a 401k…it is not just stocks. And what about a Roth IRA…you pay no taxes at the end at all.
@dannozaki1 I have …
@dannozaki1 I have made money in my 401k in the past two years. Last year my fund increased 38% (1/1/09 – 12/31/09). I had a minor position in 2008 so I wasn’t affected by the downturn. The end of 2008 I started to increase my positions.
@fritchdogg No one …
@fritchdogg No one is predicting the tax rate but watch my video on the USA Today Jan. 14 where it talks about tax rates as high as 94% in 1944 then you will understand why there is a high probability of income tax being raised
@fritchdogg your …
@fritchdogg your right it was never intended as a retirement investment. How much money have you lost in your 401k in the last 2 years? If your going to put your money in safer investments you might as well not invest, because of inflation and taxes you have to earn a high rate of return to have a retirement plan that you can live on.
@safetyscrewmarket …
@safetyscrewmarket Geez, that is funny. Have you ever seen a prospectus on a quality mutual fund? Mine has earned over 15.1% avg annual returns since 12/1/1973. And there are many out there just like that.
Predicting the tax …
Predicting the tax rate in the future is just wrong. This is a wild presumption. And I hate the “tax effect” speech. The truth is you can not access your cash from a UL policy unless you take out a LOAN, cancel your policy, or die. If you take out a loan you pay interest. If you cancel your policy you have to pay taxes on the gains like you would with a 401k. If you die you don’t pay interest or taxes…but you also can’t use it…cause your DEAD!
@rdr2445 RDR2445, …
@rdr2445 RDR2445, I’m not sure if you were seriously inquiring or making a passive agressive statement. The truth is there are enormous commisions in these policies…that is why they sell them. They, however, do very little for the customer. Selling an IRA with a choice of different funds – money market, bonds, CDs, or Stocks have very low fees and commisions when compared to these policies. That is why this slick salesman is pitching Universal Life.
401K is not an …
401K is not an investment vehicle, it is a classification. You can have bonds, CDs, and/or mutual funds in a 401K. It depends on your employeer. My employer uses Fidelity and we have stock funds, mixed funds, bond funds, money markets, etc. It is the choice of the employee.
It depends on the …
It depends on the the age and face amount of the policy.
So, how much is the …
So, how much is the sales commission on this policy?
Great job danozaki1 …
Great job danozaki1-
If obvious the proponents of IUL are not educated about the IUL.
They recommend Mutual Funds,when only 80% of Mutual Funds ever outperform the S&P.
They don’t understand that with gains and no losses the cost of insurance doesn’t even matter. because the componding over the life of the policy will reduce the cost to less than 2%. And who cares about when you can never loose. The cost is less than commissions and transaction fees.
Great Job!!!
We base our …
We base our illustration on the last 23 year performance which is a little less than 8%. What do you have to base any stock portfolio on. The same thing any one else has,a projection a calculated guess. At least the insurance company guarantees the client won’t lose money. Find one stock broker that can say that all of his client in the last 2 year have not lost a penny in their portfolios. I can tell you that none of my clients have lost a penny.
Well i suppose if …
Well i suppose if you base it all on the illustration that is not guaranteed then sure, it would work out in a perfect world. But i guess we’ll just have to wait for however many years to actually see if the eiul really turns out the way u say it will which i am highly doubtful it will. To me, its exactly the same as when UL’s and VUL’s first came out. Agents based everything on the non-guaranteed illustrations and in the end, the policies failed to perform to their expectations.
What happens is …
What happens is that the illustration software calculates the payments so that is stays level over the life of the policy. When the cash value becomes big enough the client can stop paying and the interest pays for the policy till age 120 or till they die. Most clients will have enough money at age 66 to stop paying forever.
So you yourself do …
So you yourself do offer both options a and b to your clients then im assuming? Thats good for you then. But the cos of insurance does go up every year and you suggest investing more money into the cash account. Meaning that the client needs to pay more. At least a few hundred dollars or so more. So let me ask, do your clients have issues with that? Do any of your clients get upset when they find out that they have to pay more?
Well mainong that …
Well mainong that problem is not my problem that is a problem with the life insurance agents your dealing with. And yes the option b is a little more expensive but that is why the client receives both the cash value and the face amount.
That was exactly …
That was exactly what i was trying to get to. Now most policies that i have come across, the agents never gave their clients either options. They told them that they would receive both death benefit and would sell them option a. Now, for option b, it is more expensive is it not?
have you purchased …
have you purchased an IUL? because I have sold hundreds of IUL policies and they all have two options A & B level or increasing. If you chose B you receive both the face amount and the cash value. When you die they subtract the loans and interest from the cash value and the beneficiary will receive the the face amount and the rest of the cash value.
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