Author Topic: Financial Planner  (Read 6798 times)

Offline Super Speed

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Re: Financial Planner
« Reply #45 on: August 09, 2013, 05:15:11 PM »
I have money just sitting in my savings account doing nothing for me, any ideas how or where to invest it?

Offline yos9694

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Re: Financial Planner
« Reply #46 on: August 09, 2013, 07:34:32 PM »
Logical for the broker, no doubt ;)
I've heard the commissions paid are just insane.

Commissions for VA are 3% of the deposit, same as any front loaded mutual fund. Not insane at all. While you may personally prefer no load funds, front load funds make sense to other people.

Commissions on life insurance could be up to the full first year premium, but thats between the insurance company and the broker. The insurance product still has to perform for the client and it does, as long as you have anything but a short horizon for investing.

Again, I wouldnt recommend either of these as investments unless the client already is fully funding other tax advantaged vehicles first.

Offline yos9694

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Re: Financial Planner
« Reply #47 on: August 09, 2013, 07:37:21 PM »
I think your sentiments are correct here.  LI can have its place among other tax/estate planning mechanisms if the person/family is in need of such an investment vehicle. I think you will find many estate planning attorneys who agree with this too.

Estate planning is a completely different topic and far more complex. We're discussing tax planning for retirement, which is focused on the cash value of the policy, not the death benefit.

Offline Dan

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Re: Financial Planner
« Reply #48 on: August 09, 2013, 07:39:00 PM »
Commissions on life insurance could be up to the full first year premium, but thats between the insurance company and the broker. The insurance product still has to perform for the client and it does, as long as you have anything but a short horizon for investing.
Let me take a wild guess, you sell/broker WL insurance?
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Offline gpapadop

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Re: Financial Planner
« Reply #49 on: August 10, 2013, 04:12:23 PM »
If I had a Vanilla Reload card for every time I have seen or heard life insurance with investment in the same sentence ::)

Offline yos9694

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Re: Financial Planner
« Reply #50 on: August 10, 2013, 09:19:08 PM »
Let me take a wild guess, you sell/broker WL insurance?

I don't.

Offline Barryg

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Re: Financial Planner
« Reply #51 on: August 10, 2013, 11:28:17 PM »
I think he means that a Limited Pay WL product is easier to deal with for this purpose than a Lifetime Pay, regardless of the company of issue. If you have premiums due during your draw-down phase, it can be messy and/or hard to understand.
Or he could just answer for himself...

Offline mordyl19

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Re: Financial Planner
« Reply #52 on: August 12, 2013, 11:30:44 AM »
>>>>>>>>>>>>>I find it interesting that you have not come to utilize either an annuity tradtional/immediate or an insurance policy to help anyone.

Fixed annuities have their place in the marketplace.
Variable annuities and insurance policies marketed as investments are a giant load of crap for the people who buy them (and super lucrative for the ones who sell them).
I did not say that Whole Life Insurance and Annuities are investments. I was questioning your statement when you said that they are "crap" products.
I am not 100% sure about this. But I am going to click it anyway.

Offline mordyl19

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Re: Financial Planner
« Reply #53 on: August 12, 2013, 11:33:01 AM »
Logical for the broker, no doubt ;)
I've heard the commissions paid are just insane.
Yes logical and lucky to have the chance to do something like that. Commisions on anything really are insane but you hear about the insurance side more often than basic trades.
I am not 100% sure about this. But I am going to click it anyway.

Offline mordyl19

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Re: Financial Planner
« Reply #54 on: August 12, 2013, 11:36:24 AM »
With all of this fancy investment, tax planning, estate planning, and return talk using Insurance, has anyone just bought insurance to protect their family or to use the product for the actual use of the product? Or is that just a crazy idea?
I am not 100% sure about this. But I am going to click it anyway.

Offline yos9694

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Re: Financial Planner
« Reply #55 on: August 13, 2013, 12:33:04 PM »
With all of this fancy investment, tax planning, estate planning, and return talk using Insurance, has anyone just bought insurance to protect their family or to use the product for the actual use of the product? Or is that just a crazy idea?

Term?

Offline mordyl19

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Re: Financial Planner
« Reply #56 on: August 14, 2013, 02:26:42 PM »
Term or Whole Life, but you bought it not for the "investment" or tax aspect but rather, you wanted life insurance for insurance.
I am not 100% sure about this. But I am going to click it anyway.

Online skyguy918

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Re: Financial Planner
« Reply #57 on: August 14, 2013, 02:50:42 PM »
Term or Whole Life, but you bought it not for the "investment" or tax aspect but rather, you wanted life insurance for insurance.

If your only goal is the insurance aspect, then you want term. There may be some UL products out there that are essentially term for life, but even that is not usually a good option for pure insurance needs because the need decreases after a certain age. By its very definition WL has an investment component to it.

Offline mordyl19

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Re: Financial Planner
« Reply #58 on: August 14, 2013, 03:10:25 PM »
If your only goal is the insurance aspect, then you want term. There may be some UL products out there that are essentially term for life, but even that is not usually a good option for pure insurance needs because the need decreases after a certain age. By its very definition WL has an investment component to it.
That is true by its very definition whole life has an investment aspect. One might say they want insurance but do not want to contribute to a rental. He might like to buy it.  I use the example with your house, You could rent your house (Term) or buy your house (WL). Within purchasing and not renting the house you build equity (investment aspect) but you live there and its not being flipped. (used for the insurance not the investment) 
I am not 100% sure about this. But I am going to click it anyway.

Online skyguy918

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Re: Financial Planner
« Reply #59 on: August 14, 2013, 03:52:59 PM »
That is true by its very definition whole life has an investment aspect. One might say they want insurance but do not want to contribute to a rental. He might like to buy it.  I use the example with your house, You could rent your house (Term) or buy your house (WL). Within purchasing and not renting the house you build equity (investment aspect) but you live there and its not being flipped. (used for the insurance not the investment)

Not a very good analogy, always hated it. Generally speaking, the investment/equity aspect is only worthwhile if you're truly in need of/taking advantage of the tax vehicle aspect.

Most people just need the insurance aspect, and 'renting' makes a lot more sense.