September 3, 2015

182 A Discussion of Risk: Percentages Be Damned, I Need Income

Concept Cartoon Illustration of Funny Businessman and Economic Crisis or Recession

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Well, we take a week off from recording/producing the financial procast and the market decides it’s going to fall apart. I wasn’t aware that our podcast was the glue that holds it all together?

In light of that, and the fact that today marks the 3rd anniversary of our show, we decided to take a break from our normal show format. We dedicated today’s show entirely to a discussion of risk. Read More…

August 20, 2015

181 Cars, Houses and Yard Sale Knick Knacks

garage sale

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In episode 181 of the Financial Procast, here’s what we discuss:

Money Flees U.S. stock funds

SEC commissioners push for greater pricing transparency for bonds

Variable Annuity surrender charges aren’t what some would have you think

Rents rise to “crazy” levels

An as a reminder, there will not be a new episode of the financial procast next week. But we’ll be back in a couple weeks with a new episode.

If you would like to reach out to us, we’re always happy to hear from you.

August 13, 2015

180 Follow Us on Facebook and Like Us on the Tweeter

hipster

 

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Ever been around someone who tried too hard? It’s painfully obvious.

The financial services industry is guilty of this kind of behavior. Need proof? Just google the term “society of grownups” and you will need no further evidence that we’re telling you the truth. I could link to them here but we make it a policy to only send our visitors away from our site when there’s something useful on the other end. Read More…

August 11, 2015

Who are Our Clients?

The Insurance Pro Blog
 
After we published the no contest between whole life and term life insurance article a few weeks ago many of you apparently found a side comment I made very intriguing. We’ve received more emails asking about our typical clients than any other subject since that article went live.

I’ve resisted writing this post for years. My aversion stemmed from a desire to be open to all and I want to stress that I still feel that way.

However, inquiring minds want to know about our “typical” client and I suppose in many respects it makes sense to identify who exactly we’re talking about when we discuss the subject of insurance specifically speaking to life insurance as an asset class. So here goes… Read More…

August 6, 2015

179 Welcome to Chi Phi Pi

exclusive-member-xs

 

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Don’t let the title fool you. We’re not actually starting our own sorority. But we do think that it’s a shame that the CFP board recently compared itself to one in a recent court case where they were being sued.

We thought it was an organization dedicated to upholding a professional standard in the financial planning community?

We’re talking about that recent court ruling and a few other things today on the Financial Procast. Read More…

August 4, 2015

The Over-Loan Protection Rider

over loan protection rider

For years, the task of creating income from a life insurance policy was all about balancing the growth of policy loans against the growth of policy cash values. Assuming the policy cash values grew at a faster pace than the loan balance, everything was a-okay.

But what happens if the loan balance outpaces the growth of the policy’s cash value?

…ugly things…

Read More…

July 30, 2015

178 Oh Kevin, I’d Like to Buy Some Health Insurance

Angry Business Woman shouting into telephone

 

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We’re back after a two week unplanned hiatus. Sometimes life happens, not much we can do about that. Thankfully, we still remember how to record and produce a podcast.

Here’s what we’re discussing in episode 178:

A $15/hr. minimum wage?

Obamacare rates set to skyrocket

The housing market is irrational

As always, if you’d like to reach out to us with a question, comment or anything in between you can contact us here.

July 28, 2015

A Fixed Indexed Annuity Success Story

Fixed Indexed Annuity

 

Fixed indexed annuities are fixed interest rate annuity products that derive the interest rate credited to the policy’s cash values based on movement in an index (the same way indexed universal life insurance derives an interest rate).

They often provide additional benefits through a rider that guarantees a level of income from the annuity. The accumulation of income benefits from these contracts are strong for the risk averse individual.

Read More…

July 22, 2015

There is no Whole Life vs. Term Insurance Debate

whole life insurance versus term life insurance

An aspect of the financial services and insurance industries that has always bugged me is this notion that there is some sort of debate over which life insurance product someone should buy.

To set the stage, the discussion generally notes the differences between term life insurance and whole life insurance (mostly harping on “price” paid for premium) and then makes some esoteric argument about why one is better than the other.

The truth is–and has always been–that there is no debate between the products. They serve two completely different purposes and are bought for very different reasons without a lot of (maybe even dare I say…any) overlap. Read More…

July 14, 2015

Can the Government Fix Your Retirement Woes?

Brainwashing

By now, you may have heard grumblings about the new proposed fiduciary rule from the Department of Labor.

It’s a proposal that originated (leaked) from the Executive Office of the President. Yep, that’s right; it came straight out of the White House.

The rule seeks to put an end to the following:

Investment losses due to conflicted advice result from the incentives conflicted payments generate for financial advisers to steer savers into products or investment strategies that provide larger payments to the adviser but are not necessarily the best choice for the saver.”

That’s a direct quote from the first page of the proposal. See for yourself.

Let’s decipher that. We (DOL and the Executive office) think the fees and commissions people are paying to brokers and investment advisers on their 401ks are too high, and we don’t like it. So, we want to make a new rule that stops that from happening. Anyone who earns a commission from selling investment or insurance products is greedy, and it is our moral duty to rid the world of their evil!

Sounds reasonable.

Listen up, because this will require your tin foil hat. Fasten it securely, and don’t forget the chinstrap.

Read More…