January 9, 2012

I Like It

I came a cross this today and thought it was a nice piece done on the subject.  Though I don't personally think LBS is all that and a bag of chips like Guardian career agents (who have exclusive proprietary access to it) do.  The bigger message is certainly spot on.  As a fellow colleague of mine (who is a Guardian career agent) always says, “There are plenty of people out there who are wizards of this stuff, and don't need LBS, so I don't make it the core reason to do business with me.”

 

Guardian does do a really great job highlighting the use of life insurance as a low risk asset class.   Being domiciled in NY state (Home Office is in Lower Manhattan) they've been dealing with a sophisticated financial clientèle for years, and their message tends to be a little more subdued than the all or nothing feeling one might get from Nash and Yellen.

I especially like the message at the end about running off to tell the younger folks.  If you're 85 and missed the boat, there's still a lot of good you can do in telling your kids, grandkids, friends kids etc. about how powerful a strategy this is.

January 7, 2012

The Methodology Behind “Average” Rate of Return

When someone quotes the rate of return on a specific investment or quotes average returns on an index to support a theory behind achieving similar results in their investment, do you actually know what exactly they are talking about?  Further more, what is the probability that you will in fact end up with what everyone else is quoting as “average?”  The old joking definition of Statistics is: generally everyone; specifically no one.  And this seems to be  pretty fitting for a novice skill level in probability and statistics.  However, once we get a little more technical, and employ a few more mathematical techniques, we start to explore what purpose these numbers really serve.  We'll explore some useful applications of these figures in this post.

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January 1, 2012

Looking for some Good Ideas for your Emergency Fund? Part 3 Reasons 6, 7, and 8

Here we are, the conclusive post to the Emergency Fund trilogy (sounds special).  Again, if you'd like a refresher on all 8 reasons from the original post they are:

  1. Increased rate of return
  2. Tax deferral
  3. Potentially tax free withdrawal
  4. Death benefit
  5. Private and non-probate asset
  6. Fewer fees (in most cases)
  7. Recaptured opportunity
  8. Systematic savings Read More…
December 30, 2011

Looking for some Good Ideas for your Emergency Fund: Part 2 Reasons 1-5

So last time we dove into general design, and this time around we'll be addressing why this is such a great idea.  I left off the last post with 8 reasons for using cash value life insurance as a spot to store emergency fund cash.  If you forgot here they are:

  1. Increased rate of return
  2. Tax deferral
  3. Potentially tax free withdrawal
  4. Death benefit
  5. Private and non-probate asset
  6. Fewer fees (in most cases)
  7.  Recaptured opportunity
  8. Systematic savings

Read More…

December 27, 2011

Looking for some Good Ideas for your Emergency Fund? Part 1: Cash Value Life Insurance?

Looking for some Good Ideas for your Emergency Fund? Part 1: Cash Value Life Insurance?

In the spirit of the Holiday Season, which just wound down for the most part (hurray I can drive by major commercial locations again!), I figured I'd make today's piece a sort of “holiday gift ideas with cash value life insurance that kick ass” type post.  For years I've been advocating what I'm about to roll out here, and I've got clients who have accomplished some seriously nice cash positions that are crushing what others are traditionally taught to do with their emergency fund money on a rate of return playing field.

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December 19, 2011

An Oldie, but Goodie

I remember quite vividly the first time I saw this video.  I was still a career agent with one of the big 4 Mutuals and we had a special meeting conducted by the Director of Individual Life Sales.  He came from the Home Office to give us a presentation on the topic of life insurance as an asset class and brought with him this video recorded a few months prior on CNBC.

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December 11, 2011

Should I Cash-In my Life Insurance (How CNN Got it Wrong and Why you should Care)?

Recently I cam across an article on the CNN Money Help Board posted from someone who was looking for some advice on deciding what to do with two life insurance policies he and his wife had.  The central sticking point for the individual was that the kids were gone and now he was trying to decide if it made sense to keep the life insurance policies he and his wife had.

Here's the Article 

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November 30, 2011

The Many Handy Uses of Term Insurance

Some people may assume that insurance agents like me despise term insurance.  Look at it and wince with a large degree of disgust.

Nope.

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November 29, 2011

Are You Kidding Me? (How to Vet Financial Advice)

It's no real surprise that I'm no fan of Dave Ramsey.  Most would suggest it's due to his anti-permanent life stance, but that's not really it.  Sure that helps solidify my belief that the dude knows little about the product, and a quick peruse of his work on this subject should quickly leave any knowledgeable individual with the same impression.  But the real thing that annoys me about Dave, Suze, etc. is their lack of a deep and profound understanding of the topics at hand and their constant commercialization and monetization of themselves and their brands.  Don't get me wrong, I'm not anti-business (I own one) but today I found something that really floored me.

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November 21, 2011

Moderation

I wanted to take a moment this week to temper things a bit and remind everyone that the Insurance Pro Blog is not an appendage of the Bank on Yourself or Be Your Own Banker folks.  We aren't affiliated and our name nor the Salus Agency (the agency that I own) will show up in any request more information query from Yellen's or Nash's web site.  Though we could be described as people with similar focuses, I happen to be a practitioner, while the other two consider themselves merely educators who sell a sales system to insurance agents.  On top of this, I don't believe that stocks and mutual funds have no place in your financial lives, I just believe the amount of these products that is necessary to lead a happy, financially healthy life, is grossly overstated.   Read More…

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