Bonds Suck! You Should Buy Whole Life Insurance Instead

Bonds Suck! You Should Buy Whole Life Insurance Instead

Following up on the Ernst & Young piece about incorporating whole life insurance and annuities into a retirement plan, we noted that we generally agreed with the observation EY made about whole life insurance and annuities being good substitutes for bonds.  We’ve held this belief for a long time.  But we should quantify what makes …

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Congress Wants to Pillage Your IRA

Congress Wants to Pillage Your IRA

A proposed Bill in the House of Representatives seeks to put new rules and limitations on IRA’s as well as traditional qualified retirement accounts.  This Bill seeks to raise revenues for various government programs in the name of ending a decade’s old practice of “subsidizing retirement savings once account balances reach very high levels.” The …

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Historical Whole Life Comparison

Historical Whole Life Comparison

Over the course of the past several weeks, we looked at real whole life policies and evaluated their real policy performance.  We specifically looked at cash value accumulation comparing original projections of non-guaranteed values to the actual performance of the policies.  Every policy spans a timeline of around 10 years.  we used internal rate of …

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Northwestern Mutual Whole Life Historical Results

Northwestern Mutual Whole Life Historical Results

Next up in our series of reviewing real-life results from whole life insurance policies, we look this week at Northwestern Mutual.  Like other policies reviewed, we took data from a Northwestern Mutual whole life policy purchased around 10 years ago.  We have the original illustration and used that to compare against current policy values. We also …

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Whole Life Insurance for Your Stretch IRA

Whole Life Insurance for Your Stretch IRA

The SECURE Act of 2019 rewrote the rules on inherited IRAs.  The biggest change eliminated a Required Minimum Distribution (RMD) schedule for younger non-spousal heirs that allowed them to “stretch” the distribution period out for their lifetimes.  The new rules require these individuals to instead distribute all of the money in the IRA within a …

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