Just like any other savings or investment plan cash value life insurance requires some degree of management, especially when it’s purchased for income or wealth accumulation purposes. So what aspects are important and need some degree of periodic check? That’s what we’ll be reviewing today.
I’ll be very up front about the fact that I’m stereotyping badly with today’s post regarding financial advisors and cash value life insurance. I realize there’s a lot of liberal interpretation regarding what it means to be a “financial advisor.” But for today’s purposes, we’ll refer to financial advisors as those who primarily focus on …
Whole life blending, as we’ve discussed before, is a process for designing cash value life insurance to maximize cash value available to the policyholder/client and income potential. Still, there are those who like to suggest it doesn’t matter. Those who would spend time arguing against a policy that is designed to maximize paid-up additions when …
As of late, it would seem that a great many people are engaged in a bit of retirement savings roulette and I’m afraid it’s not going to end well for them. Just in case you’ve been living under a rock for the past four years or so, interest rates paid on traditional income generating retirement …
Last time I talked about designing cash value life insurance as an asset class using whole life insurance, today we’ll dive into how it works for universal life insurance. Universal life insurance is often used by agents as a lower premium permanent life insurance option as compared to whole life insurance, huge mistake. As a …
In a world where almost every talking head and financial pundit (think Suze Orman and Dave Ramsey) is telling you that cash value life insurance and particularly whole life insurance are terrible, we stand atop the shining city on the hill and declare them wrong. As a matter of fact, it’s great up here, and …
Sometimes I just feel like being edgy, and throwing the words invest and Modified Endowment Contract about seems like a good way to be edgy. Of course this so called “edginess” is more a testament of my dork-dom–analogous to my saying, “I know my AGI is >$33,750 but screw form 6251.” If you got that …
There’s little doubt you’ve read a great deal of swirling about in the media regarding Long Term Care Insurance (LTCi). And, you may be asking yourself—should I buy the coverage or not? As usual, my answer will be…that depends.
For a while, Brandon and I have been discussing the coming 401k bond blood bath for people who are retiring and have been planning for years to shift their asset allocation to a much more conservative posture. Remember when the conventional wisdom was that during your retirement years you would shift the weighting of your …
The debate between direct recognition and non-direct recognition is a long-standing one. Be sure to review both of our earlier posts on these topics for more in-depth explanations. So, which is the superior method of treating dividends when there’s an outstanding policy loan? Are the “purests” correct when they point to non-direct recognition as the …
