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(Complete Show Notes Below)
In the 41st episode of the Financial Procast:
Generally speaking we're not in love with the 529 savings plans. They seem like a great idea in theory but in practice they're a bit less than appealing. Most people who've bought into the idea, find that the plans are somewhat restrictive and require too many limitations as to how the money saved within the plan can be spent.
Podcast: Play in new window | Download
(Complete Show Notes Below)
In the 33rd episode of the Financial Procast:
According to recent reports there is a policy initiative being floated by the Obama administration to limit the amount of money anyone can defer from taxes within their IRA. Yeah, that's right…POTUS is slaughtering sacred cows left and right. What will the modern financial planning community do without the bastion of tax-deferral?
Life insurance agents love to fight over meaningless figures in an attempt to inflate the importance or attractiveness of their products. Truth is, current facts and figures aren't going to matter all that much. I've mentioned before that design is super crucial, and I've also hinted at the notion that there are core attributes that make some products better than other. There isn't really a blanket list of features regarding these attributes, so a little consulting with a knowledgeable agent is prudent. To highlight my point, however, I'm going to dive into the topic of policy distributions. This will become part of many posts discussing different features and why they matter. Throughout all this, you'll begin to understand why it's difficult to recommend one carrier as better than all the others, as they can be varied in where they are strong (i.e. one size–or carrier–does not fit all).
Spring is here, time to enjoy warmer days (if you're with me in the Northeast), blooming flours, and a fight between a so called financial educator who hustles a selling system to insurance agents known as Bank on Yourself and a fee based financial planner who is pretending to be a consumer/journalist. Here's the story.
So what does this all mean? Pam is being exposed for the swindler she really is? Allan is looking to knock some competing savings strategies off the table as he competes for your business? Or perhaps CBS is just doing what all good media outlets do, selling a story. Let's take a closer look at this, shall we?
You didn't think we'd pass on a chance to tackle this mammoth of the financial planning world did you? A hotly debated notion for years and years pioneered by a guy who started a company to hawk term insurance under a simplistic mantra that appealed to the common folk that was later picked up by every stock broker and “financial expert” that had something to sell that wasn't life insurance.
So are we readying our spread sheets and insurance illustration software to blow the friable theory of decreasing responsibility asunder? Hardly, we talk about insurance all the time, the last thing we need is to make this place any more boring–besides, we know the numbers work in our favor, that's why none of us are really afraid of the termites. If mountaints of numbers and methodology are your thing drop us a line and we'll discuss it in detail. Depending on the feedback, we might go real pro and dedicate a blog post to it–an extra special treat for the holidays.
Why then are we going to waste your time with a silly post about one of the most giggle-inducing “theories” of modern personal finance? Because believe it or not BTID is a topic I find remarkable fascinating. Not because I'm an infatuated practitioner (not even close) but because it's a great example of how in marketing, you don't have to tell the truth, you just can't flat out lie.
