I haven't been on here for YEARS as my life goals have changed... initially I was here with the same intention as everyone else, but determined that one of the motivating factors for FIRE was because I didn't find my job fulfilling. After some introspection, I decided that the goal of FIRE while plowing my way through each day was literally pissing my most precious resource- time- away. So I changed careers... massively. I was a database architect/developer, but I went back to school as a post-bac, then medical school, completed residency, and am now a board certified physician with the debt to prove it. The debt itself isn't important as it should be discharged under PSLF in about seven years without tax consequence.
While in residency my employer offered a GVUL plan they paid for through MetLife- since it was portable and insurance was quite cheap compared to term policies I enrolled and still have it to this day. One feature of the plan though is a fund option with a 4% guaranteed rate of return (as well as other market funds)- this is an interesting option in my overall retirement strategy.
1. I'm already maximally funding my 401k
2. My wife is maximally funding her 401k
3. My HSA contributions are maxed out
4. I've already performed a backdoor Roth conversion this year
Most of my options for any additional tax advantaged savings are exhausted which brings me back to my GVUL plan. No surrender change and only $25 to withdraw any sum of money. Fees are relatively low. I'm interested in purchasing an annuity when we retire as one part of the overall plan (reduce sequence risk, etc) and I've looked at some of the options out there such as an immediate annuity down the line vs products such as Blueprint. Today I calculated the IRR assuming I lived to 90 years with blueprint and it was a dismal 2%- If I instead contributed the monthly amount into my GVUL 4% plan, then at age 65 performed a 1035 exchange, I would receive two benefits- a higher cost basis since with the GVUL the cost of the insurance itself is part of the cost (something I need to purchase anyway- young kids), as well as the 4% return up until the exchange takes place.
Am I missing a part of the analysis here? Again, I have plenty of market exposure already and the goal is for an annuity component at retirement. Additionally because of my profession and living in a State that hasn't implemented any sort of tort reform, I would like to protect the assets as much as possible- retirement and life insurance plans are protected whereas an individual investment account would not be.
While in residency my employer offered a GVUL plan they paid for through MetLife- since it was portable and insurance was quite cheap compared to term policies I enrolled and still have it to this day. One feature of the plan though is a fund option with a 4% guaranteed rate of return (as well as other market funds)- this is an interesting option in my overall retirement strategy.
1. I'm already maximally funding my 401k
2. My wife is maximally funding her 401k
3. My HSA contributions are maxed out
4. I've already performed a backdoor Roth conversion this year
Most of my options for any additional tax advantaged savings are exhausted which brings me back to my GVUL plan. No surrender change and only $25 to withdraw any sum of money. Fees are relatively low. I'm interested in purchasing an annuity when we retire as one part of the overall plan (reduce sequence risk, etc) and I've looked at some of the options out there such as an immediate annuity down the line vs products such as Blueprint. Today I calculated the IRR assuming I lived to 90 years with blueprint and it was a dismal 2%- If I instead contributed the monthly amount into my GVUL 4% plan, then at age 65 performed a 1035 exchange, I would receive two benefits- a higher cost basis since with the GVUL the cost of the insurance itself is part of the cost (something I need to purchase anyway- young kids), as well as the 4% return up until the exchange takes place.
Am I missing a part of the analysis here? Again, I have plenty of market exposure already and the goal is for an annuity component at retirement. Additionally because of my profession and living in a State that hasn't implemented any sort of tort reform, I would like to protect the assets as much as possible- retirement and life insurance plans are protected whereas an individual investment account would not be.
