A financial adviser referred to by a close family member offered me an "indexed Universal Life Insurance" policy today, sold by Ameriprise / RiverSource Finnacial. You can read more about it here. I do not want to bore you folks with the usual details, but, basically, the policy offers:
- $500,000K Net Death Benefit
- Disability benefits. $13K per month, for 33 months in the event of physical disability.
- Tracks the S&P500, but with an 11% gain cap.
- Floor of 0% (if markets go down, floor is 0%).
- Average return in the last 25 years: 6.65%
I would have to contribute $400 a month for this, which seems abnormally high. Plus, the fine print on the paperwork is a little confusing. More than the norm, and I am usually good at this sort of deciphering. Fees and the like are not abundantly clear. Would need to consult back with the agent again, since our first meeting was a little on the "informal / last-minute" side.
You can read more about me here, but please note that the numbers are a little outdated. As a rule of thumb, I never liked the idea of a financial agent and always preferred doing things my own way. My South American background taught me to never trust anything nor anybody that is trying to sell me something. I've been through hyper-inflation, national defaults, extreme currency devaluation and military coups, so I certainly do not believe in fairy tales nor perfect, "risk-free" investment vehicles.
Where I stand now:
- 34 years.
- Married. No kids.
- No debt whatsoever.
- House is paid for. Value of about $250K.
- Cars paid for.
- Mostly an "all cash" guy, who is slowly getting into the market. The "low-cost index fund" way.
- $130K in cash, liquid. Savings account with an 0.8% rate. (I know, I know...)
- $5K worth of silver bullion (physical)
- $2K in precious metals ETF's
- $2K in SPY ETF (will be funding this more and more in the coming months).
- We currently enjoy the $0 per transaction (up to 30 trades per month) at Merrill Lynch.
My wife and I are very much the LBYM type (well, I am... she grudgingly obliges), and are fortunate enough to live on one salary and save the other one, with an average monthly savings rate of $3K. BUT, who knows how long this will last? Jobs are not safe at all.
In other words, in THEORY, we could easily afford the $400/month payment. But my gut feeling tells me I would be better off investing that into index funds and my own trades. I do like the other benefits that come with the policy, though, such as the disability income, etc., but I wonder if there are other, cheaper, better vehicles when it comes to basic life insurance and disability protection (a subject I know pretty much nothing of).
Your opinions and feedback are, of course, most welcomed and appreciated.
- $500,000K Net Death Benefit
- Disability benefits. $13K per month, for 33 months in the event of physical disability.
- Tracks the S&P500, but with an 11% gain cap.
- Floor of 0% (if markets go down, floor is 0%).
- Average return in the last 25 years: 6.65%
I would have to contribute $400 a month for this, which seems abnormally high. Plus, the fine print on the paperwork is a little confusing. More than the norm, and I am usually good at this sort of deciphering. Fees and the like are not abundantly clear. Would need to consult back with the agent again, since our first meeting was a little on the "informal / last-minute" side.
You can read more about me here, but please note that the numbers are a little outdated. As a rule of thumb, I never liked the idea of a financial agent and always preferred doing things my own way. My South American background taught me to never trust anything nor anybody that is trying to sell me something. I've been through hyper-inflation, national defaults, extreme currency devaluation and military coups, so I certainly do not believe in fairy tales nor perfect, "risk-free" investment vehicles.
Where I stand now:
- 34 years.
- Married. No kids.
- No debt whatsoever.
- House is paid for. Value of about $250K.
- Cars paid for.
- Mostly an "all cash" guy, who is slowly getting into the market. The "low-cost index fund" way.
- $130K in cash, liquid. Savings account with an 0.8% rate. (I know, I know...)
- $5K worth of silver bullion (physical)
- $2K in precious metals ETF's
- $2K in SPY ETF (will be funding this more and more in the coming months).
- We currently enjoy the $0 per transaction (up to 30 trades per month) at Merrill Lynch.
My wife and I are very much the LBYM type (well, I am... she grudgingly obliges), and are fortunate enough to live on one salary and save the other one, with an average monthly savings rate of $3K. BUT, who knows how long this will last? Jobs are not safe at all.
In other words, in THEORY, we could easily afford the $400/month payment. But my gut feeling tells me I would be better off investing that into index funds and my own trades. I do like the other benefits that come with the policy, though, such as the disability income, etc., but I wonder if there are other, cheaper, better vehicles when it comes to basic life insurance and disability protection (a subject I know pretty much nothing of).
Your opinions and feedback are, of course, most welcomed and appreciated.
