I’m currently working part time at a construction company for pocket stuffings. Someone (I think a job applicant) left a brochure from a Financial “Advisor” at the reception desk. I’d been holding on to it in case they come back but after reading through it, I’m not giving it back!
The product is Fixed Indexed Universal Life Insurance. The rate of interest is based on the S&P 500 “subject to a maximum cap with guaranteed earnings that will never be less than 0%.” (Sounds good so far, right?)
Charges and costs – “a 7.5% premium will be deducted from premiums paid up to the annual target premium (whatever that is). A 5% premium expense charge will be deducted from premiums made in excess of the annual target premium. Each month the company will deduct the cost of insurance charge, unit expense charge, account value expense charge, rider charges, and an $8 expense charge from account value.”
Expenses aside, my favorite part is the last page of the attachment:
“Assume you put $6,000 annually into your IRA for retirement;
And assume you are in the 33% tax bracket (25 Federal, 8% CA);
This 6% saves you $2,000 annually in taxes.Is this a good idea?” (oh those stinking, rotten IRAs!)
How do these people sleep at night?
The product is Fixed Indexed Universal Life Insurance. The rate of interest is based on the S&P 500 “subject to a maximum cap with guaranteed earnings that will never be less than 0%.” (Sounds good so far, right?)
Charges and costs – “a 7.5% premium will be deducted from premiums paid up to the annual target premium (whatever that is). A 5% premium expense charge will be deducted from premiums made in excess of the annual target premium. Each month the company will deduct the cost of insurance charge, unit expense charge, account value expense charge, rider charges, and an $8 expense charge from account value.”
Expenses aside, my favorite part is the last page of the attachment:
“Assume you put $6,000 annually into your IRA for retirement;
And assume you are in the 33% tax bracket (25 Federal, 8% CA);
This 6% saves you $2,000 annually in taxes.Is this a good idea?” (oh those stinking, rotten IRAs!)
How do these people sleep at night?