Serious Help

[FinanceDude]

REWahoo, my spelling, grammer and punctuation, do fall short and it is something I work on. I would say the shortest thing on this thread is you!

You just told me all I need to know..........

 

[FUEGO]

How much did my life insurance "investment" return over the last 7 years? A whopping 0.9% average annual return after fees and commissions but before taxes... By comparison, our self-managed portfolio has returned 4.9% annually on average over the same period (again, that's after fees and commissions, but before taxes).

If you are as smart as you think (or present to the world), you would not have implemented such a policy to earn 9 basis points, nor would you be able to factor in commission as a cost to the policy holder, as the commission is not taken directly from the plolicy performance. Also 4.9% return before taxes put you behind inflation, I hope you feel good about that.

Paulk,

Just a quick addition to this interesting little informational exchange. 0.9% doesn't equal 9 basis points. It is 90 basis points.

And a 4.9% investment return per annum has actually beaten inflation by a couple hundred basis points per annum over the last 7 years. From Feb 2001 to Feb 2008, the BLS reports CPI-U increasing by 2.69% per annum. Do you use a different measure of inflation other than the commonly cited CPI-U?

 

[DJRR]

retire48in2008, Whole Life is includable in a complete financial plan. Breifly, as a begining to your question, here are 16 reason which WL provides, and NO other vehilce completely provides; (some are obvious) Premature Death Benefit, Disabilty Payout, Protection from Creditors, Increasing Death Benefit, Builds Net Worth, Generates a Conservative Rate of Return, Minimal Risk, Liquidity, Tax Advantage accumulation, Alternate Credit Source, Tax Advantage Withdrawals, Income Tax Free at Death, Form of Saving, Systematic, Flexible Funding Options, Flexible Distribution Options. Make NO mistake, I am not stating to use WL as your only planning tool. It is used to provide peace of mind, while contributing to your entire portfolio on a limited percentage of your entire portfolio, while avoiding an irrevocable transfer of wealth, which Term insurance clearly can not accomplish.

Don't forget the best one. 17. Your cash value disappears when you die and your heirs only get the death benefit - talk about transfer of wealth

But seriously, the general consensus is that you can safely withdraw ~ 4% of your portfolio each year. I assume you take about 2% for your "advice" since you are probably weighted towards insurance and/or load funds.

What makes you worth the extra money?

 

[Khan]

retire48in2008, Whole Life is includable in a complete financial plan. Breifly, as a begining to your question, here are 16 reason which WL provides, and NO other vehilce completely provides; (some are obvious) Premature Death Benefit, Disabilty Payout, Protection from Creditors, Increasing Death Benefit, Builds Net Worth, Generates a Conservative Rate of Return, Minimal Risk, Liquidity, Tax Advantage accumulation, Alternate Credit Source, Tax Advantage Withdrawals, Income Tax Free at Death, Form of Saving, Systematic, Flexible Funding Options, Flexible Distribution Options. Make NO mistake, I am not stating to use WL as your only planning tool. It is used to provide peace of mind, while contributing to your entire portfolio on a limited percentage of your entire portfolio, while avoiding an irrevocable transfer of wealth, which Term insurance clearly can not accomplish.

Does it also prevent waxy yellow buildup?
And prevent the heartbreak of psoriasis?

 

[frayne]

FP=fricking parasite.

 

[FinanceDude]

What makes you worth the extra money?

 

[TromboneAl]

I call troll. No way this poster is genuine.

I think he's like those American Idol singers who are really, really terrible, but think they are world class singers. This guy is disconnected from reality, and all hopped up from his recent H&R Block class on financial planning.

A little knowledge is a dangerous thing.

 

[Bryan Barnfellow]

Serious Help with Physics

I just posted on a theoretical physics listserv and told them that they really needed some SERIOUS HELP in their search for the Higgs Bosun. I suggested that they should abandon the hadron collider approach and look into a whole life policy. For some reason, they were hostile to me. Go figure....

- BB

 

[REWahoo]

I will never spell grammer with an "e" again...

[-] Whoopsie! Don't look now, but I think you've already broken your promise. [/-]

man this is becoming adictive already,...

[-] Did you mean addictive? Are you sure you want to use that term to describe this train wreck? [/-]

I was going to post the above but we've pounded this guy so deeply into the dust that it no longer seems sporting. What's the fun in beating a dead FP.

 

[bbbamI]

I wonder where mmnd is?.....oh, nm...my bad.

 

[FinanceDude]

I wonder where mmnd is?.....oh, nm...my bad.

At least MMND could spell...........

 

[Caroline]

Back when I was in grade school I saw a movie about the Amazon River. At one point a capybara (a rodent the size of a large dog) tried to swim across a stream and was attacked by a school of piranah. The water boiled and turned red, then all was silent once more. The poor capybara had been turned into a skeleton in 30 seconds flat.

Why that memory has come to me now, 40 years later, I cannot say.

 

[FinanceDude]

Back when I was in grade school I saw a movie about the Amazon River. At one point a capybara (a rodent the size of a large dog) tried to swim across a stream and was attacked by a school of piranah. The water boiled and turned red, then all was silent once more. The poor capybara had been turned into a skeleton in 30 seconds flat.

Why that memory has come to me now, 40 years later, I cannot say.

I get the metaphor..........

 

[SecondCor521]

4 days max.

2Cor521

 

[TromboneAl]

What "Wild Kingdom" didn't show you was that as he was entering the river, the capybara said

"You fish need some serious help. I have some whole life policies for yourselfs."

 

[Sarah in SC]

Damn, I leave for some depressing personal issues and I miss this fabulous thread! Thanks for the cheer, and the great mental piranah pictures, y'all!

And I sure am glad I don't have any ridiculous financial advice to sell, because, gee, I still can't find my @$$ with both hands, financially speaking and wouldn't dare give advice to people who are, I dunno, a million times smarter than me, even if I did pass the damned CFP exam on the second try!

This sort of persistence is the reason they can sell the wretched insurance in the first place! Gives me the creeps and the profession a (sigh) well-deserved bad name.

 

[FIREd]

If you are as smart as you think (or present to the world), you would not have implemented such a policy to earn 9 basis points, nor would you be able to factor in commission as a cost to the policy holder, as the commission is not taken directly from the plolicy performance. Also 4.9% return before taxes put you behind inflation, I hope you feel good about that.

Oh wait I didn't see that Paul had the courage (or the stupidity) to pooh pooh my 4.9% annual return when my oh so brilliant CFP got me 0.9% in the same time period! What about that for keeping up with inflation genius! And even better you blame the clients's lack of intelligence for following the advice of a CFP, somebody just like you, promising 10-12% annual returns? What a gem! In fact you suggest that it would be stupid for a client to take the advice of a CFP at face value. Well, now it looks like we agree on one thing.

For your information I feel a lot better about earning 4.9% than about earning 0.9%. Wouldn't you? Maybe you can't see the difference... But hey genius what was YOUR annual rate of return since 2001? I bet you beat the market every single year right?

And finally, before insulting my intelligence, please present to the board your credentials. What degrees did you get before taking the CFP exam? Because unless you have a PhD, you should think twice about comparing your intelligence to mine mister. For you it's Dr. FIREdreamer. Unbelievable.

 

[packrat44]

Paul has left the building!

I spent a lot of $ and time 40+ years ago acquiring a BS in engineering and a MBA. If I had met Paul back then I could have saved all that $ and time and let him put me into insurance. With his expert advice I could have FIREd many years earlier.

What are the odds being given in Las Vegas on Paul returning and staying with the forum?

Paul was under more fire than Hillary came under while visiting Bosnia, and that was without the BIG guns coming on line.

 

[Janet H]

Thread closed.

Although it was interesting...