Nothing like having a friend who becomes an Insurance and Annuity salesman put the pressure on. He knows I'm worth 7 figures so I can't say I have nothing to invest.
Anyway here is his pitch. I see lots of holes in it but I'd like other input:
" I already know you are no fan of life insurance and annuities as retirement income vehicles. You should be, now that you are retired and the market has been on a rise for the last 5 years.
I hope you have minimized your exposure to the market.
Best wishes,
Tom
On 6/4/15, 7:31 AM, XXXXXX wrote:
--------------------
Hi Dan,
I thought I'd send you an update on what I am doing. My business turned 1-year old last month. It was a great year. My goal was simple: teach people how they can put their money away for retirement and safely earn market returns without putting their money at risk in the stock market. Unlike IRA & 401k accounts, my strategy gives you access to your savings every day between now and the time you retire so that you can deal with life's little emergencies, planned events, and for the more sophisticated investors, put your money to work in TWO places at ONE time.
I've been constantly surprised and humbled by how many of the people I meet on LinkedIn, who are real estate investors and also hold a life insurance license, want to join me in what I am doing. As a result, my business now includes a half-dozen agents around the country all working to spread the good word. I am grateful for their help.
Anyway, I post educational pieces periodically on my LinkedIn page, my Website and my Facebook page. These are always educational and not sales-oriented.
Here are links to each:
Blog | Innovative Retirement Strategies, Inc.
www.facebook.com/InnovativeRetirementStrategies
Be sure to like or follow one of these to stay up to date. Please share with your networks to help spread the word.
Thanks for staying connected.
XXX
and after I replied that I might look:
Hi Dan,
An IUL will match the market up to 13% and it puts a floor on your returns at zero. You can't lose principal. The market will outperform the IUL over a long enough period, but the ride is much smoother with an IUL (see the chart on this page).
Just say no… to Wall St. | Innovative Retirement Strategies, Inc.
If the market dives 25% tomorrow, you will have outperformed the market by 25%. I like zero. Life insurance fees are expensive upfront, but over the long run, the costs are less than most mutual funds. After the 10th year of a policy, for example, the cost of insurance is less than 1/4% in a properly funded policy. You can get virtually the same market exposure as your current portfolio.
There is no better way to transfer wealth to your kids. This table shows why a life insurance policy will provide about 3X the income of a traditional IRA invested in stocks:
http://innovativeretirementstrategi...ads/2014/09/Financial-Analysis-IUL-vs-IRA.pdf
I've got an annuity that pays a 10% bonus with guaranteed growth of 7% on the income side. The means the payment would be 6.7% of your initial contribution if you annuitized it just one year later. If you defer longer, that goes up considerably. Payments are doubled with the wellness rider (cant perform 2 of 6 activities of daily living).
If you are healthy enough to get life insurance, creating a MEC (modified endowment contract) would get you far more income than an annuity would pay out.
XXX
All I know is there is "no free lunch" and he has a nice yacht that he send pics of on facebook all the time. I'm assuming he gets a good cut of every sale. Good for him but perhaps not so good for the customers
?
Anyway here is his pitch. I see lots of holes in it but I'd like other input:
" I already know you are no fan of life insurance and annuities as retirement income vehicles. You should be, now that you are retired and the market has been on a rise for the last 5 years.
I hope you have minimized your exposure to the market.
Best wishes,
Tom
On 6/4/15, 7:31 AM, XXXXXX wrote:
--------------------
Hi Dan,
I thought I'd send you an update on what I am doing. My business turned 1-year old last month. It was a great year. My goal was simple: teach people how they can put their money away for retirement and safely earn market returns without putting their money at risk in the stock market. Unlike IRA & 401k accounts, my strategy gives you access to your savings every day between now and the time you retire so that you can deal with life's little emergencies, planned events, and for the more sophisticated investors, put your money to work in TWO places at ONE time.
I've been constantly surprised and humbled by how many of the people I meet on LinkedIn, who are real estate investors and also hold a life insurance license, want to join me in what I am doing. As a result, my business now includes a half-dozen agents around the country all working to spread the good word. I am grateful for their help.
Anyway, I post educational pieces periodically on my LinkedIn page, my Website and my Facebook page. These are always educational and not sales-oriented.
Here are links to each:
Blog | Innovative Retirement Strategies, Inc.
www.facebook.com/InnovativeRetirementStrategies
Be sure to like or follow one of these to stay up to date. Please share with your networks to help spread the word.
Thanks for staying connected.
XXX
and after I replied that I might look:
Hi Dan,
An IUL will match the market up to 13% and it puts a floor on your returns at zero. You can't lose principal. The market will outperform the IUL over a long enough period, but the ride is much smoother with an IUL (see the chart on this page).
Just say no… to Wall St. | Innovative Retirement Strategies, Inc.
If the market dives 25% tomorrow, you will have outperformed the market by 25%. I like zero. Life insurance fees are expensive upfront, but over the long run, the costs are less than most mutual funds. After the 10th year of a policy, for example, the cost of insurance is less than 1/4% in a properly funded policy. You can get virtually the same market exposure as your current portfolio.
There is no better way to transfer wealth to your kids. This table shows why a life insurance policy will provide about 3X the income of a traditional IRA invested in stocks:
http://innovativeretirementstrategi...ads/2014/09/Financial-Analysis-IUL-vs-IRA.pdf
I've got an annuity that pays a 10% bonus with guaranteed growth of 7% on the income side. The means the payment would be 6.7% of your initial contribution if you annuitized it just one year later. If you defer longer, that goes up considerably. Payments are doubled with the wellness rider (cant perform 2 of 6 activities of daily living).
If you are healthy enough to get life insurance, creating a MEC (modified endowment contract) would get you far more income than an annuity would pay out.
XXX
All I know is there is "no free lunch" and he has a nice yacht that he send pics of on facebook all the time. I'm assuming he gets a good cut of every sale. Good for him but perhaps not so good for the customers
?
