I'm a financial advisor just starting to be open to IULs as a LIRP strategy. All you've done here is lead people up to you promoting your own product. You have really broke down the idea of the IUL.
Compare a Roth IRA indexed via vanguard account ETF SP 500 vs An IUL. 40 year comparison of an index sp500 including dividends paid out. Index sp500 is supreme. In particular because of the cost and premiums you pay with a IUL. I’m wondering how much kickback or what kind of organization you are making money. The question here is who are you connected to the IUL business. Do you own a company that sells them, do you get a commission from a company?
The problem with what you’re saying (according to anyone who ACTUALLY researches the merits of investing in the S&P 500 as opposed to other indices or assets and has an undergraduate or above level education in economics,finance or accounting) is that the S&P 500 is never realistically going to generate the returns it did historically before 2001 due to changes in methodology that have fundamentally transformed the index into something unrecognizable that wouldn’t have generated the historical returns.The two largest in my opinion were removing foreign companies from the index(which were crucial to historical overall returns) and float adjustment(implemented in 2005).Float adjustment forces companies to change how funds that track the index weigh individual components.The addition of REIT in 2013 was also terrible,but you see where I’m going.
8:40 Um... you're leaving out something very important here. The non-stupid among us didn't contribute to a Roth in 2000 and then permanently stop contributing so that in 2012 we had the same amount we started with. Instead, we contributed all the way down and all the way back up, so that large amounts of our contributions had actually made made major gains by 2012. Do you have any UIL contracts that will go on sale by 50% from time to time?
And what is the benefit compared to Roth conversions which don't have a limit, don't involve long-term commitments (I can take the money out anytime), allow investments to grow with negligible fees, can take advantage of down years in the market, and will provide tax benefits for heirs 10 years beyond my and my wife's death?
Because Life insurance isn’t Federally Regulated. And you cannot contribute more to the cash accumulation side of the account compared to the life insurance (death benefit) portion otherwise the account will MEC out and no longer be viewed as life insurance, there for you lose all the amazing benefits of liquidity that come with it
Are you switching the options B to A back to B so when you pass your benficiaries get both accumulation value and db, is that what you mean when you entioned your db blossoms then transfers?
Great video. One question. Since life insurance is FIFO, if I stop making payments and let the cash value cover payments, does that mean I can add money today and the insurance cost will come out from the contributions I made years ago? The policy pays 5% on “new money” but only 4% on “old money”. I am also considering withdrawing and reinvesting the same money to get the higher new money rate. Does that work?
Great question. You may want to schedule some time with an IUL specialist who can answer more of your questions and even run some examples for you: 3dimensionalwealth.com/getstarted/
With some indexing strategies there are caps, with others there are no caps. You would want to work with a specialist to know which companies have the best indices for maximum growth. Some have multipliers where you can take a great return and double or even almost triple it! You can get access to historical data by talking to a specialist. If you need an introduction to one, you can request it here: 3dimensionalwealth.com/getstarted/
Not normally, depends on what the Roth is invested into. A stock will have no fee, a mutual fund will have about 0.9% fee over the course of one year. Annual expense ratio.
I'm a financial advisor just starting to be open to IULs as a LIRP strategy. All you've done here is lead people up to you promoting your own product. You have really broke down the idea of the IUL.
Compare a Roth IRA indexed via vanguard account ETF SP 500 vs An IUL.
40 year comparison of an index sp500 including dividends paid out. Index sp500 is supreme. In particular because of the cost and premiums you pay with a IUL. I’m wondering how much kickback or what kind of organization you are making money. The question here is who are you connected to the IUL business. Do you own a company that sells them, do you get a commission from a company?
The problem with what you’re saying (according to anyone who ACTUALLY researches the merits of investing in the S&P 500 as opposed to other indices or assets and has an undergraduate or above level education in economics,finance or accounting) is that the S&P 500 is never realistically going to generate the returns it did historically before 2001 due to changes in methodology that have fundamentally transformed the index into something unrecognizable that wouldn’t have generated the historical returns.The two largest in my opinion were removing foreign companies from the index(which were crucial to historical overall returns) and float adjustment(implemented in 2005).Float adjustment forces companies to change how funds that track the index weigh individual components.The addition of REIT in 2013 was also terrible,but you see where I’m going.
What's Dave Ramsey going to say now!
8:40 Um... you're leaving out something very important here. The non-stupid among us didn't contribute to a Roth in 2000 and then permanently stop contributing so that in 2012 we had the same amount we started with. Instead, we contributed all the way down and all the way back up, so that large amounts of our contributions had actually made made major gains by 2012.
Do you have any UIL contracts that will go on sale by 50% from time to time?
Andrew you the Man!!
And what is the benefit compared to Roth conversions which don't have a limit, don't involve long-term commitments (I can take the money out anytime), allow investments to grow with negligible fees, can take advantage of down years in the market, and will provide tax benefits for heirs 10 years beyond my and my wife's death?
No body wonders why the IRS (who taxes anything and everything even stolen money)doesn’t tax it that should be a red flag
Because Life insurance isn’t Federally Regulated. And you cannot contribute more to the cash accumulation side of the account compared to the life insurance (death benefit) portion otherwise the account will MEC out and no longer be viewed as life insurance, there for you lose all the amazing benefits of liquidity that come with it
Are you switching the options B to A back to B so when you pass your benficiaries get both accumulation value and db, is that what you mean when you entioned your db blossoms then transfers?
Good info!
Just got my book from you, I need to hurry
Great video. One question. Since life insurance is FIFO, if I stop making payments and let the cash value cover payments, does that mean I can add money today and the insurance cost will come out from the contributions I made years ago? The policy pays 5% on “new money” but only 4% on “old money”. I am also considering withdrawing and reinvesting the same money to get the higher new money rate. Does that work?
I would suggest meeting with one of our specialists for a free consultation here: 3dimensionalwealth.com/getstarted/
Yes!
Why not discuss backdoor Roth IRA contributions?
What company can I contact to enjoy the laser fund?
Great question. You may want to schedule some time with an IUL specialist who can answer more of your questions and even run some examples for you: 3dimensionalwealth.com/getstarted/
I'm up 55% on my investments since June 1, 2020. Is there a cap on the max I can make in a IUL?
With some indexing strategies there are caps, with others there are no caps. You would want to work with a specialist to know which companies have the best indices for maximum growth. Some have multipliers where you can take a great return and double or even almost triple it! You can get access to historical data by talking to a specialist. If you need an introduction to one, you can request it here: 3dimensionalwealth.com/getstarted/
Is there any other option to participate in Indexing if you don’t qualify for Life Insurance?
Yes with buffered variable annuities.
Yes, you can try FIA's Fixed Indexed Annuities.
Yes but the Roth does not have any fee's.
Not normally, depends on what the Roth is invested into. A stock will have no fee, a mutual fund will have about 0.9% fee over the course of one year. Annual expense ratio.