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Old 01-22-2019, 07:02 AM
 
Location: Portland, Oregon (in Transition)
858 posts, read 419,164 times
Reputation: 1389

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Quote:
Originally Posted by DonaldJTrump View Post
why is their a need for whole life?

just get term insurance, and invest the difference between term and whole life into equity markets. The returns on whole life arent that great i think, certainly doesnt beat the s&p 500.

if the purpose is estate planning.... the estate tax is now up to 11.4m, certainly 99% of families passing down wealth wont even reach that point. . for families who have more, they would just create a trust to pass on assets. why would you buy whole life to try to pass on as inheritance?
The actual purpose of whole life insurance is to make money for the salesperson. It is a sham. Term life insurance is the only viable option for those who haven't built enough wealth to care for their dependents in the event of their death.
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Old 01-22-2019, 07:07 AM
 
70,759 posts, read 71,170,339 times
Reputation: 48374
i agree , first you need to build assets , then you can look in to ways of making your plan more efficient with some low cost insurance products .

like i mentioned above , 67% of all outcomes whole life , a single premium immediate annuity and your own investing beat buy term and invest the rest . only in the best out comes did buy term and invest the rest beat the comprehensive plan .

but all that really needs to be done after you kick off your own investing and develop some wealth in my opinion .

whole life's purpose it to have a 100% payout at death unlike term which has a very very tiny chance of payout at death .

you basically go on the insurer's dime until the premiums , interest and dividends equal the policy death benefit . then you are on your own .

the two types of insurance serve different purposes .

you never want to cover a spouse's pension that you will need but does not pass to you with term insurance ...an old whole life policy i had f comes in handy for our second marriage .

we are leaving everything to each other , but we have insurance that is always in effect that goes to our own kids so they will get money without waiting for a non parent to die . so i have an old 250k policy just for that .

i can give you lots of reasons you want permanent insurance and not term so it definitely has a place in many situations . the problem is to many buy it for the cash value .. bad mistake .. you don't buy insurance based on you dying , as a product for living .

life insurance is a bet you will die .

an annuity is a bet you will live and need money .

neither work well when you mix up their usage . i don't care what anyone thinks their hybrid policies are or aren't , odds are they are compromised somewhere and costly . they just don't follow the math, insurers are very careful with their numbers so what these policies look like on the surface is not how they actually function .

in fact most don't even realize that what they put back in to the policy in interest is not only part of the policy cost but it often exceeds their premiums by a lot over time .

Last edited by mathjak107; 01-22-2019 at 07:30 AM..
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Old 02-06-2019, 12:56 PM
 
24 posts, read 11,486 times
Reputation: 28
It's like a super roth. I didn't buy the insurance for the purpose of insurance. I bought it to have 10 years of $90k income that is completely tax free. When I did the numbers with and without it, we ended up leaving way more money to our kids (or having more money to spend in retirement) with the policy.

I was totally against those policies until I realized the true benefit of them.
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Old 02-06-2019, 01:26 PM
 
70,759 posts, read 71,170,339 times
Reputation: 48374
Quote:
Originally Posted by mtbikelover View Post
It's like a super roth. I didn't buy the insurance for the purpose of insurance. I bought it to have 10 years of $90k income that is completely tax free. When I did the numbers with and without it, we ended up leaving way more money to our kids (or having more money to spend in retirement) with the policy.

I was totally against those policies until I realized the true benefit of them.
are you trying to say you bought whole life for the cash value ???
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Old 02-07-2019, 09:49 PM
 
Location: Bay Area, CA
29,041 posts, read 44,900,475 times
Reputation: 20406
Quote:
Originally Posted by UntilTheNDofTimE View Post
Anyone else read this as what's the whole point of life. Maybe it's just me.
Yep! I thought OP was getting existential on us, which is particularly funny with their username.
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Old 02-07-2019, 10:03 PM
 
7,759 posts, read 4,965,507 times
Reputation: 13350
Quote:
Originally Posted by UntilTheNDofTimE View Post
Anyone else read this as what's the whole point of life. Maybe it's just me.
That's initially how I read it as well. Am most prescient and somber question... anticipating why we invest in the first place. Well, why?

Today I really wanted a bag of potato chips. But that would require running for maybe 40 minutes, burning 600 or 700 calories. I ran, but no chips. What's the whole point again? Never mind what the market did today (I didn't check). Whatever happened to that solicitation for volunteers for a one-way mission to Mars, for their whole lives?

Must one be radioactive to have a half-life? Which half?
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Old 02-08-2019, 01:35 AM
 
70,759 posts, read 71,170,339 times
Reputation: 48374
we go to the gym and run miles as well as lift weights just so we can eat the things we do and not gain weight ...my wife and i are gym rats for 20 years .. but at age 66 much of the gains we make are measured in what we are not losing ..we look at most our age and they look awful . so many times gains are measured in not losing
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Old 02-08-2019, 08:03 AM
 
Location: Union City, NJ
1,397 posts, read 868,349 times
Reputation: 1991
Quote:
Originally Posted by ohio_peasant View Post
That's initially how I read it as well. Am most prescient and somber question... anticipating why we invest in the first place. Well, why?

Today I really wanted a bag of potato chips. But that would require running for maybe 40 minutes, burning 600 or 700 calories. I ran, but no chips. What's the whole point again? Never mind what the market did today (I didn't check). Whatever happened to that solicitation for volunteers for a one-way mission to Mars, for their whole lives?

Must one be radioactive to have a half-life? Which half?


What kind of chips have 700 calories?
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Old 02-08-2019, 08:17 AM
 
70,759 posts, read 71,170,339 times
Reputation: 48374
the bag ,, isn't that a serving ? lol
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Old 02-08-2019, 08:38 AM
 
Location: Censorshipville...
2,672 posts, read 6,235,563 times
Reputation: 1543
Quote:
Originally Posted by mathjak107 View Post
the bag ,, isn't that a serving ? lol
haha exactly!

I just tried the "all dressed" flavor from ruffles and I think I found my new favorite flavor. looked at the nutritional info and it's 150 calories for 11 chips HAHAHAHAHHAHAAA
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