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Old 09-01-2017, 06:23 AM
 
Location: Ypsilanti, MI
2,439 posts, read 3,665,541 times
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I recommend people have at least a modest policy for funeral expenses. This makes it a lot easier for the family and Funeral Director as Life Insurance pays out almost immediately. This policy can be private pay, or from a former employer, or from other business/fraternal groups to which you belong.

Do you already own a cemetery plot, or burial crypt, or head stone? If so, then the size of the policy can be reduced.

Just my opinion...........
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Old 09-01-2017, 06:27 AM
 
Location: Ypsilanti, MI
2,439 posts, read 3,665,541 times
Reputation: 4805
Quote:
Originally Posted by mathjak107 View Post
permanent life insurance which is 100% tax free can be a really nice planning tool .

i can leave my tax infested ira's to my wife who has no clue how much she gets to live on , how much taxes are , and she has to take take those big rmd's after i am gone and file single too .

but if i use some of my ira money to buy a single premium policy equal to the ira it won't cost any where near the policy value . it is tax free and whatever is left over the kids can pay the tax on the ira over their lifetime .

so the only tax in that deal would be on what i use to buy the policy which is leveraged since you get much more than you pay in . .
YES!

We are doing the same thing, although we have a trusted advisor who will help the survivor with lingering tax infested investments.
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Old 09-01-2017, 07:00 AM
 
71,597 posts, read 71,751,865 times
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one yhing about advisor's is they can want to help all they want with those tax infested ira's but there is little that can be done once you are at that point . tax planning has to be done early on or you lose much of that window where you can do anything
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Old 09-01-2017, 07:04 AM
 
708 posts, read 502,706 times
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My wife and I each have 100K policies. If something would happen to either of us, it will help with loss of income
from SS. Also extra money to enjoy traveling with the kids and grandkids. It is just part of our investment portfolio
to cover unexpected expenses. Term policies are relatively cheap, lots of competition. Key is to buy when you are healthy.
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Old 09-01-2017, 07:25 AM
 
6,884 posts, read 7,284,046 times
Reputation: 9786
Quote:
$1K 1 year term polices from various banks, credit cards, associations, I belong to/have, Have resend in the forms each year, saying I want the 1K but don't want to buy any more. (Free).
Thanks. I never knew you could renew every year and keep the free insurance. I just thought the FIRST year was free, and you had to pay, to renew after that. I'm going to renew those if I can.

I'm single no kids. Only life insurance I've ever had has been the free insurance through work.
I sort of believe it can be profiting from someone's death, and I've struggling with my thoughts on that.

That's what it is in any case, and for various reasons obviously it's good to have.
But IF a beneficiary, is already well set up in life and/or doesn't need the money, what else would you call it?
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Old 09-01-2017, 07:28 AM
 
71,597 posts, read 71,751,865 times
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i keep a small 250k policy going . this is a 2nd marriage and my wife and i are leaving everything to each other .

to keep our own kids from chomping at the bit after their parent dies and they have to wait until a non parent dies to see anything , the policy goes to our kids . now they see something right away .
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Old 09-01-2017, 07:32 AM
 
Location: SoCal
13,232 posts, read 6,335,450 times
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If you have life insurance policy, make sure you document it somewhere. We are in the process of doing that. My husband has a tiny insurance with his work place, I don't know if my kids know it exists even. I might even forget 10-20 years from now.
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Old 09-01-2017, 07:33 AM
 
Location: MMU->ABE->ATL->ASH
9,127 posts, read 17,145,055 times
Reputation: 9980
Quote:
Originally Posted by selhars View Post
Thanks. I never knew you could renew every year and keep the free insurance. I just thought the FIRST year was free, and you had to pay, to renew after that. I'm going to renew those if I can.

I'm single no kids. Only life insurance I've ever had has been the free insurance through work.
I sort of believe it can be profiting from someone's death, and I've struggling with my thoughts on that.

That's what it is in any case, and for various reasons obviously it's good to have.
But IF a beneficiary, is already well set up in life and/or doesn't need the money, what else would you call it?
The "1st" one is Free, But you can almost count on them sending you one each year to try to sell you insurance each year. So each year is a new one year term policy.
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Old 09-01-2017, 07:55 AM
 
Location: Ohio
194 posts, read 116,441 times
Reputation: 282
Quote:
Originally Posted by mathjak107 View Post
one yhing about advisor's is they can want to help all they want with those tax infested ira's but there is little that can be done once you are at that point . tax planning has to be done early on or you lose much of that window where you can do anything
We probably need some retirement tax planning advise - should we be seeing a financial advisor, accountant or an elder care attorney?
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Old 09-01-2017, 08:04 AM
 
71,597 posts, read 71,751,865 times
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all three are skilled in different areas . we use someone in long island who works in conjunction with all 3 as a brain trust . ed slott is the guru of tax planning and you can usually find someone trained in his ideology by going to his site and putting in your zip .

but that is from a tax planner perspective not a financial adviser perspective who gets in to the nitty gritty of allocation and portfolio construction .

none of them have a thing to do with what an estate attorney can do .

so as an example our financial planner crunched all kinds of numbers and ran all kinds of scenario's taking ss and different ages and the effect on rmd's .

but none of that had anything to do with the fact ny at the time still had an estate tax limit lower than we had assets .

but it was the accountant that pointed out that ny has a tax cliff and if you went over by 5% you just didn't pay on the overage , you lost the entire exemption and were taxed from dollar 1 .

the estate attorney came up with us needing some new kinds of trusts called disclaimer trusts to solve the problem .

so you see how all 3 worked together
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