Gyroscopic Investing

MachineGhost wrote:

moda0306 wrote: I don't like variable universal life, but the other products (whole, universal, index) CAN be good if structured and used correctly for minimum fees and maximum performance... Or if used in conjunction with a conversion of someone's term policy who is NOT in good health.

Good stuff!  What's wrong with variable?  Doesn't that just mean you get the upside gain of the market with downside protection?  I remember reading an article about where insurance companies were way too generous with varaible in the beginning and a cottage industry sprung up to take advantage of it.

The "downside protection" is usually in index. Most variable is fully variable... But some are like variable annuities and contain guarantees.

All the guarantees within life insurance or annuities beg the question... Are these better than just holding bonds yourself? I would instinctually say no, but with life insurance, most healthy companies have stared down severe financial crises without blinking (all the 1800's financial crises, 1929, 1987, 2008, even 1981 if you wanna consider that an odd type of "crisis" for a bond-holding entity). So the bond-buying they do appears pretty damn stable, and with whole life you have principal guarantees that are pretty awesome and take some of the bond fears away in a rising rate environment.

But in the end, the reason we hold bonds is for safety, and even with the insurance guarantee associations, I don't know if it as robust as we would want in a huge financial crisis.

MachineGhost wrote: Wow, that's crossing the forbidden zone into never mixing blood and money.  He should be ashamed of himself for being a greedy prick.  Trust me, he doesn't have you and your wife's best interests at heart at all.  He's concerned with about how much he can make or he's simply brainwashed by the corporate spiel if he's young.

I agree, MG. It's distasteful--and generally a bad idea--to mix blood and money. He's not that young, so I think it's primarily about his financial livelihood, not brainwashing. This same guy used to work in the real estate industry before the big meltdown, and he got involved in a real estate deal with a relative that ended badly and caused some bad blood between them that persists to this day.

Sometimes I just thank my lucky stars that I'm not a salesman. To a hammer, everything is a nail, and to a salesman, everyone is a potential client.

You guys might want to check out Prudential's new "living needs benefits" that are included at no extra charge with their term life insurance. Basically, if you are confined to a nursing home for at least 6 months and are not expected to leave except feet-first, OR if you have a prognosis of less than 6 months to live, OR if you need an organ transplant to extend your life more than 6 months, they will pay you your life insurance benefit (minus actuarial reduction).

This is a MUCH better deal than the ripoff "long-term care" policies, and you also get life insurance!

I'm going with them for a new term policy largely for that reason; Select Quote is my agent.

I don't get any kickback or the like; just a happy customer, so far at least.