Submitted by FeedBubbly t3_z74qxf in personalfinance
I’m thinking about getting IUL for tax free retirement and lifetime income. Can I add more money to IUL whenever I want?
Comments
alexm2816 t1_iy4o9gj wrote
Someone will almost certainly sell you an IUL policy and will certainly sell you AS MUCH AS YOU WANT (because you'll be putting their kids through college).
Whether you should buy it or not is the bigger question.
RelishMule t1_iy4tgq5 wrote
> Whether you should buy it or not is the bigger question.
Is it though? Pretty open and shut case...
alexm2816 t1_iy4tsgp wrote
I haven't seen the prospectus/don't know OPs end game but for a vast vast majority of people it is not the most efficient path to wealth building or insurance over any timeline.
RelishMule t1_iy4uga1 wrote
Exactly
FeedBubbly OP t1_iyblrn0 wrote
If the IUL can truly provide a tax free retirement, potential market returns and will never lose money due to a market decline, I think it’s ok. Walt Disney had life insurance and made it work.
alexm2816 t1_iycxp4q wrote
Tax free is better than taxed in a vacuum and no negative returns is better than the option for losses but you aren't in a vacuum. You gain those tax benefits and stability at the expense of skimmed gains and expenses.
The 'no losses' thing operates because your funds will have enough returns in good years for the IUL company to skim profits, pay the salesman, pay for marketing, licensing, bonding, an office, advertising, registration / accounting and THEN pay you some portion of gains even during down years. They aren't doing anything special that you cannot do yourself with enough of an investment window.
Walt Disney also died with a modern equivalent of > $1billion dollars. I can't speak to the value for him but even if this was his best path it has 0 bearing on you or I. This logic is akin to saying 'I use the same deoderant as LeBron James, why am I not a basketball legend?!' /s
Levertki1 t1_iy4vcsx wrote
Life insurance and retirement work really well together, if your plan for retirement is to die.
kveggie1 t1_iy5vokk wrote
Only buy term life insurance (if necessary.. when loved ones depend on your income.
Invest in index mutual funds for your retirement.
Stay away from this product (and every other cash value product) or an insurance product that "invests"
Werewolfdad t1_iy4pxzc wrote
https://www.whitecoatinvestor.com/5-reasons-not-to-buy-indexed-universal-life-insurance/
Man, the vultures really come out when the market takes a dive don't they