Re: Life Insurance Annuity

#3 08-14-2007, 02:18 PM

<wyu[at]talisys.com> wrote in message
news:1187049788.186227.74880[at]e9g2000prf.googlegroups.com...
- quote -

> On Aug 13, 3:46 pm, "Cal" <cal-les...[at]comcast.net> wrote:
> > I am NOT familiar with that contract. HOWEVER
> > Are you saying that NO ONE receives a commission form the
> > sale??????????
> https://flagship.vanguard.com/VGApp/...ExpContent.jsp
> Basically, it's a minimal insurance contract wrapping around Vanguard
> mutual funds to create a tax-deferral account for those who've run out
> of 401K/IRA/Roth IRA contribution dollars. There is no life insurance
> component which is why I stated use this option only if the original
> policy was going to be cashed out. So instead of cashing out and
> paying income tax immediately, 1035 exchange into a Vanguard VA and
> let it continue to grow. VAs have no RMD so that would let you draw
> down 401Ks/IRAs first before moving onto Roth IRAs and VAs.

I see that I misunderstood your original post. I thought that you were
suggesting it as a TERM replacement for their present contract.

Cal Lester CLU

#2 08-14-2007, 12:03 AM

On Aug 13, 3:46 pm, "Cal" <cal-les...[at]comcast.net> wrote:
- quote -

> I am NOT familiar with that contract. HOWEVER
> Are you saying that NO ONE receives a commission form the
> sale??????????

https://flagship.vanguard.com/VGApp/...ExpContent.jsp

Basically, it's a minimal insurance contract wrapping around Vanguard
mutual funds to create a tax-deferral account for those who've run out
of 401K/IRA/Roth IRA contribution dollars. There is no life insurance
component which is why I stated use this option only if the original
policy was going to be cashed out. So instead of cashing out and
paying income tax immediately, 1035 exchange into a Vanguard VA and
let it continue to grow. VAs have no RMD so that would let you draw
down 401Ks/IRAs first before moving onto Roth IRAs and VAs.

#1 08-13-2007, 10:46 PM

<wyu[at]talisys.com> wrote in message
news:1187037024.498660.227970[at]i38g2000prf.googlegroups.com...
- quote -

> On Aug 13, 12:50 pm, "Cal" <cal-les...[at]comcast.net> wrote:
> > Therefore why in the world would you start a NEW Contract,
> > with NEW aquisition costs???????????????????????
> Luckily Vanguard has no aquisition costs. All they charge is a 0.30%
> annual expense ontop of their mutual funds (which are industry lows).
> Depending on the asset class being held, 0.30% can pay for itself with
> the tax-deferral benefit.

I am NOT familiar with that contract. HOWEVER
Are you saying that NO ONE receives a commission form the
sale??????????
Cal

08-13-2007, 08:31 PM

On Aug 13, 12:50 pm, "Cal" <cal-les...[at]comcast.net> wrote:
- quote -

> Therefore why in the world would you start a NEW Contract,
> with NEW aquisition costs???????????????????????

Luckily Vanguard has no aquisition costs. All they charge is a 0.30%
annual expense ontop of their mutual funds (which are industry lows).
Depending on the asset class being held, 0.30% can pay for itself with
the tax-deferral benefit.

#-1 08-13-2007, 07:50 PM

"Cal" <cal-lester[at]comcast.net> wrote in message news:...

- quote -

> Do you still need life insurance? If so, how much would it cost to get
> term life to replace what you have already?

If it "costs" at all, it invariably would be MORE than the contract
of insurance that you currently own. I am NOT talking about ANY
potential cost due to the market fluctuation, but only to the actual
Life Insurance COSTS.

- quote -

> If you can get term replacement cheaply, then you have to look at the
> expenses going forward. Are they low enough where tax-deferred growth
> can beat taxable investments?

ANY Term Insuranec product that "Might be issued" today MUST
cost more that the on-going cost of a contract in it's 15th year.

- quote -

> If you do decide to cash out, you should look into doing a 1035
> exchange into a Vanguard variable annuity. That'll defer taxes due on
> it until the time you actually need the money.

Without going into the merits of one company over another,
the only reason that I can see for you to cash in the contract
is to put the money to better use.
Therefore why in the world would you start a NEW Contract,
with NEW aquisition costs???????????????????????

The PRIMARY question to answer is "Is there a NEED for
Insurance at this time".

Cal Lester CLU

Similar Threads
Thread	Forum	Replies	Last Post
Life Insurance Annuity sandybeth: Hubby has a Modified Premium Variable Whole Life Insurance policy with Equitable. Bought in 93, so it's 14 yrs out. Put in $35000 over 7 yrs. ...	Financial Planning	5	08-15-2007 10:23 AM
Question about a life insurance annuity Dog Face: I am the beneficiary on a variable life insurance annuity in the U.S. and the insured person (not my spouse) died recently. The death benefit on...	Taxes	1	04-18-2005 03:53 PM
variable annuity life insurance s_vasil: I got talked into a VALI plan a while ago. I pay the minimum I can--$135/month--and I'm trying to find out if I should dump it or not. I set out to...	Financial Planning	1	03-29-2005 09:24 PM
Is a MEC similar to both an Annuity and Universal Life Insurance? Tim Williams: As far as I understand, Uncle Sam intervened in the eighties to limit the amount of cash value Universal Life Insurance policies could hold....	Financial Planning	3	08-25-2004 04:40 PM

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode