Northwestern Mutual - 1/24/13 | Page 2 | TigerDroppings.com
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lsu13lsu
LSU Fan
Member since Jan 2008
3063 posts

re: Northwestern Mutual

quote:

anything over the contributions is taxed.


What would be considered contributions? Initial payment plus the 6% annual return (or whatever amount)less annual premium payment? This assumes the giant payment upfront which will cover all future premium payments in the example above.


GoCrazyAuburn
Auburn Fan
Staring up at Vulcan's ass
Member since Feb 2010
17403 posts

re: Northwestern Mutual
Contributions are cumulative premium payments.

So, say you are in the rare position that single premium is for you and you put in $50k up front. There would be no reason to surrender the policy because it is paid up. BUT, if for some reason you did surrender, any amount of cash value above the $50K would be taxable.

If you do a normal policy, it works the same. As long as policy is in force, any cash withdrawals are tax free. If you have paid in $20K and surrender the policy, any cash value over the $20K is taxable. However, I would just suggest using dividends to pay premiums at that point anyways so that you get paid up insurance and your cash tax free.


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jdg91878
New Orleans Saints Fan
Do overs+Opinion poll politics =MNC
Member since Oct 2010
3742 posts

re: Northwestern Mutual
quote:

Whole Life sucks, and only a Whole Life salesman will tell you differently, it's the worst financial product ever created.


This times 1000. It's theft. If you die, your beneficiary has to choose the death proceeds or the cash, not both. There is a reason it's referred to as trash value.
This post was edited on 1/24 at 10:50 pm


GimmieSomeGlitter
Ole Miss Fan
GreenBOW ALABAMA!
Member since Aug 2011
491 posts

re: Northwestern Mutual
quote:

This times 1000. It's theft. If you die, your beneficiary has to choose the death proceeds or the cash, not both. There is a reason it's referred to as trash value.


ERRRR!!! Wrong! Stop listening to Dave Lamsey and actually do some homework. The cash value is included in the policy death benefit you don't choose between the two. The cash grows along side the death benefit so that the policy doesn't MEC. This is the rule and law of life insurance.

When you have people maxing out their 401(k)'s or self employed people who can't put money elsewhere and want to receive a tax free benefit on the receiving end of their retirement, this is a great place to put money as long as you choose a company like this! It's also a great place for people to put money that would be protected from creditors.
This post was edited on 1/24 at 11:23 pm


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gatorsimz
Florida Fan
cafe risque
Member since Feb 2009
5522 posts

re: Northwestern Mutual
quote:

Whole Life sucks, and only a Whole Life salesman will tell you differently, it's the worst financial product ever created.


You couldn't be more wrong. Whole life can be a great product if used correctly and at the right time.


GoCrazyAuburn
Auburn Fan
Staring up at Vulcan's ass
Member since Feb 2010
17403 posts

re: Northwestern Mutual
quote:

You couldn't be more wrong. Whole life can be a great product if used correctly and at the right time.


Ding ding.

Unfortunately people in terrible positions for it get sold on terrible products (universal life I'm looking at you) way too much. I would say probably 90% of the permanent market out there is garbage. That is the stuffDave Ramsey talks about for the most part.

Both term and Permanent can be the right choice, just depends on the individual situation. Unfortunately, Dave Ramsey can't focus on individuals, he needs to appeal to the masses, and that is why he is so opposed to it. His audience is mostly made up of peoe deep in debt who need to manage costs as much as possible.


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GoCrazyAuburn
Auburn Fan
Staring up at Vulcan's ass
Member since Feb 2010
17403 posts

re: Northwestern Mutual
quote:

ThatsAFactJack



Don't know what you you do, but if you haven't talked to your accountant about potential tax deductions for your LTC policy, make sure you do.

Depending on what type of employee/employer, you could deduct quite a lot.


ThatsAFactJack
Broussard
Member since Sep 2012
589 posts

re: Northwestern Mutual
quote:

GoCrazyAuburn
quote:

talked to your accountant about potential tax deductions for your LTC policy


Done. My godfather is a CPA and takes care of it for me.



GoCrazyAuburn
Auburn Fan
Staring up at Vulcan's ass
Member since Feb 2010
17403 posts

re: Northwestern Mutual


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