Questions regarding IRAs

quote:

---

Also, what are your thoughts on using an online broker such as Wealthfront for this account?

---

Vanguard index fund for the win.

You wont find lower expense ratios. Look into their retirement target funds too.

Google "Back Door Roth IRA". While I would expect this known workaround to be changed within five years... clearly the federal government can't get anything done, so maybe it'll still be there. Until it's not, this is your answer.

Avoid target date funds. They're stoopid.

quote:

---

Avoid target date funds. They're stoopid.

---

agreed. they are for the ultra lazy

Not to be argumentative, but when was the last time you heard of a balanced budget coming out of Washington? We'll probably hit $20T in the next few weeks: US Debt Clock and the liberal spend spend spend attitude has taken over the republican party as well. Sorry, if you prepare and save, you'll be a "millionaire and billionaire" who needs to "pay your fair share" when you retire. Just saying, if you're 40, how big do you think that debt will be when you're 70?

Who pays for that? The computers who will be working those minimum wage jobs?

True story, I suppose. Under current rules and without grandfathering of the rules... I would think the more likely scenario is a wealth tax. If you're worth over $XXX, you get taxed an extra % per year, not necessarily on the income.

The people who are paying attention, for the most part, are the people who are preparing for the future too. Typically you don't bite the hand that feeds you. Thus, nothing happens.

Sounds like someone works at NWM... That was a great line of questions leading to a high commission product... like it came out of some notes even...

Quick question, exactly who regulates the State Department of Insurance?

Are there any surrender penalties and for how long? How much do you have to put in up-front? Monthly? What is the internal costs associated with it? What's the COI? If you have that much money, why do you need a loan? Is it a net zero loan? What if I lose my job and can't afford the premiums, get a divorce, or the market doesn't perform like the illustration?

Asking for a friend...

quote:

---

Sounds like someone works at NWM... That was a great line of questions leading to a high commission product... like it came out of some notes even... Quick question, exactly who regulates the State Department of Insurance? Are there any surrender penalties and for how long? How much do you have to put in up-front? Monthly? What is the internal costs associated with it? What's the COI? If you have that much money, why do you need a loan? Is it a net zero loan? What if I lose my job and can't afford the premiums, get a divorce, or the market doesn't perform like the illustration? Asking for a friend...

---

1) I've never worked at , nor ever will work at Northwestern Mutual. Please...
2) I don't sell High Comission Insurance Products. You and I both know that those are geared towards lining the pocketbooks of insurance agents, not the consumer. I have been doing this a long time and ultimately you don't know what you don't know.
3) The State Regulates Insurance Companies
4) The cost of insurance is cheaper than any insurance or investment fund that you know of... cheaper than Vanguard for sure. I can send you an excel spreadsheet if you want.,
5) There are no surrender penalties. There are only surrender penalties with universal life, overpriced whole life, and annuities.
6) You determine how much you want to put in, if you qualify w/underwriting. The consumer is in control.
7) you don't have to take a loan, but the r a son for it is because you have a greater need for financing than you do for protection. You die once, you make larger purchases and expenses every year.
8) The loan is Simple interest and the growth is compound interest. Therefore, structured like those all are "net zero" loans. You either sell indexed universal life or know someone that does.....
9) lastly, these contracts/policies are not dependent on the market. The owner of the policy is eligible to receive dividends and there are contractual guarantees. If you lose your job, divorce, wouldn't your whole financial landscape take a hit? Nonetheless, there are several ways (5-6) to avoid making premiums if something like that happened.. that all depends and is a much deeper question...

Usually I don't spell it out on here, but hope that helps your "friend"...??

quote:

---

Take an upvote. I appreciate the response. I'll pass that along to my friend. Sounds like defining where it may work and where it wouldn't makes all the difference. What type of policy are you talking about if it's not whole or universal? Variable?

---

It is not a traditional whole life, where there is a lot t of fees. I am talking about putting a rider/enhancement on The policy to decrease the commission to the insurance agent and kick start the growth on the policy.
You structure it to where the goal of starting the overfunded whole life policy is for growth enough for protection. It is for tax benefits, liquidity to the money, along with having a small life insurance benefit attached to it. You are not doing it for insurance, but for accumulation and utilization of those funds growing in the policy.

In today's low interest rate environment you will net an average of 4-5%.
The insurance company contractually guarantees a percentage and every year, not guaranteed (yet a dividend has always paid out for 100+ years) you receive profits from the insurance company called dividends.
By law, mutual insurance companies have to return profits back to their owners. Therefore, if you have a policy you are co-owner of the company.
The 4-5% over long haul is compared to 7-9% every year inside a managed brokerage account, because there is no taxes come about Hillary, and management fees/expenses/mutual fund turnover, etc...