- My Forums
- Tiger Rant
- LSU Score Board
- LSU Recruiting
- SEC Rant
- SEC Score Board
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: IUL Vs Roth IRA
Posted on 11/14/14 at 4:40 pm to 337tigergirl
Posted on 11/14/14 at 4:40 pm to 337tigergirl
It's a great way to transfer wealth to your sister via the insane commissions your b-I-l will be getting. Put your money in the Roth.
Posted on 11/14/14 at 7:02 pm to jeepfreak
quote:
to transfer wealth to your sister via the insane commissions
Essentially you are paying a company to do the same thing as put money in a roth and invest in index funds.
When you purchase a life insurance product your money goes towards
1- Claims Reserves (large chunk)
2- Commissions (sometimes as high as 10% through 10 years and often closer to 100% in year 1 )
3- Policy administration and business expenses (all the costs like claims staff and processing, sales management, executive, marketing etc)
4- Company profit (surprisingly little due to regulations)
Then whatever is left over after all those expenses gets thrown into your account that tracks index funds.
When you invest in a roth- You basically pay no fees to track identical index funds. You may pay some fund fees that are fairly minor like 1.5% You can take your savings and buy a huge term life if you want the insurance side of things
This post was edited on 11/14/14 at 7:03 pm
Popular
Back to top
Follow TigerDroppings for LSU Football News