re: Indexed Universal Life policy. Who has done it?

Yup….that’s it. According to my index life policy I have both.

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but you can find 4% guaranteed returns right now with almost 0% risk. The risk to lose principle for the next 10 years is almost 0 for anyone approaching or in retirement that invests conservatively in a manner most would recommend.

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Can you spell this out for us?

The only people who will see a real benefit from them are extremely high earners. Any index fund will outperform them.

The primary uses, in my opinion, are to pay estate taxes if they will be owed when you sue (very unlikely) or to use as a tool to loan money against on the cheap later in life. If those things seem appealing to you, then look into it. Otherwise, just but a term policy and invest the difference.

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I’m saving for my house build next year and just bought 3m CD’s from Morgan Stanley at 5.2%.

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Absolutely. My other post was referring more to 10 year products. If you are looking to retire anytime soon I would lock in at least something for 5 years at 4-5% for a good chunk of your portfolio. If you have say 50% locked in at 5% and then invest the other 50% in a conservative equities mix of something like ETF’s the chances of losing even 10% of your money is extremely small especially if you are even remotely paying attention. While the chance of pretty significant gains in the next 5-10 years is great.

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The only difference between the two is when I take cash out my IUL it’s tax free. The government nor my wife can touch it.

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Took some out to buy a property. Didn’t pay any taxes on it. 1.5% loan rate. But cool I love the laugh emoji.

I’ll repeat it again for you. When you start cashing out index policy….it is a tax free. Unlike a 401k.

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Took some out to buy a property. Didn’t pay any taxes on it. 1.5% loan rate. But cool I love the laugh emoji.

I’ll repeat it again for you. When you start cashing out index policy….it is a tax free. Unlike a 401k.

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The money is tax free up to the amount of premium that you paid into the policy (this is for withdrawals).

You are getting your input money back first (withdrawals).

The tax deferred growth is just that... tax deferred. You are still responsible for taxes (withdrawals).

These policies can be expensive as "f", so there could be a huge number available for withdrawal before there is any taxable event (i.e. your first 6 or 7 years of premium input is typically buried into the policy before the cash balance is greater than the amount of money you put in).

Since you are taking loans against cash value (not a withdrawal), then that is not a taxable event (so long as the policy does not implode).
It is a long time since I've read the fine print. But back then, the interest fee on the money that you input was offset with a credit (i.e. you effectively were not charged interest on your premium inputs). However, interest fees on growth was not offset. And you (or the cash balance) is paying that annual interest fee every year until you repay the loan, you die, or the policy implodes (15 years ago, I was seeing 2% annual interest charges on loans against policy gains).
It wouldn't shock me if your loans are against a blend of premium inputs and gains (i.e. 1.5% effective annual loan rate).

How old are you?

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None of what you said is true on my policy.

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I haven't read your contract. I'm comfortable taking you at your word.

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I’m 42 and started it at 35.

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1) what is the cash balance? (I'm curious what the surrender value is, although that has nothing to do with the discussion)
2) how much has been paid into the policy (what is your monthly input or annual input over 7 years)
3) you are taking a loan (presumably against the growth in the policy) at 1.5% interest instead of paying capital gains tax.
You are 42 years old. How many years do you intend to pay interest on the loan (if you never intend to pay it off, how long do you intend to live?)?

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The best information provided to me broke down withdrawals on death benefit as a tax free withdrawal.

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You are scaring me.
1) it sounds like you haven't read the contract. You are relying on what a sales rep told you about the contract.
2) I've never seen "withdrawals on a death benefit" in my life with the exception of poor health (terminal illness or loss of daily living functions). Either you are not capable of expressing how the policy works (you are using the wrong words, but you have a good product) or you have been sold beachfront property in Nebraska.

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It also proved it by showing that every major income producer in America( cfb coaches, ceos, and business owners) all started policy’s funded by their institutions.

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That isn't a proof.

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The loan I took had no bearing on my cash value growth.

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If you took a loan against your death benefit, then you are correct. Was the loan through JG Wentworth?

I'd love to read your contract and view your illustration. More importantly, you need to read and understand the contract. "Doing what Belichick" does when you haven't read his contract either does not put you in a favorable position.

One I didn't ask you the advantages. I understand what they sell you on.

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If I cared about rising cost of a life insurance as I got older I wouldn’t have purchased it at 35.

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That sounds like exactly why you bought it at 35. Cause it sounds like you thought you were locking in a cost (which isn't true in these policies).

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Well based off what I’m putting in right now at 58 I’m going to have 65k a year In tax free income. If I pay it to 63 I’ll have about 75k per year…..TAXFREE

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Assuming you live to 100 and assuming you are borrowing against your death benefit (not cash value), $65k/yr at age 58 would be $2,730,000 for then remaining 42 years.

Or, $75k/year at age 63 would be $2,775,000 for the remaining 37 years.

Is this a $3M death benefit policy?