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Message
re: Life insurance questions\advice
Posted on 10/3/17 at 8:24 am to baldona
Posted on 10/3/17 at 8:24 am to baldona
quote:
That's rare though, extremely rare.
Certainly I have my life insurance maxed with my employer also, its something like 3 times my pay for like $10/ month. Its very cheap, but I would never have that as my primary life insurance. As you said, employer life insurance can be great. But I don't think anyone should rely on that as their only life insurance. At least get like $250k outside of your employer.
Which is why it is ALWAYS a good idea to check with your employer and find out exactly what your options are with them. Sometimes, it is a better deal especially if you work in an industry where job security is almost guaranteed.
0
Posted on 10/3/17 at 4:12 pm to baldona
quote:
So your dad was bad at saving money, that happens a lot.
So how much should one have in the bank to not be considered "bad at saving money" oh wise one?
Posted on 10/3/17 at 4:38 pm to ScottieP
quote:
So how much should one have in the bank to not be considered "bad at saving money" oh wise one?
At 64? Over $1 mil and a paid off house. To hit $1 mil, you have to save something like $7,000 a year for 35 years. That's 15% of $50,000. Who can't do that?
My entire point of going with a 15 year life insurance plan, is that 15 years is PLENTY long for anyone in a professional type of job, small business owner, etc. to get their financial life in order.
I despise these 30 year plans: life insurance, mortgages, etc. There's way too many people that take a mortgage into "retirement" and never actually pay their house off. They take out HELOC and refinances to pay for a bunch of crap they don't need and can't afford.
If it takes you longer than 15 years, you aren't working hard enough and saving enough money to prepare yourself properly. Or you are like most Americans and living out of their means, running lives with a lot of risk, and in all kinds of completely unnecessary debt.
If you want to have a bigger house that takes forever to pay off, requires you longer to retire, longer to save money, and longer to take care of your family than that is fine. But my point is, 15 years is plenty long to do all of those things with proper planning.
This post was edited on 10/3/17 at 4:40 pm
Posted on 10/3/17 at 6:31 pm to baldona
quote:
baldona
Damn we are doing this song and dance again?
quote:
At 64? Over $1 mil and a paid off house.
The correct answer is it varies based on retirement goals, expected lifespan and acceptable level of risk in investing.
I need more than $1mil in the bank if I plan on keeping my lake house. Property taxes don't pay themselves
quote:
To hit $1 mil, you have to save something like $7,000 a year for 35 years.
Except that you aren't accounting for inflation / $1mil today isn't = $1mil in 35 years. Even At federal reserve historically low target inflation rates 2% that $1mil = $~2mil at that rate
If you were able to get market historical return rates (7.5%) you would need roughly $12,000 per year to hit ~$2,000,000
quote:
I despise these 30 year plans: life insurance, mortgages, etc.
Because you "suck" at saving / finance and don't recognize advantages of being g leveraged at low interest rates
quote:
They take out HELOC and refinances to pay for a bunch of crap they don't need and can't afford.
Not a 30 year mortgage's fault that people have spending problems
quote:
If it takes you longer than 15 years, you aren't working hard enough and saving enough money to prepare yourself properly.
This is financially inefficient if you believe your investment rate of return is greater than mortgage interest rate.
There also is liquidity risk and asset diversification problems with having a large chunk of your net worth tied up in one property
quote:
But my point is, 15 years is plenty long to do all of those things with proper planning.
Ya it is plenty long enough. You just have to accept you are throwing away an opportunity
This post was edited on 10/3/17 at 6:44 pm
Posted on 10/7/17 at 10:30 am to LSUvegasbombed
quote:
Actually 251 for 1.6
You should call another broker.
Posted on 10/8/17 at 2:45 pm to baldona
quote:
I hate to go Dave Ramsey here, but there's no reason to have life insurance past your 50s unless you completely suck at saving money.
I work hard to ensure that I leave a sizable eatate to my kids and their mother. Part of that strategy is a UL policy for tax mitigation once I am dead.
Anyone that has, or plans to have, assets in excess of $1MM needs to ensure there are not tax issues for your loved once you are dead.
Business owners, farmers, land owners, etc. need this - your family you leave behind will thank you.
My term policies will end once my kids reach the age they should have an undergraduate degree. My UL will be there until I am dead to help with any tax or estate issues.
Mrs. KTG has a small UL in case she goes before I do - but we will probably cash her's out at 65.
This post was edited on 10/8/17 at 2:47 pm
Posted on 10/8/17 at 2:51 pm to EA6B
quote:
The lawyer just gave me a check from my parents estate, seemed pretty efficient to me, few people have estates that result in tax liability.
You are hedging your bets - as a more liberal stance on inherentece and transfer of wealth takes hold, planning now is key. Within 20 years, congress will rewrite tax law governing this...and it won't be beneficial for those directly impacted.
Posted on 10/8/17 at 8:07 pm to LSUvegasbombed
Use and online broker and get term. Quit smoking---huge difference in rates.
Posted on 10/9/17 at 1:36 am to I B Freeman
Buy life insurance for your kids under 5. Best investment you'll ever make.
Posted on 10/9/17 at 12:08 pm to KillTheGophers
quote:
I work hard to ensure that I leave a sizable eatate to my kids and their mother. Part of that strategy is a UL policy for tax mitigation once I am dead.
Anyone that has, or plans to have, assets in excess of $1MM needs to ensure there are not tax issues for your loved once you are dead.
LOL, what? You can leave $5.5 mil before death taxes per person, so a couple is $11 mil. How many people have over $5.5 mil? A low percent, and furthermore those that do are not appropriate for this thread as their level of wealth needs different advice.
Again if you WANT insurance, fine get it. I don't care. But you don't NEED life insurance. Big freaking difference.
Insurance is meant to cover the costs of things you can't afford to pay for. Using it as an "investment" is not what we are talking about here. Op was talking about insuring that his wife and kids are taken care of should he pass away while they still would need his income.
Posted on 10/9/17 at 12:13 pm to GenesChin
quote:
At 64? Over $1 mil and a paid off house.
The correct answer is it varies based on retirement goals, expected lifespan and acceptable level of risk in investing. I need more than $1mil in the bank if I plan on keeping my lake house. Property taxes don't pay themselves
Hey, we agree!
He asked me how much someone at 64 should have at a minimum. If at 64, the average person doesn't have a $1 mil net worth then yeah they suck at saving. Take that to the bank.
Anyone with a household income over $60k which has been easily feasible the past 25 years will hit that by investing 15% of their money. Not to mention paying off their house and other assets.
quote:
I despise these 30 year plans: life insurance, mortgages, etc.
Because you "suck" at saving / finance and don't recognize advantages of being g leveraged at low interest rates
I leverage myself just fine thank you. But I also live under my means and save and invest. Taking 30 years to pay off a house is ludicrous, literally no one "needs" a house that takes that long. If you want to choose that and you save/ invest at the same time then that's a different story and all great and dandy.
Again though, we are talking basics here. Basic Life insurance, basic saving 15% to retirement, and the basics of getting out of debt by 60 to actually be able to retire a relaxing life. Sure there are more advanced ways, but the basics are something literally everyone can do.
This post was edited on 10/9/17 at 12:14 pm
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