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Trey3216

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Everything posted by Trey3216

  1. Sorry, I had a huge reply to this yesterday typed out and ready to send and the damn computer froze and closed down my internet wormhole. Alas, I'll try to respond exactly as I started yesterday... -To answer the bold portion, I'm saying you should utilize cash from a whole life policy en lieu of withdrawing from the qualified plan in a down market year (specifically, a down market year early in retirement) The idea being, if you have 3 years worth of cash piled in that policy to create 3 buffer years, the odds tilt greatly into your favor for never running out of money. Not to mention the fact that you're not going to pay ordinary income tax on that transaction. -Low withdrawal rates do help handle downturns...depending upon the sequence of returns, which is a risk in and of itself. -And yes, you could functionally increase your withdrawal rate, giving you a higher income in retirement based on a paydown schedule rather than an interest only/low rate withdrawal schedule. Reason being....Your life insurance is basically Asset Replacement Insurance at that juncture. You know you're going to die at some point. It's a mathematical fact. Why not take more retirement income and when you die, your Death Benefit of a permanent life policy will replenish the assets you spent for your spouse, or your heirs? -The premium situation, as you view it, is the biggest hallmark of information vacuum. You need to look at what year the cash value of the policy begins to grow more than the annual premium. For someone age 45 or so, it's usually year 6-8. After that, the amount of premium you contribute annually vs annual cash value growth is decreasing in perpetuity. Meaning, you've functionally paid the entirety of the insurance cost load in those first years. Now, compare that to continually buying new term policies for the same benefit over the next 3 decades, or 4 decades, and the total premiums on the term insurance are not going to be that much cheaper than the combined premium for those first 6-8 years of the whole life policy....and you have no cash to show for it. THe opportunity cost of term insurance is all the lost dollars you would have gained by putting that cash to work elsewhere. -your AFLAC example is off. For one, a whole life policy is likely going to increase in benefit. I ran one on a Male, 30 year old, standard non-tobacco. I did $6000 annual premium to make it $500/mo to see. You get an initial DB of $485-500k. By age 65, it's a DB of $885k with almost $500k of cash value. At 75 it's a DB over $1mm with $685k in cash value. So yeah, it's not as great as the $1mm by 65 putting it in the market...but it's not supposed to be. It's also not going to get taxed like the stuff in the market, management fees like the stuff in the market, subject to ordinary income tax on distribution like the market stuff if it is in a traditional IRA or 401k, and not subject to the whims of market risk like the market asset is. -All this to say, I'm not advocating anyone to only do one or do the other. I'm advocating for people to do a little bit of both. Why? Because utilizing Whole Life as part of a strategy works. It's not the only strategy. But neither is only having money in the market. I didn't even mention using it as another way to put cash to work for kid's education above what you can contribute to the more commonly used methods. What happens when you're contributing to those things and you die? You don't contribute anymore. I also didn't mention the fact that if you develop a chronic or terminal disease (think dementia or cancer), you can access the death benefit in a whole life policy while you're still alive to help pay for the costs of those situations rather than eating into your family's nest egg.
  2. No doubt. And that' not what I'm saying. But the mechanics of it in the accumulation phase and the distribution phase are quite different.
  3. It makes sense in this scenario as well: Say you have x dollars already in qualified money. You continue to contribute to that money right up to retirement age with those dollars wholly invested in S&P 500. You build a pretty large nest egg. The math right now says that a 2.8% withdrawal rate is the recommended rate to not run out of money. You've saved all your life so you can be afforded the opportunity to withdraw ~3% of it per year without fear of running out. If you have a permanent life policy in place, you can afford to spend your money you saved. Use the life policy to replenish your funds for your legacy. In the meantime, you have the cash value you can draw on in down market years (buffer cash) which allows the qualified $$ to replenish itself by not double dipping. The math works fine. You just have to be willing to look at it. The last 15-20 years of piling money into qualified plans don't really add that much to your pile at the end of the day. THere's not enough time on your exponential curve for that money to multiply. That's the math that people tend to overlook.
  4. I "borrowed" some potassium from the chemistry lab and flushed it down the toilet in HS. Didn't mean to bust that pipe, Sir.
  5. Didn't you read!! THey were tied with a top 10 team halfway through the first quarter!!!
  6. That'll make a fine patina. Perfect for vintage re-sale market!
  7. I mean, if I suddenly came into FU money and I wanted to buy my parents $600k house from them for $1.2mm and then let them live in the guest house for free, that's my decision and there's nothing nefarious about it.
  8. What kind of evil spirit we dealing with here? Vampire?
  9. It’s a top 10 personal movie for me…not because it’s one of the 10 best ever made, but because it’s one of the one of the coolest movies ever made, with a legit adapted true story behind it, and has one of the very best soundtracks in the history of film. So rewatchable, and transcends time
  10. OJ's son made ribbons out of her
  11. "The Doors!? Jim Morrison?! He's a drunken buffoon! Posing as a poet!!!"
  12. I mean, she is pretty damn good lookin and that 'Bad Boy' looks like a poster child for Fetal Alcohol Syndrome and shame. Sounds like she has no self-appreciation and enjoys the drugs made in mobile homes.
  13. Fuck him and his doomsday prediction for this summer that I said from the jump was complete and utter shit.
  14. Meth Krispy Treats.
  15. Or the Andrew McCarthy's of the world have more say than they ever should...
  16. Not true. There is the mathematics of it, and the bullshit that one tries to feed from another, and the bullshit that idiots will consume.
  17. Before the wind started blowing from the storm headed my way, we had a balmy 101/114. Nasty. Now it’s like 75 and glorious
  18. It's funny when some of us talk about economics and then you get mad about politics.
  19. Do you lay her out on the board when you decide you want to wear her?
  20. I don't scroll trump tweets. I don't scroll Kamala tweets.
  21. You're the devil!!!!! I quoted you. You're the one saying shit about "illegally cashing out", so take that argument up with yourself.
  22. That may be the stated point...but that isn't the goal of the stated point.
  23. Every single tax is a simple money grab built into a complex money grab by the government. How's that nearly boiling water feeling, Kermit? Why the fuck can the government not spend less money? They've got too many mouths to feed is the answer.
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