If you didn’t know something as seemingly old and boring as life insurance could do all those things, perhaps it’s time to visit with your agent. Especially those of you in your 20s, 30s, and 40s should take a look into Indexed Universal Life – unless of course, you want to be sitting in an audience someday lamenting the fact that nothing good financially – happens to older people.
Let that sink in a minute – the 30 year cost could easily top a half a million dollars. Worse still – the meter is still running. Thirty years may represent the accumulation phase of our life, but the distribution phase (retirement) can last another 30 years. The math is exponential – meaning that figure can more than double over a lifetime.
… the advisor lives in a world where all growth is taxed. I live in a world where no growth is taxed. In my world, the $1,400 ending balance would bear no tax liability whatsoever – in which case my original statement – “there is no mathematical advantage to tax-deferral” – is 100% true and accurate.
Traditional long term care is quickly going the way of the dinosaur. Very few insurance companies offer coverage at all, and those who do have increased their prices dramatically in recent years.
The lesson for those still in the accumulation phase is to build your wealth and retirement nest egg in accounts and vehicles that are not taxable in retirement.
As the dollar gains value, US goods and services become more expensive to world consumers – and sales decline. When sales decline, so do profits, and eventually, so do their stock prices.
