Great video. I think one of the best ways to help VUL accumulate is to look at the sub accounts and look for a daily interest fund, and deposit enough into it for insurance costs. Without the climbs and falls of the markets, there will be no buying high and selling low to pay for insurance costs. Figuring the percentage to go into a daily interest fund will show how much is remaining for investment in the other sub accounts. For example: Daily interest 25 % Nasdaq 20 % US 5000 20 % US 500 15 % European 10 % TSX 10 % setting an ongoing deposit like this will help add units, not sell when values are lower, and pay for insurance. Of course this can't be going forward like this indefinately , but if a policy is purchased at a young enough age, this helps, as the increase in costs is so little. A policy can be maxed, and when prices are good, money can be transferred to the daily interest fund, just enough to pay insurance, and leave anything left invested. When there is substansial money in the policy, it's a matter of transferring some frome a sub account to the daily interest fund. Very simple to take $2,500 and transfer it to daily interest to pay cost of insurance for a couple years, or longer.
@@YadagiriThopucherlaRao Sounds more complicated than it is. i really think many people don't know that you could be buying high and selling low to pay for insurance costs.
I have been using a VUL policy that has built in IUL strategies that you can pivot to once you feel necessary. Have you looked at or used policies with both strategies built in? This eliminates the need to 1035 later on (but you still could), and keep it all in one place.
What if my employer pays the fees for my company-provided , $1M death benefit GVUL? Does that make it a better option to add cash value. I already have a whole life policy for my low risk side. Thanks. Just started watching the videos. Well done stuff.
In IUL with 100k per year premium DB was around 1.4Mil and it was increasing every year till 14th year, where it was around 2Mil. why can’t we start with DB of 1.4Mil here? that should reduce the fees.
Hey, Thanks for the great video! Learned a lot. I have a question. When you say 1035 into a safer product, do you have specific examples of "safer products" that are non-volatile and not linked to the market?
re: The hypothetical scenario of a market downtown in years 18 & 19: Is that as big of a problem in the earlier years? For example, market downtown in years 3 & 4, while actively contributing money every year. I am 52 and would love to take the next 7 years to aggressively fund, then switch to the IUL as you suggested. Is this not a great idea b/c of my age? And perhaps I should only go w/ an IUL?
How do you rec the income for life? Thru policy loans? How ia it tax free? Are you withdrawing the dividend? Sorry for the dumb question, but I'm a new subscriber to your channel.
Do you have any videos showing what would happen if an IUL had multiple negative years and you still have to pay fees. Yes you have a 0% floor but with the fees, won’t that eat away the cash value?
Only if you're not paying into the policy any longer. If it's max funded, that could happen. However, it should be minimal if you've structured it in a way to minimize the net amount at risk (I just saw an example of a 78 year only whose annual fee was around $800 on a cash value of over 1.5 M)
If you get more than 5% illustrated net return, value of the policy and death benefit both should be more than what is illustrated, is it possible to have surrendered value more than the DB in that case and pay no fees?
Illustrations can be made to look however you wish the end result to be. First of all, does the owner have an insurance need? Is the presenters’ 401k and IRA’s invested in securities? (Funds, ETF’s, etc.) Does that make them high flying too??? Lol. Dollar Cost Averaging into a high flying investment makes a lot of sense over the long term rather than doing the same in a IUL that doesn’t go down in value. Volatility works in the investors favor. Who would try to sell a VUL to a 51 yr. old for retirement purposes? Then fund it for 7 years only and then add no more premium and then at age 65 begin tax free distributions? Of course the policy is going to fail. How about runnng a proposal for a 35 year old and fund it with the maximum non mec premium until age 65 and then start taking tax free distributions. The asset allocation can always be changed according to the clients risk tolerance and time frame. I could write more about this but I am tired….
You will be much older in your 50s the cost of insurance is much higher. VULs have sub accounts s that can be switched out to much safer options like bonds. Switching to an IUL makes you give up that flexibility. What happens when the stock market starts going up again? This guy is just trying to get you to replace a VUL to an inferior IUL. This guy is trying to make replacement commission!!
A 1035 exchange is a way to swap one insurance policy, annuity, or long-term care product of like kind without triggering tax on any gains - sometimes this can make sense if the current product is underperforming, was designed poorly, and other situations.
![VENEZUELA vs. ARGENTINA [1-1] | RESUMEN | ELIMINATORIAS SUDAMERICANAS | FECHA 9](http://i.ytimg.com/vi/SJfoPdeOPCQ/mqdefault.jpg)
Love the idea of a "hybrid" use of VUL when young, and IUL in later years!
Great video. I think one of the best ways to help VUL accumulate is to look at the sub accounts and look for a daily interest fund, and deposit enough into it for insurance costs. Without the climbs and falls of the markets, there will be no buying high and selling low to pay for insurance costs. Figuring the percentage to go into a daily interest fund will show how much is remaining for investment in the other sub accounts. For example:
Daily interest 25 %
Nasdaq 20 %
US 5000 20 %
US 500 15 %
European 10 %
TSX 10 %
setting an ongoing deposit like this will help add units, not sell when values are lower, and pay for insurance. Of course this can't be going forward like this indefinately , but if a policy is purchased at a young enough age, this helps, as the increase in costs is so little. A policy can be maxed, and when prices are good, money can be transferred to the daily interest fund, just enough to pay insurance, and leave anything left invested. When there is substansial money in the policy, it's a matter of transferring some frome a sub account to the daily interest fund. Very simple to take $2,500 and transfer it to daily interest to pay cost of insurance for a couple years, or longer.
good idea!
@@YadagiriThopucherlaRao Sounds more complicated than it is. i really think many people don't know that you could be buying high and selling low to pay for insurance costs.
Put 100k into a VUL at age 23 looking to do this exact same thing 20 years down the road for an early retirement.
Thanks for watching!
I have been using a VUL policy that has built in IUL strategies that you can pivot to once you feel necessary. Have you looked at or used policies with both strategies built in? This eliminates the need to 1035 later on (but you still could), and keep it all in one place.
What if my employer pays the fees for my company-provided , $1M death benefit GVUL? Does that make it a better option to add cash value. I already have a whole life policy for my low risk side. Thanks. Just started watching the videos. Well done stuff.
In IUL with 100k per year premium DB was around 1.4Mil and it was increasing every year till 14th year, where it was around 2Mil. why can’t we start with DB of 1.4Mil here? that should reduce the fees.
Great video highly important in this inflation world
What's the name or type of policy you're moving it to? How many years beyond 20 will this keep paying?
are you sure you can do a 1035 ex from VUL to whole because I tried to do this from my whole to VUL and they told me I could not
Yes, thanks for watching!
What is the second one? Single premium immediate IA? Thanks.
Hey, Thanks for the great video! Learned a lot. I have a question. When you say 1035 into a safer product, do you have specific examples of "safer products" that are non-volatile and not linked to the market?
Safer Products would be an IUL or a Whole life policy thanks. for watching!
re: The hypothetical scenario of a market downtown in years 18 & 19: Is that as big of a problem in the earlier years? For example, market downtown in years 3 & 4, while actively contributing money every year. I am 52 and would love to take the next 7 years to aggressively fund, then switch to the IUL as you suggested. Is this not a great idea b/c of my age? And perhaps I should only go w/ an IUL?
Great question. I would love to dive deeper into your situation. Feel free to book a discovery call with us at leveragedwm.com/contact-ii/
volatility can be the problem, if insurance has an account like a money market fund, putting insurance costs in there for a few years might be good.
This is assuming you put a bulk payment correct? What if you are making monthly payments ??
It changes the mechanics of what you have, but not the overall strategic pros/cons of a VUL
How do you rec the income for life? Thru policy loans? How ia it tax free? Are you withdrawing the dividend? Sorry for the dumb question, but I'm a new subscriber to your channel.
Thanks for watching! I'd recommend this video next for you: ruclips.net/video/8yZubQePA8g/видео.html
Do you have any videos showing what would happen if an IUL had multiple negative years and you still have to pay fees. Yes you have a 0% floor but with the fees, won’t that eat away the cash value?
Only if you're not paying into the policy any longer. If it's max funded, that could happen. However, it should be minimal if you've structured it in a way to minimize the net amount at risk (I just saw an example of a 78 year only whose annual fee was around $800 on a cash value of over 1.5 M)
If you get more than 5% illustrated net return, value of the policy and death benefit both should be more than what is illustrated, is it possible to have surrendered value more than the DB in that case and pay no fees?
The death benefit will always be more than the cash value
Illustrations can be made to look however you wish the end result to be. First of all, does the owner have an insurance need?
Is the presenters’ 401k and IRA’s invested in securities? (Funds, ETF’s, etc.) Does that make them high flying too??? Lol. Dollar Cost Averaging into a high flying investment makes a lot of sense over the long term rather than doing the same in a IUL that doesn’t go down in value. Volatility works in the investors favor.
Who would try to sell a VUL to a 51 yr. old for retirement purposes? Then fund it for 7 years only and then add no more premium and then at age 65 begin tax free distributions? Of course the policy is going to fail.
How about runnng a proposal for a 35 year old and fund it with the maximum non mec premium until age 65 and then start taking tax free distributions. The asset allocation can always be changed according to the clients risk tolerance and time frame.
I could write more about this but I am tired….
one more thing, can i pay the fees from the outside taxable account?
why ?
You will be much older in your 50s the cost of insurance is much higher. VULs have sub accounts s that can be switched out to much safer options like bonds. Switching to an IUL makes you give up that flexibility. What happens when the stock market starts going up again? This guy is just trying to get you to replace a VUL to an inferior IUL. This guy is trying to make replacement commission!!
We appreciate your comments, however, in this case (and in some others), your comment is simply inaccurate.
what does 1035 mean? how do you 1035 into an iul?
A 1035 exchange is a way to swap one insurance policy, annuity, or long-term care product of like kind without triggering tax on any gains - sometimes this can make sense if the current product is underperforming, was designed poorly, and other situations.
great vid
Thank you for watching!