UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next
Author: ortman Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 17931  
Subject: Re: Very SPECIFIC Variable Univ. Life Questions Date: 9/6/2000 8:13 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
5. Sounds toooo good. What am I missing here?? There has to be a catch here..High fees? Risk?

I'm not an expert... but I've spent some time looking at the product for myself.

Things you've missed:

1. High fees which might be associated with that VUL. The insurance fee is not the only thing that comes out. There is a premium which is paid to the state, administrative charges, and loads on the funds. (I could be mistaken... there might be more or less than I mentioned).

2. You assumed that all or your 10% annual gain was taxable. This may not be the case... it is only taxable if in the form of taxable gain. What if your fund rarely sells - so most of their gains are in appreciation of their holdings - which aren't subject to tax?

Just a couple of thoughts...

-Ortman
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Value Hounds

Nu Skin Showing its Age?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement