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|Subject: Re: Long Term Investing after a 401K & IRA's||Date: 5/24/1999 8:45 AM|
|Author: PJGeorge||Number: 10722 of 77871|
Have you looked at a VUL (Variable Universal Life) Insurance policy? This is a life insurance policy that you over-fund into mutual funds (Much like a 401(k)).
You fund it with after-tax money. The money grows tax free. After 15 years you can "borrow" 90% of the total amount in the policy (80% after 10 years). The nice things about the "loan" are 1) you don't have to pay it back (your policy will decrease by the amount borrowed), and 2) the money comes out tax free.
I have a $350K policy that I pay $150/month. Although, 28% has to go into a fixed account that earns between 6 and 7%, you are free to put the rest into much more aggressive funds. These accounts typically need to be over-funded to overcome the cost of the insurance but the tax advantages are very good.
My only advise is do not use this unless all of your other tax defered options are maxed out.
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