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Retirement Discussions / Retire Early CampFIRE
|Subject: Re: On second thought, 2828 - Small Cap Issue||Date: 1/27/2013 8:21 PM|
|Author: telegraph||Number: 668598 of 789260|
"One could do the same thing in an Index Universal Life policy...
~AND~ your principal would be guaranteed against loss;
~AND~ your gains would be taken off the table and likewise guaranteed against loss;
~AND~ your beneficiaries would get a nice big payoff when you finally do kick the bucket--many more times what you paid in;
~AND~ the money you withdraw would be tax-free.
Caveat: your upside is limited to 17% annual gains."
I suspect if you back test this, and see the years where the stock market doubled, you'd see how bad a deal any Life insurance vehicle is!
Most of the market gains have occurred in spurts...down one year, the recoup the loss and add more.
By limiting yourself to 17% gain, you take it in the shorts when the market drops and starts out the year low, then it regains the 30% it lost the next year.
CC is still pushing 'life insurance' stuff.
Even Suze Orman won't go near the stuff.
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