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|Subject: 7702 Private Plans (indexed universal life)||Date: 3/26/2013 8:21 PM|
|Author: Brandonisme||Number: 71499 of 75802|
So I met someone who is trying to sell me on a retirement plan, (already a good start when you are being sold something, right?) that is based off a life insurance policy. I'm trying to find reasons why I wouldn't want to do this, but it seems like it's not really all bad. I'd say it's fairly similar to a roth style IRA in some ways, but of course very different in others. Here's what I've deciphered so far:
Pay in monthly post-tax income.
Certain percentage of money is applied toward death benefit (non refundable) while the rest of the money goes into a liquid, non-taxable account.
That money in the liquid account earns money based off of capped S&P returns, capped at 12% but also prevents any loss at all. If market goes down, you just receive no gains.. but also no losses. You can also access and pull out any of this money at any time, no tax repercussions.
You must maintain certain cash stream into account annually, otherwise it gets pulled from the liquid to pay into the account.
There is a lot more information here in links at the bottom of the post.. feel free to read. Why would I not want to invest in one of these, does anyone have any experience with this type of investment?
I look at this as sort of an alternative to a 401K, which quite frankly I don't see as the most reliable retirement options as it is especially in todays markets...
Any info is appreciated, I'd like to hear others opinions! Thanks!
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