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Author: Aida2003 Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: After meeting with a Financial Advisor Date: 10/3/2003 1:13 PM
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I wanted to tell you, Fools, about my yesterday's meeting with a financial advisor. In case anyone has any thoughts, I would be happy to hear them.
So, I went there just for my curiosity because I've heard many stories and I was anxious to see what impression I will have after the meeting.

Here is what my DH and I heard...
In order to have calculations prepared how much we will need in the retirement years costs starting $750 and up depending on the complexity of the calculations.

Since we said we have little Term life insurance (thru our companies and at the time being we're not concerned about extra because we have no kids yet), the advisor suggested buying a Variable Universal life insurance. So, we discussed both UL and VUL insurances, but for some reason he talked more about Variable UL. According to him, Variable UL insurance costs almost the same as UL but it has investment opportunities. He mentioned Phoenix Life Insurance is a good company to buy VUL insurance. He said that even though having a VUL insurance is not a great investment but it makes you to be disciplined and in the retirement you can take loans against the cash value. Besides, whatever we take out, we will not be taxed. We will just have to make interest payments back to our policy. Also, as long as “there is $1 left in the bucket, your beneficiaries will receive a full death benefit after you die.” What is your opinion about having a VUL insurance for let's say $100,000 just to cover most important expenses when my DH passes away? As the advisor puts “Term Life insurance stays term and nothing is yours, but it's different with VUL insurance, because it's always yours unless you let the policy lapse.” Is it true, that if we pay the same premium every year/month without skipping any, we might accumulate the cash value that we'll be able to stop paying, but instead borrow the money against it?

With regards to investing, he said that Vanguard is a great company (who doesn't know that yet??!!). I said to him that I want to have a Roth IRA for myself and I asked him if he would do it for me (in case we want him to be our advisor), or I just go and open an account with Vanguard or Fidelity. His answer was “Vanguard and Fidelity are no-load funds, so you can do that by yourself. If you wanted me to do, then I would offer load mutual funds such as Oppernheimer <wrong spelling?>, Templeton, Fidelity Advisors, etc. that are good load mutual funds, but I cannot really say anything right now because for my advice I would expect to be paid.” Then I thought to myself that performance of load mutual funds does not differ much from the no-load mutual funds, so at least I would save on expenses if I go with Vanguard. Am I right? The advisor said that load mutual funds have 4-5% expense ratio.

Well, the whole meeting lasted 3 hours, and after that I and my DH decided not to have a financial advisor and try on our own, unless we decide to buy a VUL insurance. However, before I decide, I must get lots of information of pros and cons of UL and VUL, because I don't want to have surprises in 10-20 and more years.

Any thoughts are welcome. Aida
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