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I will have to stand by my advice about doing mathematical comparisons. It's fun, but it simply is not realistic. You can't accurately measure a guaranteed product against something variable.

But I wasn't comparing something fixed with someting variable. I was comparing something variable to something variable. That is, I was comparing investments in mutual funds to investment made in identical fund within a VUL. This allows you to see the effect of the tax shelter effect, as well as the effect of the additional charges related to the VUL.

What if we all experience an "unreasonable" return like 2% over the next 10 years? How will that impact one's decision?

I don't think that a 10 year 2% return is that unreasonable. And yes, I think it's valuable to compare that 2% return in a mutual fund and in a VUL - see how the results vary.

By doing this at various level of returns, one can acquire an appreciation for when VUL's will prove to be advanageious and when mutual funds are better.

In addition to this, I have talked to several individuals who believe in buying Term and investing the difference. The scenario is almost always the same ... they haven't started an ADDITIONAL fund (something on top of the investing they're doing anyway) for the "difference" YET. "How much is the difference in premium" I ask. "Oh, I don't know, but I read in "The Wealthy Barber" that Whole Life is really expensive!" is my favorite reply.

I certainly don't find that to be a valid reason for adopting a VUL over term + mutual funds - at least not as a general response. I've maxed out 401k's, IRAs, and have built savings on top of that. Starting the additional account is no problem - I'm just torn as to HOW I should start it.

I have got to laugh at ortman when he says he doesn't want to leave a dime to his kids. Obviously - OBVIOUSLY - he has no kids and does not yet have the capacity to understand the amount of love one feels for his or her own children. I've seen many posts on this board from selfish people who don't love their offspring. Perhaps they shouldn't have had any.

Obviously, I made my statement with a slight degree of sarcasm. However, it's still how I feel. I don't think that makes me selfish. We should be able to enjoy the fruits of our own labor. One works hard for the better part of a lifetime to reach a point where they can retire and enjoy the remainder of their lives. I don't see what's so inherently evil here.

Quite often, they want to allow the family to "maintain" their lifestyle (it's worth mentioning that they're all working their behinds off to IMPROVE the family's lifestyle - somehow that only counts when they're alive?) What losers. Their kids will work FOR a kid like mine someday - not the other way around!</>

I don't know if your intention is to be inflamatory, so I'll give you the benefit of the doubt.

Have a good night,
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