No. of Recommendations: 1
nordener: "We've been meeting with a financial planner and he has created a program for us that has us re-financing our home and using the equity to jump start a Variable Universal Life insurance policy. In addition to his I have a 401k account that is in excess of $200k. I am 39 and want to retire when I'm in my early 50's. Several of our friends have told us NOT to invest in the VUL, but the plan looks good to us and allows us to achieve our early retirement goals.

Any comments regarding the VUL?"

I did not see you mention any need for insurance.

You should look at FoolWAM's post #1913 at to see if you'd be a good candidate or not.

AND also defintiely read #5188 at

both on the Insurance board, and then run a search on that board and read - my best sense of the it is that a VUL may make sense for some people (a small percentage) as a part of their overall portfolio, assuming that the terms and provisions of the VUL are fully understood.

For example, read "libc's" recent post about insurance squeeze.

IMO, you do not come close to posting enough information to determine whether a VUL might work for you (and I doubt that many people really want to post that much personal information on a public forum).

Regards, JAFO

PS - Do you use margin in your stock account? If you are too conservative to use margin in a stock account, why borrow money (secured by your house) to "invest" in VUL subaccounts???? I acknowledge that there will be no margin calls for the latter loan, but that would be cold comfort to me if my subaccounts lost money and I was still paying for my house (again) 30 years from now.
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