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Author: telegraph Big funky green star, 20000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 757642  
Subject: Re: On second thought, 2828 - Small Cap Issue Date: 1/27/2013 8:21 PM
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"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.


t.
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