No. of Recommendations: 1
What do you need the insurance company for?

Ultimately boiled down, just 2 things;
1) the superior new money safe return rate from their old money positions, (about 6.5% @ insurance companies, versus 1% DIY,) to anchor the high growth leg of the trade, and
2) the much higher allowable contribution limits on inbound tax-sheltered capital (over IRS qualified schemes,) and no timing nor amount demands nor restrictions on tax-free funds distributions.

A distant #3 reason;
3) the best performing index blends require bank-traded, non-retail option spreads... you can't get them done at CBOE, and a DIY investor is extremely unlikely to have the volume & capacity to get executions through the bank structured-options trading desks.

Other than that, Mrs. Lincoln, you can DIY... you just can't meet performance (due to #1.)

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.