My Investopedia Posts

What is a tax-free 1035 Exchange?

Let’s suppose you have a life insurance policy, but find a better deal with another carrier. You want to replace the current policy with a new one. The thing is,… Read More

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.

If I surrender this life insurance policy and take the $40,000, are there any tax consequences?

Here are a few things you to think about: Anything above your cost basis – the total premiums paid – would be taxable as ordinary income. Call the carrier and… Read More

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.

What should I be ready for when managing my mother’s annuities as she gets older?

I was in the same position as you. My mother was the same age, had three annuities, and I was the power of attorney. She was actually the one who… Read More

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.

The Role of a Life Insurance Super Specialist

Life insurance super specialists are experts in finding policies regardless of mortality risk. Read More

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.

Should I get rid of my long term care insurance?

Both my parents needed the assistance of a full-time aide before they passed away. That care was expensive, and most of it was paid for out-of-pocket. Fortunately, they had the… Read More

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.

Should I continue to max out my 401(k) contributions or diversify with a whole life insurance policy?

I don’t like to take a black and white attitude towards any financial product. In some cases whole life could be appropriate, and in other cases it would not be. For… Read More

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.

What type of life insurance policy should a 20 year-old be looking for?

You can purchase life insurance through your employer, but you don’t want to depend on it because odds are that if you leave your job, you will lose the benefit…. Read More

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.

How are capital gains determined on the surrender of a whole life insurance policy gifted to me by my parents?

That’s an interesting question. You are describing a scenario in which the whole life policy would have a stepped-up basis. To tell you to truth, I have never heard of… Read More

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.

Should I convert my 529 Plan into a whole life insurance policy?

No way. Whole life insurance is a bad vehicle for saving for college. These policies are great for accumulating cash on a guaranteed basis, and usually on a non-guaranteed basis… Read More

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.

Should I list my ex-spouse as an In-Trust-For on a life insurance policy that has my children listed as the beneficiaries?

Here’s the thing: a life insurance company is not going to release proceeds to minors. So, if you unfortunately pass away before they become adults, your carrier will hold the… Read More

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.

How does a wash loan work?

The idea of a “wash” is kind of misleading. When you take out a loan from your life insurance policy, you really are not using your money. You are using… Read More

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.

How can I get out of my IUL policy without surrendering a significant portion of my investments?

This is certainly a tough situation, and I appreciate your bitterness. Nonetheless, I think the emphasis should be on rectifying your portfolio, and not so much on recouping your losses…. Read More

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.

How can I best use the cash value of my life insurance policy to invest near retirement?

For sure. You could transfer the cash value into a retirement product such as an annuity without triggering a taxable event. Of course, this has to be properly handled, so… Read More

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.

Should a single person with assets above $1M buy life insurance as an estate planning tool?

Here’s why you might want to do this: Life insurance provides great value. Every dollar of benefit literally costs pennies in premium. So, it’s very economical way of making a… Read More

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.

Should we delay paying the annual premium for our parents’ Second-To-Die policy if we feel we can’t afford it at its due date?

A tough situation. I hope that property damage is all you have to worry about! This is a common dilemma. When people take out flexible premium life insurance policies, it… Read More

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.

Can I recover my retirement savings after losing it all due to the market crash and a failed business?

As I see it, you have three objectives: To retire at age 60; To retire comfortably; And to prepare for emergencies. You haven’t specified this third objective, but I think… Read More

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.

What is a prudent investment strategy after I sell my business?

I find it so interesting that you think this is a “one-time deal.” Once you complete your five-year contract, you will be 63 years old. In today’s world, that is… Read More

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.

What should I be looking for in a qualified advisor as I am approaching retirement?

I am a firm believer in maintaining a team of professional advisors. There is simply too much at stake financially, legally, and with regards to peace of mind, to go… Read More

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.

Do I need to be licensed to offer financial planning help?

There’s no doubt that new college graduates need sound financial advice. The subjects about about which you want to teach them are especially important. I whole-heartedly encourage you to get… Read More

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.

What happens to my annuity after I die?

When my father passed away a few years ago, my mother took some of her savings and investments and bought several single-premium deferred annuities. She was looking for strong guarantees,… Read More

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.