My Investopedia Posts

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.

How do you speak to very young investors about saving/investing?

I agree with you. It doesn’t make sense to me to sacrifice the short term for the long term. The thing about long-term planning, though, is that if you want… 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.

Why should I be saving for retirement when I think that money could be better used when I am younger?

It’s a tough situation. Both my parents asked the same question. They both recently passed. I have an elder aunt and uncle who are both approaching age 100, and they… 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 take my lottery winnings in a lump sum or annually?

I vote for the 20-year payout. You’ll get more money in your pocket overall. Plus, if you find you need a large lump sum at some point in the future,… 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.

Which pension option is the smarter choice?

I think it is wise to not choose their survivor benefit if you have a life insurance policy in force on your own life. This way you could take 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.

Is it better to payoff my car loan than having a cash value policy?

I like to sleep well at night myself, and I know that debt can be worrisome. Here are my suggestions for giving you both peace of mind now, and also… 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 are advisors using as a benchmark for life expectancy in planning?

In my life insurance practice, increased longevity is definitely a factor. To tell you the truth, the actuaries are amazing me. They are actually calling for policies with the premium… 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.

Is the insurance payout to my mom and dad taxable?

This is quite a situation. It’s a family tragedy, but at least no children have been left as orphans. But I’m sure it’s very tough on your parents to lose 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 I terminate my Universal Life Insurance policy and put those premiums towards investing inside a Roth IRA?

The number one priority in buying life insurance – and anything else, for that matter – is that you feel comfortable and confident with your purchase. If you feel your… 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.