*********help! life insurance as deferred savings!!!!
FHodshon
hi!
i'm self employed, taxed to the hilt with no owned real estate.
i'm looking for ways to defer taxes. i just spoke with a financial planner
about sep ira's (which looks good), but, life insurace as deferred savings
was also mentioned.
i've heared so many horror stories about "whole life" that the idea of any
life insurance scares the pee out of me!
i'm 38, my wife is 27 and in good health, no children now and none planned
for a while.
our planner recommends chubb america variable life...i've heard chubb is
reputable, but i need info about the different life insurance strategies!
a friend at work sells primerica and warns me not buy anything but term
and invest the rest in mutual funds (not deferred).
the sep ira my planner recommends to invest through is putnam...good?
sorry for the naive questions, but i'm new at all of this.
thanks
fred hodshon
FHod...@aol.com
Christopher R. Dunlea
FHodshon (fhod...@aol.com) has announced the following:
: hi!
: i'm self employed, taxed to the hilt with no owned real estate.
: i'm looking for ways to defer taxes. i just spoke with a financial planner
: about sep ira's (which looks good), but, life insurace as deferred savings
: was also mentioned.
Hi, I work for Prudential Preferred and am still playing with this newsgroup.
But I'd thought I'd say a few words.
Life insurance can be a deferred savings vehicle, but you should understand
that it is only a side effect, not the reason for, the plan. Life
insurance should be purchased to protect assets (business, loss of income,
etc) or repay debts in the event of early death. If you don't already
have life insurance you should look into it for your wife
sake.
But you asked about deferred savings. My suggestion would be to look at
a variable annuity, which like a SEP-IRA grows tax-deferred and will
provide a steady stream of income in retirement. Hopefully retirement
is what you're thinking of because tax shelters, with the exception
of life insurance values, have been restricted considerably to focus on
retirement age. The SEP-IRA will not provide a steady stream of guaranteed
retirement income but allows only for the use of what's actually there.
: i've heared so many horror stories about "whole life" that the idea of any
: life insurance scares the pee out of me!
: i'm 38, my wife is 27 and in good health, no children now and none planned
: for a while.
: our planner recommends chubb america variable life...i've heard chubb is
: reputable, but i need info about the different life insurance strategies!
: a friend at work sells primerica and warns me not buy anything but term
: and invest the rest in mutual funds (not deferred).
: the sep ira my planner recommends to invest through is putnam...good?
: sorry for the naive questions, but i'm new at all of this.
: thanks
: fred hodshon
: FHod...@aol.com
--
Christopher Dunlea
Dept. of History
Syracuse University
"Think I'd be working in a place like this if I could afford a real snake?"
---"BladeRunner"
Chuck Weinstein
I will try to answer these one at a time. Stick with me here.
FHodshon wrote:
>
> hi!
>
> i'm self employed, taxed to the hilt with no owned real estate.
>
> i'm looking for ways to defer taxes. i just spoke with a financial planner
> about sep ira's (which looks good), but, life insurace as deferred savings
> was also mentioned.
It is one possible solution, although depending on your goals, plans, and
future requirements for investments, it may or may not be the best.
>
> i've heared so many horror stories about "whole life" that the idea of any
> life insurance scares the pee out of me!
What horror stories might that be? Whole life insurance has performed
quite well, over all, in this country over the past 100 or so years -
better, in fact, than many other highly touted places to put your money.
I do agree ther4e have been some abuses in the way the product has been
sold, but if you go with a reputable, strong insurer, you should be
pleased with the long-term results.
> i'm 38, my wife is 27 and in good health, no children now and none planned
> for a while.
>
> our planner recommends chubb america variable life...i've heard chubb is
> reputable, but i need info about the different life insurance strategies!
> a friend at work sells primerica and warns me not buy anything but term
> and invest the rest in mutual funds (not deferred).
Your friend is clearly not knowledgeable about anything having to do with
ivestments. He woirks or a company that trains its sales force in one
product and tells them that nothing else is any good. Having said this,
mutual funds are a good investment, but the tax deferral is limited. A
variable annuity would combine the investment potential of mutual funds
with the tax deferral you need, but with a resulting loss of liquidity.
Chubb is a good comp[any with a decent product, howeverf, it depends on
your need for insurance vs. other considerations.
>
> the sep ira my planner recommends to invest through is putnam...good?
Generally a good mutual fund company, although it depends on what you
wish to invest in.
>
> sorry for the naive questions, but i'm new at all of this.
Never apologize for asking advice. It beats trying to muiddle through
any time. Good luck to you, and feel free to E-mail me with other
questions.
> thanks
>
> fred hodshon
> FHod...@aol.com
Chuck Weinstein, CLU, ChFC in San Francisco
cm...@ix.netcom.com
Carl Lidstrom
FHodshon <fhod...@aol.com> wrote:
>hi!
>i'm self employed, taxed to the hilt with no owned real estate.
>i'm looking for ways to defer taxes. i just spoke with a financial planner
>about sep ira's (which looks good), but, life insurace as deferred savings
>was also mentioned.
>i've heared so many horror stories about "whole life" that the idea of any
>life insurance scares the pee out of me!
>i'm 38, my wife is 27 and in good health, no children now and none planned
>for a while.
>our planner recommends chubb america variable life...i've heard chubb is
>reputable, but i need info about the different life insurance strategies!
>a friend at work sells primerica and warns me not buy anything but term
>and invest the rest in mutual funds (not deferred).
>the sep ira my planner recommends to invest through is putnam...good?
>sorry for the naive questions, but i'm new at all of this.
>thanks
>fred hodshon
>FHod...@aol.com
You need to do some more shopping and conduct a lot of research. Go
to the library and do some reading and ranking of various mutual
funds.
If you want to buy life insurance get more quotes and check the
insurer's ratings. Read articles in periodicals.
You are looking at some long term investments and they shouldn't be
churned. Conduct careful research.
Carl
John
FHodshon <fhod...@aol.com> wrote:
>hi!
>i'm self employed, taxed to the hilt with no owned real estate.
>i'm looking for ways to defer taxes. i just spoke with a financial planner
>about sep ira's (which looks good), but, life insurace as deferred savings
>was also mentioned.
SEP-IRA Great Idea for long term savings. You have alot of options
as to where the money can go. that's where you need to be careful.
>i've heared so many horror stories about "whole life" that the idea of any
>life insurance scares the pee out of me!
Frist do you need the Insurance now??? If yes and you can afford to
save more than your max. in the SEP-IRA whole life or unv. life could
be a good choice. Find a good planner, ask your friends, family etc.
>i'm 38, my wife is 27 and in good health, no children now and none planned
>for a while.
>our planner recommends chubb america variable life...i've heard chubb is
>reputable, but i need info about the different life insurance strategies!
>a friend at work sells primerica and warns me not buy anything but term
>and invest the rest in mutual funds (not deferred).
Part Time agents are not the way to go they have to little info and
exp. Primerica sells only term Ins and it is very costly If term is
what you need look around.
>the sep ira my planner recommends to invest through is putnam...good?
Yes but again there are lots of options
>sorry for the naive questions, but i'm new at all of this.
>thanks
>fred hodshon
>FHod...@aol.com
Good Luck,
John J Keating, CLU, ChFC
(301) 251-5860
jo...@moneyadvisor.com
http://www.financialserv.com
FHodshon
can you give me some advice about variable life compared to variable
annuities?
fred