Parents & Money: VUL life insurance and 529 Plan (for higher education) Saving 4 the Future

[Jumbodicc]

please continue to drop ANYTHING you feel would help!

Like I said earlier I really need to focus on this with the new addition and her medical situation.

So I understand bond funds are good

but what abut purchasing individual bonds?

Think of an individual stock or bond as a singular store in a shopping mall, and think of the mutual fund or the bond fund as the shopping mall. You can purchase an individual bond and receive a consistent return, but I wouldn't expect much growth. If you're looking for diversification and a minimized risk funds are the easiest bet. Also, pay attention to the 'Beta' of a fund when shopping. Beta is a fancy way of saying risk. Funds that have a beta sub 1.00 are less risky than their benchmark, which would be something like the S&P 500.

Here is a fact sheet from a solid mutual fund. https://www.invesco.com/pdf/VK-EQI-PC-1.pdf

 

[playahaitian]

Think of an individual stock or bond as a singular store in a shopping mall, and think of the mutual fund or the bond fund as the shopping mall. You can purchase an individual bond and receive a consistent return, but I wouldn't expect much growth. If you're looking for diversification and a minimized risk funds are the easiest bet. Also, pay attention to the 'Beta' of a fund when shopping. Beta is a fancy way of saying risk. Funds that have a beta sub 1.00 are less risky than their benchmark, which would be something like the S&P 500.

Here is a fact sheet from a solid mutual fund. https://www.invesco.com/pdf/VK-EQI-PC-1.pdf

My man...

 

[A to Dah K]

No child should have a whole life policy, those policies are strictly to make money for the agent.

Life insurance should only be to cover a death for funeral costs and to supplement a lost income. A child has none. They should only be a rider onto your existing term life policy. I have a child rider on my term policy. Its 25k for if a child passes.

My life insurance for my self or wife covers if either passes and replaces 10 yrs of income. The smart living widower will put it into an investment like mutual funds or an ETF and long term interest should give about 8-10% yearly which is what the widower can live off of without touching the principal.

And anyone want to question the truth behind whole life, variable or any of that BS, go ask an elderly person with a policy for 40-50 yrs or even less. Ask them to ask their agent how much is in the policy today. You will hear "due to market fluctuations, blah blah blah..."

Stay away from that. Life insurance is insurance, not an investment product. Do not treat it as such.

Plus ask them when they're elderly can they take that little money out, sure at an 8% interest rate, so is that money ever really yours? Never....

I have a whole life policy for about 10 yrs now. Theres about 12k cash value, i can take now if i want, id have to pay the taxes but, that comes with anything

 

[A to Dah K]

But it's drastically more expensive than term-life and when you die, you lose all that money you put into it

What? I pay $50 a month for 100k policy. I believe $26 is the premium and the rest gets invested.
If i pass the beni gets 100kbplus the cash value

What do u mean by lose all the money?

 

[a1rimrocka]

What? I pay $50 a month for 100k policy. I believe $26 is the premium and the rest gets invested.
If i pass the beni gets 100kbplus the cash value

What do u mean by lose all the money?

I pay $40/month for $750k. I have a basic $100k policy for free through work.

Cash value payout at death is not a standard benefit of whole life policies, the insurance company keeps what you paid in. If your policy does have that benefit/rider, then you're probably paying extra for it.

 

[Mixd]

I have a whole life policy for about 10 yrs now. Theres about 12k cash value, i can take now if i want, id have to pay the taxes but, that comes with anything

Why would you pay taxes on it if you didn't pay for it with pretax dollars? Makes no sense to me.

 

[A to Dah K]

Why would you pay taxes on it if you didn't pay for it with pretax dollars? Makes no sense to me.

Its invested .You pay taxes on investment
Buy and sell stocks, u gona pay taxes

 

[Mixd]

Its invested .You pay taxes on investment
Buy and sell stocks, u gona pay taxes

Don't know where you heard that, but it's not an investment and there are no taxes. Call your company. You'll pay 8% interest on it if you want to take a loan against your own money but there are no taxes on it.

 

[A to Dah K]

Don't know where you heard that, but it's not an investment and there are no taxes. Call your company. You'll pay 8% interest on it if you want to take a loan against your own money but there are no taxes on it.

The cash value is invested. I change the allocations all the time. Its not a loan. I can take the cash value I dont have to pay it back, they can take the taxes out or i pay end of the yr.

I can borrow againts the policy that is different.

 

[Mixd]

The cash value is invested. I change the allocations all the time. Its not a loan. I can take the cash value I dont have to pay it back, they can take the taxes out or i pay end of the yr.

I can borrow againts the policy that is different.

I'd call them and double check what you think you can and can't do. Don't think that's the case. But if I'm wrong then it is what it is.

You're just better off doing a term policy and a separate investment as I stated in my post months ago. Crypto would of even been better. But to each his own. Best of luck to you, just do your own due diligence.

 

[A to Dah K]

I'd call them and double check what you think you can and can't do. Don't think that's the case. But if I'm wrong then it is what it is.

You're just better off doing a term policy and a separate investment as I stated in my post months ago. Crypto would of even been better. But to each his own. Best of luck to you, just do your own due diligence.

I have spoken to them about already. Im not even debating it. Thats what it is

I dont need life insurance. I have the policy for other reasons

 

[playahaitian]

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[playahaitian]

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[darth frosty]

 

[Day_Carver]

please continue to drop ANYTHING you feel would help!

Like I said earlier I really need to focus on this with the new addition and her medical situation.

So I understand bond funds are good

but what abut purchasing individual bonds?

I took out a 10 year term 1 mill life policy with NY Life; I will change it every 5 years based on my income...other than that, Ill just leave various investments and businesses to the kids...

 

[playahaitian]

I took out a 10 year term 1 mill life policy with NY Life; I will change it every 5 years based on my income...other than that, Ill just leave various investments and businesses to the kids...

thanks for this fam...

I really needed some direction since the new baby.

 

[Day_Carver]

thanks for this fam...

I really needed some direction since the new baby.

do term life insurances fam; and work on building a business or businesses to leave to the kids; invest aggressively and wisely and leave those as well...you good!!

 

[playahaitian]

knowledge bump

 

[playahaitian]

NYC Kids RISE | Who Can Participate?

All families with kindergarten students enrolled in a NYC public school (including participating charter schools), no matter their income or immigration status are eligible to participate in the Save for College Program.

nyckidsrise.org

 

[playahaitian]

DJ Envy should have stuck with this bump

 

[playahaitian]

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