{"id":1502,"date":"2007-06-05T13:56:05","date_gmt":"2007-06-05T20:56:05","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=1502"},"modified":"2007-12-24T12:33:52","modified_gmt":"2007-12-24T19:33:52","slug":"point-weak-shout-loud-keeping-up-with-everything-frank-doesnt-know","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1502\/point-weak-shout-loud-keeping-up-with-everything-frank-doesnt-know\/","title":{"rendered":"Point Weak — Shout Loud — Keeping Up With Everything Frank Doesn’t Know"},"content":{"rendered":"

Several days ago I wrote a piece talking about qualified plans, better known as IRA’s and 401(k)’s. It was titled 401(k)’s IRA’s & Urban Myths<\/a>, and discussed some of the false beliefs many people have on the subject. It also brought an alternative to the table — investment grade insurance.<\/p>\n

Though you should read the post to get context, in a nutshell here’s what I said.<\/p>\n

By putting your tax deferred money into qualified plans you’re setting yourself up for a nasty surprise upon retirement. Your income will be taxed at a rate for which most folks won’t have planned. Therefore, they should stop contributing to those plans and begin putting that money instead, into investment grade life insurance. It’s not really for the insurance, but has some really cool results — especially when compared side by side with qualified plans.<\/p>\n

For instance, the income produced by the insurance which from now on will be called FIUL – Fixed Index Universal Life, is tax free for life . You’ll notice maybe what it’s not – a VUL or Variable Universal Life. One guy decided I was talking about VUL’s — wrong again. He was a reasonable guy, wanting to maybe hear from my in-house expert. He will. I often find it entertaining the way some wish to compare apples to lizards when they disagree.<\/strong> One such example is a guy who wanted to compare the results of $350\/mo into FIUL’s vs $750 into his qualifed (employer matching) plan. As good as your investment guy might be, nobody is going to beat someone who is investing more than twice the amount as the other guy. It’s a silly comparison. Now to give him the benefit of the doubt, I did compare taking $350\/mo vs $500\/mo — and the 401(k) lost big time. (For the record, the annual after tax retirement incomes were the same, but the FIUL income was available for life, not subject to rising future taxes, and upon the death of the taxpayer there was literally no tax owed, as it wasn’t part of his estate in the first place.<\/em>)<\/p>\n

I will tell you Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Several days ago I wrote a piece talking about qualified plans, better known as IRA’s and 401(k)’s. It was titled 401(k)’s IRA’s & Urban Myths, and discussed some of the false beliefs many people have on the subject. It also brought an alternative to the table — investment grade insurance. Though you should read the […]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8],"tags":[],"class_list":{"0":"post-1502","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-investment","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":3203,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3203\/who-should-use-eiuls-401ks-arent-cutting-it-for-most\/","url_meta":{"origin":1502,"position":0},"title":"Who Should Use EIUL’s — 401(k)’s Aren’t Cutting It For Most","author":"Jeff Brown","date":"June 3, 2008","format":false,"excerpt":"Equity Indexed Universal Life is, when simplified, investment grade insurance. It's a tool, a vehicle used by folks to create retirement income. I've written of this before, much to the chagrin of Mr. Swann. I've since put many clients into them using industry experts. Why? 'Cuz it's the right thing\u2026","rel":"","context":"In "Enduring Interest"","block_context":{"text":"Enduring Interest","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/enduring-interest\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1479,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1479\/401ks-iras-urban-myths\/","url_meta":{"origin":1502,"position":1},"title":"401(k)’s IRA’s & Urban Myths","author":"Jeff Brown","date":"May 29, 2007","format":false,"excerpt":"In a recent post, Retirement -- A New Class Being Created, I predicted a new class of retiree living a life tied to their free and clear home, with little monthly income. It inspired some interesting comments, and a question that is the inspiration for this post. One reader, Eric,\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1661,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1661\/missed-fortune-and-the-wall-street-journal-the-value-of-a-50-cent-financial-planner-isabout-a-half-a-buck\/","url_meta":{"origin":1502,"position":2},"title":"Missed Fortune and the Wall Street Journal: The Value of a 50 Cent Financial Planner Is…About a Half a Buck","author":"Brian Brady","date":"July 15, 2007","format":false,"excerpt":"One of the tenets of financial advisory is the principle of fiduciary responsibility. Today, Wall Street Journal reporter, Jonathan Clements, openly criticizes the strategy Doug Andrew outlines in his best-selling book, Missed Fortune. Mr. Clements' article, When the \"Self\" in Self-Interest Isn't You, attacks the strategy as being completely self-serving\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1658,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1658\/keeping-up-with-what-frank-doesnt-know-earth-round-circles-sun\/","url_meta":{"origin":1502,"position":3},"title":"Keeping Up With What Frank Doesn’t Know — Earth Round — Circles Sun","author":"Jeff Brown","date":"July 25, 2007","format":false,"excerpt":"There's a mindset that has always befuddled me. It's origin seems to be grounded in the belief that if I've believed X for years, than something proclaimed to be superior to X just can't be true. Furthermore, the evidence I point to, is how many people agree with my belief\u2026","rel":"","context":"In "Retirement"","block_context":{"text":"Retirement","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/retirement\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1500,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1500\/coming-soon-why-ignorance-can-yield-golden-opportunities\/","url_meta":{"origin":1502,"position":4},"title":"Coming Soon — How Ignorance Can Yield Golden Opportunities","author":"Jeff Brown","date":"June 4, 2007","format":false,"excerpt":"I'm back in the saddle, but will have the promised post on qualified plans vs. investment grade insurance tomorrow or Wednesday, as my energy level didn't return as quickly as I'd hoped. Ignorance can produce golden opportunities, as long as it runs into real knowledge. Again, the plan is for\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7214,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7214\/stimulating-ideas\/","url_meta":{"origin":1502,"position":5},"title":"Stimulating Ideas","author":"Brian Brady","date":"March 1, 2009","format":false,"excerpt":"I'm just spitballing here but I think two simple (and temporary) actions could stimulate the economy and save the auto industry: 1-Suspend the payroll tax for a period of time. (not my idea but I like it) 2- allow a one-time, tax and penalty-free withdrawal, up to $25,000, from 401-k\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1502","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=1502"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1502\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=1502"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=1502"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=1502"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}