{"id":3203,"date":"2008-06-03T11:55:27","date_gmt":"2008-06-03T18:55:27","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=3203"},"modified":"2008-06-03T11:55:27","modified_gmt":"2008-06-03T18:55:27","slug":"who-should-use-eiuls-401ks-arent-cutting-it-for-most","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3203\/who-should-use-eiuls-401ks-arent-cutting-it-for-most\/","title":{"rendered":"Who Should Use EIUL’s — 401(k)’s Aren’t Cutting It For Most"},"content":{"rendered":"

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 to do. Every dollar a client spends on this vehicle is a buck they’re not spending with me. I make zip, nada, zilch. They understand this, and appreciate it. They’ve come to rely on our consistent congruency when it comes to keeping their agenda #1. And their agenda is a magnificently abundant retirement. We make use of what i’ve called a Purposeful Plan<\/a>. Sometimes that Plan includes investment vehicles other than real estate. We do what works. <\/p>\n

EIUL’s work.<\/strong><\/p>\n

As a favor to Greg, though he didn’t ask, I’ve moved this party over to my place. Last time I think his head almost exploded when this subject came up here. People tend to get upset when it’s their ox being gored. Heck, I’m goring my own ox with this one.<\/strong> But again, it’s the right thing to do much of the time. <\/p>\n

David Shafer is the guy<\/a> who will answer your technical questions for this post. He recently wrote a guest post on BawldGuy Talking<\/a> explaining why and when taxpayers would opt for an EIUL over their qualified retirement plan. <\/p>\n

Soon, I’ll be writing a piece referencing a recent 20 year study showing mutual fund returns inside 401(k)’s have been less than 5% annually. And this study is used as a marketing tool. Go figure. I’ll make the study available, probably in dual form with David’s site. This study sheds light on the dirty little truth about mutual funds and their performance inside taxpayers’ qualified retirement plans. <\/p>\n

\n
  • Folks aren’t starting with realistic numbers. Mutual fund returns in 401(k)’s not good.<\/li>\n
  • Front loading EIUL is best — drives down the cost of the insurance.<\/li>\n
  • Your combined income tax rate is over 15%? Then numbers skew toward EIUL.<\/li>\n
  • The higher the combined retirement income tax bracket, the more the numbers favor EIUL<\/li>\n
  • EIUL never tells you when you Read more<\/a><\/li>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"

    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 to do. Every dollar a […]<\/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":[7,2,8,28],"tags":[],"class_list":{"0":"post-3203","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-enduring-interest","7":"category-general","8":"category-investment","9":"category-retirement","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":10681,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10681\/real-estate-investing-for-retirement-2-schools-of-thought\/","url_meta":{"origin":3203,"position":0},"title":"Real Estate Investing For Retirement – 2 Schools of Thought","author":"Jeff Brown","date":"December 22, 2009","format":false,"excerpt":"There surely are more than just a couple schools of thought when it comes to using real estate as a vehicle to get them to an abundant retirement. The two that almost always garner most of the attention are Buy & Hold for cash flow from Day 1, and Capital\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":1479,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1479\/401ks-iras-urban-myths\/","url_meta":{"origin":3203,"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":1104,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1104\/retire-retire-early-retire-wealthy-unthinkable\/","url_meta":{"origin":3203,"position":2},"title":"Retire? Retire early? Retire wealthy? Unthinkable!","author":"Greg Swann","date":"March 2, 2007","format":false,"excerpt":"Who wants to think about retirement? I really love to work, and it seems probable that I will continue to churn away until the hardware fails. But I know that at some point I want to stop having to worry about money. I want to write books and explore ruins\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":1343,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1343\/confessions-of-an-arms-dealer\/","url_meta":{"origin":3203,"position":3},"title":"Confessions of an ARMs Dealer","author":"Brian Brady","date":"April 24, 2007","format":false,"excerpt":"Strategic Equity Positioning is a buzz phrase in the mortgage industry today. The concept of equity management came from the book, Missed Fortune, by Doug Andrews. Andrews, a life insurance agent and financial planner, discovered a strategy that extracts equity from your home to fund tax deferred investments. The response\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2463,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2463\/want-a-retirement-the-equivalent-of-house-arrest-grandpa-economics-is-your-best-bet\/","url_meta":{"origin":3203,"position":4},"title":"Want A Retirement The Equivalent Of House Arrest? Grandpa Economics Is Your Best Bet","author":"Jeff Brown","date":"January 3, 2008","format":false,"excerpt":"For years I've put forth the principle of Grandpa Economics. I coined the phrase years and years ago. Stated simply -- Relying on savings + a free and clear home + Social Security will land you in the poor house not too many years after your retirement party is long\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":1351,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1351\/an-example-how-to-answer-a-clients-question\/","url_meta":{"origin":3203,"position":5},"title":"An Example — How To Answer A Client’s Question","author":"Jeff Brown","date":"April 26, 2007","format":false,"excerpt":"Recently I posted on the subject of how to most effectively answer a client's or prospect's questions. Then, as the universe sometimes does, I was asked a question by a brand new client that is pretty common. On its surface the question might seem facetious, but trust me, its been\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":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/3203","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=3203"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/3203\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=3203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=3203"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=3203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}