Using a 401(k) or IRA is a good strategy for retirement planning, providing potential savings growth and tax advantages. While the stock market is promising, expert guidance is essential for effective portfOlio management

Opting for an invest-ment advisr is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfOlio has surged by 45% since Q1.

Market behavior is complex and unpredictable. Mind if I ask you to recommend this particular coach to whom you have used their services?

Go with Sonya lee Mitchell. She is the licensed manager I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

I searched for her name on the internet, found her page, and reached out via email to schedule a conversation. Thank you.

Dave, The question was about Indexed Universal Life, not Universal Life. You don't Invest in anything. Unlike Universal Life. IUL's credit interest based on the performance of an index. But if the index goes down, your cash value does not go down, unlike ULs. You can even purchase an income rider that will Increase at x%/yr. These only make sense if you are not buying for the death benefit and you are old enough that the living benefit after a few years (so that the mortality credits and cash value growth in the account) would "net" more in after-tax income growth (using the GUARANTEED INTEREST RATE ) than the after-tax growth of an equity account----which is a little over 3% since 2000---after tax.

@@masonirwin6093 yes Mason , and IUL have tax advantage

Can you please tell me what’s the best life insurance. I live in California

ABSOLUTELY!!!

I agree!!! You need a IUL! Forget the term ! Bad advice

Facts

My boss had a very blunt saying for Dave Ramsey. He is for poor people. No one will get rich off of Ramsey

Sad reality.

Check his wiki page, he's been with Primerica back in the day. The only thing those guys can sell is term, so their lively hood depends on selling term and nothing else, lol.

@Rj Pogi the fact that you're saying this shows how little you know about insrance policies in general. educate yourself a little, lol

@Rj Pogi I never said universal life works for everyone, and term is ONLY for a period of time. Insurance is a life time need not something that stops being needed eventually. If you read the life insurance exam materials properly you understand that there are uses for both permanent and temporary insurance. These are products that have been created and regulated by the government and certainly there is a need for all of them. Insead of closing your eyes and following blindly somone who is obviously biased, read a little. The reason why everybody at Primerica is so hellbent os selling term insurance is because Primerica itself offers that insurance and their profitability depends only on selling term. Do wanna waste my time on you anymore, go educate yourself. Bye

@Rj Pogi Hahaha, don't get defensive dude. You don't have to curse or anything. It's just a simple conversation, just because you can't argue doesn't mean you have to resort to attacking. Just go sign up with a company that sells everything instead of limiting your options. The only reason you're bashing others is becasue you're projecting your own method of thinking on others. If somebody needs term tou should sell them term, if someone needs permamnent you sell them permanent. You're defending primerica like it's your daddy's own company. All these companies were in existence before you and I were born and will exist long after we're both gone. The problem with you is you're treating your company and the people in it like a god and get angry when somebody criticizes them. I'm open minded enough to see the need in the market.

@Rj Pogi Hey Rj I was looking into that as well but they said the only thing that it eats into is the cash value but if someone dies at 90 years old they still the 100k or whatever amount you are insured.

Have to correct you. Level is potentially more expensive. Just depends on the initial level. Increasing is used in a max funded policy to keep the ratio low between cash value and coi. If initial death benefit is level at 1m I’m going to be paying higher fees than a 500k increasing amount. You want to set the benefit to the lowest MEC level. Increasing. And max fund. Then the ratio should have a good shot at survival with avg returns.

He teaches us to get outta debt and put money into mutual funds. Over time and consistent deposits will make us wealthy. Anything besides that , you will have to start your own business and that's on you

A lot of Insurance people writing negative comments. They just want comissions 😂

Wow; can't believe they did that! My FA doesn't recommend them for anyone!

Yes. IULs are garbage with their high fees/commissions and capped gains.

what fees increased in your policy?

@@katflores8483 They have "monthly fees" that are taken out. Keep in mind, your term policy will increase as you age to where all of your CV is gone leaving you to pay out of pocket for your death benefit.

The contribution in your IUL ARE NOT FEES! Because is it an unbundled type of insurance. The fees are minimal and the rest are invested. Even if people invent outside of insurance there are always fees. Mutual funds from bank have fees even if investment doesn't go well. And lastly, money growing inside an insurance have better protection. It is not only for the rich it is for people who want to have discipline savings. Rich wants $10M they contribute here alot but if you dont need that you dont have to contribute the same amount. Affluent people are rich for a reason, they know how to make their money work for them. We just need to duplicate it.

Liar

You don't have to pay taxes on the liquidity you would have in your savings account by not giving it to the insurance company.

@@I..cast..fireball what rate is your checking/savings account paying you right now?

Dave is also leaving out how financial planners are paid. They get paid by the volume on their books. If their client pulls their money out for an Annuity or prefer to open an IUL, they don't get their commissions. Also, there is less risk and you don't have to pay taxes. Not saying it is for everyone.

@@that9boy BOOM!!!! LOL Good response. Crickets...

Aagreed. Now I am with Your Family Bank I am so blown away after 15 years as a Top Agency we found this. The products are unlike any otherd ever created. "Get out of debt in 9 years or less including your mortgage using same money your using now" increase retirement doubling it and its guaranteed. We get paid $25k to $1.5 milliom per deal

I am looking in to iul currently. What have you found?

I agree with Gregory Shneyer! Dave is misleading people on this one.

i agreed with you i am an insurance agent

Dave is actually right

Vivian - UL is still a ripoff. You only get either the death or the cash value, but not both even though you pay for both. Tax free? Nope. Those are POST TAXED dollars spent. But if you buy term and invest via your 401K or ROTH, you get pre-taxed investing and remains taxed sheltered. Again, UL is a ripoff and sucker insurance.

@@JohnBowl14690 CVLI Provides a couple benefits traditional Tax qualified plans don't offer Such as no Tax penalties Prior to age 59 1/2 And no income and contribution Restrictions and limits That are typically associated with a Roth Ira

@@mariosanchez8800 - CVLI is a ripoff regardless of how much people try to trick you into thinking otherwise. If your investments are post taxed, then you have already paid taxes. Nice try, but no cupie doll.

@@JohnBowl14690 Both the Roth Ira & CVLI Are funded with after tax dollars Therefore income distributions are tax free Where traditional Tax qualified Plans Are funded with pre tax dollars Therefore you pay taxes on distributions would rather pay taxes on The seed or The harvest?

@@mariosanchez8800- Ok. You just made my point. ROTH and CVLI are funded with after tax dollars, which is why I would have zero use for CVLI, because there are no tax consequences later. But CVLI is a ripoff since you can't collect BOTH the cash value and the face value. Total ripoff.

To obtain a tax deduction from the qualified IRS plan to reduce your taxable income, having the right mix of capital amongst the three buckets of money (tax-deferred, taxable, and tax-free) will allow you to unlock your financial independence on a tax advantaged basis.

@@danielleon5074 that’s gambling with your future and at the rate this country is going, I definitely won’t gamble it

@@BakersfieldmanDave is an idiot on this. My money I put in on my IUL is guarantee to grow 14% every month! And my son gets 650k when I die.

@@beanteam2217 yes it grows unless we hit rock bottom then it stops growing but we don’t loose money like the other government “retirement” plans for many

Christopher, welcome to The Dave Ramsey Show KZfaq Channel! Looks like this is your first comment. Welcome! Don't forget to subscribe! kzfaq.info

you must be a life insurance agent

I'm a fan of Dave's advice for getting out of debt and living below your means, but his blanket advice for investing is misleading; investing is not a one-size-fits-all situation. I'm not an insurance salesman, but (for instance) I think it's ridiculous for a 80 years old person to surrender a long time whole life policy with a decent guaranteed dividend schedule and put the premiums into stock mutual funds. At the same time if I were 18 and just bought a huge whole life policy, I'd problem look at surrendering it and taking Dave's advice. The point is that there is more to consider than a historical nominal return; you have to think about taxes, death benefits, and risk. People are best served listening to Dave for getting out of debt and listening to a dedicated personal financial planner for investing advice.

Christopher - Dave's suggestion will be right 95% of the time. At 80 years old, your kids will likely be older than 40 years old and established. Most everyone I know at that age do not need life insurance because their assets will cover any funeral costs. Universal, Indexed UL, and Whole life in almost all cases is a ripoff. Each year about 25% of new your contributions is going to agent fees, maintenance fees, and other fees wrapped up into their costs, expenses, and fees section....or however they choose to term it. Just read your policy and you will see. It's no wonder that these policies costs 10 times more than straight term insurance. It's no wonder that the broker makes 4 times as much on these policies.

Christopher Holbert his advice is somewhat stone age. . . 401k taxes and hidden fees will kill your cash value =)

What's the difference

@Kargadan Index mutual funds also exist, and their expense ratios are usually very low - as low as .03%.

@Kargadan No, they aren't actively managed. They are pretty similar to ETFs, but they aren't traded like stocks like ETFs are. You can buy an ETF any time during the day and you can see the value change throughout the trading day. When you buy a mutual fund, you can only do so after trading closes for the day, and you can't see what the value is until after trading closes for the day. For example, look up VTSAX versus VTI. They are very similar, but VTSAX is a mutual fund and VTI is an ETF.

Exactly my thoughts. His advice tends to turn me off.

Agreed - and Well Stated!

exactly. a lot of people cant qualify for term after 70. getting universal life or whole life the younger you are leads to a higher cash value. theres a reason we go to insurance brokers for insurance, because they literally make a living from assessing client's needs.

If she buys term she'll save so much vs what shes paying for the IUL... she can then invest that in a retirement account outside the policy... in 15 years her assets have gone up and need for life insurance goes down.. then she'll have options... she might not need life insurance anymore, or she can continue on with a reduced amount of term insurance based on what she needs then... it's so simple

Michael Cooney assuming that she isn’t like avg. consumer and will not invest directly in securities/mutual funds... her saving investment is based mainly on coverage for family and or income replacement i’m sure. I hope she got a second and 3rd opinion

The idea is that she has so much money from investments. Which we all know ain’t gonna happen. Smh. It’s just grass is greener syndrome

Michael Cooney you know very well that 15 years later she still won’t have enough for anything

@@UdoADHD - That's not an argument based in math, but an assessment of her discipline. We all know if she actually does the "invest the rest" plan the numbers come out in her favor.

Another crooked insurance agent?

Is the insurance really ART? in my research and looking at policies he's telling the truth.

You can make the death benefit level. Lol.

charles cook no he isn’t those fees fall off after 10 yrs and if your funding and IUL properly the cost of insurance it self is very cheap. Mathematically over long term you will outperform a 401k and IRA

okcboi I’ve never seen it mathematically outperform the market at dollar for dollar.

Why would he mislead viewers?

Jon, i disagree with Dave on this particular topic, but your suggestion that only insurance agents would be qualified to speak on this topic is laughable. Insurance agents have a direct financial conflict of interest in selling policies which pay higher commissions. So you can talk about Dave's bias (which may simply arise from ignorance), but that bias is nothing compared to the direct financial conflict of interests which impacts insurance agents' opinions on this topic.

So are you telling me that mutual funds are safe? Look when you invest in a retirement mutual there is a disclaimer made that says " pass performance is no guarantee of future success". Look at risk Dave. And your explanation about IUL is not totally correct. For an IUL insurance policy, you have guarantees, and there is no downside risk. Insurance companies use a crediting feature to add increases to your policy, They don't place your money in the markets. Dave you should go back to school for product knowledge.

You don't need life insurance for the rest of your life just up until you're financially independent. Life insurance is only there if you die too soon, it's a income replacement for your family. Life insurance is not a savings account nor it's supposed to be used as one. Your life insurance and investments are always separate. As of the 65 year old I'm not sure what here situation was or what the game plan was before she would reach 65 . Let's say someone sat down with her when she was 30 making $40k/year her financial independence number would be $480k. Therefore the game plan would be to help the person get to that number in 35 years also would not need insurance anymore because the person would be financially independent. (Like I said I don't know what the situation was but kids, marriage, debt... play a huge role .)

@cele Gonzalez spot on - I’ve sat down with Clients in their 60s who had term insurance and they were so unhappy because they realized that after their term insurance ended, they were stuck having to pay a higher premium when “converting” to WLP because they are now older and much higher at risk. What “some” term insurance agents fails to do (which can leave a bad taste) is to also show clients how to invest as well - that way when your insurance do end, you should no longer need insurance and will have money to retire with. Why pay for whole life premium when you shouldn’t be needing for your whole life? Why retire and still have to pay for life insurance until the day you die? If a good agent shows you how to wisely invest your money, you shouldn’t need insurance… I sell term life insurance, yes. But I also educate my clients that no one “should” need insurance forever. If you’re going to buy IUL anyway, which is both an insurance policy and investment, why not just separate the two ? Why pay higher in premium every year? Why not just pay one fee for term, and take the difference of what we save you since you were willing to pay the ART anyway, and just be smart with it and invest into a Roth or your own mutual funds OUTSIDE of your insurance policy? Wouldn’t that be the smarter thing to do? I mean, you’re already investing it in you IUL anyway but now you’re just separating the two. An agent makes money based off the commission. So obviously the high the premium for the client, the more money in an agents pocket. I strive to save money in my clients pocket and make sure they can afford their insurance for what they need. Because at the end of the day, even though I didn’t make a big chunk in my pocket, I know that I’m saving my clients money, and was able to show and invest their money elsewhere with less hidden fees etc. Also- what bothers me more than anything and I think this is probably the reason why I am against any types of whole life policies. What they fail to explain until it’s too late- is that if the primary life insurance dies, their beneficiary only gets the life insurance death benefit. And the insurance company keeps the cash value. And of course the beneficiary won’t know this because regardless they end up getting a check for the life insurance portion. Most people won’t know that there’s money elsewhere to go claim Overall- I don’t understand why have a client pay 2x or 3x more towards something when they could be getting an affordable term insurance, while also investing, and taking the money that they wound they paid higher in their premium to use to pay off your debt sooner. I got side tracked a bit- going back to the client in her 60s who was very upset when she retired and realized she needed/wanted to extend her life insurance policy but realized it was now to expensive. If done correctly, they would’ve saved her some money on an affordable term insurance, take the difference of what we saved her in premium, put that towards a smart investment account or even Roth, show her how to pay off debt while leading up to retirement, and that way when she goes to retire she should no longer need her insurance, paid off her debt, now also have money in savings or retirement accounts to live off of. As an agent, I don’t just sell. I educate my clients the importance of saving, paying off debt, and give hope to financial freedom. Sorry just blabbering but I just want to do what’s right for families and it breaks my heart that families are only being shown one part of the big picture. Most of the time they’re only being shown life life insurance and why it’s so important. But doesn’t the plain the risks

@@sunnysom7663hi can u help me? Stuck between getting universal life from ivari or just getting a 20 year term insurance. Universal life doesnt make sense to me because if you can just invest the difference into what they already invest in (s&p 500) why not just do it yourself and avoid commission fees? Is it because once you max out RRSP&TFSA under these index funds, you can no longer have it tax sheltered? When on the other hand if you do it through life insurance policy, theres no cap on what you can invest and you can just keep investing more til youre 60? Pls help. Thanks!

I agree

What is the DB amount on the policy and is the DB amount payout guaranteed regardless of age/life span or variable based on market performance and ends at a specific age i.e. 90?

Negative. Read "Money. Wealth Life Insurance" by Jake Thompson

This is not true. You can withdraw from the policy and what’s wrong with taking a loan from an asset without having to touch the principal? That’s called leverage

You always take out a loan. You don’t have to pay it back. Your heirs pay it back when you die. That’s the beauty.

Why must you always separate retirement investments from life insurance? You state this like it’s gospel but provide zero evidence for why you think it’s true. The VUL was actually created as a way to give people cheap access to their money. You may see that if you gave it a chance instead of just writing it off.

And your funeral… is that going to be covered out of your own pocket the pocket of a family member or? Not only that what if you wanted to leave some money behind for your family members? Do you pay taxes on your home? Do you have someone that will be able to cover that?

@@bmg3535 I have a broad portfolio with several types of investment vehicles. That being said, a VUL can satisfy all the hypotheticals you mentioned.

Regarding his funeral, he's self insured.

@@bmg3535 The average American funeral costs between $7-12k (as of this post). If you are over 65 years old and don't have at least that much, you failed at life. It should be pennies in cost compared to the value of your 401k, Roth IRA, or other assets. In fact, your emergency fund savings account should have more than that. Life insurance (any kind) after age 65 should be unnecessary if you invested properly during your working years.

When you die, do you get the insurance and Cash amount?

Steve jacoby with indexed universal life policies you have 2 ways you can structure your policy. Option A (level) would give you only the death benefit and is typically the cheaper option. Option B (increasing) would give you both the death benefit and remaining cash value, minus any outstanding policy loans and interest.

This is amazing

Why would I want to borrow my own money?

@@mipurie same reason why you would consider pulling money out of an ever growing 401k but instead you could do it without penalties and tax free because you already paid taxes and fees on the front end.

wow, all those qualifications and you can't bother to list one single fact he got wrong. hmm...

I only listen to 30 seconds per video at times and I shut him off because he really has no clue what he's talking about lol

Looks like you forgot to mention that in order to get these so called tax advantages of UL you have to borrow your own money. And she can roll over the money without being taxed. Nice try UL sales agent👍🏽

@@Lazaven Policy loans never come directly From the cash value Loans come from the insurance company's general fund account

@@429mas Thats irrelevant. The point is when you borrow against your policy you need to pay it back with interest and if you don't when you die it comes out of your death benifit. Also you don't get the cash value and death benifit usually it's one or the other in the majority of policies sold

@@Lazaven The cash value at all times always becomes part of the death benefit and policy loans are favorable because you can use index loans to leverage the cash value in the policy while it keeps earning interest

Wow… bad advise cancell and talk to my…. She will pay surrender charches and etc etc to cancell

He does, he is rich.

He's worth 55 million!!!!!!!!

**he doesn't he is rich **😂🤣

He doesnt need any...thats the goal.

Eric O self insured. Life goals

i agree he is being biased! I hope this lady gets a second opinion to a more expert advisor!

Please correct me if I'm wrong, but isn't IUL the sane as combining universal life and term life?

@@uzzdog123 No IUL is advanced whole life up to 120 years of age with tons of benefits while you're alive.

@@anicharlouis394 thank you for the clarification

Um.. What? Not saying it's impossible, but why would the average person need life insurance between the ages of 70-80 and what tax savings are you talking about? In ALL cases, the death benefit is tax free. Lastly, mutual funds have investment risk? Yes, as do all other investments in the entire market, but ask any investment specialist and nearly all will agree, a mutual fund is the closest thing to zero risk you can get in the market because they always level themselves out, as the market corrects itself. Would love to hear your thoughts.

Not to mention if the client health changes they could become uninsurable

hi edgar im still learning this stuff and are all IULs the same regardless of company?

Edgar Vale wrong. Dave's advice is right on. So the stupidity of your comment is that it is smarter for someone to buy high cost low value cash value life insurance rather than high value low cost Term and investing ? Good god that is stupid!

Kim, there answer is no. Different companies have different fees and different crediting strategies. This product is not for your typical consumer, it's geared towards higher end earners. I agree and disagree with Dave, definitely put your money in a 401k first up to the max of 18k, if you hit that then open up an IRA, and then I would open up an IUL. Everyone's situation is different so it's difficult to suggest proper scenarios here but if can not afford to put in $300 to $400 a month into an IUL then just go with term and invest the difference. I have two IUL's and they are working just fine for me. In the first few years the returns are slow to build up but once you get to year 4 and 5 you they start to kick in due to compound interest and it obviously has to do with how well the overall market is doing. Dave is right when he said they take a 6% cut right off the bat, which was one of my concerns with the product but when you compare it to a 1% expense ratio in a mutual fund over a 20 to 30 year investment a 6% hit up front is cheaper over the long run. This is for an IUL not a VUL, in a VUL you pay the up front fee and the expense ration. I wouldn't recommend a VUL to anyone, it is a terrible product regardless of the insurance company. Well I think that I have bored you enough, if you have any question email me at jczelaya7477@gmail.com....take care and have fun!!

I guess you prove that you are a crooked insurance agent. There is absolutely no reason to put any money into a Universal Life policy.

No he didn't or the penalty of 59 1/2 rule.

Not to mention it's invested in the market and has the potential to lose principle.

It's still the same garbage: The fees/commissions eat up all the cash value leaving out of pocket costs to cover the term. IULs are garbage because of the fees and capped gains. Seriously, why do you need an insurance company to invest your money?

IUL??? How about below-average gains. Now, if you are comparing it to a bank savings account then it is average.

IUL SUCKS just as bad as Whole Life Insurance.

No such thing as "no risk"

IULs are garbage with their high fees/commissions and capped gains. None of them pay out 12%.

Not angry just Dave tells half truths which is lying

Can you give an example of a half truth he said?

DreadnotTheLight sure, first he said you get fee’d to death. The half truth in that is that most of those fees fall off after the first 10 to 15 yrs after the surrender period. What Dave does not explain is after the surrender period/ vesting period the fees fall off. Also the other half truth is yes cost of insurance does go up every year but as your cash value goes up your net amount at risk goes down. For example if your death benefit is 200k and your cash value is 100k your only paying for 100k of insurance cause the at risk charges go down.

DreadnotTheLight a 401k does not outperform the market let’s say the S&P 500 and IUL is linked most likely to the S&P up to a cap with a 0% floor so over 25-30 years how does a 401k beat an IUL?? When you have to figure in negative years

@@TheOpinionSports preach!

at age 61? really? dude is late on everything. he's probably paying $80 for a term policy for only $75k smh

Well they are 30 year investments. Also why do they have one of those policies when they are so old? They really do need a few decades to significantly outperform anything else. Have you seen illustrations? They are only for the right person.

And thats exactly why the IUL gets a bad rap! The agent that sold him that policy was not acting as a fiduciary more like a full douchbag! You must always do what's in the best interest of the client. Mission over commission!

Should have gotten annuities

Frver Music haha they had those too and they have done terrible. The regular investments have done way better

Beautifully explained. Thank you.

Who knows how to set it up correctly and w/wht. co.?

I would like to know as well

@@y.r.9401I know how. Most of the comments here are a lot of speculation without facts.

@@tdunn8341I know how.

Using a 401(k) or IRA is a good strategy for retirement planning, providing potential savings growth and tax advantages. While the stock market is promising, expert guidance is essential for effective portfolio management

i just purchased IUL. the agent actually gave me those same books to read.

I owned a IUL before. Horrible investment. Buy term and invest the difference. About 90% of policies lapse anyway. I highly encourage anyone reading this to do independent studying before buying IUL or Whole life or any cash value insurance. Spend at least 40 hours, which is a small investment considering that cash value insurance is a total ripoff.

Bri Scott That is why you should not get something for 20 years Or even 25 if you are young. You have to apply for 35 term with guaranteed fixed cost of premium and after 35 years they don’t ask for medical exam and you are fully insurable with the company I work with. After 35 years price goes up only with inflation (2-3 times the most) let’s say you pay 50$ for 500.000 you will pay 150 after 35 years. I did renew a lot polices like that. The best thing you can do is choosing reliable company and read your policy during free look period. Good Luck 🙌😇

He has zero clue how an IUL works. The general fund makes 4-6% which is invested in a call option. Dave literally has no clue how this works. What a sham

Fitness Realty some policies expire at a certain age and you will lose all that money. Surrender the policy before that and collect the money tax free. Make sure you have another policy in place to continue protecting your family in case you pass away. Cash value policies will always allow you to borrow money anytime you want and if it’s not paid back before you pass away that money gets deducted from the death benefit. This is my understanding from what I have been researching.

@@jeannemarieashman7254 ! Or just get a final expense policy! Or save up for your own funeral.

Mauro Gonzalez ?

I think his answer to that would be: life insurance is primarily for a catastrophic and unexpected death during your prime income earning years. It shouldn't be used to give someone a windfall when they die at 85. That's what retirement savings and investments are for.

The goal is to be debt free (or significantly minimize outstanding debt) before the term policy is over so your money can be placed into investment vehicles that provide higher returns. Even the best variable life policies have an estimated average rate of return of 6% which is under the S&P 500s real interest rate adjusted for inflation of 7%. AND- you can find many growth stock mutual funds that outperform the S&P so in effect, you'd be losing money by continuing to pay into a whole life policy. What most people don't realize is only the face value of the death benefit gets paid- not the cash value- that amount (which you paid for and 'invested' your money in) gets absorbed by your insurance company. Term is the way to go in my opinion in the meantime if anyone depends on you for income until which just invest in other places that aren't up the wall in fees.

Mauro Gonzalez I bought a 20 yr term at age 42. at age 61 my broker called me and asked if I wanted to do a roll over to a Universal Life since I wouldn't need a new medical. I did it since I knew I wouldn't pass a medical. although, for the life of me,( pun intended) I don't understand how this UL works no matter how many times it is explained.

You sir are speaking facts

I couldn't agree more... IUL is a great investment and the more I learn about it, the more I realize how beneficial this IUL is. Everyone has to pick and choose their battles. I say learn both about the stock market and build a portfolio and invest into an IUL with all these great benefits.

ANICHAR LOUIS Hon just for letting you know cash value and the death benefit are not guaranteed there. If you want to be in stock market and investing better to open up a new account a separate one!

Sound like you got hooked into the insurance rabbit hole. LOL I'll stick with dividend stocks & rentals. No need for life insurance when I have assests.

@@anicharlouis394 You should really reread your policy. Yes, you may indeed have an accumulated cash value. However, the cost of insurance increases over the years. You can check out the Table of Guaranteed Maximum Cost of Insurance Rates to verify this. When the death benefit is paid out, the beneficiary receives (the Face Amount + Accumulated Value) - (Monthly Deductions + Debt). Monthly Deductions is defined as the Monthly Cost Of Insurance + Fees. Monthly Cost of Insurance = (among other things) rates listed on the Table of Guaranteed Maximum Cost of Insurance Rates x Accumulated Value. I said all that to say this: if you fail to increase your monthly payments to keep up with the increased cost of insurance, the insurance company will deduct it from your accumulated cash value. It's cheaper to buy term bc your rate will stay the same for a fixed period. Put the excess savings from a term policy into a Roth.

@@MikeThePike316 an IUL is not supposed to be fund as a term policy. A well structured IUL will be way better than any other type of investment out there. An IUL is not for everyone and is supposed to be max funded.

He knows vwry little when it comes to life insurance. There are so many people who talk about (and prove) Dave wrong when it's about permanent insurance.

And Dave is NOT a life insurance agent, so what makes him know best He made his money on debt consolidation and then steers people to his sponsors for Term Life Insurance. Think about it

Sorry, not a fact but an opinion. It is fine we can have differences of opinions and I do think Dave is biased here and misrepresented the positives of an IUL. Of course, insurance salesmen want to sale their products. Just like financial planners who won't receive commissions if their clients open annuities or IULs. Of course, they are not biased. Not at all.

If you're going say he is incorrect, how about explaining the comment

Kenneth Pollard 🤦‍♀️ If only he could ... There is nothing to be explained just open up your policy and read ... simple like that people....

He knows his pork chops

@Jose Robles He knows his pork chop and chicken's feet

Jose Robles Typical mass rationale:” if everyone (the herd) does it m, it must be good. If everyone follows him, he must know.” The only missing part is that historically the masses have always been wrong. I like how Earl Nightingale once put it: if you see everyone running in one direction and just one or two running in the opposite direction, and you’re not going to be thinking, follow the one or two and you’re likely to never make a mistake in your life.

Anna Davis sorry I didn’t understand are with or against IUL ?

You may indeed have an accumulated cash value. However, the cost of insurance increases over the years. You can check out the Table of Guaranteed Maximum Cost of Insurance Rates to verify this. If you fail to increase your monthly payments to keep up with the increased cost of insurance, the insurance company will deduct it from your accumulated cash value. Also, if you actually read the policy, I don't think the money is actually invested in a market index. The insurance company takes all the risk and pays interest on your cash value. However, the amount of interest paid is usually capped. Because of the cap, you will not get the same level of returns as actual investments.

Also has saved many family businesses from being sold due to inheritance taxes.

Rj Pogi lol no you don’t. It’s called the loan provision. You CAN loan if you want to but not necessary. Wealthy people have been borrowing their own money for years, btw but now it is really just your money. No borrow.

@@UdoADHD WL in general is typically only ideal for the wealthy..for most Americans, the premiums on the policy is way too high...yes, you pay fees on your investments, but with any WL, the COI raises every year since the risk of insuring you gets more costly the older you get

@Rj Pogi agreed..ONLY the rich should ever consider WL of any kind

carsonc29 everything depends on policy. There are policies that locks in the COI so it never raises. And whether your COI raise or not, you need to actually want the life insurance. Using it purely investment is very stupid lol. I contribute to a type of cash value policy that is appropriate for me as it has benefits I am looking for (it is not WL. Again, many different types of policies out there). Not that I don’t want any money at all in SM. I just don’t get the argument about fees... everything has fees.

carsonc29 I agree that a specific market will do great with whole life. If you’re wealthy enough to properly utilize WL cash value, there are way better policies out there than WL to get anyways.

401Ks and IRA/Roth IRAs are not insecure. It all depends on what you invest in. Also, investing in a IUL is TAXED BEFORE it goes into the IUL plan which is even worse. When investing the difference in an IRA, your FULL pre-taxed amount is working for you. A realistic example: Male 35 years old / $500K life insurance. Premium could be higher or lower depending on many factors such as being a smoker having health issues, but the percentages below will be pretty realistic. IUL: Premium = $500 per month >>>> difference of $450 per month Term Insurance = $50 per month Investing $450 ($575 Pre-taxed) per month for 25 years with 9% returns = $612,000 (9% return is the historical average return of the SP500) Yes, you will have to pay taxes when you withdraw the money. There are tax free investment if you are worried about the taxes, but during retirement, most people's income are lower, so taxes are lower if you don't withdraw it all at once. But if you compare this plan to a REAL LIFE IUL...aka...a person's IUL policy that is currently active and the person has been paying, you will see that their cash value is nowhere near the figures I presented. Here is a calulator: www.interestcalc.org/

Now, in the example I gave, when you accumulate $600K, you never withdraw it. Simply put it in a trust for your family and borrow against it. You continue to build wealth on average of about $50K per year. In another 9 years or so it will be worth about $1.2 million on average SP500 returns. Just keep in the trust forever and let it double every 9 years.

@@JohnBowl14690 Wouldn't it make more sense to pay taxes now while rates are historically low? Can you guarantee taxes won't be higher in the future? I think not.

@@GScotJohnson - It depends on whether your income is higher during retirement or not.

Brother I think you missed this part @6:34

Wow good info where did u get your policy from?

I would like to know as well

@@sharose8366 Fill out the above link as well if you want to get in touch with a professional!

@@tdunn8341 This form is for the company Midland National, which is the one Doug used.

NationWide and Trans America have good good rates ! I’ve saved a client some money with Term that also bundles Living Benefits ! 👍🏽

Well worth the cost of insurance

You ain't lying byd!

This did not age well. The market totally recovered within just a couple of months and is actually up almost double digits from January 1st. Only a fool looks at the market on one particular day and think that proves any kind of trend.

"There is no such thing as a bad plan." Yes there is, it's called IUL.

No independent financial planner will tell someone to go out and buy life insurance and combine it with your investments. Only someone who is trying to make a commission.

100%, no 200% agree.

how do u know kobe had IUL?

This is great advice also if die in 50 years as well.

If you had invested $400 per month 30 years ago in the SP 500, you would now have $749,272.00. You wouldn’t need life insurance after 30 years. Not only that, but your kids should be gone and your house should be paid for. If you and your spouse invested $400 per month each, that would be $1.48 million in investments.

@@JohnBowl14690 You could just passively invest in index funds in a Roth IRA and have a separate life insurance policy. An IUL without the misleading flexibility.

Steven Harris so true! Lol

@@bradspitt3896 - IUL is another sucker policy. Worse than whole life...lol.

Don’t forget to add that when you buy a IUL there is hugeeee Surrender charges. That’s why it takes 5-7 years to build little cash value. Money that you accumulate inside your policy will become 0 $ very soon. The reason of it is the life insurance cost which is annually renewable and becoming more expensive every years. Customer pays the same price and life is more expensive and the thing they do is taking all accumulated cash and pay for life insurance cost. I also want to add that they take it as a loan ( yes you have to pay interest on the money that you put 🤦‍♀️)so you have to pay interest on it, but don’t worry they do draft that interest charges too from your accumulated cash value until your policy will be lapsed. After all you might be not insurance and end up with nothing. Don’t work for commission work for helping others. I do give people 35 years of term policy after 35 years they are guaranteed insurable, there is premium of waver includes, 10% of rider included. ( no need to prove insurability) price goes up with inflation 2-3 times if I pay 50$ I will pay 150 after 35 years so think about it. If you didn’t know what I told you then go find it out that I’m right.

Sadly that how it works. Sorry to tell you because you have sold many of them but you should think about this

@Rj p it doesn’t go up if structured correctly, the cash value should increase far more rapidly than the cost of insurability and it’ll make the cost actually go down

@Rj p it’s indexed to the market. It’s impossible to say how much it’ll go up by because we can’t predict the market. So you’re just plain ignant

@Rj p you’re misinformed. No use arguing with someone who doesn’t understand finance. But look at every multi billion dollar company and look at how much of this useless asset they’ve bought up

And yet, no one has ever heard of you.

astroman30 hahaha

Found the UL agent

Right!😂

True

Any insurance product with cash value attached to it is a scam.

Not if it's a Roth IRA. Tax free growth.

@@MikeThePike316 what if you don’t qualify for one or you want to put away more than the 6K limit per year?

@@Gas_man Contribute more to your 401K or pretax account and periodically do backdoor roths. Alternatively, you could open a brokerage account.

@@MikeThePike316 my 401K is maxed. Make yearly back door Roth contributions of 6K. Have a brokerage account that’s well diversified. And I have a VUL. My point is that it’s a nice piece to an investment portfolio.

@@Gas_man I understood your point, but I would rather set my money on fire than buy a policy. Sure, it's a tax shelter, but so is a 529 and HSA. Best of luck.

Sharon Gadbois if you want to get ripped off, that’s the way to go

Seemed like it to me

What do "taxes and inflation matter" if your IUL collapses and dies and steals all your money anyway? The first IUL hit the market 21 years ago. Try to find even *ONE* IUL that's even 10 years old! IULs are sure-to-FAIL policies. Avoid them like the plague!

Fees eat your policy inside out

Show me how tax and inflation outpace the S&P over the past 20 years. I’ll wait.

Sounds like you dont mind putting your hard earned dollars into someone else's pockets..😄

There are plenty of fees with mutual funds. Particularly the advisors that Dave here recommends.

He is too biased.. He isn't going to listen. Several agents have called in to talk with him. IUL is a great product.

so explain why a company like prudential iul has these conditions below: doesn't iul sound like a poor investment with these conditions...maybe you didn't know you have to pay with you loan out through an iul back....? Prudential - "You can access life insurance policy cash values through withdrawals and loans. Interest is charged on loans. In general, loans are not taxable. Withdrawals are taxable to the extent they exceed basis in the policy. If you take a loan and do not pay it back before the policy lapses or is canceled or the insured dies, this will cause immediate taxation to the extent of gain in the policy. Unpaid loans and withdrawals reduce cash values and policy benefits and can also reduce the length of the guarantee against lapse; this can cause the policy to lapse and/or have tax consequences. If a policy is a Modified Endowment Contract (MEC), distributions (including loans) are taxable to the extent of income in the policy; plus, an additional 10% federal income tax penalty may apply. Please consult your tax advisor for advice about your own situation."

Didnt Warren Buffet win a bet against Wall st. best money managers waging that indexed products could out perform mutual funds?

Rob Boggess its a business man a dirty😂

Rob Boggess a year late but all the comments I'm reading are saying he's wrong/biased/getting paid to say this/wants to sell his insurance or something like that lol

That’s assuming your investments are enough. If you are self insured more power to you but when my dad bought some businesses then died so his investments didn’t make a dent

Amen!

If you listened carefully, Dave is recommending to buy Term Insurance and Invest the difference into an IRA. IRA IS tax deferred. The insurance portion is of term insurance is Tax Free.

The biggest sucker bet is the "tax free" sales pitch that the salesmen tell you. Virtually all life insurance is tax free, whether Universal Life, Whole, or Term. Salesmen will try to sucker people into thinking that investing into the "investment" portion of Universal life is "tax free" is a bit of a scam. When you die, you can't collect the "savings" portion. You ONLY get the face value of your policy. What a scam! If you live, you can borrow YOUR OWN MONEY, but you have to pay interest to do so. Not to mention the fees that you will be paying your broker each year you contribute. Those fees are often over 4X higher than Term. Haha. No wonder your broker tells you how great UL and WL policies are.

My policy averages 10% annually and I take a loan out on my funds that has a 6% interest rate I'm still ahead 4%. Also when I pay it back I'm basically paying myself back. This is much better because if I go to a bank and borrow $30,000 I will have an interest rate and the truth is I will never see that original $30,000 ever again it goes into someone else's pocket. I do the same thing with my policy and I pay it back I will see that $30,000 again to either borrow from or my beneficiary will see it after I die. Now if you have a 401k you will automatically get hit with a 10% penalty tax if you are under 60 and pay the taxes so the $30,000 I need is going to look more like $21,000.

Apache - You probably don't know this, but 401K holders like myself can also borrow money. The same principals apply. The difference is that I am not getting charged 25% or more worth of fees from my contributions. If you don't mind those fees, then keep paying on your cash policy...lol.

If only you knew the power of IUL which also offer a lifetime income rider as a retirement plan; to top it off a policy plan that will cover you for chronic, critical and terminal illness. Not to mention an indexed strategy that can offer upside potential with 0 floor. What Dave fail to mention is the power of compound interest as well. Rule of 72 my friend. You can always contribute more to investment and still know that you would be covered. I wouldn't go with any other retirement vehicle for those reasons. If you could be taken care of for living to long, having to die to soon, or becoming ill in any matters, I would highly recommend you look into an IUL. I would rather be the farmer who pay tax on the bag of seeds now then the farmer who pay tax on the crop.

Is there an IUL with low fees/commissions and an UN-CAPPED gain? Which company do you represent that has this policy? I want to screen shoot your comments and email it to them so you can get the commission.

A good financial advisor will first educate you on the concepts rather than the product first and then do a suitability and needs analysis to determine whether this product is right for you.

That’s not necessarily true. Your broker is not very ethical if that is happening. When IULs are properly structured they work well. Especially for investors in real estate, and business owners.

There’s a way to structure an IUL. Design it to where the premium is max funding the cash value and the least amount is going to the cost of insurance. THERES NO FEES!!!! I don’t understand why people think there are fees, other than a surrender charge in the beginning (first 5-10 years usually) after that there’s nothing. No fees at all other than the small percentage of your premium going to the cost of insurance(if structured properly) IULs are extremely beneficial for young and healthy people because the cost of insurance is cheap. Also Dave Ramsey is wrong about IULs being annual renewable term. NOT TRUE AT ALL, ITS PERMANENT COVERAGE AND YOUR LOCKED IN AT THE RATE YOU WERE APPROVED AT. One more thing about the gains, you can link your cash value and participate in the upside growth of whatever index you choose. Usually I recommend the S&P because it’s consistent and averages around 8-10%. If the S&P takes a hit, you simply ONLY GIVE UP YOUR INTEREST POTENITAL SINCE THE OPTIONS EXPIRE WORTHLESS, YOUR PRINCIPLE IS GUARANTEED ONLY THE INTEREST IS WHAT YOU ARE TELLING THE INSURANCE COMPANY TO RISK .

If she had it for 15 years, she most likely would not have to pay a surrender charge. I don't see the benefit of keeping the policy.

Did you get a term for your mo or a whole policy. It's so difficult looking for a life insurance policy with a policy that will take my 77 year young father with existing health conditions. Let me know if you find a company that takes your mom good luck.

Lincoln Heritage has final expense plans with funeral advantage programs that save families thousands $$$

"don’t rely on financial advisors"...What are you? Are you an insurance agent? I'd rather trust a used car salesman than an insurance agent.

@@edermitt I'd trust Hillary Clinton before I'd trust an IUL insurance agent.