This is absolutely true in pretty much every case. I agree.

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Jun 17, 2022
5:18:03pm

BYU-Ite All-American

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BYU-Ite

Bio page: BYU-Ite
Joined: Jan 9, 2002
Last login: May 4, 2024
Total posts: 8,102 (17 FO)

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Messages

Author

Time

Okay financial gurus, am I stupid and being scammed?

YSMACK

6/17/22 4:58pm

Don't do it. His commission is enormous. He's not advising you in your best interests.

mulletino

6/17/22 5:01pm

This. Ask him if he has a fiduciary duty to you. And if he did, would that

ebv

6/17/22 5:03pm

If someone is making $500k plus a yr would it make sense? $750k? Just wondering

kotacoug

6/17/22 5:07pm

Almost certainly not, and probably not, unless those people also had a huge

kos

6/17/22 5:18pm

It’s not as much of a function of income as it is situation. To simply answer your question, the answer is no.

RdF3

6/17/22 5:18pm

^This. Your "private wealth manager" does not have your best interest in mind,

kos

6/17/22 5:04pm

^^^^^^^This^^^^^^^^^^

SoValleyCOUG

6/17/22 5:16pm

RE: ^^^^^^^This^^^^^^^^^^

ebv

6/17/22 5:24pm

I am not a big fan of whole life insurance.

Zoobieman

6/17/22 5:42pm

Someone else making money is NOT a good reason to not do something!

HTCougar

6/17/22 5:58pm

True. Not necessarily saying it makes this thing a good product but true

JollyGreenGiant

6/17/22 6:01pm

As an FA, I endorse this message.

babybroker

6/17/22 8:40pm

There are situations where whole life makes sense, but I can almost guarantee

RexIdaCoug

6/17/22 5:01pm

I always hear this but never hear those situations, could you or someone else explain a hypothetical where it works?

JollyGreenGiant

6/17/22 5:05pm

A situation where there’s liquidity issues with the estate with a passing or estate tax issues.

RdF3

6/17/22 5:05pm

Estate tax issues like having to pay a lot? Or more complicated than that

JollyGreenGiant

6/17/22 5:07pm

A situation where the estate value is above the estate exclusion so if structured correctly the death benefit

RdF3

6/17/22 5:13pm

If you are in a situation where the estate tax could come into play, whole life

RexIdaCoug

6/17/22 5:08pm

Liquidity concerns. Usually better at young ages to allow the cash to build. Still, I advise most people to go with term

Division Bell

6/17/22 5:23pm

One way to view it can be

InlandEmpYre

6/17/22 9:26pm

Family Bank is the only way I’ve ever seen it work. And that is mostly to pass

Nat Gas Man

6/17/22 5:11pm

I don't remember much from my Family Finance class at BYU

wannnacruise

6/17/22 5:02pm

And any universal life as a "savings" under ANY circumstance.

SoValleyCOUG

6/17/22 5:14pm

This should be a red flag to find a different advisor.

compcoug

6/17/22 5:03pm

Sounds like northwestern mutual. Am I right or am I right?

RdF3

6/17/22 5:05pm

You are right.

YSMACK

6/17/22 5:05pm

You need a new advisor.

allaboutthegainz

6/17/22 5:06pm

Got involved with those guys and I will never work with them again.

RexIdaCoug

6/17/22 5:11pm

Almost took an internship with them until they wanted me to give referrals of my

allaboutthegainz

6/17/22 5:13pm

Without a doubt. You need to move on.

babybroker

6/17/22 8:42pm

Run away. Now. Join the Bogleheads forum and learn some personal finance.

ebv

6/17/22 5:07pm

Bogleheads for the win!

Kid_A

6/17/22 6:56pm

The MLM of the finance industry.

allaboutthegainz

6/17/22 5:08pm

I have some whole life because my father in law was a life insurance agent and

BYU-Ite

6/17/22 5:06pm

So you're going to cost yourself thousands of dollars to keep the peace?

SoValleyCOUG

6/17/22 5:13pm

I already spent thousands of $s more and it was worth every cent to me. He is

BYU-Ite

6/17/22 5:16pm

Sorry but no way I would put my retirement at risk over keeping a bad policy and

SoValleyCOUG

6/17/22 5:18pm

You don’t get rid of whole life once you’ve already paid the front-end load fees

BYU-Ite

6/17/22 5:22pm

First you need to be insurable with another policy. Then I do a 1035 Exchange

SoValleyCOUG

6/17/22 5:40pm

No need. Again, the fees have been paid. It is now just invested like all my

BYU-Ite

6/17/22 9:09pm

Only way "fees have been paid" would be if it were a paid up plan.

SoValleyCOUG

6/18/22 12:15am

No argument. I said that already. But you missed that the fees were front loaded

BYU-Ite

6/18/22 9:12am

So if we bought the same car, but I paid $5k for it and you paid $50k for it,

SoValleyCOUG

6/18/22 9:25am

If I saved a relationship with my father in law- yeah. Relationships and people

BYU-Ite

6/18/22 12:13pm

Well if you have money to burn that's a good attitude to have.

SoValleyCOUG

6/18/22 3:27pm

Same car? That's hilarious.

HTCougar

6/18/22 3:32pm

Yea it's literally can be that % of a difference between whole life and term.

SoValleyCOUG

6/18/22 8:01pm

Problem is it's not the same car.

HTCougar

6/18/22 8:56pm

A death benefit on term pays the same as a death benefit on whole life.

SoValleyCOUG

6/18/22 9:10pm

I am not an expert.

HTCougar

6/18/22 9:59pm

Most life insurance companies will tell their agents whole life is Rolls Royce

SoValleyCOUG

6/18/22 11:43pm

Again, very little of this is true.

HTCougar

6/19/22 11:26am

That's an ignorant response.

SoValleyCOUG

6/19/22 1:22pm

How does it put anything at risk?

YSMACK

6/17/22 5:36pm

I would actually advise against using your term insurance until you are very old

HandwovenBox

6/17/22 5:14pm

My FIL had a life insurance policy with a cash value

RexIdaCoug

6/17/22 5:16pm

This is absolutely true in pretty much every case. I agree.

BYU-Ite

6/17/22 5:18pm

Wow. That’s brutal

kotacoug

6/17/22 6:46pm

Yea you're a sucker if you buy into that. Buy term, invest the difference is bet

SoValleyCOUG

6/17/22 5:12pm

Vanguard Target Fund. Set it and forget it. Save yourself a bunch of $$

kotacoug

6/17/22 5:18pm

That would be a better alternative.

SoValleyCOUG

6/17/22 6:46pm

Ask him: "With respect to your advice on this whole life policy, are you a fiduciary?" and post his response here.

SaturdaySpecialDay

6/17/22 5:17pm

Insurance agents don’t have that requirement by law

SwanSong

6/17/22 10:19pm

And this is the problem, which many clients don’t understand.

SaturdaySpecialDay

6/18/22 7:32am

Doesn't sound like a guy I'd want to be taking advice from.

grosven

6/17/22 5:27pm

Probably don’t do it but if you are maxing out every other possible

1981coug

6/17/22 5:27pm

Find someone who sells Iul not whole life .

barebones

6/17/22 5:42pm

IUL is just as bad

RdF3

6/17/22 5:55pm

No it is not . Done right it has out performed pretty much any 401k .

barebones

6/17/22 11:02pm

<< Deleted >>

RdF3

6/17/22 11:06pm

The one thing I like about whole life is the ability to borrow against it later

byujdmba

6/17/22 5:48pm

You can do the same thing in a taxable account but with a bigger arbitrage potential.

RdF3

6/17/22 5:55pm

DON'T LISTEN TO ANSWERS FROM PEOPLE WHO DON'T KNOW YOU!

HTCougar

6/17/22 6:05pm

Millions of people can't be wrong

darkcoug

6/17/22 6:08pm

He hasn't necessarily been duped, he's just working with someone who has....

IGlowInTheDark

6/17/22 6:09pm

<< Deleted >>

RdF3

6/17/22 6:11pm

Haha I think we’ve found the whole life sales guy

kotacoug

6/17/22 6:15pm

Maybe we should have him present his numbers on a typical policy sale….

kotacoug

6/17/22 6:24pm

Sounds like you’re looking for misinformation, friend.

ebv

6/17/22 6:40pm

If you like Whole Life, you must be a salesman. How stupid!

HTCougar

6/17/22 10:02pm

Tell me about special benefit only found in whole life & I’ll respond with another & better way to do it.

RdF3

6/17/22 10:16pm

Here is your chance to shine and show how stupid everyone else is… go ahead and

kotacoug

6/17/22 10:22pm

I'll say it again, I don't sell Whole Life

HTCougar

6/17/22 10:59pm

Where are you getting that the only complaint is that there's a high commission?

kos

6/18/22 7:32pm

I've never meant to say people in here don't know;

HTCougar

6/18/22 7:52pm

He asked. Think. This is not a moral issue. It’s a matter of opinion, and he is

canofpicante

6/18/22 12:30am

There seems to be a lot of misinformation on this board about whole life...

Real Men Wear Blue

6/17/22 8:36pm

If you actually believe that to be true, please point out specifics of misinformation.

RdF3

6/17/22 8:52pm

(It’s a joke from the “misinformation” post about solar the other week)

ebv

6/18/22 7:27am

Whole life is the product that makes the advisors the most money. That should

canofpicante

6/17/22 9:52pm

So much of this is wrong!

HTCougar

6/18/22 10:09pm

The exact commission paid to the agent on the contract should be a disclosed line item on the contract.

RdF3

6/18/22 10:22pm

Ok.

HTCougar

6/18/22 10:25pm

I'm still interested to learn your response to the several questions on this thread about whether an agent acts as a

SaturdaySpecialDay

6/19/22 9:28am

Do you sell whole life? Yes or no? Full disclosure

canofpicante

6/20/22 10:11am

I do not.

HTCougar

6/20/22 11:02am

That’s good.

canofpicante

6/20/22 12:19pm

What/Who are the first 10 advertisers in Forbes?

HTCougar

6/20/22 2:56pm

I think you could find that as easily as I could.

canofpicante

6/20/22 4:48pm

Probably

HTCougar

6/20/22 5:29pm

I understand. I used to work for advertising agencies.

canofpicante

6/20/22 8:10pm

I'm not advocating for or against Whole Life

HTCougar

6/20/22 10:16pm

We agree.

canofpicante

6/20/22 11:48pm

*advice

RdF3

6/20/22 3:01pm

Thanks

canofpicante

6/20/22 3:56pm

He probably bought it and is trying to justify his choice.

kos

6/20/22 11:52am

Exactly right

SoValleyCOUG

6/20/22 9:01pm

Insurance is to protect wealth, investments are to grow it

SwanSong

6/17/22 10:15pm

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