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About Warrior

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  1. Thank you for the info, sir. Good stuff.
  2. ...glad to hear that your 2 year old hasn't been maimed yet.
  3. says every person who has ever tried to market time...ever.
  4. This is the facepalm moment. A simple passive S&P index fund over the past 13 years (contributing $5,000/yr) nets you $150,722.83. Repeat: you could have purchased the term policy for those 13 years for a grand total of under 5 grand, and instead of "investing" in Whole Life, you could have invested in an actual non-sleazy investment product. The difference is approx. $80,000 extra in your pocket rather than the pocket of the insurance/snake-oil salesman. Putrid.
  5. Bah. As you probably suspected, I had the #'s flipped. Just over $5k paid for premiums over 30 years and it's now worth just over $7k. So total gain of about $2k versus approx. $10k gain if it had been invested in an S&P index (without the coverage). Giant fail on my part. Thank you for the info - I suspected that a 1035 wasn't possible in this situation and it sounds like that's the case.
  6. I get where you're coming from. Planning to invest the $7k minus taxes. I agree that Whole life is useful for about 2% of those who are convinced to buy it, but not for us. Great point about thinking in terms of what was available 30 years ago. I need to remind myself of that from time to time when thinking of how much my Dad spent on brokerage fees @ Edward Jones for most of his life. Unrelated to this Whole Life insurance. In those terms, he got off very easy...only paid about 1% per year more than he should have for all of those years (thus giving up about 40% of his overall portfolio to the broker who provided him no services whatsoever beyond the initial purchase). I need to focus on the fact that the primary other option for him would have been to not invest at all (other than CD's), which would have been far worse. It's so much easier these days. *Just wanted to note that I had the #'s flipped. It was just over $5k in premiums over 30 years for a current surrender value over just over $7k. I had the #'s flipped.
  7. Yeah, well if it makes you feel any better, while researching the 1035 I've come across a number of people putting in $500/mo. or more. They were convinced that a Whole Life policy was a great investment regardless of the insurance part. Could be much worse!
  8. Long story but it was over 30 years, lol. It'd be worth so much more if it was in a simple index fund. *Just wanted to note that I had the #'s flipped. It was just over $5k in premiums over 30 years for a current surrender value over just over $7k. I had the #'s flipped.
  9. Just posted in another thread, but I'm in a similar situation. About $5k of the $7k cash out value on the policy I was given is taxable, so I'd take a hit. Was wondering if transferring from a Whole Life to a new Term life policy could be accomplished via a 1035 exchange to defer the taxes. Otherwise, I'm just going to cash out and take the hit.
  10. Yeah, essentially it's marketed as insurance that is also an investment account, albeit a horrible one
  11. Sorry if I didn't clarify. The parents had the policy on my wife from the beginning. They had a previous child pass when they were very young and the policy helped to pay for the expenses including funeral, etc. So they took out a small insurance policy on my wife when she was born just in case. Basically, they were talked into it by an insurance salesman who wanted to pad his own bank account with Whole Life premiums. At this point, I just want to get out, but if there's a way to swap the current Whole policy for something more useful like Term insurance without taking a big tax hit, I thought it might be worthwhile. I don't have the policy in front of me, but I think the basis was something like $2k leaving $5k taxable at income tax rates. Wondering if I'm eventually going to purchase Term insurance for us anyways, if it's possible to bridge the gap between this Whole policy and a new Term policy via 1035 exchange to avoid the tax hit.
  12. Insurance question: My wife's parents had a Whole Life insurance policy. In the case of her death, it would pay them (I believe $50k). It's got a surrender value of ~$7k and a large portion is taxable. They offered to give it to us since we're now married and she will be calling soon to change the beneficiaries from her parents to me. Since a good chunk of that $7k is taxable, I was looking into a 1035 exchange. I don't have any desire to keep paying into a Whole Life policy, as I want to keep our insurance and our investments completely separated and switch to Term insurance. Either way, I'm getting away from the Whole Life policy. Would a 1035 exchange into a Term policy be possible? Or am I stuck with cashing out of the policy, paying a large chunk of taxes, and then just purchasing a new Term policy?
  13. I don't see how the age of the investor really has anything to do with it...