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Don't get your hopes up of this thread becoming a Legend like the last one...


I'm expecting my first child, so I've started thinking a lot about retirement and accumulating wealth for my lifetime...I know, it's a lot more cerebral than our normal discussions, but we all have to get old and responsible and some point. lol

I've been hearing a lot about Universal Life Insurance as an alternative to Traditional/Roth IRA's and 401K's. There is a group in town that promotes them as a "Tax-free Retirement". My wife and I have been stashing cash in the 401K plans offered by our employers, but the more I hear about ULI, the more intriguing they sound. At the risk of emptying our life's savings into a ULI that might just be a local scam, I'm curious if any of the financial savvy members here have experience or opinions on them.
My company uses Charles Schwab to invest our 401K's. My individual contact with them is merely through the website. I can choose from around 10-15 funds that I want to invest in, as well as the percentage that I want to in each.

Here's something from the local group promoting Indexed Universal Life Insurance as a Tax-Free retirement plan:
Whose Retirement Are You Planning?
Your Retirement or Uncle Sam's?

At Maggi Tax Advisory & Life Insurance Services, we thank you for visiting out site.
We focus on helping individuals create at Tax Free Retirement & Guaranteed Income for Life.
We are thoroughly trained to help our clients avoid unnecessary risk with their retirement assets. Our Worry Free Retirement Plan will help you to best protect your hard-earned retirement assets in any market condition while avoiding market risk and providing you with the income you need with potential tax saving advantages.
Also, we will look ahead to protect you from any unforeseen problems that could arise in your retirement. Our goal is for you to not worry about your money while you experience complete enjoyment during your retirement years.

From what I understand, it's set up as a Life Insurance policy that has unlimited/tax-free in essence it can be used as a tax sheltered bank account while you're still alive. It sounds too good to be true, and I'm obviously cautious with the Bernie Madoff type schemes that could be out there.
I'm by no means a financial expert either, but I'll give you my 2 cents. I would personally open up a roth IRA. There is no tax on the growth of a roth IRA. There also is no taxation as you take it out I believe. I understand you can deduct up to $5000/yr (max contribution) from a traditional IRA, but that deduction is not available if you're already an active participant in another retirement plan. However, you assume you're income will rise, so you're really creating a tax benefit as you move in higher tax brackets. That's my 2 cents, I hope Method doesn't come on here and kill me for it lol.
The Ollie Reed Fan Club
Method will play this like a Hopkins fight. He will wait for you guys to make the running early, see the styles that play out, throw out a jab or two and then come on down the stretch and tear your asses up laugh.gif
Na. No need.

Black Rock is the biggest Institution on the street. They are but one of a number of credible institutions. They bought Merrill Lynch Investment Management arm (note: NOT the Merrill Lynch brokerage unit that B of A purchased). They also bought Barclays Global Investors (BGI).

Vanguard is a very reputable fund company, with extremely LOW management fees and a reputable name.

American Funds and Franklin Templeton are very reputable/popular as well.

Beardo is correct, you should fund your 401K to the maximum FIRST, followed by a tax free IRA, etc. (it really just depends where you fall on the workfrce food chain). I believe that 401k's currently offer you the biggest tax free contribution vehicle out there (max ~$16K/year, tax free), coupled with a possible employer contribution up to that amount. Really cant beat it. IRA'soffer a max of ~$4k per year tax free.

I have a UL policy from Lincoln Financial. It's a $2M policy. As I understand it, I will be able to borrow against the cash value of that policy down the road if I need to fund college tuitions, vacation homes, whatever.

Im not exactly sure what the ins/outs of your policy or the company offering to help you are.

I do everything myself because, well, there's nobody out there on a retail level that can really convince me why they can do it better. I readily admit there are institutional managers/PM's out there that understand the complexities of this global market better than I, and I have access to most of those guys anyway.

Unfortunately (or fortunately) I live in FL and vehicles like 529 plans and other things that are state tax exempt are moot for me because FL has no state tax, so I have very little in the form of tax shelters.

I am the only one in my household that has a UL policy, as I am the only one pulling in the $$$$ to finance our lifestyle. If I go, the needle scratches off the record and the party's over. Anyone else goes, it sucks, but the show will go on.

Don't get it twisted about Bernie Madoff and the company that made that pitch you posted above. Keep in mind that Bernie Madoff, in most cases, wasn't really even marketing his Ponzi to people (his previous fund, yes)...they were coming to him and damn near demanding he take their money. The company above is pitching you this performance and using some colorful language to do so. I don't doubt the validity, but I sure as hell cant attest to it because I have no idea who they are. I wager to think they are just an agent and they'll shop out to all the major carriers to get you the best deal. There's nothing wrong with talking to these people and seeing what they have to say. You dont have to jump into bed with them just because you talked to them.

Right now, i have my 401K maxed (trying to get a lot of value for my money while shit is still recovering). I also have a Life Insurance policy worth about a $1M, but that is more of a death benefit...not a long term investment type of deal.

I have a meeting set up with them for later in this week, so we'll see. I get a pretty good read on people when I meet them...I'll know if they're shady or reputable.
Good luck brother. Let us know how it turns out.
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