Hello blogworld, I've decided to post my next entry regarding kids college saving plan and what is the best plan out there. Usually the most popular type is the 529 plan and I'm against it simply because of the fact that if you don't utilize in the future for your kids tuition you can face a huge penalty. Also there is liquidity issue with this plan and it doesn't accrue any interest. You simply lock your money up and in the future you have access to it.
Solutions....
Now if that is the case I'd recommend a ROP (return of premium) life insurance. If your a mother or father and have a kid who is dependent on you, your going to need life insurance anyways because in the case of the absence of the breadwinner, the people who are dependent on you can continue on with their lives financially. ROP also guarantees that you are insured for 10,20,30 years (however you delegate it) and by that 10,20,30 years, if you are still alive and well the Life Insurance Company will give you back all the money you've contributed. Plus you have access to portion of your money starting the 4th, 5th, 6th year and each year you'll have more access to your money. If you decide to not touch your money until that 10,20, or 30th year, then you have access to all your money and you can use it for whatever you want.
Another solution will be a ING global plus life insurance. This product you have liquidity so you can use it without any penalty or getting taxed for your long term goals. I'll get into more details about this product when my video uploads...VIDEO COMING SOON!
Monday, August 15, 2011
Friday, August 12, 2011
My own Universal Life Policy
I will be uploading a video of my ING Indexed Universal Life policy really soon and I'll be explaining how my policy will help me with my long term savings on a tax favored basis. If you are anxious and want to see a rough draft of this video, please be sure to email me at bemyownbank@gmail.com
P.S. Any other questions or concern, feel free to email me as well.
P.S. Any other questions or concern, feel free to email me as well.
Thursday, August 11, 2011
Tuesday, August 9, 2011
10 reasons why life insurance is good for you
Let's all take a deep breath after Congress attempted to settle their $14 Trillion dollar deficit, USA dropped their credit rating and the stock market had gone berserk. Here are some simple reason why life insurance is good for you
1) tax free income
2) guarantees during down market
3) liquidity, access to your money
4) if the breadwinner is absent, the family can still continue on with their lives financially
5) Accelerated Benefit Rider, if insured has terminal illness, that person has access to portion of their death benefit
6) use for kids college tuition
7) use to buy a car without ever financing!! or paying interest!!
8) can potentially give retirement income for life! Like a pension
9) flexibility in your contribution (ex: $66.22 a month to $250 a month)
10) At the end of the day you feel your in the right path towards your long term savings goals and protection for your family in the case of your absence.
1) tax free income
2) guarantees during down market
3) liquidity, access to your money
4) if the breadwinner is absent, the family can still continue on with their lives financially
5) Accelerated Benefit Rider, if insured has terminal illness, that person has access to portion of their death benefit
6) use for kids college tuition
7) use to buy a car without ever financing!! or paying interest!!
8) can potentially give retirement income for life! Like a pension
9) flexibility in your contribution (ex: $66.22 a month to $250 a month)
10) At the end of the day you feel your in the right path towards your long term savings goals and protection for your family in the case of your absence.
Thursday, August 4, 2011
Why is it so important for agents to follow up with their clients?
This topic came to my attention because I've been going over some issues on yahoo answers and it truly amazes me how many times the insured never updates their life insurance policy.
For example, let's say your father was married to your step mom couple years back and they are currently divorced. Unfortunately your father passed away unexpectedly and he never heard from his life insurance agent ever since he issued that policy to your father (this happens all the time). Your father, therefore never got around to changing the beneficiary and now your stuck with your dad's bill and the step mom keep the death benefit and won't help whatsoever with the funeral expense or any financial problem that your father incurred. Unfortunately whoever the name is on the beneficiary will get that death benefit and there is really nothing that can be done to change that.
Tip of the day: Make sure that your agent follows up with you or your guardian at least once a year because lifestyle and circumstance do change!
For example, let's say your father was married to your step mom couple years back and they are currently divorced. Unfortunately your father passed away unexpectedly and he never heard from his life insurance agent ever since he issued that policy to your father (this happens all the time). Your father, therefore never got around to changing the beneficiary and now your stuck with your dad's bill and the step mom keep the death benefit and won't help whatsoever with the funeral expense or any financial problem that your father incurred. Unfortunately whoever the name is on the beneficiary will get that death benefit and there is really nothing that can be done to change that.
Tip of the day: Make sure that your agent follows up with you or your guardian at least once a year because lifestyle and circumstance do change!
Tuesday, August 2, 2011
Are annuities good for you?
I’ve came across a few discussion with some elderly people and they like the idea of receiving a guarantee paycheck for the rest of their lives but wanted to know how it works.There are many different types of annuity such as deferred annuity, immediate annuity, or even fixed annuity. Today I wanted to briefly touch base with deferred annuity and what it can do for you.
Ex) Let’s say a guy by the name of Jonathan Wilson is 60 years old and he is interested in some form of guaranteed income 10 years from now because he is smart enough to start planning his goals and needs in the near future. He decides to talk to a annuity specialist such as myself and I introduced with a ING annuity which ING calls it Opportunity Plus. He has $300,000 that he can set aside so I break it down for him.
1) As soon as you deposit $300,000, ING will give you a bonus of 5% so Mr. Wilson starts off at $315,000 instead of $300,000.
2) Then for the next 10 years, each year ING will give interest compounding based on the interest of the S&P500 but will guarantee 6% if S&P500 performs less than that.
3) Within the 10th year Mr. Wilson is guarantee at the bare minimum $532,186 (I feel strongly that Mr. Wilson will end up more because S&P500 won’t perform that horribly all 10 years).
4) The start of the 11th year Mr. Wilson will be 71 years old and he wants to start taking guarantee income for himself. He will get 5% annually of whatever cash value is in the annuity. So for instance if it was the worst case scenerio and he ended with $532,186 as his cash value, he will be getting a guarantee income of $21,287 annually (before tax) guaranteed for the rest of his life.
5) Now there are other factors such as if Mr. Wilson was to pass away prior to receiving enough income (more than his principal amount), then there is a death benefit that can go to his beneficiary or he could have set up the annuity where if he passes away his spouse can continue receiving the guaranteed income.
Hope this explain it in a nutshell but it is important to talk with a right annuity specialist (watch out!! Some annuity specialist can be only looking out for themselves and how much commission they can extract) so that they can explain it in more detail and delegate your annuity according to how you want it to be set up.
Ex) Let’s say a guy by the name of Jonathan Wilson is 60 years old and he is interested in some form of guaranteed income 10 years from now because he is smart enough to start planning his goals and needs in the near future. He decides to talk to a annuity specialist such as myself and I introduced with a ING annuity which ING calls it Opportunity Plus. He has $300,000 that he can set aside so I break it down for him.
1) As soon as you deposit $300,000, ING will give you a bonus of 5% so Mr. Wilson starts off at $315,000 instead of $300,000.
2) Then for the next 10 years, each year ING will give interest compounding based on the interest of the S&P500 but will guarantee 6% if S&P500 performs less than that.
3) Within the 10th year Mr. Wilson is guarantee at the bare minimum $532,186 (I feel strongly that Mr. Wilson will end up more because S&P500 won’t perform that horribly all 10 years).
4) The start of the 11th year Mr. Wilson will be 71 years old and he wants to start taking guarantee income for himself. He will get 5% annually of whatever cash value is in the annuity. So for instance if it was the worst case scenerio and he ended with $532,186 as his cash value, he will be getting a guarantee income of $21,287 annually (before tax) guaranteed for the rest of his life.
5) Now there are other factors such as if Mr. Wilson was to pass away prior to receiving enough income (more than his principal amount), then there is a death benefit that can go to his beneficiary or he could have set up the annuity where if he passes away his spouse can continue receiving the guaranteed income.
Hope this explain it in a nutshell but it is important to talk with a right annuity specialist (watch out!! Some annuity specialist can be only looking out for themselves and how much commission they can extract) so that they can explain it in more detail and delegate your annuity according to how you want it to be set up.
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