re: OT - DNC Imploding

You're illustrating yours with a 5% average with no downside protection built in and I just don't see that happening over the next 20 years. Not with the bubble we're in and the correction that's inevitable sooner than later at this point.

The IUL I'm talking about has a 0% floor. The market can do -20% and my account does 0%. That's why it's so easy for me to illustrate 7%. The market isn't going to have 20 straight years of loss. So I'll get to capitalize on the gain years up to 17% and ignore the bad years.

If I'm illustrating 7% with a 0% floor, there's no way you're averaging 5%. If you did average 5%, I'd be averaging quite a bit more than 7%.

And again, I diversify my client's accounts by investment vehicle, not just holdings. We'll do IUL, annuity, non-traded REIT, non-traded BDC, Roth, traditional IRA, and regular non-qualified brokerage. Then inside the ones that are in the market, we'll do your typical bonds, equities, mutual funds, and ETF's.

I would never recommend tossing all your eggs into one basket (or investment vehicle).

The annuities have "guarantees" (GMIB/GMWB). They're the only vehicle with true guarantees. Most of them are around 5-6% right now, but I have one that does a floating rate based on libor between 4-8% guaranteed as well. Plus I have one that has a 0% floor and 12% cap with daily high watermark lock-ins, but no GMIB.

Also, you do not have to annuitize any of these annuities to begin taking your income. You can turn the income faucet on and off as you like when you like. If you take more than your GMWB, it will of course reduce your principle relatively. If you only take up to your GMWB, you will have that income value for the rest of your life.

The non-traded REIT's and BDC's don't have guarantees, but they are 0% correlated to the market. The REIT's are based on rents and lease cap rates on physical properties owned by the REIT. The BDC's are based on senior secured loan cap rates. Both of these float with interest rates. So if we go into hyper-inflation mode, these things do even better because they're based on real world costs and not market sentiment.

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And the flexibility... lets say 8 years into my annuity life insurance scheme from Beefdawg, I decide I want to get into real estate because the RE market crashes again, I am still locked into my investment contract or I lose everything I've already put in for the previous 8 years.

Or maybe I get laid off and spend 6 months getting back on my feet, and can't make my contracted contributions.... with BeefDawg's plan, I'm fricked.

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That's not close to true.

First of all, an annuity and cash value life insurance are two completely separate and very different investment vehicles.

You say you're a financial expert, but you just said several things that aren't true at all.

These are not binding contracts for you. Every one of these investments can be liquidated/surrended and either all, or nearly all of your contributions returned. Plus gains depending on when surrendered.

Not to mention all of them have a free 10% withdrawal per year without penalties or fees of any kind. And they all have hardship provisions for things like extended illness or loss of employment where you can withdraw 50% in any year without penalty.

The annuities also have a decreasing penalty period of 7 years. 7%, 7%, 6%, 6%, 5%, 4%, 3%. After that, you can take 100% without any penalties. They also give you the better of your market gains or your guarantee and then locks that in as your new base.

For example, if you put $100,000 in, and the market does 10%, you have $110,000 in there beginning year two. Now in year two, if the market does -10%, your $110,000 goes to $116,600 (guaranteed +6%). Again, the higher of.

And if something crazy happens in your life in year three, and you want to surrender the policy, you can. You would simply pay a 6% penalty. You'd walk away with $109,600 instead of $116,600. And as I said, that penalty goes down each year and is gone after year 7. In year 8 if you want to cash in the whole thing, you get 100%, including all your growth.


As for the life insurance, it's very similar with a decreasing surrender penalty, except a portion of your premiums have of course gone towards a death benefit amount, so there is certainly potential early on of getting back less than you paid in. But that's typically not the case after year 4. Once you hit year 5 in these things, your gains have usually well surpassed your premiums paid in. And if you chose to cash it out, you'd get all your money back and then some.

So be careful what you say about this stuff if you don't know exactly what you're talking about. You just gave a lot of misinformation and could cause people to make misinformed decisions.

In 2008, all my clients made between -3% and +6% while the market lost 37%.

Anyone who was 100% in the market in 08 with no downside protection investments and no non-correlated investments lost their arse.

I don't have a single client who isn't still reaching the goals we designed for them on day one of creating their portfolio. All my clients are significantly ahead of their friend's who were 100% in the market when the crash hit.

You guys can act like financial advisors aren't worth it and you can do better on your own if you want, but it's pretty reckless to suggest that's feasible for everyone. Especially when we're in a bubble and overdue for a correction.

You have to be underwritten and healthy to qualify for life insurance. Plus age is a big factor as well as duration and amount of contributions.

And FINRA and the SEC don't let you illustrate estimated average non-guaranteed returns on billboards or media.

These things are not a one size fits all. There are factors that go into them that determine their viability. You can't blanketly advertise something to everyone when only 1 in 4 might qualify and have a 20+ year time horizon.

You seem to be wanting to discredit this and I don't get why. This is simply one small piece of a portfolio puzzle that I use. It's a tool that provides downside protection in a volatile or recessing market.

If you don't get the importance of putting portions of your portfolio in products with downside protection, guarantees, and non-correlated assets when a potential large downswing or correction is looming, then just stew in your own ignorance and don't desparage me because of it.

You and your wife can go toss $1,000/month each into Roth's and get your arse kicked when the market tanks. I'm going to continue advising folks that there are investment vehicles out there that can protect you from volatility and huge losses.

I think October is going to blow minds. Wikileaks is primed to dump a load of shite on Hillary's head just prior to the election. You can be sure that load of shite will also be dropped on Trump's head. shite lovers, rejoice.