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Correct. There are many options. With a WL policy, the expenses involved usually don't have options, you just pay them.
James - your avoiding the whole part about expenses on a life policy. I'm not sure why.
Dan
I think we all know the expense of PWL, as in any vehicle there is an expense. I'm simply suggesting that the added expense in PWL, can not be viewed as an even exchange in the expense of any given Qualified Plan as we are discussing. Even if you choose a 529 does not mean you shouldn't have a PWL in placed. Dividends which you choose to reinvest in the policy do not affect cost basis of the policy.
There is no direct way to compare cost of a WL and a 529, its a nonsensical debate. Only thing we can do is compare what that money will do as a PUA vs what it will do in a 529. If I take the last ten years, since 1998 since my son was born in 1997 my WL from MM (as in return from the PUA) smokes the 529 in value.
Still you have to account for normal human action, people tend to invest in a conservative manner or attempt to time the market or just picks a fund that look good in the last few years. In any case, they'll rarely beat a 9.4% they could of made at MM with PUA added to their WL Policy.
Since a few commented that no PWL is paying in the range of 6-8% only displays the ignorance many have about PWL in general. Even IM the blue collar company is paying 7% on average, current dividends paying around 5% and 2% on the guarantee side of the contract depeding upon what policy you take.
Everyone should have a PWL, that is without question. There is on other vehicle out there that gives so much in the way of guarantees and guarantee growth if managed correctly. I took out that WL on my son, now if I decide to place college money within the WL now I can do so as a PUA and in fact lowering the cost of the policy itself as in "InsuredDeathBenefit=BaseDeathBenefit - GuaranteedCashValue."
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