Is it a good idea for a mom to put all her 401k into an IUL as advised by an insurance agent? Should she steer clear of this agent? #InsuranceAgent #401k #IUL #FinancialAdvice
Hey there! So, you’ve got an insurance agent suggesting you put all your hard-earned 401k into an IUL. But is this really the best move for you and your financial future? Let’s dive into this a bit deeper to help you make an informed decision.
### The Lowdown on IUL
– What exactly is an IUL and how does it work?
– What are the potential pros and cons of investing in an IUL?
### Evaluating the Agent’s Advice
– Is it in your best interest to trust this agent’s recommendation?
– What other options might be available to diversify your investments and protect your retirement savings?
### Final Verdict: Walk or Run?
– Considering all factors, should you follow through with the agent’s advice or look elsewhere for financial guidance?
By taking a closer look at your current situation, assessing the risks and benefits, and exploring alternative options, you can make a well-informed decision that aligns with your financial goals. Remember, it’s essential to prioritize your long-term financial security above all else. #FinancialPlanning #RetirementSavings #InvestmentStrategies
Whole life bad: https://www.whitecoatinvestor.com/debunking-the-myths-of-whole-life-insurance/. https://www.whitecoatinvestor.com/what-you-need-to-know-about-whole-life-insurance/
Tell her to run far far away and to never look back. This agent is just trying to help finance his boat, with your mom’s help.
Here’s an article on IUL. Read it, and have your mom read it twice: https://www.whitecoatinvestor.com/5-reasons-not-to-buy-indexed-universal-life-insurance/
I retired after working in IT in the insurance industry for almost 50 years. I’m not an expert but I picked up enough to know she should run away from this person.
No. Qualified Funds should NEVER be used for an insurance product, unless it is an annuity (and only then in certain circumstances). Are you sure its an IUL, and not an Indexed-Linked Annuity?
Insurance agents make money by selling policies. They are NOT your friend. They are not trying to help you. They are trying to help their salary and nothing else.
Have mom ask insurance agent, “How much do you get paid if I sign up for this? Are you recommending I do this because you get paid for it, or because you believe it’s the best investment for my future?”
Make them squirm a little bit for trying to push such a shady sales commission-based product.
Run screaming, hair, pants etc on fire
It would be one of the biggest mistakes possible. IUL is not a good product in 99.98% of cases.
[https://www.whitecoatinvestor.com/5-reasons-not-to-buy-indexed-universal-life-insurance/](https://www.whitecoatinvestor.com/5-reasons-not-to-buy-indexed-universal-life-insurance/)
Does your mom even need life insurance? If she died does she have minor kids dependent on her income? If yes then look into term life insurance (get free quotes at SelectQuote.com). If not then no need for life insurance.
Keep insurance and investments separate.
Perhaps his children will be millionaires. Perhaps will even be off of insurance policies he has for them. It’s not impossible. It’s not even that hard.
Start investing for babies and you have time on your side. You can get to a million dollars with pretty bad rates of return as long as you’re willing to wait. That’s not the flex the salesman seems to think it is.
There is no good reason to buy any life insurance product other than regular term life insurance. Every investment product they sell is high fee crap loaded with hidden surrender penalties.
He is talking about his kids getting millionaires.
Depends. If she has trouble moving I’d simply walk away. If she’s still agile have her run.
Run. She already has tax deferral in the 401k, and that’s one of the major tax benefits of UL policies. The agent just wants a commission.
Tell her to do what Jenney told Forrest to do.
Run Forrest Run.
Never listen to an insurance agent for investing advice. Their job is in sales, not wealth management.
Have her ask what their commission is and how long they will get trails
There’s not a single reason in the world to connect your savings to your life insurance.
Except to make money for the insurance company, and their agents.
Run away.
Ask the agent to schedule a time to sit down with her lawyer and sign a contract establishing fiduciary duty. He will let himself out.
Here’s a more unbiased source for info on universal life. https://www.investopedia.com/articles/personal-finance/070215/pros-cons-indexed-universal-life-insurance.asp
So many people are posting the same link to the same source it makes me think the author has multiple accounts.
Trick the insurance agent into buying an even more pricey insurance policy from yourself.
I highly doubt this is true. Qualified money going into an IUL would get you sued pretty clearly.
Insurance agents sell products. Do not do it. Get a financial planner.
If making money was that easy insurance companies wouldn’t be selling the product.
> He told her […] that _his_ kids will become millionaires from the policies […].
Yep… from the policies he’s selling to your mom.