Tight thanks. I think I’m going to try some online geico and progressive applications just to see what their rates are.
So you do actually adapt? like you watch people’s styles? That’s kind off funny you say short short donkey cause I remember making a comment like two years ago about how that works for you and Demon Hyo more than it does for most people.
I am interested, because a 6.55% *guaranteed *return embedded in a term life policy sounds too good to be true. I think that the actuarial present value of the death benefit is included in that return. I created an annutiy table in Excel, and the future value of the payments at 6.55% is, as I mentioned, about $237k.
Can you copy the numbers from your table and post them?
First off, nothing is guaranteed. The figures are assuming an annual rate of return of 6.55%. The other thing is that it is a permanent policy as opposed to a term. And you are right, I just checked in at the office and the rate of return is lower than the actual 6.55% because you have to take into account the death benefit. I put my death benefit rather high at 500k but you could easily scale it down to 100k or 200k and overfund the policy to accumulate as much cash value as you can.
Actually I stand corrected, the lowest return you will ever get is 2%. Essentially the account will never lose money.
Good shit Jason.
I’m taking my 7 in about 3 weeks.
short, short, rocket punch is too buff.
Nice! What firm are you gonna be working with?
Master P taught me how to make a dollar out of 15 cents because we m-m-ma-make crack like this.
Good to have someone on the inside. The only investment I have ever made is my condo. I bought it when the housing market was not so shitty. Thing is, Seattle has usually pretty buff in that department. While the rest of the country has some really good deals, our hood remains stable. So I do not feel too bad on jumping the gun.
Are you back?
I’m working part-time at Smith Barney right now at Bellevue. I’ll probably do 15-20 hours a week until June.
http://www.suburbanhousehunters.com/about/mortgage-crisis/
This is a pretty good cartoon on the Sub-Prime mortgaga crisis.
I have been told its explains it pretty well.
Haha that looks about right.
Pablo where you get that guap to buy a condo?
Well, it is not paid off but I did pay out the ass upfront. I have no problem investing in something like property, at the worst I have to sell. IMO it is much better than rent.
so how do you get the money if you invest in life insurance? Is the only way to get the money to die? 
There are Variable Universal Life (VUL) policies that invest your money in the market amongst different mutual funds and then there is a Index Universal Life which puts your money in the S&P500 index. I mainly concentrate on the Index so I will give you the nuts and bolts of it.
Think of the Index Universal Life product as killing two birds with one stone. You have the assurance that your beneficiary will be protected and taken care of incase something were to happen to you. Secondly there is an investment component of the product that helps you invest your money SAFELY while still being able to have a share in the gains of the market. You will never have a return lower than 2%.
For example, if the market has been shitty like it has been the past few years and brought a net rate of return of -20%, then you would be protected with the 2% floor. On the flip side, lets say the market went up 20%, you get a share of that as well! Some might say 2% isn’t that much of a gain but then I would respond, would you rather have 2% or -20%?
This is a great investment to make especially with how the market has been performing as of late. While the market is not goin so great, you can be protected by the 2% but when the market bounces back, you are there ready for the taking.
I realized I got ahead of myself and didn’t quite explain how your money gets invested. There are 3 accounts that you can choose to have your money put in. First there is the fixed account. It is just like a savings account but it has a fixed rate of 5.45% for this year which isn’t too shabby.
The next account is the capped account. It gives you a 100% participation rate but has a ceiling of 8.5%. So let’s say the market went up 6%. You would get a return of 6%. If the market went up 20%, you would get 8.5%. If the market went down 10%, you would get the 2% floor.
The last account is the uncapped account. It works essentially the same way as the capped but you have an unlimited growth potential but a lower participation rate. The last two years the participation rate has been between 50%-60%. So if we use the same examples, it will help illustrate this account easier. If the market went up 6%, you would get 3% (Assuming 50% participation rate). If the market went up 20%, you would get 10%. And if the market went down 10%, you would get the 2% floor. The years after 9/11 the market has had gains of over 20% and when the market rebounds, I think that we will see similar returns.
You can allocate your money in each account if you wanted. It is common to have a 33/33/33 split but most common so far that I have seen is 50/50 between the capped and uncapped accounts. You can change the allocation once every 12 months but this is pretty much how it works.
If the above hasn’t gotten your interest yet, then I’m sure these next few points will. All of this money is TAX FREE. Your death benefit and the money you take out of your account is not taxable. After your 6th policy year, you can take your money out loan/interest free. You become your own bank essentially. If you want access to your money before the 6th policy year, you can access it for an interest rate of like 3%. So even at 3% its probably gonna be cheaper than going to get a loan anywhere else. And even before the 6th year, you wouldn’t really have that much money in the account anyway unless you were dumpin quite a bit of dough into it. Premiums are flexible as well. If money gets tight during one month, that’s fine! You can stop paying or pay a reduced amount. Just make your you have enough money in your cash value so the policy doesn’t lapse. If the policy lapses then everything is taxable!
I currently have this insurance on myself and I put away 250 bucks a month which I think is pretty manageable and I will start to increase it in a few years. By the time I hit age 65, I will be set for my retirement. Based on an annual rate of return of 6.55% I can pull out 100k a year for 15 years to supplement my income and still have a death benefit of over 700k… TAX FREE! During this time as well from 65-death, I will not be paying anymore premiums and my wife/kids or whatever will have the security they will need in case I die. In the end, I will have put away like 378k over a course of 42 years and pulled out 1.5 million. Not too shabby.
Sorry for the Stiltman novel but I wanted to make sure I got everything in there. I hope that answered your question Zass and everyone else that had any questions. Also if you guys know anyone that could use my help, please let me know and I can hook you guys up with like a 25 dollar gift card to Starbucks or something or gas or whatever you want.
If you finished reading the whole post, thank you, I really appreciate it.
I want a chinese girl gift card. Good shit Jason.
Good shit my nig. Definitely something I will look into.
Very interesting.
Pablo - what do you pay for building fees/maintenance, if you don’t mind me asking?
Home owner’s dues are $215 for me. That covers basic basic cable, garbage, water, cleaning/maintenance. Not too bad, but then again my unit is not very big, 500 square feet at the most. Some other condos in my area are way up there. It helps if the home owners are not dipshits.
How much are you paying for your homeowners insurance? I’ll hook you up.