Index Universal Life vs SP 500 #investing

[JocobsComments]

Bro your IUL started at $35k but your index started at $149k

[drewmartin]

Lets be clear the agent who set that up for you did it completely wrong. You should cancel it immediately and get in touch with an agent who will set it up properly

He probably did it so he would get the most commission, it pays to work with ppl who actually know what their doing

[michaellaforte]

Not exactly a parallel comparison since the IUL starts with $35k while the Index fund starts with $149k...

[leeyost]

Pushing a 401k ? If the person has 500, 000 at retirement once taxes are taken they have just a fraction of that. Plus 401(k) if you take money out ever for say like children’s college etc. it brings the whole all the growth of the vehicle to a screeching halt and no one knows that. You can borrow from an RUL and whole life insurance and you can still then use the money in retirement and your growth continues. Roth IRA‘s are good but limited.

[hodler]

This is why you should get your life insurance license, learn the ins and outs of the different policies. It will probably take 3-6 months but will save you ALOT of money. Get hired as an agent at a brokerage and make commission on your own policy that you build yourself.

[lodlewo]

You forgot to touch on the biggest issue… taxes taxes taxes. Within the IUL is 100% tax free vs s&p 500… and also those are projections… my IUL is constantly beating index funds every year with the exception of one, so you can run every projection you want but in a real life scenario IUL knocks the socks off index funds..

[AlexTuccori]

Who you hire matters 100%. This is why I recommend to all my clients to find a trusted professional who will serve as their advisor. They’ll provide you with all the information you need to make an informed and educated decision. A properly structured IUL policy will benefit you in many ways.

[kendrickmcfarland]

Not an agent but an index fund does not offer the benefits that an iul policy offers

[lovingdreaming]

But what about all the fees associated with the brokerage firm that deal with your index fund account?

[joanthanreyes]

well no one thing will make a person rich. being well rounded and diversified is better. the iul also would be a good play for borrowing against it and using it as a bank.

[rosiegeorge]

You are wrong, 401K IRA also has hidden fees. And when the market goes down you can lose all your money. IUL you will never lose money with market crash

[codeyhart]

Bro those numbers on that spreadsheet are just made up lol.

You started with a number about 3x higher on the "investing" side and those return percentages were several times higher

[missdesireindependance]

An IUL may have less risk than S&P

[ActionJackson]

The problem is you’re paying 200 dollars.

[neshakatlife]

I think you should compare that IUL with the fees and taxes you will be charged from the investment options you mentioned. 401k’s are not good and Roth has income restrictions and none of them have death or living benefits.

[ericgilliland]

Not an insurance agent but how was your IUL designed and with what carrier? Is it an option B policy with a minimal base policy and a blended term rider? ... I didn't think so. 😕 yikes. Yikes.

[moyo]

What about capital gains taxes on that index fund plus other fees? An IUL is a tax free vehicle. Of course there are pros and cons with everything.

[Optimalcoverage]

Not all companies fees are that high. That's crazy! What are my 401k fees?

[hwbbjyl]

last time i checked u can’t borrow money out of a brokerage account

[JR]

This policy shows index funds that are being utilized. Which means this is not an iul. This is more likely a variable universal life policy. That policy utilizes index funds like the stock market and as such as impacted by the market volatility.
Also, those percents and fees are listed as guaranteed maximums. Which means at no point in time do you ever pay more than that.
Additionally, as pointed out by other folks, you have two different starting points for your two different methods of saving.
That's like saying these two cars are going to do a one-mile race one of them is starting at the start line and the other one is starting three-quarters of a mile in. You're going to have two drastically different results.