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Inappropriate Whole Life Policy of the Week

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  • [QUOTE=
    I think what annoys me the most about it is how I couldn’t just see how gimmicky the whole thing is from the get go. All these fancy crediting methods, cap rates, participation rates, surrender value, legalese, etc. I fancy myself a smart person. I have done more pure and applied math than almost any financial person besides an actuary, and the fact that I couldn’t wrap my head around it made me feel stressed and trapped.

    [/QUOTE]

    Almost sounds like some of the real estate investment products being peddled to physicians today.
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • This week's edition:

      Hello! I’ve spent the last few hours reading through NWM Whole Life comments and needless to say, I regret my decision to purchase. After growing my annual Hello! I’ve spent the last few hours reading through NWM Whole Life comments and needless to say, I regret my decision to purchase. After growing my annual compensation to the point where I could max out my 401K contribution, Back-Door Roth IRA contribution, and investing into the market with monthly savings after setting aside emergency funds, I sought professional advice on another way to “smartly” save for the future in a tax efficient way. Unfortunately, I didn’t trust my gut and purchased a NWM Whole Life policy under the guise of “contribute now, see the big benefits years later”. No kid plans or big purchases coming up – if I canceled the policy, I would push the current monthly payment into the market for future purchases.

      Looking for your advice on whether to exit the policy & take my loss or invest into a Jefferson National VA through a 1035 exchange. And even if I should stay in the policy until I break even in 13 years (based on the Accumulated Value forecast – which in hindsight was a bad deal)

      Details: Whole Life Plus 100 – started at age 32
      Purchased = Late September 2019
      Annual Premium = $20.7K
      Net Accumulated Value = $3.7K
      Last Annual Dividend = $0

      Thank you in advance for your help, greatly appreciated!
      Helping those who wear the white coat get a fair shake on Wall Street since 2011

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      • Latest edition, his, hers, and the kids'


        My husband and I are both physicians in our early forties though I am no longer working to be home with the kiddos. He is a fellowship-trained orthopedic surgeon so has only been in the “real” workforce for about ten years. We’ve recently started listening to your podcast and understand what we suspected before, namely that we made a mistake buying whole life insurance for ourselves and our children. Not only that, but we have now “borrowed” from one of the policies. Each of our four children’s policies are currently worth $2200, but we’ve contributed around $5000 to each of these over the past several years. His is worth $150,000 but we’ve contributed close to $200,000. And mine was worth $90,000 but we borrowed this entire amount to add to a down payment last year. We’ve contributed around $120,000 to mine. So, do we just close mine and take the $30k loss and do the same for the kids’? Or pay mine back first and then convert it to something else? And what would you suggest for my husband’s? The total loss incurred by cashing out would be close to $100,000, and we just opened these over the past 3-6 years, so it’s a bit of a bummer...
        Helping those who wear the white coat get a fair shake on Wall Street since 2011

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        • Originally posted by The White Coat Investor View Post
          Latest edition, his, hers, and the kids'
          "A bit of a bummer" indeed

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