uhh, this only matters when dealing with negative numbers. Both Whole Life and IUL's guarantee against negative returns, so this argument is mostly invalid. It would be valid when comparing to Variable Universal Life, which is a completely different product than IUL and also requires a securities license to sell due to the increased risk.
@@briancroston1684 this doesn't have anything to do with insurance products. It has to do with misleading ways in which investment return is calculated. Also, the differences in the arithmetic mean and geometric mean show up whenever there are large variations in return, not just a negative return, from year to year which is why it is used for CAGR.
Can’t believe I’m just now finding this video - TH-cam suggested it. Fantastic point at the end about longevity. Since people are living longer, on the surface it seems like income annuities are a good solution, which they can be. But more importantly, the typical consumer thinks that they wont need the insurance later on in life if they’ve invested and grown their money, so why not just cancel the insurance, and live on and pass down the investments to heirs? Well, problem is if you’re living longer your investments also need to last through inflation and rising medical bills due to old age. If the insurance is there, it gives a little more security in spending those investments.
@@TheMoneyAdvantage Yes, great video and great timing for me to find it too. I know someone well who sells IULs and he loves them. I loved them when I first found out about them, but then I learned how they really work. I'm not a huge fan anymore. The guy I know does have some extra riders on the contract that make it seem very attractive and I'm still trying to get more information on them. One of them is a Guaranteed Lifetime Income Rider. Do you know about that?
When the guest was talking about black swan events, I was waiting for him to list COVID and when he didn’t I looked at the date 😂😂. I love seeing how innocent we all were pre pandemic
Todd was a guest on our podcast. We are friends, but he has his own company. He is a developer of software that advisors in the financial industry use. His website is: truthconcepts.com
I cannot speak for Todd, and I do not know whether he meets with clients as an advisor or not. If you would like to speak with an advisor on our team, you will need to book a call here: themoneyadvantage.com/calendar
Yes, and yes, we work nationally. The Money Advantage Podcast started in 2017, but each member's total years in business vary. Some have been in the business since the 80s. When you work with us, you get our team. The point of the first appointment is to determine if we can help you and if you want us to help you, determine the next best step for you, and answer any questions you have.
Thanks for watching! Most if not all of the points made apply to IUL and UL policies in general. As all things in there there exceptions in certain circumstances.
@@TheMoneyAdvantage can some one define the fact about Increasing Death Benefit and level death benefit IULS? And which of them are likely to laps incourse of time?
So the IUL is unlikely to sustain itself because the cap rate is never high enough to cover them 0% years even when the premiums are paid. That is a good point that I never heard before.
We are not saying it wont or cannot work, rather it is impossible to accurately predict the future. Things like: what the fees can be increased to, what the caps can be reduced to, Stock market ups and downs, what premium actually gets paid into the policy, etc. Additionally many of the factors lack guarantees within the contract. There are inherent risks that an insured takes on when purchasing an IUL. There is no free lunch in insurance so the potential to earn higher returns comes with more risk. Our clients prefer the safety and liquidity of whole life, and invest in things that they know and can can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who don't want to be in control and prefer to hand their money to someone else. Neither way is wrong. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) th-cam.com/video/wj3h7rSspdM/w-d-xo.html 2) th-cam.com/video/9z9uvl23YH4/w-d-xo.html
@@TheMoneyAdvantage Ha! Ha. Tell'em how you really feel! But seriously, me and the family benefited greatly. Lots of people saying lots of different things. Maybe they are all speaking a type of truth that is very conditional?
35:45 this is pure gold right there. There is a significant difference between the geometric mean and the arithmetic mean of returns.
:) Glad that you like this! We really had fun talking with Todd!
uhh, this only matters when dealing with negative numbers. Both Whole Life and IUL's guarantee against negative returns, so this argument is mostly invalid. It would be valid when comparing to Variable Universal Life, which is a completely different product than IUL and also requires a securities license to sell due to the increased risk.
@@briancroston1684 this doesn't have anything to do with insurance products. It has to do with misleading ways in which investment return is calculated. Also, the differences in the arithmetic mean and geometric mean show up whenever there are large variations in return, not just a negative return, from year to year which is why it is used for CAGR.
@@briancroston1684 Even when you replace negative numbers with zero, the average return and real return are not the same things.
@@TheMoneyAdvantage You are correct that the numbers aren't the same and must be considered when comparing investment choices.
Can’t believe I’m just now finding this video - TH-cam suggested it.
Fantastic point at the end about longevity. Since people are living longer, on the surface it seems like income annuities are a good solution, which they can be.
But more importantly, the typical consumer thinks that they wont need the insurance later on in life if they’ve invested and grown their money, so why not just cancel the insurance, and live on and pass down the investments to heirs? Well, problem is if you’re living longer your investments also need to last through inflation and rising medical bills due to old age. If the insurance is there, it gives a little more security in spending those investments.
TH-cam's algorithm finally did its job! Better late than never, right?
@@TheMoneyAdvantage Yes, great video and great timing for me to find it too. I know someone well who sells IULs and he loves them. I loved them when I first found out about them, but then I learned how they really work. I'm not a huge fan anymore. The guy I know does have some extra riders on the contract that make it seem very attractive and I'm still trying to get more information on them. One of them is a Guaranteed Lifetime Income Rider. Do you know about that?
This is beyond a youtube comment. If you would like book a call here to discuss further: themoneyadvantage.com/calendar
When the guest was talking about black swan events, I was waiting for him to list COVID and when he didn’t I looked at the date 😂😂. I love seeing how innocent we all were pre pandemic
This video was EXTREMELY helpful btw!
Thank you for watching! Glad you found it valuable!
Thank you guys for being honest . How can I get in touch with Todd? Are you colleagues of one team/company?
Todd was a guest on our podcast. We are friends, but he has his own company. He is a developer of software that advisors in the financial industry use. His website is: truthconcepts.com
Is Todd also an insurance agent or just a software developer? What is your direct contact number?
I cannot speak for Todd, and I do not know whether he meets with clients as an advisor or not. If you would like to speak with an advisor on our team, you will need to book a call here: themoneyadvantage.com/calendar
Do you accept the clients from CT? Are you cerified in CT? How many years in business? Thank you
Yes, and yes, we work nationally. The Money Advantage Podcast started in 2017, but each member's total years in business vary. Some have been in the business since the 80s. When you work with us, you get our team. The point of the first appointment is to determine if we can help you and if you want us to help you, determine the next best step for you, and answer any questions you have.
Why we are talking more about UL instead of IUL? I shall be thankful to you guys if the conversation is centerlized on IUL.
Thanks for watching! Most if not all of the points made apply to IUL and UL policies in general. As all things in there there exceptions in certain circumstances.
@@TheMoneyAdvantage can some one define the fact about Increasing Death Benefit and level death benefit IULS? And which of them are likely to laps incourse of time?
So the IUL is unlikely to sustain itself because the cap rate is never high enough to cover them 0% years even when the premiums are paid. That is a good point that I never heard before.
We are not saying it wont or cannot work, rather it is impossible to accurately predict the future. Things like: what the fees can be increased to, what the caps can be reduced to, Stock market ups and downs, what premium actually gets paid into the policy, etc.
Additionally many of the factors lack guarantees within the contract.
There are inherent risks that an insured takes on when purchasing an IUL. There is no free lunch in insurance so the potential to earn higher returns comes with more risk. Our clients prefer the safety and liquidity of whole life, and invest in things that they know and can can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who don't want to be in control and prefer to hand their money to someone else. Neither way is wrong.
Here are a couple of resources that I would recommend to anyone considering purchasing an IUL:
1) th-cam.com/video/wj3h7rSspdM/w-d-xo.html
2) th-cam.com/video/9z9uvl23YH4/w-d-xo.html
awesome interview !! I learned tons.
Thank You, Curtis!
Way too many blanket biased statements to be taken seriously.
Thank you for watching and sharing your opinion!
@@TheMoneyAdvantage Ha! Ha. Tell'em how you really feel! But seriously, me and the family benefited greatly. Lots of people saying lots of different things. Maybe they are all speaking a type of truth that is very conditional?