Date: Sat, 15 May 2004 10:57:56 CST
From: "Brent D. Gardner, ChFC" 
Newsgroups: misc.invest.financial-plan
Subject: Re: VUL
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"Matt"  wrote in message
news:gOopc.62466$wY.49596@nwrdny03.gnilink.net...
> Ok, so I'm probably starting another flame war, I've read threads in the
> history of the group, but the people asking the VUL question then were
> not in the same situation as I.  (They weren't exhausting other tax
> advantaged investment options first.)
>
> I'm 28, single, no kids.  I plan to have a family, but no idea when that
> will happen.  I'm looking for ways to invest my money.  I'm already
> maxing out my employer's retirement plan (the part they match anyway).
> I'm maxing out my Roth, but I will likely hit the income limit on a Roth
> in 5 years unless I marry someone who makes no money.  I'm a frugal guy
> and still have a decent amount of money left to invest.  With all my
> savings, I'm still going to be in a high tax bracket when I retire
> unless it all goes wrong somehow.
>
> Is a VUL a good method for saving for longer term needs such as
> education expenses and early retirement?  I will save separately for a
> house.
>
> What I'm wondering is, over the long-term do the premiums you pay for
> the VUL cost you more than if you were just paying taxes on the money
> and had term life insurance until kids were self-supportive?
>
> I've read the entire prospectus for the policy and gotten my questions
> about it answered(wee fun), been thinking about this for over a month,
> read everything I can find on the web and I still can't see a clear
answer.

Get "The New Life Insurance Investment Advisor" by Ben Baldwin. The book is
written for the consumer AND the agent. Here's a link to it:

http://www.amazon.com/exec/obidos/ASIN/0071363645/gardneassoci/103-7280157-2197413?creative=125581&camp=2321&link_code=as1

If the agent presenting this product doesn't have the latest copy of this
book on their shelf, look for another agent.

VUL works best when funded with an equity portfolio. If you use all bonds,
you're often better off with a general account product, like UL or Whole
Life.

A balanced portfolio often appears to illustrate better, but the systems the
NASD allows are deterministic ONLY, and they actually prohibit the use of
the more realistic stochastic modeling. In reality, a balanced portfolio
doesn't make up for the additional costs, so the general account products
often come out ahead.

VUL can be an effective wealth accumulation vehicle, but there are a lot of
caveats. Ben Baldwin's book helps better than any other hard source you can
find at this time.

Questions?  Comments?

Brent D. Gardner, ChFC
Chartered Financial Consultant
http://members.cox.net/brentdgardner1378/

"Be ever questioning. Ignorance is not bliss. It is oblivion. You don't go
to heaven if you die dumb. Become better informed. Learn from other's
mistakes. You could not live long enough to make them all yourself." - Hyman
George Rickover (1900-86), Admiral, US Navy, advocated development of
nuclear subs & ships

The Chartered Life Underwriter (CLU) and Chartered Financial Consultant
(ChFC), designations owned and exclusively offered by The American College,
signify the highest standards of academic study and professional excellence
in the financial services industry.