Date: Thu, 30 Jun 2005 11:50:13 CST
From: "Tom" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Was I stupid in signing up for a VUL policy?
   posting-account=9pPQNgoAAABUzK6G9vVccvlFgh4il1k4
	processed by UCSD_GL-v1.2 on mailbox8.ucsd.edu;
	Thu, 30 June 2005 09:31:32 -0700 (PDT)
	iQBVAwUAQsQixfl/I4+O31e5AQEh5QH+P4Bf4pF9iqR/E9wl9ftA/sTZjk4yW66X
	hpIfoI2EoKp+fRocjOd8Hsr4VatkigYmg1nkn85q1tfJV8XIcAdVzQ==
	=/6gC

I want to thank everyone who responded to my initial post.  I guess it
boils down to "is it worth paying $95/month for life insurance and over
fund the policy, or pay term and invest the difference?"
Unfortunately, I do not know the forumla's to calculate the difference
between tax-deferred and non-tax-deferred investments.  If anyone has
those handy, I'd appreciate it.

Thanks again for everyone that has participated in this discussion.

Tom

godescbach@yahoo.com wrote:
> Hi all,
>
> About a year ago my wife and I met a financial planner through my
> wife's middle school where she teaches.  He worked for Jefferson Pilot.
>  Long story short he sold us a $250K VUL and our payments are $115
> every month.  I recently took a close look at our last statement and
> our total accumulated value is only $171.18.  I called the Jefferson
> Pilot and learned they were deducting $95 for my life insurance
> premium.  After this and fees, only $12.23 is getting invested monthly.
>  But nowhere on the statement does it show the deduction for my life
> insurance premium.  I felt both stupid and deceived.
>
> I have emailed the financial planner who is no longer with Jefferson
> Pilot.  Even though he does not benefit from our continuing with the
> policy, he maintains that this is a good investment for us.  But I do
> not see how.  Seems to me we would be better off buying a 20 year term
> life insurance which runs $21-$35 and invest the rest.
>
> Right now our investments consist of me maxing out my 401K, my wife
> investing about 20% of her income into a 403B, and we each contribute
> the maximum into Roth IRAs.  Lastly, we invest in the Vanguard Total
> Stock Market Index fund.
>
> As far as investment style, I'd rather put my money away and forget
> about it.  I like Andrew Tobias's advice of saving into index funds and
> forget about trying to micro-manage my money trying to beat the market.
>  In case this has any bearing on investing in a VUL....
>
> I would be grateful for any advice regarding whether we should get out
> of the VUL or stay in it.  I leans toward getting out of it and getting
> term life insuranced and investing the rest.
> 
> Thanks,
> 
> Tom


======================================= MODERATOR'S COMMENT: 
 Please trim the post to which you are responding.  "Trim" means that except for a few lines to add context, the previous post is deleted.