Northeast Nebraska and Candelaria Philippines | w1891 - 8/31/2014 08:10
Not sure how big of technical trading background you have, but for pure spec plays I would want as much of that knowledge as possible depending on your time horizon. It seems like fundamentals tell us where we are going, but technicals tell us how we get there. The best bet is usually to put on defined risks trades with stops just in case. Also forget everything about crop production that you know. As much as we complain about traders, in that business knowing much about crops can actually be a hinderance.
I have to ask though, why are you trying to do investing in a universal life policy. Those are some of the worst vehicles for investments especially if you do,not have anyone that relies on your income if you should pass. Simple Vanguard mutual funds will do the same thing with a much smaller cost. You might want to fund a Roth depending on tax rate with some of your funds as a way to build up net worth.
I'm using my equity indexed universal life policy to fund my retirement. At 59 1/2 I can withdraw funds without penalty. If I end up needing funds prior to that there is a 10% IRS penalty. The fund received index credits based off the DJIA. It has an annual reset and a zero floor and a 14.5% ceiling. That means every 12 months what I have is locked in and not subject to loss in a market decline. Also, if the market does decline, my downside risk is zero. Here is a short video explaining it.
http://www.7insurance.net/#!retirement-savings/c1mhw
Many investments in 2008 lost around 30%.
Here is some market history and how my investment worked in this environment
Jan 1 2008 Djia 12800
Jan 1 2009 Djia 9034
Market lost 30%. The balance on the equity indexed life policy fund was credited zero, but lost zero with the floor
Jan 1 2009 djia 9034
Jan 1 2010 djia 10428
Market gained about 11 % back. People in the market since 2008 got 11% of there 30% loss back leaving them still down 19%. the equity index universal life policy was credited 11% since it was under the 14.5% ceiling.
Jan 1 2010 djia 10428
Jan 1 2011 djia 11674
Market gained about 11% more back. People in the market got another 11% of there 30% loss back leaving them down about 8% yet. the equity index universal life policy was credited another 11% which is again locked in and not subject to market losses.
Jan 1 2011 djia 11674
Jan 1 2012 djia 12,400
Market gained about 7%. DJIA is still 400 less then it was precrash in 2008. The equity indexed universal life policy was credited another 7%
So... while investors struggled to get there investment just back to even those 4 years the equity indexed universal life policy had these gains. 0%, 11%, 11%, 8%
Are there cost? Yes, there is the cost of life insurance coming out of the fund. In my case, I elected the minimum amount of insurance possible $25,000 death benefit. This is to keep the cost coming out of my account low, and I don't personally need much life insurance as I don't have much debt or a family.
Are there fees? Yes, just like with a mutual fund there are fees. And likely the fees are higher then with a mutual fund. But... Even with these, the benefits outweigh the cost.
Edited by kggonzo 8/31/2014 10:11
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