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| My wife and I have several fixed annuities and we’ve yet to pay a single penny in fees. We have some dating back to late 80’s, early 90’s paying a 4% guaranteed minimum. Could add up to another million dollars in each and not pay a cent in fees. And could withdraw the money back out the next day without one cent penalty. I’ve never sold a fixed annuity in 39 years that ever had a fee or expense charge. Or where there was an upfront sales charge. And we can take the interest only out monthly, quarterly, semi or annually. Never touching the principle. Or let it grow tax deferred, never receiving a 1099 while it accumulates. Try that with a bank CD. You paint with a very broad brush. Just because you purchased a fee based product, don’t assume everybody else did too. Life insurance in succession planning is utilized to provide liquidity to the successors so they have adequate capital to buy out their non farming siblings. If the estate has adequate cash to fund the right of first refusal, great. Most don’t have that kind of cash. Hence the need for life insurance, and lots of it. And it needs to be permanent, not term. Term most certainly has its place, but funding the succession of a large family business isn’t one of them. Those that are very savvy, and plan on being successful,will purchase plenty of permanent life insurance when they are younger, when it’s cheap. Then, when they retire, they can not only spend the interest on their money, but some of the principle each year also. This has a dramatic effect on the size of their monthly checks. And when they leave this earth, The in force life insurance comes in the back door and replaces it all to the heirs totally tax and probate fee. No question, lots of folks wish too leave an estate, but they also want to live a life of significance in retirement. This strategy does just that. There are plenty of highly successful people that want to be aware of all the strategies that are available so they can have their cake and eat it too.
Edited by Boone & Crockett 2/12/2019 17:39
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Another investment question
