Related Posts
We are hiring-healthcare consulting managers at RSM.
More Posts
Community Builder
S&P Global Hey IHS markit S&P global people's, what should be the designation for yoe :5 , tech stack .net developer with angular They offered level 6, Software Engineer designation at Markit India services pvt Ltd Is it good or designation is regarded Current designation in Capgemini is Associate Consultant IHS Markit S&P Global
Hello Sharks, I recently gave interview of Tiger Analytics and after all successful technical discussion, they were offering me Senior analytics - data Science role for 15.5 fixed + 2L jb, considering my current yoe 4.3 and in data science relevant is not much(consider it 1.5+) but my cctc is 14(13fixed+1 variable), I denied to accept this offer. Should I reconsider that?
New to Fishbowl?
unlock all discussions on Fishbowl.
Term insurance for family. Savings on term vs. whole are better invested elsewhere. There’s tons of financial studies showing return deltas - I’m just regurgitating that guidance.
Now there’s an enormous industry dedicated to telling you the opposite but I don’t think it’s supported by facts.
P1 said it best
I'm looking at two things. The first would be a dual survivorship death benefit that would be payable to an irrevocable trust. From some of the initial numbers I've been looking at, it seems like a pretty good deal from an overall wealth net of estate taxes perspective. I think I will be fortunate enough to be above the estate tax exclusions, so the after tax benefit of investing additional money in a taxable account is cut basically in half. Because of that, life insurance seems pretty positive. But, this stuff is complicated and a lot depends on what they end up quoting you.
I went over the numbers several times analyzing life insurance as part of an investment portfolio - and mitigating estate taxes. Not discussing term insurance that is something different. The numbers were not compelling in my view. The insurance sales people always made it sound good - but when I did a net present value comparison to alternative investments it never looked as good as it sounded during the presentation. I always ended up passing.
I consider my pension and my partnership capital account as part of my portfolio. I believe that takes care of the non-stock (I.e. fixed income/bond) and my remaining investments are stocks and real estate. So I measured the insurance against the investment portion of my portfolio and it wasn’t compelling from estate or investment perspective. In some cases it was almost like the pitch was that it is better to pay a life insurance a fee now to avoid paying the government a fee at some point in the future.
Just diversification and tax advantaged forced savings. I bought a universal life policy 15 years ago because I figured I might as well get it while I’m young and healthy. Fortunately it’s no longer a need as if I die tomorrow my assets are sufficient to care for my family. I intend to spend most of my money before I die so not sure it makes sense for me in retrospect. Curious to hear others’ thoughts on this topic as well.
Upon retirement, your Univ Life premium (if through your partnership) will increase dramatically. So as to not lose the basis you paid in, consider a 1035 transfer to an annuity. After several years, the gain will be tax free equal to the basis converted. Then consider a combined life/LTC policy that allows you to withdraw the proceeds for death, care or any other need. This should just be an investment within your portfolio.
I have some term life in the event something happens to me in the short term (enough to pay off house, etc. so that my family isn’t burdened absent my income) and a universal/whole life policy as a diversified asset for building savings to supplement income in retirement.
It makes sense for me because I want my family to be financially secure in the short term if something happens and I want to augment income if/when needed in retirement.
I view it as another part of the overall portfolio, less risky, not a huge outlay of cash. I have whole life insurance and have since I was 25, which is slowly building cash value. I have term insurance that is cheap, and then the universal group policy through my firm.