It keeps getting better. This is hilarious.
This guy is good, says it as it is. Pay attention 401Kers.
Itâs not that I donât get the math. The math is super simple.
Itâs that you donât get how immediately borrowing the cash value completely the changes everything. It dramatically reduces how much cash value you build up. It also creates a situation where you could owe more in interest than the policy generates in investment income. I honesty donât know how to word that any clearer.
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Watch this one, explains your concerns about the market going down less than the % paid for the loans. Loan is 5%, I didnât want to spoil your world.
Suze Orman.
Good stuff about her here.
Mutual funds, and 401K charges.
Tonny Robins company
Lol, what do you think they mean when they say youâll pay the difference bewteeen loan interest and investment gains from the cash value of the policy? Thatâs you losing money or cash value from your policy. The âarbitrageâ only works if the investment gains are higher than your loan rate. Any time itâs not youâll lose cash value of the policy to cover the loss.
They call it arbitrage, but thatâs not even what arbitrage is. Arbitrage is how high frequency trading works. They are constantly calculating the value of an index. They look for when the price of the index has small differences vs the price of the underlying stocks. Then they use those differences to buy and sell the index for profits.
The first column of your own table shows 6 of the last 20 year paid 0% return. How do you pay the interest on your 6% loan in those years? There are two other years where the return is below 6%. So 8/20 or 40% of the time the policy didnât create enough investment return to cover the 6% loan cost.
Nothing against you and nothing supporting you or my intention is not to hurt you at all.
IMO, both marcus and I are very clear about IUL and their offer, but looks like you are blind on the Risk/Return. Since you are in the IUL community, it is fine to message whatever way you like, but the risk remains same.
From now on, I will not be updating or countering any argument.
Thanks.
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I have a small HSA. Should I get money out by reimbursing medical spending now and get tax free money now? Or just let it grow tax free forever and pay for the medical expenses out of my after tax money?
Actually my HSA does not grow much and itâs in a saving account. If I want to grow it, I need to find out whether they allow a transfer to stock brokerage.
Itâs a hassle to attend to it and I forgot about it for a few years
Whoever is the administrator should have investment options. I donât think you can transfer to a brokerage. Iâve never had HSA, because I didnât want a high deductible plan.
Is it ok to pay monthly insurance premiums using HSA funds?
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Yes.
It is different from what I have read
How to Pay for Premiums with HSA
It is unfortunate that HSA funds cannot be used for insurance premiums except in extenuating circumstances involving job loss. While it is possible this law will change in the future, currently it is not the case. Even so, the rules for paying insurance premiums while unemployed are strict. Long term care and Medicare are included, as is continuing health coverage such as COBRA. If those donât apply, you can pay for health insurance while on unemployment benefits from the state/federal government. This clause explicitly requires being on state/federal unemployment compensation. Unfortunately this is usually the only real option as continuing coverage via employer sponsored COBRA insurance is excessively expensive.
The IRS spells this out when insurance premiums are
If you do not buy long term care insurance, you can keep saving to HSA and use the finds as your long term care plan.
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That makes it way less useful than I thought.
It is designed for high deductionable plans . My HSA savings would be wiped out in one year
Not quite so. I am sitting on an HSA investment to which I directly contributed nothing that is worth just short of $50g today.
My âcostâ was paying the deductible on HD polices for ten years or so, rather than drawing from the HSA to pay them. This allowed my employerâs tax free contributions to grow to their balance today.
I can use it to pay insurance health care insurance premiums when I retire (probably next month). All withdrawals are tax free if used for allowed medical and, health care insurance in the post employment environment.
I will be using my HSA funds as a bridge to continue medical coverage until Medicare kicks in and then I will have to pay a medicare supplemental plan of about $400/mo to maintain the level of health care coverage I am comfortable with.
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