Retirement: Feel free to ask him anything you like!

Came across this link, he will start answering soon. Ask him anything before he starts replying.

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[–]billbengen[S] 13 points 1 month ago

I vary the mix. During a raging bull market, index funds will probably outperform. During a bear market, actively managed funds may do better. I usually keep a mix of each, as I don’t know when things will turn.

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Agree with index funds tend to do better than actively managed funds during a bull market and the opposite happens in a bear market. However, the solution is not holding a mix of both and actively adjusting the mix. For most of us, we need a passive approach as we have a life, a family, a career, and a hobby; and the most important goal of an investment is for retirement. So the most suitable approach is to dollar cost averaging purchase of an index fund, I favor S&P index.


I prefer Nasdaq index or BRK-B.

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That’s our dream. To be able to retire with dignity. And that’s what I love about my now passion, life insurance. When you see people putting all their retirement eggs in 401K but 2008 happens, it’s hard to imagine how they feel when they are just about to retire. Now, as in 2008, they had to get almost 80% return to go back to their prior investment level.

That’s what I have been saying all the time here. What I promote is not the flavor of most investors here, but allows you to leverage the use of the money going through an indexed life insurance policy. It is called be your own bank, smart bank, infinite bank, etc.

Imagine your income. You put $10K a month in a bank. They won’t give you nothing as a return. But imagine you are saving 40% of that money, well, leverage it and open your own IUL where you put 100% of it, then you use 80% < > for all your expenses, and the sum of all these expenses are still there earning >12%-16% or 0% even though you spent it. Got it?

My English is not that good, but I put this example: $4K a month into an IUL, where we can lower it to the maximum so your cost of insurance can be say…$800 (we know how to click here and there to reach some numbers at a cost to our commission**) and the rest, $3,200 can be loaned almost immediately. You never, never, unless you want to leave a huge death benefit to your beneficiaries, pay that money back. Never!

That money is going to be still in your account earning from 0% (2008) to 12.5 and if we click here and there, you can get up to 16%, (uncapped). I forgot, there’s a switch you can turn on that will allow you to be flexible when paying your premiums, it is a flexible account, so you can increase or decrease it.

I am doing one right now for a 32 years old. $1200 a month, $223 in cost of insurance, $560K death benefit with 4 living benefits, the rest goes to be invested in the index (S&P 500).

Did I say that your money is not lost if 2008 happens? No? OK, now you know it, you benefit from the ups, you don’t suffer when the downs.

You have family? How about $2.+ million (for a $4K policy) in death benefit to your beneficiaries and probably, $300K+ a year until you drop dead, tax free, not reported to the IRS.

Because you know what you’re doing. :smile:

Some other people are not still there. Some day they will.

S&P Index today is higher than the peak in 2007, almost double. So what is your point?



What’s this graphic got to do with what I said? You just woke up the buyinghouse in me. LOL

I always advocate for something different to deferred accounts for the simple fact that you can’t use your own money and if you “loan it” you are in big trouble if you don’t return it on time. So, I am against anything 401K related, I love indexing, so your question shouldn’t be addressed to me, but those who abhor new ideas, those who are stuck in the old way of doing things. These people are very rare to sit down, enjoy life, look at how the world evolves around while their money is making good returns, safely, and a disciplined manner, with no stress, knowing that their money is growing, slowly but surely without the excitement or disappointment of the stock market pulling tricks on them.

I am not here to change anybody’s minds, just to support what I believe in. I can’t make them change, they fear new ideas and they are satisfied with their lives. I am not into making anybody gambling their lifetime savings, no, I don’t like to gamble on the stock market at all, I belong to a conservative approached company. Who am I to change their ideas?

I was at the office last Thursday witnessing how an old couple put $1M into this account. Every $1 they put, will save them $16 in taxes. It is the use of their own money in a strategically way that will make them retire in 10 years with lots of income. They are in their 70s. And they have bunches of $ millions to start some other insurance or similar policies. The rich people understand this, ask Warren Buffet.

I am telling you, some people think that life insurance is a policy when you die your beneficiaries cash in. No, it is used strategically in, well, I can’t say investment plain and simple, but it is used as a vehicle for insurance carriers to invest the excess over your cost of insurance as the IRS rules dictate in the S&P 500 in an indexing account.

Actually, your graphic actually helps my point of view of supporting indexing in life insurance.

Do you know what indexing means? It is not representative of what 401K is, that’s for sure.

Do you see…which we may call them? Crests on that graphic? Going up and down? That is how 401K works. Except that you don’t have the protection of a 0% floor. If 401K had that protection, it would be a good retirement plan, which is not.

FYI you need to reach retirement with no “ordinary income” to enjoy your SS benefits, otherwise, they will be taxed…again! See? Any money in life insurance is tax free. Not counted as an ordinary income.

In 2008 there was a 38.5% loss of your capital. That means, that in order for you to recover, you had to gain app. 77% (100%) to be at your last best level. Then, look at the ups and downs. That is the bleeding of your money, not counting the points the account managers charge. Wait for your taxes to be deducted. And, even when you are on the age to start pulling your anual income, the account managers keep charging you 1 point here, and there.

I hope I clarified my position here. It wasnt about doubling anything.

I made the bet last time, put $360K buying any home, any property you will rent, then tell me if this property is going to give you the same amount )$360K) every year after 30 years of $1K monthly premiums. OK, let.s not go that far, say $100K a year. That simple.

I am still waiting for anybody to tell me they found something better. The beauty of compound interests without the downs is amazing.

I know some people will be scared to read long topics, here, the racist pig in the white house has beautiful plans for you.

Aint that great. You are risking your money in a deferred account as 401K with nothing for your beneficiaries if you die. And in top of that you, if you think you are smart, lose the tax deduction…:smile:

2. Changing the rules for retirement accounts

Lawmakers aren’t just considering changes to Medicaid – tax breaks for retirement investing could be on the chopping block too. As part of efforts to eliminate tax deductions to fund tax cuts, lawmakers are considering legislation that would charge taxes on money invested in a 401(k) up front, instead of allowing pre-tax contributions .

The idea of ending the up-front tax break for 401(k) investing comes from a 2014 tax plan put forth by Representative Dave Camp. Unfortunately, by taking away this tax savings, lawmakers would reduce the incentive for investing and potentially make it harder for cash-strapped Americans to prepare for retirement.

buying house,

I have to presume you’re referring to traders because an investor who did nothing would have their portfolio double from 2007’s peak (few folds if from 2009 bottom), be it index fund or RE in SV :slight_smile:


These law makers are trying to stop traditional 401k or traditional IRA models, but they support Roth 401k and Roth IRA which is tax free when retires take the money at the end.

In fact, these law makers are - unknowingly - doing a better job promoting Roth !

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Here you go, as hanera said, it is recovered fully now and exceeded in returns. Including the Ups and Downs, S&P index provides 7% return.

Second, do not underestimate the power of 401k. It is too good. The only issue is contributors must be knowledgeable enough to know the investment truth, but mostly swayed by useless news hypes and clownish analysts report.


Don’t forget employer matching which is usually an instant 50-100% return on the first 4-6% you put in.

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