| Are LIRPs good for people who don't need life insurance? |
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Surfing Turtle
Cash: $ 0.00
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Joined: 11 Jul 2004
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| Are LIRPs good for people who don't need life insurance? |
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I'm 50 and a recent widow with some assets I need to invest for my future. I know very little about financial planning so I've gone to a local Edward Jones office and an advisor put together a portfolio for me consisting of:
Mutual funds 90k
Bonds 82k
LIRP Life Insurance Retirement Plan @ $500/month (a tax deferred and tax-free investment, apparently the only investment of it's kind {Hartford})
Annuity $80k
$250k in home equity (the money I'd have left over if I were to sell the house and pay off the note)
I'm concerned, since I don't need life insurance (no children), that my advisor is selling me life insurance for the commission because am I not paying a hefty sum for unneeded life insurance?
Thank you so much for your suggestions/advice.
Last edited by Surfing Turtle on Wed Jul 14, 2004 4:22 am; edited 1 time in total |
Sun Jul 11, 2004 8:08 pm |
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JBendar
Senior Member
Cash: $ 49.60
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Joined: 22 Mar 2004
Location: Woodbridge, New Jersey
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| Re: Are LIRPs good for people who don't need life insurance? |
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quote:
Originally posted by Surfing Turtle
I'm 50 and a recent widow with some assets I need to invest for my future. I know very little about financial planning so I've gone to a local Edward Jones office and an advisor put together a portfolio for me consisting of:
Mutual funds 90k
Bonds 82k
LIRP Life Insurance Retirement Plan @ $500/month
Annuity $80k
$250k in home equity (the money I'd have left over if I were to sell it and pay the note)
I'm concerned, since I don't need life insurance (no children), that my advisor is selling me life insurance for the commission because am I not paying a hefty sum for unneeded life insurance?
Thank you so much for your suggestions/advice.
I cannot give you advice since this falls into the jurisdiction of a licensed Investment Advisor or Certified Financial Planner. It is just my opinion that you are paying too much for the LIRP. Why do you need a life insurance retirement plan when you have all the other assets you mention? Unless you do not qualify for term or whole life insurance policy, there is no need for that type of investment. You are better off redistributing your assets between the bonds, annuity and mutual funds. It is my opinion that your representative is looking out to make money at your expense. I am in the same age bracket as you are (a little older), and would not do this if I were you. Unless you cannot change what you have done already, I would talk to your representative about redistributing your money in the other areas you mentioned.
JBendar 
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Mon Jul 12, 2004 1:04 am |
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nayslayer99
Contributing Member
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Joined: 24 May 2004
Location: OH
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Hello Surfing Turtle,
It does seem a little odd to me that your advisor is suggesting Life Insurance when you do not have any children. I would get a second opinion for sure.
William 
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Wed Jul 14, 2004 4:03 am |
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Sakana
New Poster
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Joined: 28 Jan 2005
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LIRPS are designed for high income individuals who need alternative ways to save money for retirement.The advantage of the LIRP is that you borrow money from the cash value later in life without paying taxes on the gains.This is a common tool used by Doctor's and Business owners who are maxing out their retirment plans, who do no qualify for Roth IRAs due to income restrictions, and who do not wish to have Uncle Sam taking a large chunk of their savings if they have to sell stocks form a traditional brokerage account.
The Edward Jones Representative is under enormous pressure to continue to bring in sales comission so they are selling you a product that you may not need. I advise you to be very careful about purchasing a LIRP unless you get some advice from another qualified individual or tax planning accountant.
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Fri Jan 28, 2005 8:29 pm |
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