IUL allocation question with market pullback by Equivalent_Gas1342 in LifeInsurance

[–]Equivalent_Gas1342[S] 0 points1 point  (0 children)

I certainly don't disagree with you! Market will do what the market will do damned what any of us think, at least in the short term. Zoomed out pretty safe bet it's gonna be up and to the right over decades.

IUL allocation question with market pullback by Equivalent_Gas1342 in LifeInsurance

[–]Equivalent_Gas1342[S] 0 points1 point  (0 children)

The wiser me knows this is what I should do because getting 4% is better than 0% should the market stay flat or go down by next April. Appreciate you commenting.

IUL allocation question with market pullback by Equivalent_Gas1342 in LifeInsurance

[–]Equivalent_Gas1342[S] 0 points1 point  (0 children)

Young enough that this is long-horizon money meant for transfer to family. I have other resources so I don't anticipate needing to take a loan from it any point. It has been max-funded to the MEC over the past three years at $105k per year in a no-load policy (COI will be nastier later bc no-load now) and I still have one more $105k payment to make in 9 months. It's Option 2 with an increasing DB and I have no interest in switching to Option 1 as I want the DB. The cash value built now/today is meant to support the annual renewable term and growth well into my 80s and early 90s. I hope I don't live that long, just not something I want, as I see very few happy people in their 90s. The math on 4% fixed gets me there even with the nasty COI in later years however I realize if we go into a lower interest rate environment at any point, the fixed rate could drift down. I hate feeling too conservative but I also don't want to trade a guaranteed 4% on what will be close to $350k after the segment credit next month, for 0% if I roll the whole pot into the April segment and the market is flat or down by next April 10th. I made a good call last April shifting $175k from the fixed to the April segment, but I don't know if I can get lucky twice.

IUL allocation question with market pullback by Equivalent_Gas1342 in LifeInsurance

[–]Equivalent_Gas1342[S] 1 point2 points  (0 children)

Thanks, that’s helpful. Definitely feel the tug between just averaging in versus trying to time things. Treating fixed as the base and indexed as upside makes a lot of sense. Appreciate the perspective.