|
Kylaer posted:Never get whole life insurance. This is what I have been inclined to believe for years, as every time someone has tried to talk to me about whole life, they were suddenly trying to sell it to me.
|
#
?
Oct 26, 2020 03:53
|
|
|
|
| # ? May 28, 2024 19:05 |
|
|
You want term life insurance. What you're insuring against isn't your death - sad as it is, that's guaranteed to happen. Instead, what you're insuring against is dying early, before you can get your kids' upbringing and college funds paid for, your mortgage (if you have one) paid off, and retirement funds for your wife well established. Term life is actually insurance, that covers the unlikely but extremely serious risk that you can't provide for your family before you've established some measure of independence for them. You should be able to pick a number of years, a dollar figure, and then just shop based on those. Whole life is a weird amalgam of investment and insurance that has a lot of moving parts and doesn't work particularly well for either case. Life insurance through your employer can be a nicely priced benefit, but don't depend on it. If you lose your job, then you probably lose your life insurance - in the best case, you only get to convert it into an individual policy with no opportunity to shop on price.
|
|
#
?
Oct 26, 2020 03:55
|
|
|
Space Gopher posted:You want term life insurance. What you're insuring against isn't your death - sad as it is, that's guaranteed to happen. Instead, what you're insuring against is dying early, before you can get your kids' upbringing and college funds paid for, your mortgage (if you have one) paid off, and retirement funds for your wife well established. Term life is actually insurance, that covers the unlikely but extremely serious risk that you can't provide for your family before you've established some measure of independence for them. You should be able to pick a number of years, a dollar figure, and then just shop based on those. Whole life is a weird amalgam of investment and insurance that has a lot of moving parts and doesn't work particularly well for either case. This is the conclusion that I was leaning towards. Forget about Whole, shop for a solid Term, and use my job’s benefit as a supplement to that. So I’m thinking of shopping for a $1M policy to cover me until my mandatory retirement age of 65. Any leads on reputable providers?
|
|
#
?
Oct 26, 2020 04:00
|
|
|
Term4sale.com is the place to search and they have the provider ratings too I believe.
|
|
#
?
Oct 26, 2020 04:37
|
|
|
moana posted:Term4sale.com is the place to search and they have the provider ratings too I believe. Thanks for that. I'll get a few quotes from the top providers. I applied at Haven Life and they require a medical exam. I feel officially old.
|
|
#
?
Oct 26, 2020 04:50
|
|
|
Animal posted:I don't know if this is the right thread for it, but I need advice on life insurance. Some background. I'm pretty healthy, if a little unfit (normal Goon with dad bod). Non smoker, occasional drinker. No underlying health conditions that I am aware of. I'll be 39 in June, spouse is same age, and we had a baby in 2020 (what a year). I maxed out all of my tax advantaged accounts in 2020, and am set to do so again in 2021. My income is low six figures. No significant debt. I am currently life insured through my company's benefits for a total of $700k for "normal" death, and $800k for accidental death and dismemberment. I don't feel like this is enough. I wanna set up my wife and daughter so that they don't have to struggle financially for the foreseeable future, so I think I'd like to leave them at least $1,500,000 total and instruct my wife to withdraw no more than 6% of that until she is able to get back in the workforce, then 4% of that a year in perpetuity. There are a bunch of carriers out there. Check their credit rating. I believe ours is through the much maligned AIG. I believe I got about 5 quotes with one being through lifequotes.com which fanned out to a dozen or so, including duplicates. Make sure you are looking at annual payments, most of these companies try to quote it monthly which includes a big surcharge. (Think: $500/year or $550 if paid quarterly, $600 paid monthly.) When you say "mandatory retirement" at age 65 - do you work for the government? Is there a pension on the other side of this? For your work insurance - if you're paying extra for it look into "portability". If you cannot port it, dump it and use the premium towards your term life. If you can port it, price shop it to your term life people, and then probably dump it. If it's just "free with job" insurance then yeah keep it, but I wouldn't rely too heavily on it unless you have some kind of government job that is hard to fire you from. Remember that one of the outcomes should you actually die is that you weren't able to work leading up to your untimely demise, were fired, and no longer have that insurance. To put some perspective on $80/month for "whole life" - I as a 35 year old male (at the time) with similar conditions as you indicated (little fat, asthma, never smoked) got $1MM 20year term for $684/year. Once you decide on a carrier you're going to want to do the medical exam including blood draw. It's how you get the best rates. I rated "super premium" because I was under their BMI threshhold and my asthma was well controlled.
|
|
#
?
Oct 26, 2020 14:41
|
|
|
Don't know if this is where this question belongs, but is a will necessary if I don't have much physical assets? Almost all my assets are in my retirement/bank accounts, and I have put my wife down as beneficiary for those accounts. Outside of those, my largest assets are my car and laptop. If I've already put my wife down as beneficiary, what additional benefit would a will provide?
|
|
#
?
Oct 26, 2020 15:34
|
|
|
H110Hawk posted:There are a bunch of carriers out there. Check their credit rating. I believe ours is through the much maligned AIG. I believe I got about 5 quotes with one being through lifequotes.com which fanned out to a dozen or so, including duplicates. Make sure you are looking at annual payments, most of these companies try to quote it monthly which includes a big surcharge. (Think: $500/year or $550 if paid quarterly, $600 paid monthly.) When you say "mandatory retirement" at age 65 - do you work for the government? Is there a pension on the other side of this? I’m an airline pilot and our retirement age is a federally mandated 65 years old. I won’t have a pension, but I do get a decent 401k match, and am hoping for a good 10-15% straight 401k contribution on our next contract. That plus me maxing out my 401k, Roth, and HSA, and putting $350 a month on my daughters 529 college savings. I hope that if I pass away in my late 50’s to have enough money saved to offset the diminished payout of the life insurance due to inflation. I get a “free” $200k through my job and then I pay for a supplemental $500k. It’s through The Hartford. They only offer insurance through employer benefits, so probably not very portable but I’ll call them. I’ll look into that and strongly consider cancelling the supplemental option and putting the money towards a $2M Term Life on my own. Makes sense. Thank you!
|
|
#
?
Oct 26, 2020 15:47
|
|
|
My additional advice for the term life insurance is to shop around a bit, even through the independent medical exam part. I'd get 2-3 full quotes and exams. I was surprised at the wide range of pricing which varied by as much as 1/3. Also, for you where you're almost 40, price out and think through what term makes sense and compare 15, 20, and 25 years. The biggest concern is that you drop dead next week with those big financial obligations unfulfilled. If you kick it at 60, well your house is closer to all paid off, you get the benefit of 20 years of inflation on that mortgage payment, college saving is complete or close to it, and your retirement funds are about where they're going to be. So how much money would your family really need at that point? The time when you're 60-65 is the most expensive to insure. Fuzzie Dunlop fucked around with this message at 16:47 on Oct 26, 2020 |
|
#
?
Oct 26, 2020 16:45
|
|
|
Fuzzie Dunlop posted:My additional advice for the term life insurance is to shop around a bit, even through the independent medical exam part. I'd get 2-3 full quotes and exams. I was surprised at the wide range of pricing which varied by as much as 1/3. This makes sense. I think that if everything goes well I should be ready to retire at age 60. Haven Life only does 20 or 30 years, so I’m gonna get quotes for both terms and choose 20 years if it’s significantly cheaper. Like you said, I hope that at that point in life our net worth will be such that my family can keep trucking. I’m also gonna shop for other companies. The problem is that some companies add extra fees for pilots or downright refuse to cover you for an aviation related death. I’m gonna narrow it down to a top 3 and get quotes from them. Apparently some of them are fine with using the results from the medical exam you took with a different company.
|
|
#
?
Oct 26, 2020 16:58
|
|
|
Animal posted:I’m an airline pilot and our retirement age is a federally mandated 65 years old. I won’t have a pension, but I do get a decent 401k match, and am hoping for a good 10-15% straight 401k contribution on our next contract. That plus me maxing out my 401k, Roth, and HSA, and putting $350 a month on my daughters 529 college savings. I hope that if I pass away in my late 50’s to have enough money saved to offset the diminished payout of the life insurance due to inflation. Fuzzie Dunlop posted:My additional advice for the term life insurance is to shop around a bit, even through the independent medical exam part. I'd get 2-3 full quotes and exams. I was surprised at the wide range of pricing which varied by as much as 1/3. Gotcha - Price shop it. I would call through and just ask what their rates are in each teir rather than getting stabbed 3 times by a nurse especially in covid times. Any company which refused to show me their prices on each tier with a reasonable "before I get jabbed in the arm I would like to know that I would intend to purchase it if I qualify" was tossed in the bin. It wastes their time+money and my time+health to get unnecessary venipuncture. Given you are 39 I wouldn't suggest looking at 30 year terms anymore, stick to 10/15/20's. As the other poster said, your needs for life insurance decline with time, by the time you're 60 you shouldn't need much at all. You could potentially buy a 10 year + 20 year policy. Call your home owners insurance company and just ask for quotes on 10/20/30, standard and whatever their top tier is, non-tobacco. Given 30 will put you to 69 brace yourself for the astronomical premium - it's just to give you an idea of the scale of the insurance companies view of your actuarial mortality risk. Buy below that risk curve if at all possible for your situation. Also given you are an airline pilot I wouldn't hold out for an improved contract at work right now given the extremely low volume of flights. Bankruptcy court is the ultimate union buster. That also doubly shows why you need to not be beholden to work for your life insurance. I understand you likely have a lot of seniority and hopefully you're flying iphones in from china, but still, I do not envy you right now.
|
|
#
?
Oct 26, 2020 18:11
|
|
|
H110Hawk posted:
Got it, gonna shop for 20 years. Maybe 25 years if they offer it and it’s not too much more. My airline is doing great it generally profits from war and crisis and chaos. If chemtrails were real, we’d have that contract. Our profits are up significantly, we even got an advance 10% pay bump during COVID. We’re likely to see modest improvements in the contract as we’re overdue for one, are growing, and management is gonna try to lure in pilots from other companies that are furloughing or closing shop. I’m not gonna go into too much detail but if it goes into arbitrarion, even a management friendly arbitrator is gonna push for improvements. For now the future seems bright enough, though I am aware that it’s a volatile industry. Which is why I keep a 1 year emergency fund, a well funded HSA, no debt, and one of the reasons I’m shopping for life insurance outside of what my employer provides. Trying to set our finances to be on autopilot even if the worst materializes. The only thing that makes me anxious about my plans is that we are not homeowners and though we’d like to be we haven’t found a town or city in the whole country that unanimously calls to us to plant roots, but we’re looking. For now I’m gonna start saving for a 20%+ down payment on a 15 year mortgage.
|
|
#
?
Oct 26, 2020 18:48
|
|
|
Kylaer posted:Never get whole life insurance. Yeah, my parents have whole life insurance and I fully expect to never see a penny from it.
|
|
#
?
Oct 26, 2020 19:02
|
|
|
Animal posted:Got it, gonna shop for 20 years. Maybe 25 years if they offer it and it’s not too much more.  Glad to hear you aren't impacted and the military industrial complex is alive and kicking.I've been teaching my kid that contrails are chemtrails much to the aggressive eye rolling of my wife. (He accepts this without explanation because he's 4 and I can't wait for a teacher to correct him.) 
|
|
#
?
Oct 26, 2020 19:30
|
|
|
H110Hawk posted:I've been teaching my kid that contrails are chemtrails much to the aggressive eye rolling of my wife. (He accepts this without explanation because he's 4 and I can't wait for a teacher to correct him.) I have bad news for you.
|
|
#
?
Oct 26, 2020 19:43
|
|
|
water ice is a chemical
|
|
#
?
Oct 26, 2020 23:57
|
|
|
So I pretty well know the answer to what I'm about to post but I'm interested in any contrary opinions since we are living in ~extraordinary times~ My wife and I are joint/sole owners of an S-Corp and are doing the majority of our retirement saving via a SEP IRA. Since our income is variable, and thankfully doing quite well on growth, our monthly contributions will leave us with quite a bit more money to put in for end of year maxing (or close to) purposes. The monthly contributions have been getting socked into long term high growth funds every month. Our big contributions I plan to put in within the next 2-3 weeks. Given COVID/stimulus/election stuff that could produce another stock market tank event - might it be prudent to leave the money in the "CASH" category of our SEP accounts say through inauguration next year? The answer of course is "don't time the markets" but since I got lucky with my ROTH contribution this year being just shy of the low point, maybe I can time things again?
|
|
#
?
Oct 27, 2020 01:57
|
|
|
Bitch you know the answer (I don't think you are a bitch, I am sorry for the harsh language)
|
|
#
?
Oct 27, 2020 01:58
|
|
|
tangy yet delightful posted:So I pretty well know the answer to what I'm about to post but I'm interested in any contrary opinions since we are living in ~extraordinary times~ There is no problem with withholding money going into your retirement investments to beef up your emergency savings if you feel like you are entering a risky few months. Obviously don't try to time the market, but there's a difference between trying to time the market and increasing emergency funds.
|
|
#
?
Oct 27, 2020 02:37
|
|
|
Don't time the market.
|
|
#
?
Oct 27, 2020 03:02
|
|
|
Nitrousoxide posted:There is no problem with withholding money going into your retirement investments to beef up your emergency savings if you feel like you are entering a risky few months. To clarify this would be cash in the SEP account, unrelated to short term emergency fund money. Still of course, I should not attempt to time the market.
|
|
#
?
Oct 27, 2020 03:31
|
|
|
Kylaer posted:Don't time the market. This.
|
|
#
?
Oct 27, 2020 03:31
|
|
|
Kylaer posted:Don't time the market. 
|
|
#
?
Oct 27, 2020 03:36
|
|
|
I already said the important thing to say, but to back it up with my own personal market timing story, I made my first ever IRA contribution at the beginning of 2008. Right before the market crash. To my credit I didn't touch what I'd put in (a few thousand in a Vanguard target fund), but I was sure, absolutely sure that the U.S economy was a house of cards, that the recovery was a sham, and that the other shoe was about to drop any day now. Because of the strength of my conviction, I didn't invest anything more until the beginning of 2016  Granted, during those years I had very little money to invest, but any dollar I'd been able to throw into my IRA would have shown huge performance by the present date. But no, not one single dollar did I invest. Don't time the market.
|
|
#
?
Oct 27, 2020 03:38
|
|
|
waiting until 65 to retire is timing the market, when you really think about it
|
|
#
?
Oct 27, 2020 07:02
|
|
|
In full thread disclosure I'm not going to buy any retirement funds until Nov 10th, so I'm timing the market for like 14 days or whatever that is but then I promise I'll buy and hold 
|
|
#
?
Oct 27, 2020 07:04
|
|
|
coward
|
|
#
?
Oct 27, 2020 07:17
|
|
|
fart simpson posted:waiting until 65 to retire is timing the market, when you really think about it It's really just buying a really big call on the stock we call life. People who live fast and expect to die young are just buying puts.
|
|
#
?
Oct 27, 2020 16:47
|
|
|
fart simpson posted:waiting until 65 to retire is timing the market, when you really think about it Dying young is a concentrated position.
|
|
#
?
Oct 27, 2020 23:46
|
|
|
Where does 401(k) spillover post-tax money usually go? We're lazy and just plow money in to our 401(k). My wife's contribution is set such that it maxes out early, and when reviewing our withholding status we discovered that my wife's retirement account never got the memo to quit contributing when she maxed out (pretty confident we did this, because I remember showing her where to do it on Fidelity's site, but oh well). So now she's got at least a few hundred now in a Fidelity after-tax account, or at least after-tax money in her 401(k). We changed the setting so it should correct itself in the next paycheck or two, but depending on how long it takes we could end up with $1500+. Also, can this typically be reversed, or is it done? We'd much rather have the cash, since that's how our budget is set up, and if we were going to continue contributing more it'd be going to an IRA. I mean it's a few hundred bucks (for now) so it's not a big deal, but it's "different" money that we need to track separately and might gently caress around with future rollovers and whatnot, so it's going to be a hassle. DaveSauce fucked around with this message at 13:50 on Oct 28, 2020 |
|
#
?
Oct 28, 2020 13:45
|
|
|
do you have the 401(k) set up to max out early for some reason? the only reason i can think of to do this is you get some small incremental time in market, but i generally don't think it's all that useful rather than just set, forget, and have the pay checks come in at the same size every month
|
|
#
?
Oct 28, 2020 13:56
|
|
|
It's not set that way intentionally, but raises/bonuses are unpredictable so it just happens unless we constantly monitor and adjust contribution percentages. It's just easier to ballpark such that it will max out as close to the end of the year as possible (given a certain income), and then and not worry about it if bonuses/raises make it max out earlier. edit: and the more I think about it, I'm PRETTY sure this didn't happen last year, so they must have reset that somehow? Or if it did we didn't notice, so now we'll have to dig in more... DaveSauce fucked around with this message at 14:10 on Oct 28, 2020 |
|
#
?
Oct 28, 2020 14:03
|
|
|
Can you set a flat 401(k) contribution for each paycheck? It's an easy $750/pay period for someone filing solo who gets paid biweekly.
|
|
#
?
Oct 28, 2020 14:32
|
|
|
Don't think so, but I haven't dug in enough to check. But in any case, we know how to prevent spillover, but for some reason this year it didn't take (either we hosed up or they reset our preferences). So changing our contributions isn't the issue, it's figuring out what (if anything) we can do with the after-tax spillover that has already happened.
|
|
#
?
Oct 28, 2020 14:37
|
|
|
Nitrousoxide posted:Can you set a flat 401(k) contribution for each paycheck? It's an easy $750/pay period for someone filing solo who gets paid biweekly. I have only ever seen places put a percentage option but a dollar value would be nice. I max mine out in the first 6 months of the year. I can afford to do it, work stops it automatically, we get matched once a year so that doesn't matter.
|
|
#
?
Oct 28, 2020 14:56
|
|
|
spwrozek posted:I have only ever seen places put a percentage option but a dollar value would be nice. This is my experience as well. Usually just whole integer percentages, too. Hell, at my first job it was 2% increments only (I remember because I had massive student loans so I tried to do 1%, but couldn't). I would imagine it makes math easier for matching and whatnot, or they do it so people who are only concerned about match don't have to do math.
|
|
#
?
Oct 28, 2020 15:03
|
|
|
Interesting. We don't have 401(k) and medical insurance deductions from our bonuses because we receive separate (electronic) checks for bonuses, but I can see how if it was rolled in to your normal check that would mess things up. edit: we get matched monthly and although there is a true-up, there have also at times been special 401(k) matches during the year for various reasons which are good to be able to take advantage of. KYOON GRIFFEY JR fucked around with this message at 15:20 on Oct 28, 2020 |
|
#
?
Oct 28, 2020 15:18
|
|
|
Really? Every place I've worked has had separate checks for bonuses, but even so 401(k) always came out of it. No premiums for any benefits, but definitely retirement savings.
|
|
#
?
Oct 28, 2020 15:21
|
|
|
We switched from a humane, normal system that would allow you to enter fixed dollar amounts which made sense, to an awful one where we have to use percentages. And our bonuses are several times per year and variable. Bleh, at least it just goes to Vanguard.
|
|
#
?
Oct 28, 2020 15:32
|
|
|
|
| # ? May 28, 2024 19:05 |
|
|
KYOON GRIFFEY JR posted:do you have the 401(k) set up to max out early for some reason? the only reason i can think of to do this is you get some small incremental time in market, but i generally don't think it's all that useful rather than just set, forget, and have the pay checks come in at the same size every month It's mental accounting but I find it nice to have larger than normal paycheques during the holiday season. Though were it to cause these kinds of headaches, I'd stop. For now, I'm immune because my employer cut the 401k match just as I was becoming eligible.
|
|
#
?
Oct 28, 2020 15:35
|
|
