A life insurance broker told me that if I put my portfolio in a variable universal life insurance policy it would be a great investment and tax shelter. I was also shown an illustration that my money will grow at 10% a year. Do you believe that a stock market investment will grow at 10% in such a policy? -- Todd C.
Five years after a law to protect U.S. military personnel from salespeople selling life insurance, a new Pentagon report finds problems continue.
I know that immediate income annuities pay a monthly check for life in exchange for a lump sum upfront. But their payments are based on the claims-paying ability of the insurance company behind the annuity. How can I be sure the insurer will make good on its guarantee and that I can count on the annuity's income well into the future, when I'll be most vulnerable? -- Gary H.
Question: Are you familiar with something called a Plan B pension? Is it a legit investment and, if so, how can I sign up? --Lloyd, Decatur, Georgia
Question: I'm 33, make about $150,000 a year and am starting from scratch to plan for retirement. A person close to me wants to sell me life insurance with a cash value feature as a way to save. Can you help me here? What do you think is my best option? --Carlos R., Houston, Texas
After accusations that several insurers have underpaid families of those killed in action, one company is considering changing how it allocates death benefit payments, Prudential Financial Vice Chairman Mark Grier told CNN.
Jason and Amanda Purnell met while getting their Ph.D.s in psychology at Ohio State, married in 2007, and were ecstatic when Amanda became pregnant shortly before they moved to St. Louis last July to be near family. Then they learned that their 22-week-old fetus had Down syndrome. They were shocked -- at 29, Amanda was well below the at-risk age to conceive a baby with this condition. "The first 24 hours, I was inconsolable," she says.
When Joe Phillips was 22, he asked a cute girl named Heather to a Psychedelic Furs concert but stood her up at the last minute -- he had second thoughts about dating a girl who was only 16 and his boss's daughter. Joe and Heather laugh about it now: They got married eight years later, and Joe climbed the ranks in his father-in-law's architectural firm while Heather focused on their four children.
Question: I'm 29, make about $260,000 a year and am thinking about purchasing a house. I was approached by a financial adviser who wants me to invest in an equity indexed universal life insurance policy, which he called a "surefire" way to develop a sizable nest egg that grows tax-free and can also be tapped tax-free via a loan. He suggested that I purchase a house using an interest-only mortgage, which would have lower payments than a regular mortgage, and then invest the difference into the life insurance policy. He also suggested I take out a home equity line of credit on the home and invest the loan proceeds in the insurance policy. He threw around claims like "do what the banks do" and "make money off of borrowed money." I would like to get an unbiased second opinion, so any advice you could give would be greatly appreciated. --Randolph, Northampton, Mass.
Boomers have a well-deserved reputation for living in the moment. We've spent freely on things like travel and technology to enjoy what life offers. Now, nearing retirement and socked hard by the recession, many of us are so behind in our savings that we must rethink our long-term financial goals.
1. It's more coverage than most people need
Question: My mother-in-law, who's in her early 60s, was recently widowed. She now has Social Security and approximately $300,000 from a life insurance policy to live on. She's not comfortable taking on much, if any, risk but she does need to generate income from the life insurance proceeds. Any recommendations for how she should invest this money? --Chris, Atlanta, Georgia
1. Your parents may be getting sold on these
Congress wants to help protect seniors who buy complex investment products that they don't understand or may do more harm than good.
It's Saturday night. Three young women are dressed to the nines at a trendy bistro on Rush Street in downtown Chicago. They're having drinks outside on the kind of summer night that makes you fall in love with the city.
Women account for 64% of the $18.4 trillion spent annually on consumer goods around the world. Pretty soon more women will be working in this country then men. Women already control half the wealth in the United States, and they will be responsible for roughly $5 trillion in additional earned income globally over the next five years. Welcome to the dawn of the female economy.
There's nothing that will make you turn the page faster than seeing this term: 401(k). You've heard the hype: A 401(k) will let you and your employees stow away retirement dough hand over fist and ...
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