Comments on: Fun with Excel

By: Jason Van Steenwyk

Jason Van Steenwyk — Sat, 04 Jul 2009 03:02:24 +0000

Ach! My name was evoked! An insurance and personal finance discussion, and I MISSED IT!!!

For what it’s worth, I’d probably recommend something completely different. For someone in your position, term insurance is like wetting the bed: It gives you a warm sense of relief at first. But it doesn’t last too long, leaves a rash, and begins to stink eventually. You’re going to have to do something about it.

You won’t hear about this stuff on TV, but my thinking is along the lines of this guy: http://www.amazon.com/Leap-Lifetime-Economic-Acceleration-Process/dp/0977117103

I didn’t learn it from him, but from a combination of other really first-rate advisors with some serious candlepower. Which, of course, makes them totally unintelligble to the cub reporters in the financial media.

Find an insurance professional you trust, who works for a solid MUTUAL life insurance company, and ask him to show you a combination term/permanent insurance solution. Ask him to show you one that’s guaranteed paid up at age X (whenever you want to quit working), and one that’s projected to pay for itself as soon as possible. Ask him to show you what’s possible if you overstuff that policy to the MEC limit.

You may find that on an after tax basis it outperforms anything allocated to bonds in your 401k or TSP… especially if you think income tax rates will be higher. I wouldn’t be afraid to use that money… which of course frees up more space in your tax-qualified plans for risky investments. Or safe ones if you prefer.

Or drop me a line.

Jason

By: Mark

Mark — Thu, 02 Oct 2008 00:27:44 +0000

If you are still looking, I suggest you look at Navy Mutual Aid (www.navymutual.org) for a very flexible level term program. No aviation exclusion and one of three rates depending on various risk factors. They beat USAA’s rates for me a few years ago. I think you can get a quote online through their website.

By: lex

lex — Mon, 29 Sep 2008 14:27:08 +0000

No, I took the max 55% policy. Tax free, seemed a no-brainer.

And it kept the total insurance amount down to a reasonable level.

I’ve got spreadsheets for all of it

By: midwatchcowboy

midwatchcowboy — Mon, 29 Sep 2008 14:01:41 +0000

So, Lex, I guess you took a pass on SBP. Seemed to me (retire ’09, wife 12 yrs younger, kids 3, 1) to be a no brainer. Especially since the benefit grows over time. Do I need to break out Excel?

By: Mike Loper

Mike Loper — Mon, 29 Sep 2008 00:05:55 +0000

with reference to #17, concerning LTC insurance. You may clearly state your wishes, but if you need long term “care”, you still have to find a way to pay for it. Respectfully, am I missing something here. Self-insuring and paying out of pocket is not the best financial strategy, having LTCi is a reisk adverse strateg, are they better way?
Regards,
Mike

By: Kris, in New England

Kris, in New England — Sun, 28 Sep 2008 19:48:21 +0000

all the Lex Babes might start mistaking you for a geek with nothing better to do and forget your high-flying, naval-aviator coolness.

I dunno Fuzzy. I thought you had to be more than a bit of a geek to actually be a naval-aviator. It seems like it would go with the territory.

I bought my life insurance long before a diagnosis of severe asthma. I’m glad about that – would not want to analyze the premiums now. Even if I could understand what Lex did above; my head kinda imploded a bit.