Hey guys,
I did a search and found lots of info on this so I think I already know the answer. However, I felt like I needed to ask in a very specific manner so that I am 100% sure.
My wife and I are in need of assistance in putting together our retirement plan, both financial and legal aspects. I was approached by one of my long time patients as her husband is a financial advisor and since I have known her for a few years I thought it would be a pretty safe bet. Although they sell products we contracted him solely to help us formulate a plan and put together a document that would serve as a template for us moving forward.
We had our first followup meeting with him yesterday and he just kept going on and on about how good an investment WL is, the tax benefits, the dividend, etc. I've heard of this concept of "overfunding" a WL policy as an investment for awhile now. They call it things like "Cash Flow Banking", "Be The Banker", blah blah blah. They speak about it as a relatively unknown investment vehicle of the ultra wealthy. There is even a book about it called "What Would The Rockefellers Do?"
They make a convincing case but when I look online the general consensus seems to be to run screaming from anything involving Whole Life. Upon investigating the people that proselytize this philosophy it seems that they all ultimately stand to benefit financially from selling WL policies.
After re-reading my post the answer to my question seems blatantly obvious but I just have to ask.....
Is there ever a situation where this overfunding of a WL policy as an investment vehicle makes any sense? My wife and I both work, we have no children and no plans to have them, our home is nearly paid off. The life insurance would not be our main reason for utilizing this means of investing. It would primarily be an investment.
Thanks for your help!
Submitted April 20, 2019 at 09:21AM by Scotlac http://bit.ly/2Dm9WhO
