In this episode, independent retirement and asset protection advisor David Truffelman shares insight and recommendations for wealth preservation, cash accumulation, and asset protection strategies.
People pay a LOT of money for advisor consultations, David was gracious enough to give us 40 minutes of some of the best advice you can find, anywhere. Thank you, David!
NOTE: As you read the article, please listen to the podcast above. The podcast is packed full valuable about healthcare insurance, medicare, long term care and IUL’s.
3:30 (Mike) – “There seems to be a growing distrust of insurance agents and advisors, why is that David?”
4:00 (David) – “… it’s not just agents, people don’t trust lawyers, don’t trust accountants … any type of industry, a car dealership, there is a right way and wrong way to do business … people want to do business with people they know, like and trust …”
6:00 (Mike) – “Why are the online self-service channels capturing such a large share of the insurance business?”
7:00 (David) – “Part of it is the evolution of the internet … years ago, people had no internet, no quoters … people just want to be more in control of their own business … just because it’s easy does not mean it’s better …
9:30 (Mike) – “The online channels are great for convenience, but if a consumer wants to find the absolute best policy for their dollar – what do you recommend for that consumer?”
9:30 (David) – “Referrals are the best, ask friends, ask families … investments and insurance, it’s not one size fits all, everything has to be tailored to your needs … the key is to find someone to ask you the right questions … “
11:30 (Mike) – “Let’s breakdown age groups .. What do you recommend for life and annuity for the age group 0-18 years old?“
11:45 (Dave) – “Most people don’t think that a 2 year needs life insurance, and they are right. But, many people do not realize there are other uses for life insurance … you can set up indexed universal life policies for the children that can ask as tax-free funding for college education … start your kids off with something that they can fund the rest of their life … image paying for your college tuition, a down payment for a car or a house and not having to do a credit check because you have the money and it’s yours …”
14:30 (Mike) – “What do you recommend for 18 to 30 year-old people?“
15:00 (David) – “… this demographic is difficult, we are trying to convince young people that feel they are invincible to buy protection … but, it’s so important to start funding your retirement early … people should have a balanced portfolio, max out your companies 401K match, some stock, and some bonds and if you don’t have an IUL you should start one …”
17:00 (Mike) – “How can you help 25-30 year-old people prepare ahead of time for life events like marriage, having children, buying a house?”
17:30 (David) – “You are rarely going to be able to convince someone in that position to buy protection … On the other hand, Indexed Universal Life, is something that makes sense because the goal is to purchase the least amount of insurance and have the most amount of cash accumulation and growth …”
19:15 (Mike) – “So, if a 25 year old purchases an IUL early in life for cash accumulation and low death benefit, can you adjust or rellocate the policy over time for more death benefit?”
19:45 (David) – “I have ran some cases with the Securian Long Term Care IUL, what are your thoughts about that policy?”
20:10 (David) – “In your younger years, your cost of insurance is really low, so you can maximize your cash growth … also, with IUL your floor will be 0, meaning that if the markets takes a dive like 2001 or 2008, you can’t lose money … Also, IUL’s are very flexible, they can be built so you don’t have to pay your premiums …”
22:20 (Mike) – “So, this is unlike a whole life policy where you are locked in?”
22:30 (David) – “There is none, no flexibility … If you miss a payment, the policy lapses … You can’t increase the death benefit or lower the premiums …”
21:45 (Tasha) – “People don’t realize that they have to take time off to manage when someone passes, my mother had to take a year off to manage my uncle’s farm …”
22:30 (Mike) – “What would you recommend to a 25 year professional with some disposable income, to prepare for tomorrow?”
23:00 (David) – “… I would recommend an IUL … I can’t LOSE money, I have a zero floor … A lot of IUL’s have a gain, 10-15% during the good times … I can take this money out – TAX FREE …”
23:30 (Mike) – What do you recommend for people ages 30-45?”
23:45 (David) – “A blended approach can be very popular, it’s likely you will need a lot of coverage. The cost of insurance is still relatively low so purchase a high face value term policy. Then start funding or continue to fund an IUL.”
25:50 (Mike) – “Next age bracket, age 45-60. David, what do you recommend?”
26:00 (David) – “This is a grey area, if you have not done anything yet it’s tough. You really do not want to be paying premiums past the age of 70 … Funding an IUL is difficult unless you have a lump sum. The cost of term is getting very expensive … Your priorities shift and you start thinking more about retirement … Annuities are an option to eliminate your market risk and to leave the benefit to your heirs, tax free …”
31:00 (Mike) – “Next age bracket, 60-85. David, what do you recommend?”
31:15 (David) – “Between ages of 60-85, I don’t want to say you are out of luck but it’s very difficult … You are mainly looking at final expense or smaller face value whole life … You are looking more closely at annuities at these ages.”
33:00 (David) – “Between ages of 60-65, you are getting ready to retire, the last thing you want is to lose. Another 2001 or 2008 can devastate your life savings.”
34:45 (Mike) – “What is the penalty for moving money from a 401K to an annuity?”
35:00 (David) – “A penalty happens when you move money out of a qualified plan, but you can rollover your 401K to an IRA or an annuity within your qualified plan without penalty – we do this all the time.”
39:30 (Mike) – “Okay David, you have knocked it out of the park talking about IUL’s and annuities, let’s take you for a test ride. I am going to build a strawman case for you, we would LOVE to hear your recommendation for this case; “MIDDLE AMERICA, 40 YEAR OLD MAN, WIFE, 2 KIDS (4 AND 6), RECENTLY BOUGHT A NEW HOUSE AND HAS $100 PER MONTH DISPOSABLE INCOME FOR INSURANCE AND RETIREMENT FUNDING. WHAT DO YOU RECOMMEND?“
40:00 (David) – “I would use a blended term and IUL strategy … ” LISTEN TO DAVID, THIS IS REALLY GOOD!!
David Truffelman – David is a wealth and retirement advisor at i10 Research in the state of North Carolina and can be reached at 919-376-7306.
Michael Lucy – Michael is a licensed life/annuity agent and broker in Michigan and Colorado and specializes in whole life, term life and IUL’s (indexed universal life). You can email Mike at email@example.com, or reach him by phone or text at 734.288.8323.