I know places such as this and reddit despise any time of life insurance as an investment, but I wanted to get thoughts on something that was brought to my attention - The Rich Man's Roth.
The advisor was straight up with me and was fully transparent that in the first 10 years of the plan the fees are insane. However because of the company after ten years a persistency credit begins and after 20 years of the credit being applied it averages out to approx. a 1% fee over the span of the policy.
When you pull out the money you can borrow against it so it's 'tax free' and the 1st ten years is 3% and then 2% after that which comes out to almost a wash after what I can't remember - The Net Zero Loan pretty much.
This seems to be different from a lot of just whole life policies with the credit and investing strategy.
Does anyone have any experience with these types of policies, any further information for me to look at or fact based answers on why this is good or a scam?
The advisor was straight up with me and was fully transparent that in the first 10 years of the plan the fees are insane. However because of the company after ten years a persistency credit begins and after 20 years of the credit being applied it averages out to approx. a 1% fee over the span of the policy.
When you pull out the money you can borrow against it so it's 'tax free' and the 1st ten years is 3% and then 2% after that which comes out to almost a wash after what I can't remember - The Net Zero Loan pretty much.
This seems to be different from a lot of just whole life policies with the credit and investing strategy.
Does anyone have any experience with these types of policies, any further information for me to look at or fact based answers on why this is good or a scam?
Statistics: Posted by 36E — Tue Mar 12, 2024 8:48 pm — Replies 0 — Views 92