Joshua Ricks

I don't know if most people understand the certificates, licensing and appointing process that an agent has to complete in order to be an Financial Advisor. Its actually alot! Due to the high regulations that exist now companies require agents to go through AML (Anti Money Laundering) LTC (Long Term Care) among other courses so that the agent is acting legally and ethically. I think it is good thing! I decided to put a list of some of my active licenses so that you know a little more about me but also so that you know how important the process is. In choosing your FA just make sure that they have an active license and get to learn some of the courses they go through. Knowledge is power and irreplaceable!

Health
GA
Active
7/9/2019
1/31/2021
License

Life
GA
Active
7/9/2019
1/31/2021
Education
ANTI-MONEY LAUNDERING CLASS - BISYS
Life
GA
Active
7/10/2019
12/31/2020
Education
HIPAA AMENDMENT
LONG TERM CARE
GA
Active
7/8/2019

Appointment
TRANSAMERICA LIFE INSURANCE
Health
GA
Active
7/8/2019

Appointment
TRANSAMERICA LIFE INSURANCE
Life
GA
Active
7/8/2019

E&O
WFG LIFE & HEALTH E & O
E&O
GA
Active
7/19/2019

Corp. Affiliation
WFG US ASSOCIATE
US AFFILIATION
GA
Active
5/8/2019

Appointment
WRL/TPLIC
Health
GA
Active
7/16/2019

Appointment
WRL/TPLIC
Life
GA
Active
7/16/2019

Appointment
WRL/TPLIC
VARIABLE LIFE
GA
Active
7/29/2019

So I listened to a man named D. I am not listing this mans name because I'm not here to smear anyone. So a woman called in and asked him what he thought about a Index Universal Life. His advice was to get rid of the policy and instead get a term life and invest in a mutual fund. So with everyone offering free advice it's good to know what the pros and cons are. This is what I am going to do in today's post.

If you look at the last 20 years of mutual funds on average they 4.67% return. The average return helps you to know what the trend would be for future investments. So if you had $30k to invest and the market lost 30% then your $30k turned into $21,000 and then lets say the market gained 40% your money turned to $24k and on average your return on your investment was 5%. So is that 5% good or bad? I would say bad, but people who invest in mutual funds expect to lose a little, the goal is long term!
So D says invest in mutual funds and rent insurance (term)
Why get a term policy? Its basically renting life insurance, no cash value. However it is cheaper and with some terms like the Trendsetter 2 it provides living benefits for things like critical illness which if you have a family history of certain conditions could be a great asset!

So what about an Index Universal Life?
$30k with a lose of 30%...the account guarantees that you don't lose and instead gain .75%. so your $30k turned to 30,225K and then you gained 40% which the accounts says your capped at 15% so your money turns into $34,758. That's a average of 5% but as you can see you got more than 5% return.
So how can the insurance company guarantee you 15% even though in reality the return was 40%? Well since they are guaranteeing you the .75% as a minimum they are taking everything over 15% to protect against downsides. Is that fair? Well personally I like it because I got my 15% and I don't know of very many accounts that you get 15% return.
Is an IUL good for everyone? No!
But why not? It is only good for people who have time to invest, if you are over 55 your most likely trying to get the best investment for your age and unfortunately the older you get the more an insurance product costs. If your young then its a great way to protect your family and earn some risk free interest.
The main thing is find out what you want and need!

All investments are personal and worth your time to investigate!
Everyone have an awesome and prosperous day!