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How Can We Plan With Ever-Increasing Retirement Targets???

David H. Kinder, RFC®, ChFC, CLU

Jan 29, 2020
2 min

How Can We Plan With Ever-Increasing Retirement Targets???

A couple months ago, there was this article: How much you’ll need to invest each month to retire with $5 million at age 20, 30, 40 and beyond Then today, there is this article: Retirement dreams: $3 million is the new $1 million Do you know who CAN'T save that much? Middle Income American families. They live in a completely different world than those who CAN save this much. These families are more concerned about having money, paying their bills today, and having a decent r

Do you think the Government knows what Einstein knew? Does your fiduciary securities advisor know?

David H. Kinder, RFC®, ChFC, CLU

Jan 25, 2020
4 min

Do you think the Government knows what Einstein knew? Does your fiduciary securities advisor know?

Albert Einstein defined the 8th wonder of the world: Compound Interest. He further states: "He who understands it, earns it. He who doesn't, pays it." I've got one minor correction to make to Einstein's statement: Uninterrupted compound interest is the 8th wonder of the world. I'll expound on that later. But my question to you is this: Do you believe the Government knows this? They do. What happens when you earn interest in a taxable account? You are taxed on it. What

Opinion: How to choose a financial professional?

David H. Kinder, RFC®, ChFC, CLU

Jan 24, 2020
3 min

Opinion: How to choose a financial professional?

LOTS of opinion articles on this topic. The angle of most of these articles is as though you're on a "Tinder for Financial Advisors" and all you're doing is 'swiping right' all the time to try to select "the perfect advisor for you". Most have their biases in their articles, particularly by credential-issuing organizations. Here is the CFP Board's Ten Questions to Ask Your Financial Advisor. Here is The American College Ten Considerations for Choosing a Financial Profession

Do you have Death Insurance? Or Life Insurance? What's the difference?

David H. Kinder, RFC®, ChFC, CLU

Jan 23, 2020
3 min

Do you have Death Insurance? Or Life Insurance? What's the difference?

In my professional opinion, term insurance (and group insurance through employers)... is Death Insurance. It only has one benefit: a death benefit IF you pass away during the term and while the policy is in-force. However, calling it "death insurance"... well, it wouldn't sell much, would it? So they call it LIFE insurance so agents and companies can SELL it. As we hear the advice of financial securities advisors who focus on investments and rates of return in their plannin

"We want your money here. We just happen to call it 'planning'."

David H. Kinder, RFC®, ChFC, CLU

Jan 20, 2020
4 min

"We want your money here. We just happen to call it 'planning'."

A few years ago, I was with a large credit union as a junior financial advisor. At the time, we did financial seminars in our credit union branches. There was one particular seminar when the senior advisor was introducing our guest speaker and he said: "We want your money here." There's nothing inherently wrong with saying that, right? That's simply saying that we want to earn your business. That's a sign of ambition and that we want to welcome your business. However, th

What do annuities contractually solve for?

David H. Kinder, RFC®, ChFC, CLU

Jan 18, 2020
4 min

What do annuities contractually solve for?

This is an article by Stan "The Annuity Man" Haithcock, who has written several books on the topic of annuities. I will also add some additional comments because the article isn't complete and has a couple of inaccuracies, but I like the overall message. Original Link: https://www.thestreet.com/annuityman/annuity-man-articles/what-do-annuities-contractually-solve-for Annuities are contractually guaranteed transfer or risk strategies Annuities are contracts between you and th

Life Insurance Myth 4b: "I can get cheaper whole life with 'vanishing premiums'."

David H. Kinder, RFC®, ChFC, CLU

Jan 15, 2020
3 min

Life Insurance Myth 4b: "I can get cheaper whole life with 'vanishing premiums'."

This post is an extension of my previous post regarding UL/IUL ongoing expenses, and I primarily talked about the funding levels being the main differentiation. https://www.dynamicadvancedwealth.com/post/2018/10/17/life-insurance-myth-4-the-costs-of-insurance-in-a-ul-or-iul-policy-will-grow-too-expensiv Whole life zealots LOVE to use these sales tactics of the 1980's as a way to hold up whole life as the "superior choice". And I'd like to bring up another term: "Vanishing Pr

Fiduciary Securities Advisors are often very closed minded

David H. Kinder, RFC®, ChFC, CLU

Jan 14, 2020
1 min

Fiduciary Securities Advisors are often very closed minded

The following screen-shots are taken from a LinkedIn thread discussion just held today. Names and faces have been blocked. Okay, so you can see how the conversation went. I blocked the names and faces to protect their identities. Here are the two videos that I had referenced: Now, I'm not in the business of changing everyone's beliefs... but I don't mind getting into a challenging conversation about what people believe about the proper use and utilization of mortgages. H

"The Government giveth and the Government taketh away"

David H. Kinder, RFC®, ChFC, CLU

Jan 7, 2020
1 min

"The Government giveth and the Government taketh away"

InvestmentNews: "The "Stretch IRA" is dead." - Ed Slott, CPA PDF copy of article: <click here> You might ask "What is a Stretch IRA"? The "stretch" IRA was a way of growing an IRA to pass from generation to generation... while only using required minimum distributions to provide generational "wealth". Why did the Government decide to end this? It's quite simple really. They're spending too much money and they don't want retirement balances to grow too much without the Govern

Review: PBS: Teresa Ghilarducci: Why the 401(k) is a “Failed Experiment”

David H. Kinder, RFC®, ChFC, CLU

Dec 11, 2019
6 min

Review: PBS: Teresa Ghilarducci: Why the 401(k) is a “Failed Experiment”

Original link: https://www.pbs.org/wgbh/frontline/article/teresa-ghilarducci-why-the-401k-is-a-failed-experiment/ PDF copy: <click here> This article was a SCATHING review on the entire path of America's retirement savings systems. I couldn't have written something better... aside from their ending conversation and ultimate conclusions. I'll post some of the larger quotes of the article, and then I want to go a bit deeper into it. I read the article, but sometimes reading a

How To Manage Your Cash Value Life Insurance Policy in Retirement

David H. Kinder, RFC®, ChFC, CLU

Dec 10, 2019
5 min

How To Manage Your Cash Value Life Insurance Policy in Retirement

I was on a webinar the other day, and the presenter, whom I really respect, was saying that "Indexed Universal Life is the worst policy to use for retirement income" compared to his preference of a limited-pay WL. Now, is he right? And if so, does that mean that no one should buy an IUL for retirement income purposes? Going up Mount Everest (the accumulation phase): If you are in the accumulation phase, the IUL can be one of the best policies you can use... as long as it is

Term Vs. Whole Life - Why Rent If You Can Afford To Own?

David H. Kinder, RFC®, ChFC, CLU

Dec 9, 2019
4 min

Term Vs. Whole Life - Why Rent If You Can Afford To Own?

This article is a REPRINT/REPOST from Christopher P. Hill, RFC® - President at Wealth and Income Group, LLC. It is NOT my original writing. However, if *I* were to write on this topic, I couldn't do much better than this article! Copied from this link: https://www.producersesource.com/2016/2015/09/term-vs-whole-life-why-rent-if-you-can-afford-to-own/ I hope you enjoy it. For decades, economists, financial advisors and insurance agents have studied, researched and offered

Myth #13: Insurance Companies Engage in Fractional Reserve Lending

David H. Kinder, RFC®, ChFC, CLU

Dec 7, 2019
3 min

Myth #13: Insurance Companies Engage in Fractional Reserve Lending

Today, I got into a strange conversation with someone who *claimed* to teach life insurance in Canada for 10+ years. I say *claimed* because he couldn't make any sense to me. One of his assertions was that life insurance companies engage in "fractional reserve lending" in order to afford all those buildings with their names on them, just like banks do, and that's why "cash value policies are ripping people off". I had never heard this, but I do know a few things. Every life

Understanding Life Insurance Illustrations: A 30,000 Foot Overview

David H. Kinder, RFC®, ChFC, CLU

Dec 5, 2019
2 min

Understanding Life Insurance Illustrations: A 30,000 Foot Overview

Life insurance illustrations are meant to be a "disclosure document" of sorts, but that doesn't mean that "what you see is what will be". There are a few things that can and will change. 1) Dividend scale on Whole Life &/or Index Cap rates on Indexed Universal Life Life insurance illustrations use today's assumptions and carry those assumptions forward into the future in the illustration. The current dividend or assumed annual indexed interest return is projected forward -

Statement Wealth vs Contract Wealth: An Explanation

David H. Kinder, RFC®, ChFC, CLU

Dec 5, 2019
2 min

Statement Wealth vs Contract Wealth: An Explanation

Not all wealth is created equal! We are all rather familiar with statement wealth. Statement wealth are accounts with balances. Bank Accounts Brokerage Accounts Retirement Asset Arrangements These are accounts that give you control over the underlying asset. Contract wealth may have underlying assets for your control, but not always. Company or Federal Pension Social Security Benefits Illiquid Annuities (income only, rather than an asset to control; similar to a pension) The

F.A.Q. #15: When Does a 5% Interest Loan Beat A 0% Interest Loan?

David H. Kinder, RFC®, ChFC, CLU

Dec 4, 2019
2 min

F.A.Q. #15: When Does a 5% Interest Loan Beat A 0% Interest Loan?

It's conventional wisdom that paying a 0% interest loan is the ultimate way to go - particularly for large purchases like automobiles. And they would be correct. 0% loan interest would beat anything else. However, not everything is equal at all times. Let us remember the Four Rules of Financial Institutions: https://www.dynamicadvancedwealth.com/post/why-traditional-planning-doesn-t-work-the-4-rules-of-financial-institutions Financial institutions see lending as THEIR invest

Myth #11: Does Mutual Really Matter? Yes and No

David H. Kinder, RFC®, ChFC, CLU

Dec 3, 2019
6 min

Myth #11: Does Mutual Really Matter? Yes and No

A common refrain heard throughout the mutual company sales forces is "mutual matters". This obviously serves these companies' agenda to really sell more of their contracts. What IS "Mutual"? (Besides consent, of course.) Mutual is simply a business entity. Investopedia gives us a great definition: https://www.investopedia.com/terms/m/mutualcompany.asp What Is a Mutual Company? A mutual company is a private firm that is owned by its customers or policyholders. The company's

Response: 3 Common Investing Myths

David H. Kinder, RFC®, ChFC, CLU

Nov 30, 2019
3 min

Response: 3 Common Investing Myths

I just saw an article with that title above, and quite frankly... it's wrong. And I'll prove it. Here's the original link: https://www.edwardjones.com/preparing-for-your-future/investing-considerations/new-investors/investing-myths.html Myth 1. Saving is investing. While it's important to put money aside in a low, fixed interest rate savings or money market account for emergencies and unexpected expenses, saving money isn't the same as investing. Investing is using your mon

Rebuttal to "Stay Away from these Scam Artists"

David H. Kinder, RFC®, ChFC, CLU

Nov 27, 2019
10 min

Rebuttal to "Stay Away from these Scam Artists"

I wasn't really planning on doing this. I was going to try to "let it go" (everybody sing along!)... but I couldn't. The writing challenge is strong and the rebuttals are just too easy to NOT write this, so I'm doing it. There are a fair amount of critics of agents who use life insurance for retirement income planning. Most of these critics are either "financial entertainers" or they are on the "investment-only" side of our business. They simply don't know what they don'

F.A.Q. #10 Why this blog?

David H. Kinder, RFC®, ChFC, CLU

Nov 26, 2019
4 min

F.A.Q. #10 Why this blog?

One of the advantages of being an independent agent, is the freedom of expression and the creation of my own marketing materials. (Within reason, of course: Keep it conceptual, don't promise performance, rates, or discuss specific policies without running it by that company's compliance department.) I have spent a lot of time (probably WAY too much time) on internet discussion forums related to investments and insurance. Every once in a while, I would get into a heated argu

Are You The KING of Your Finances? Or are You the PAWN of an Agenda?

David H. Kinder, RFC®, ChFC, CLU

Nov 25, 2019
2 min

Are You The KING of Your Finances? Or are You the PAWN of an Agenda?

Today, I updated my homepage's initial video clip to be a short clip from "The Count of Monte Cristo". This clip is Napoleon Bonaparte talking to Edmond Dantes and asking about the chess piece that was thrown to him by his best friend Fernand Mondego. "In life, we are all either kings or pawns. Emperors and fools." And poor Edmond Dantes was sent to prison for many years and finally was able to exact his revenge against the plot made against him. Now, I love the movie (a

Excuses #2 - Eh... too many and too quick to respond

David H. Kinder, RFC®, ChFC, CLU

Nov 22, 2019
3 min

Excuses #2 - Eh... too many and too quick to respond

Some of these are laughable, but I'll address them quickly. "I'm wealthy. The last thing I need is life insurance and "I own properties"." The wealthy buy the largest policies for a multitude of reasons. This unnamed billionaire bought a $201 million policy. Here's the thing: it couldn't be for estate taxes... because assuming he's worth $2 billion... and taxes are 50%, then he'd need $1 billion to cover the taxes. This policy alone wouldn't do the job. (Doesn't mean ther

Excuses #1: "Go Fund Me" is better than Life Insurance

David H. Kinder, RFC®, ChFC, CLU

Nov 21, 2019
3 min

Excuses #1: "Go Fund Me" is better than Life Insurance

I was on my LinkedIn feed and saw some blog ideas, and this one was a listed "misconception" as to why people don't buy life insurance. Well, it's not a misconception. It's an excuse. The purchase of life insurance is a character purchase. It's done because you love someone or you owe someone. If there are others who depend on your income... and you believe that "Go Fund Me" is better... then I would walk away from that person, because that person just demonstrated their ch

Biased Financial Advice? Say It Isn't So!

David H. Kinder, RFC®, ChFC, CLU

Nov 18, 2019
3 min

Biased Financial Advice? Say It Isn't So!

I'm going to say something shocking... so I hope you're sitting down. Ready? ALL financial advisors and insurance agents have a bias! Whew! Confession really IS good for the soul! The question is... why do advisors have the biases they do? Where does it come from - besides their employers? Let's start with the two most popular Financial Entertainers: Suze Orman and Dave Ramsey. What are THEIR biases? Follow the money. Who are their sponsors (besides their publishers)?