s*******d
发帖数: 126 | 1 I see that people have been discussing VUL and what not, and this is the
question I have.
Suppose that we don't worry about all the hidden costs (significant, I agree
) of VUL, and it is considered just as a tax-deferred investement. And let's
assume that we are not talking about tax-free death benefit, but in general
, we wish to make some withdraw on the investment and that the withdraw is
taxed at the income tax level. Is this type of investment necessarily better
than an index fund that has a minimal turnover rate, and has returns
consist of (roughly) 2% dividends + 6% capital gains annually?
It seems to me that, while I will be paying income tax on the 2% dividends +
minimal short term capital gains (holding the index fund in taxable account
), the 6% growth is effectively "tax-deferred" and, at withdraw, it is taxed
at 15% long-term capital rate, lower than the income level. That shouldn't
be a whole lot worse than the tax-deferred investment that are taxed at a
higher bracket, no?
I'd like to hear what people's thoughts on this. | t***s
发帖数: 4666 | 2 you cannot ignore the high fees. the fee is really high. it can be more
than the tax. tax is only on gains, the fee is on asset.
agree
's
general
better
+
【在 s*******d 的大作中提到】
: I see that people have been discussing VUL and what not, and this is the
: question I have.
: Suppose that we don't worry about all the hidden costs (significant, I agree
: ) of VUL, and it is considered just as a tax-deferred investement. And let's
: assume that we are not talking about tax-free death benefit, but in general
: , we wish to make some withdraw on the investment and that the withdraw is
: taxed at the income tax level. Is this type of investment necessarily better
: than an index fund that has a minimal turnover rate, and has returns
: consist of (roughly) 2% dividends + 6% capital gains annually?
: It seems to me that, while I will be paying income tax on the 2% dividends +
| l********2
发帖数: 72 | 3 if you rely on VUL for withdrawal, not a good idea. You pay income tax not
capital gain on the profit, so could be huge. VUL is seen mainly as estate,
an insurance to your family so when you die, they have the money tax free.
withdraw Only under emergencies, so you know you always have some flexible
cash around, and don't have to leave cash in the bank with no interest. |
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