When do you think the Dow will hit 27,000?
Does that seem like a crazy or dumb question?
If you bought into Wall Street’s mantra that as long as you invest for the long haul you’ll come out ahead, you need to watch this video today.
Click the play button below to see the shocking truth Wall Street doesn’t want you to know…
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I understand how purchasing a dividend paying whole life policy provides a death benefit and the ability to finance purchases while still allowing the policy to continue to grow, but how does purchasing a policy specifically translate into retirement income?
This video gives you a good example of how this strategy can translate into retirement income.
Also, see Chapters 5 and 6 of my best-selling book.
I was getting nervous. Nothing from you for over a month. My first policy anniversary date is next month so I’m curiously waiting for the results. Meanwhile , I will pay off my first loan, also next month, which I took out the month after my policy went into effect. I don’t think you can beat that.
Thanks for the great article! This is the first I’ve heard of IRS 72(t) Substantially Equal Periodic Payments. (Why hasn’t my advisor informed me about them earlier?) 🙁
There is some pretty good information from the IRS here:
I do not understand the figure of 27,000 point on the Dow to have realized a 5% return over the last 12 years. Does that mean that doubling your money in the stock market is actually mostly eaten away by inflation. I did not think that inflation was any higher than about 3% per year since 2000. So I do not see the math here.
At the end of 2011, the Dow was just about where it was 12 years earlier, but inflation was 31%.
Assuming you wouldn’t put up with the roller-coaster ups and downs for less than 5% per year, the Dow would have to be around 27,000 now to give you a 5% per year return since 2000, after adjusting for inflation.
We did a blog post about this in December 2010 that explains it in writing, and includes a link to the calculations showing how we came up with this. The post is a bit out of date now, but the numbers haven’t really changed much.