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About David Shafer

Hello. I have been fortunate to combine my two professional interests, finance (B.S. Florida State Univ.) and social science (Ph.D. Brandeis Univ.), into my work as a Wealth Coach. This blog is dedicated to creating knowledgeable consumers who with a better understanding of wealth creation, finance, and money will be able to build a better future for themselves and their families. I believe the current state of financial/retirement planning is really about what Wall Street and the Lenders want individuals to do, as opposed to what the evidence demonstrates works for folks. This adherence to the actual data makes me a financial gadfly.  Being a gadfly means presenting information to people that can make them uncomfortable or even angry sometimes.  Hope you find the ideas and information useful, educational, and entertaining.  If you find this blog unique and interesting please go to my Equity Indexed Universal Life Insurance web site: www.shaferfinancial.com.  For a small amount of money, you can hire me to help you build a wealth creating plan from the ground up and put you in control of your money. 

Yours in wealth creation,

David Shafer


1. shaferfinancial - August 16, 2011

Well, every insurance company thinks it is. There are about two dozen books that I have personally read that says it is. My tax accountant thinks it is. And all insurance companies create software that calculates the numbers so as to maintain the policies as life insurance policies so they can be accessed tax free.

But, if you really need to see it in black and white, then be my guest…it can’t be that hard to find.

2. Mike - August 16, 2011

Well, I cannot seem to find any indication of this on the IRS website, so could you please recommend to me the name of a couple of those books?

3. shaferfinancial - August 16, 2011

Mike, you are “borrowing” from your policy. The terms of the borrowing are stated in the policy contract.
This is not really in question. Pick up any book on life insurance and it will state the same thing. Call a life insurance company that deals with permanent insurance and ask them for the actual rulings.
Sorry couldn’t be more helpful but I am going to bed.

4. andy - August 18, 2011

Is it true that it’s better go with a 7 pay to lower the expenses on iul? If you make simple monthly payments then you are overpaying your money in extra expenses?

shaferfinancial - August 18, 2011

The most efficient way to structure an EIUL is to max-fund over 4 years, then drop the face value year 5. Having said that, there are several structuring issues that need to be dealt with no matter how you fund it. The difference between max-fund and funding over a longer period of time is small in itself and is the result of having more money working for you over a longer period of time.
You can structure a monthly premium pay very efficiently if you know what you are doing. Be very careful you are dealing with someone who knows how to structure these policies efficiently and is willing to give up substantial commissions in order to structure it in your favor. If you are serious about purchasing an EIUL give me a call so we can talk further about these issues.

5. Mike - August 18, 2011

ok give me a quote, i am 37, and in perfect health

6. shaferfinancial - August 18, 2011

Sent you an e-mail Mike

7. andy - August 20, 2011

Is it wise to get an iul for kids since you can max fund it in the first 4 years? Or let them invest on their own when they are adults.

shaferfinancial - August 20, 2011

Andy, that depends on your own personal financial situation.
I have clients that have funded an EIUL for their kids. Those folks already have their financial house in order and are now getting their kids a great start!

8. marica - December 7, 2012

Realizing that indexes differ by name but not results Which is better an annual, monthly or daily index. Secondly, this is where I get confused when the market goes down is the new strike point at the lowest level. (S&P 1300 drops to 1000 goes back up to 1200 next year.) do i experience the 20% return or the max return in policy? Is there a time I don’t receive interest?

shaferfinancial - December 7, 2012

Marica, I think the annual is better because it is easier to track. When I do my analysis, it also comes out ahead more often than not, but you are really just guessing on a year to year basis which one would do better. Each year, assuming an annual point to point, you start where the index starts, there is no carry over. So if the index starts the year at 1000 and ends at 1200 you get the full return up to the cap rate.

9. melinda j. - November 27, 2018

Hi David,

I see you did respond to my wuestion over a year ago and thank you! I haven’t been on here since I asked that question. Lot’s of wisdom on your site! Thanks!



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