LYC: More financial stuff. Had our annual meeting with our financial guy. I had a bit of an enlightening moment when I started to understand what we
Posted by
oblique (aka kkuphal)
Feb 17 '20, 10:05
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are using our whole life/annuity products for. He explained it that the bond market is generally lower performing now, we are using the above products as a kind of "bond alternative" to hit that mid-range performance/risk that bonds typically have held. In that respect, most of my other retirement accounts, by contrast, should be more heavily equity loaded (like my work 401k) and not using the traditional balanced approach.
It was just very interesting to finally really understand what role these products fit for us. We've long trusted this guy but having a clearer picture is helpful. It was pretty neat to see how even simple things like my 15 year term insurance is coming to an end in about 4 years and we can then look to move the premium we're paying on that into something more investment-like since the primary concern for the insurance (college expenses, etc.) are phasing out and we're shifting into the more retirement focused objectives.
The only thing we're really "short" on is that we had about $80k saved for my son's college and we're probably only going to make it to $60k for my daughter so we want to be able to make up that difference for sure. We knew this was coming though as we took some of her money out to pay for my wife's doctorate so it was always something we would have to repay.
I'm sure I'm not explaining some of that right but it was an interesting meeting.
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