X-Message-Number: 11422 From: Date: Tue, 16 Mar 1999 20:06:07 EST Subject: Re: CryoNet #11414 - #11416 In a message dated 3/15/99 5:04:00 AM Eastern Standard Time, owner- writes: << In article: <> writes: > Can this trust be set up and then later funded with life insurance? > > This will allow people to fund their trusts with pennies on the dollar! John D. responds... surely it would be better to make the payments you would have made into the life insurance policy into direct investments? All the life cos will do is to invest your premiums, and they will want their fees and disbursements. You save these if you invest yourself. Once your payments have produced enough, put the funds into a technology based mutual fund. >> Greetings to all. This is Rudi Hoffman writing. John makes an observation above that deserves a simple and mathematical answer. The question is, "Isn't it better to invest in a mutual fund to create fund your investment, as opposed to life insurance?" The answer in nearly all cases, John, is "no, it is not". Not if we are interested in creating instant wealth with a relatively small monthly investment. First of all, let me state that I am a registered securities and mutual fund representative, that I personally own a lot of funds, and have and continue to sell and recommend millions of dollars of mutual fund investments to my clients. I am a Certified Financial Planner and Registered Securities Principal, and know the power of compounding interest on investments and mutual funds. So I AM pro investing and pro mutual funds. But they do NOT create an INSTANT LARGE ESTATE for pennies on the dollar like Life Insurance does. Here is the math. I am a 42 year old nonsmoking male. I have a combination of variable universal life and 20 year level renewable term on my life, but lets keep this simple. Let us do the SIMPLE math using a 20 year LEVEL, GUARANTEED RENEWABLE term policy. With Midland Life, for example, a company who accepts Cryonics organizations AND trusts as the direct irrevocable beneficiary as is required to make this "magic" a reality. John, I can buy a MILLION DOLLARS of life insurance for 1660 a year! This is an immediate TAX FREE ESTATE TAX FREE CASH for 1,660 dollars a year. Exactly 149.40 per month. Less than 5 bucks a day. Using my compound interest calculator, I just figured how long it would take to create this MILLION dollars. If you can average 12 percent AFTER TAXES, and you invest $1660 per year paid at the beginning of the year, it takes you 37.89 years to accumulate this million. I would be 82 before I had my MILLION! I don't want to wait that long. Do you? You can average 15%? It still takes 32.30 years. (I know some tech and aggressive growth funds have averaged better that this the last few years. John, one of my personal funds did 72% calendar year 1998. But you can show me only a handful of funds that have and AVERAGE compound growth rate over 40 years at 15% BEFORE taxes, much less after.) SO... Conclusion: Buy your mutual funds. Yes, they can be in the offshore trust as well. But fund your cryonic suspension AND the chance to be reanimated SERIOUSLY WEALTHY with the amazing TECHNOLOGY of life insurance. If we can create immediate wealth for pennies on the dollar, it is irrational to not see if we can qualify for a very substantial policy. With cryonics, we are for the first time TRULY buying LIFE Insurance!! Toward Boundless Life and Joy, Rudi Hoffman Daytona, FL Rate This Message: http://www.cryonet.org/cgi-bin/rate.cgi?msg=11422