Hopefully your existing policy has no additional P lease. A lot of them that either evaluated existing policies, even. And this is where the design is so important because it’s a guardian policy. It’s a foster guardian policy. Yeah. It’s a fair product that we use heavily and it was just designing. So the other person couldn’t contribute anymore.
It was basically all based premium and he couldn’t put in Peewee. And if you can send him, reached out to me, I’m wanting teachers quickly. I can do a quickie, which of the color. But yeah, this is more than likely the guy built it. Not with the idea that you’re going to get the liquidity. Right out of it, you know, I think my wife had something like this, but we just chose to just cash it out.
Or I think Tyler, you can do like a 10 31 exchange or life insurance too. Why would you do one or the other, like the cash it out or that template? What is it called to building one for life insurance? What was that called? 1035.
Basically, I will do a tender most of the time. I would recommend doing a 10 35 just because you don’t wait when you do the withdrawal, it becomes a taxable event.
You do the 10 35. You can reserve all that cash value, put it into a new policy. Then you’d have access to that cash value via policy. I personally, haven’t had a pretense. I still have a Prudential spot on me. It’s so small. I was about to just take the cash value and instead I’m keeping it there and I’m just taking all policy loans.
I didn’t do a 10 35, cause it didn’t make sense because it’s already paid up, but you can just access that cash value via policy loans. There you could possibly even just do a reduced paid-up exercise and reduced on your policy and you could kill the fees and maybe that may even be the better option.
Right. Good to know. If you don’t mind, I’d like to send you over what I have and have you take a look. It depends if it’s big enough, like over 25 grand or if it’s less than that might be easier just to simplify it like 125,000 dollar 401k. I mean, that’s not too much money as well just get rid of it.
Yeah. I mean, right now there’s 105,000 and cash value in there. So it’s grown to be significant. I think I just didn’t want to pay that. My wife’s slimeball.
Yeah, I hear ya. I think he’s trying to sell me on like a, another policy now.
It’s usually the guy that you’ve never seen since college or high school, they take you out for lunch, right? Field trip, you that your kids and your family are up the creek and you don’t do this. They’re building you up with everything that you don’t want. It’s not like they’re trying to screw you. They’re just building it the way that they were taught. And a lot of this is very counterintuitive, which is high liquidity, low death payout, which is, goes against everything that they’re taught.
And then low interest rate too, which doesn’t make sense. I’ve had these guys, they challenged me. They’re like, I thought you’re like simple passive cashflow you want returns, right? Don’t you want good returns on this? I’m like, dude, like you don’t get it. Yeah. It’s not the case.