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In Reply to: Re: Re: Re: The LEAP System posted by frank on August 10, 2001 at 22:48:24:
Many investment advisors think LEAP and similar systems are "hokey" and even dangerous. Some claim you can't get the returns that the insurance company is claiming (which is retarded, most companies should have software to show you what guaranteed values will be there and what potential values could be).
I have never heard a thorough explanation of why it's bad. Maybe it's just that these guys spent a lot of time and money developing elaborate financial planning techniques and they are undercut by the K.I.S.S. theory? Or that you are putting your client's money all in one basket (a basket with a guaranteed return).
I've heard claims that you can get much better returns via traditional investments like mutual funds, usually this advice comes from stock jokeys, but if you can find a good participating whole life that's indexed (I guess even equity additions might work too), and tracks the S&P 500 you can get similar results and access the money tax free thru policy loans.
Only response by Investment advisors I've heard so far: "well it's still hokey just because it is".
My response to investment advisors: Wouldn't you agree that it's in your client's best interest to have at least SOME safe money?
Dave