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How Much Are You Worth Dead?
- Thread starter BojTrek
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shoplifter
Member
Around $350k, then all of my stuff that could be sold.
my work policy is 5x my annual gross.
I probably have another policy or two in there somewhere...
been thinking about taking out an actual separate life insurance policy just in case.. can get like a million or so on coverage for under $30/month... peace of mind knowing that if I die my wife and daughter will have over $1.5M to take care of things....
hell, even if she never remarried she should be able to invest that to the point of it being just like making $100-200K/year gross.... not too shabby
I probably have another policy or two in there somewhere...
been thinking about taking out an actual separate life insurance policy just in case.. can get like a million or so on coverage for under $30/month... peace of mind knowing that if I die my wife and daughter will have over $1.5M to take care of things....
hell, even if she never remarried she should be able to invest that to the point of it being just like making $100-200K/year gross.... not too shabby
Does anybody know how life insurance payouts are taxed? As regular income....as inheiritance?
If your wife is actually able to make a consistent 10-20% return on invested funds, she doesn't need a big life insurance policy. Should be working for an investment banker...borghe said:
actually the rule of thumb is that take what you want to live on and multiply that by 6 for an amount to invest. granted that is 16% you are making on investments over a year but you also aren't investing $10K or even $50K. Investing hundreds of thousands of dollars opens you up to many investing opportunities you just can't get otherwise....
not to mention hell... you take a good chunk of change and even get in on just one IPO, not even a good one, and you can probably pull down easily over a 66% ROI even after taxation.
so by saying $100-200K I am only supposing that she is investing even $1.2M max.. not to mention if you turn around and instantly disburse that money into tax exempt investments you can nullify much of the initial taxation of the disbursement. Everyone should know by now that whenever you receive a large disbursement of any kind (insurance etc) to divy that up between as many IRAs, or property investments or whatnot as you can...
I mean all of this is off the top of my head but based on stuff I learned in a financial class like.. ummm.. 9 years ago... I could be a bit off on some of it but it's because once I was out of the class I never pursued it anymore.
not to mention hell... you take a good chunk of change and even get in on just one IPO, not even a good one, and you can probably pull down easily over a 66% ROI even after taxation.
so by saying $100-200K I am only supposing that she is investing even $1.2M max.. not to mention if you turn around and instantly disburse that money into tax exempt investments you can nullify much of the initial taxation of the disbursement. Everyone should know by now that whenever you receive a large disbursement of any kind (insurance etc) to divy that up between as many IRAs, or property investments or whatnot as you can...
I mean all of this is off the top of my head but based on stuff I learned in a financial class like.. ummm.. 9 years ago... I could be a bit off on some of it but it's because once I was out of the class I never pursued it anymore.
the insurance disbursement is not taxable (unlike say a retirement fund that is disbursed upon death). However, the inheritance IS taxable under standard income tax rules. The difference is that with, say a retirement fund, that amount IS taxable and NOT under standard income tax rules but under the retirement plan rules.
So if an insurance policy were disbursed to say 10 individuals, the taxation effect that policy would have on all 10 of them would be entirely dependent on their incomes etc. But if a retirement plan policy were disbursed to 10 individuals, they would all be affected by taxes on the plan in the same way.
for a real life example, my dad died a few years back (which is how I know all of this). He had two disbursements (guess which two
). The retirement fund had a taxation upon release, the insurance did not. Then one of my siblings who is not working owed FURTHER taxes in the next tax year on the retirement fund money he got but did not owe ANYTHING on the insurance money he got.
So if an insurance policy were disbursed to say 10 individuals, the taxation effect that policy would have on all 10 of them would be entirely dependent on their incomes etc. But if a retirement plan policy were disbursed to 10 individuals, they would all be affected by taxes on the plan in the same way.
for a real life example, my dad died a few years back (which is how I know all of this). He had two disbursements (guess which two
). The retirement fund had a taxation upon release, the insurance did not. Then one of my siblings who is not working owed FURTHER taxes in the next tax year on the retirement fund money he got but did not owe ANYTHING on the insurance money he got.Don't know about the United States, but here in Australia, payments received from insurance is tax free (generally speaking), specifically the disposal of the "interest in rights" under a policy of insurance, which is a "Capital Gains Tax (CGT) Event" (iirc, this falls under section 148-100 of the ITAA 1936). Typically, payouts are treated as being of a "capital" nature, hence in broad terms if you receive a "lump sum" type deal, it's tax free. Can't remember what happens when the payout is treated as "revenue", as the Capital/Revenue dichotomy isn't adequately explained. Or I should say, it likely is but I never buggered to research it.border said:
MaverickX9
Member
I'd be worth whatever I have in my bank account, I guess.
I don't think I have any insurance...
I don't think I have any insurance...
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