David Schlossberg, RFC, AIF

Danny, you asked a great question. Section 7702 of the tax code provides certain tax-advantaged benefits for life insurance contracts. Effectively earnings can be distributed without any taxation if done correctly. So in that sense, it can act like a Roth and is especially beneficial for those that don't qualify for a Roth due to income restriction. The downside is that unlike a Roth, there is an insurance expense for the mortality risk that the insurance carrier takes. If structured correctly the investment account will grow quickly towards the death benefit reducing the mortality expenses as the insurance company has less exposure. When this happens a detailed analysis can show that the mortality expense becomes far less than the tax alternative that would be suffered in a regular investment account. Most often these accounts are established with variable universal life products that have a myriad of mutual fund investment choices inside them. However inequity index product can be just as effective. The key to success in utilizing these products as a tax-advantaged investment vehicle is a key learning as much cash inside the product is you can without violating the codes that define life insurance.

As Evan stated, equity index products can be complex, but even more complex is the subject of using life insurance is a tax-advantaged investment. I recently was asked to teach a workshop to my peers at an industry conference in Las Vegas on this very subject (http://www.seniormarketexpo.com/conference/education-sessions/ 2:45 p.m). I had developed a PowerPoint and sample illustrations tell my peers determine when the tax advantages are worthwhile, and when they are not and how to articulate that to their clients. I would be glad to share that information with you. At this time, I would not give up on the contract, until you have an opportunity to fully understand both the pros and cons of the concept employed, and determine if the contract is being used in the most effective manner. Please feel free to reach out to me at 847-426-1077 and the glad to spend a little time with you to try to help you determine the benefits and the downside.

Willis, There is a industry/sector charting done within a website called Investools (http://www.investools.com/). They do advocate using their tools for stock picking, however I am not as much of a fan of that. That being said, they do a fantastic job of trending industries against all market caps if that is what you are looking for.

Some of these answers are not complete. For example, missing from the list is an RFC (Registered Financial Consultant) who has also taken an oath to serve in that capacity. But let's go one further. I would think your interest is not only one that is obligated to serve as a Fiduciary because of a designation or regulation, but one that actually does ACT like a Fiduciary (def: person bound to act for another's benefit, as a trustee in relation to his beneficiary), Just because someone is supposed to place your benefit before their own doesn't mean they actually do (a.k.a. Bernie Madoff). Don't be afraid to interview advisors and ask pointed questions about their fiduciary role, and what steps they take to ensure the clients interest comes first. Unfortunately, the regulators prohibit Registered Investment Advisors from using client testimonials, but that doesn't prevent them from articulating how they go about protecting your money, and what steps are taken to place your interests before your own. So my recommendation is not to rely on a label, but to interview, and to ask very pointed questions (such as: "What is your process used for selecting investment recommendations" and "What process is used to determine recommendation changes". Lastly, do not do business with anyone that does not use an IPS (Investment Policy Statement) for managed accounts, which is an investors written guidebook on how to manage those investments and how to test assets for consideration on inclusion or exclusion of portfolios. Best of luck with your advisor search.