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    Steve SavantPRO
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona

    Video Transcript: Hello everyone, I'm Steve Savant, syndicated financial columnist and host of the weekly online talk show Steve Savant's Money The Name of The Game. I'm answering questions from insurancelibrary.com, and today's question is: is variable universal life a good investment? Well, remember before you talk about anything that's a market driven product you always have to do a risk tolerance test. A risk tolerance test is part of a financial profile. You need to create one to find out: are you a conservative investor, are you a moderate investor, are you an aggressive investor? You have to import in your mindset: what's your timeline of investment? How long are you going to hold it? This is a long haul product, variable universal life.

    It has expense load that you need to be aware of. You're paying for extra mortality costs and the actual underlying funds have charges to it. If you feel like that is a huge issue for you, especially if you're in a high tax bracket, it could be something that you may want to look at, but remember it has market exposure and you need to do a risk tolerance test before you look at this product.

    Well, that's our consumer question for today. If you have any question just submit them to www.insurancelibrary.com.
    Answered on July 21, 2014
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