I had the same experience with the same company - a retired Naval aviator was the “adviser” in my case. In retrospect, the front-loaded fund did reasonably well. And I will say that the experience got me in the habit of saving a fixed amount every month. (I didn’t buy the whole life). But, I would have been far ahead of the game if the same amount had gone into a no-load S&P 500 index fund. (This was a long time ago so Total Market index funds didn’t exist yet). Even after leaving the company you refer to, it took me several more years to hop on the index bandwagon but I’m 100% sold on that approach now. The lesson cost me a few bucks but was worth it. (USN, RET)
This article reminded me of my first Navy assignment at a small base in the Philippines in 1967. About a week before payday, a pay list would be posted in the men’s room (head) of the officers’ club. It would list how much each officer was due to receive. There were 3 columns in which you could designate how much to receive in cash, by check or leave “on the books”. (The latter category meant that the Navy would retain that amount in your account and pay it to you, either by cash or check upon your request.) As there were no female officers assigned there, that meant there was no way a woman could learn the amount due any officer nor how much he might be taking in cash, unbeknownst to his spouse. An officer might also be building up a private “stash” by leaving money on the books. Of course, those days are long gone but I’ve often wondered how they handled it once the first female officer was assigned there.
Comments
I had the same experience with the same company - a retired Naval aviator was the “adviser” in my case. In retrospect, the front-loaded fund did reasonably well. And I will say that the experience got me in the habit of saving a fixed amount every month. (I didn’t buy the whole life). But, I would have been far ahead of the game if the same amount had gone into a no-load S&P 500 index fund. (This was a long time ago so Total Market index funds didn’t exist yet). Even after leaving the company you refer to, it took me several more years to hop on the index bandwagon but I’m 100% sold on that approach now. The lesson cost me a few bucks but was worth it. (USN, RET)
Post: Why We Get Fooled
Link to comment from February 8, 2023
This article reminded me of my first Navy assignment at a small base in the Philippines in 1967. About a week before payday, a pay list would be posted in the men’s room (head) of the officers’ club. It would list how much each officer was due to receive. There were 3 columns in which you could designate how much to receive in cash, by check or leave “on the books”. (The latter category meant that the Navy would retain that amount in your account and pay it to you, either by cash or check upon your request.) As there were no female officers assigned there, that meant there was no way a woman could learn the amount due any officer nor how much he might be taking in cash, unbeknownst to his spouse. An officer might also be building up a private “stash” by leaving money on the books. Of course, those days are long gone but I’ve often wondered how they handled it once the first female officer was assigned there.
Post: Bad Old Days
Link to comment from April 20, 2022