The Conclusion of the BTID and VUL Debate

… I hope.

I was revisiting an old article from my other blog at MutualFundPH.com regarding the arguments I have made about this never ending debate of comparing VUL and BTID.

The fact that the director of the Registered Financial Planners (RFP), Mr. Randell Tiongson, has shared this article and noted it as an interesting gave me confidence that the argument has some merits on it.

And some of my colleagues has been using the same as well. Thank you 🙂

The topic resurfaced [to me] because of the conversations I had with a client yesterday, and the new articles that are coming out from different bloggers lately.

The client is aware of this BTID & VUL debate and was clearly able to make a stand based on the information he got from the web – that he’ll shun away VUL.

We really got hook into the conversation and noticed that we’ve been talking for about 4 hours. He ended up asking proposals for Term Insurance and VUL as well.

Driving towards my next appointment, my mind is running on a few realisation. This is what I wanted to share in this article.

1) Different strokes with different folks

We are different people, obviously.

We have the different diets, we have different hobbies, different forms of exercise, different things we enjoy and life, and so on and so forth…

But nobody wants to be different, in one way or another. That’s why we people tend to group ourselves based on several similarities we might have. And then have a collective opinion [somehow] on some topics…

Something wrong with that? Nothing. That’s human nature.

Some would prefer boxing over karate, some would go for football rather than basketball, and some would invest in forex and get bored in the stock market.

Even stock market investors argue on which is better, fundamentals or technicals.

The same way, some people will choose BTID over VUL, or vice versa…

This leads to my realisation no. 2.

2) We are not meant to be 100% Investment-Savvy Population

We enjoy the market – the ups and downs, the highs and lows. And surely we KNOW what to do during those times (have to separate knowledge and action in this sentence).

But not everyone of us will choose to devote their time on managing their money and learning about investments. Some of us will choose to devote their time on their profession, their vocations, or their calling in life.

Some would prefer taking the time for the betterment of their career, of their personal lives, of their purpose in life…

Some are too busy protecting the country with crimes, some are busy drafting new laws (I don’t know why I included this here), and some are too busy saving lives in the hospital.

At one certain point, we should learn how to stop imposing our personal expectations on the lives of other people (note to self, guilty as charged).

This is the reason why some invest in Forex, some on Stocks, some on mutual funds/UITF, some on VULs, some on their own businesses, some on Networking, and some on their careers as employees.

3) Personal Finance is not 100% logic.

Brian Tracey will often say in his videos, “We are 100% emotional. When we say we are making logical decisions, it just means that we are putting more emotions on that decision compared to any other decisions.”

When I was still a blogger who often find resource materials solely on texts, videos and audios researched on the internet, I must admit that I don’t have the best idea about VUL. I’m a logical person as I’ll always say.

But on the field, talking to hundreds of people individually, I’ve realise that reality is a vast ocean of differences and outlook. That one size will never fit everyone.

That forex is not the best, nor stock market, nor mutual funds, nor real estate, nor VUL and BTID.

They are all good (just in the middle). Best on the right circumstance, and worst on the wrong situation.

People will often make decisions based on emotions – emotions that are often connected on how people behave.

Conclusion and Final Thought

… I should end because I might bore you to death.

Here’s my point.

There will be no end in this debate, like fundamental analysis and technical analysis. But, you can always use them both.

To investors (myself included), we should try to keep an open mind on all options. Whether that be based on instrument – forex, stocks, or managed funds – or implementation strategies, like VUL or BTID.

Opening our mind does not necessarily mean that we have to accept the other person’s argument. It just mean that we are allowing that idea to come in our mind freely so we can process them based on our personal circumstances.

To Financial Advisors (myself included), we should continue expanding our knowledge so that our clients could gain confidence on whatever recommendation we might have to give.

I am inclined to believe that the best personal finance strategy should integrate well with our personality and behaviour. At the end of the day, our behaviour will last longer than in any interest we might have today.

3 thoughts on “The Conclusion of the BTID and VUL Debate”

  1. I concur with your article. In other words, the best strategy is the one that will take you to your goals,

    1. Yes, that’s the direction. But as to implementation, it should somehow align with ones personality and personal behaviour so they can keep implementing it in the long run…

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