Cashout from VUL: strategy on proceeding?

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lynntheredonethat
Posts: 4
Joined: Tue Feb 23, 2021 5:26 am

Cashout from VUL: strategy on proceeding?

Post by lynntheredonethat »

Hi all,

I appreciated your great advice on my young and naive VUL (opened for me right out of college by mom, who works for a "financial advisor"). I've cashed it out and am now sitting on the sum in cash, which is quite a large sum for me, most of which I am thinking to invest into my VG brokerage (it's a simple 2050 Retirement fund). I am quite a "basics-level" investor and would love your input again, and would welcome any other general input, as well!.

The gains were about 31,000. I am unemployed and living in Germany, if that is relevant, and don't expect to be working for another couple months at the very least, possibly even through the end of this year, so my total taxable income for 2021 is very likely to be close to this 31,000. Apropos the mountain of taxes I will pay, I am guessing it's better to invest the money now so it can grow, then sell off funds at tax time 2022 if I need them? Is this a sound strategy or are there other things I need to consider, like short term capital gains? From what I've read elsewhere on the forum, it seems like lump sum investment as opposed to DCA is the way to go, as well (given that I can stomach the risk of my AA - it's 90/10 and I just turned 33 yesterday so I think I feel okay with that?).

I would love any other thoughts on my strategy in general! Thanks again :sharebeer
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