Life Insurance and IRA differences | TigerDroppings.com

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thelsutigers
LSU Fan
Lubbock, TX
Member since Nov 2009
3246 posts

Life Insurance and IRA differences


A friend of mine mentioned that he has a $250,000 whole life insurance plan and was not interested in an IRA. I do not know what makes either the better option. I have a Roth IRA and a term life policy. Should I have a whole life instead of either or both ? Or what ? I am not sure.

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BestBanker
New Orleans Saints Fan
stuck in a moment
Member since Nov 2011
3127 posts

re: Life Insurance and IRA differences


I think I might understand what your friend is doing, because I do the same thing.
I own multiple WL policies to serve as my "tax-free liiquid bond" account.
Death will occur, so this is covered with the benefit. The cash is liquid and I use it for investment opportunities or low-interest loans for capital purchases.
The Roth IRA is chassied from life insurance, and traditonal IRAs follow the annuity concept.






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GoCrazyAuburn
Auburn Fan
Member since Feb 2010
14116 posts
 Online 

re: Life Insurance and IRA differences


Ding ding. Couldn't have said it better.





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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
12412 posts
 Online 

re: Life Insurance and IRA differences


No, you're doing the right thing. If you want WL, go ahead and buy it, but not as a replacement for your Roth. I personally think WL is a rip off, but I know some disagree with me.





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thelsutigers
LSU Fan
Lubbock, TX
Member since Nov 2009
3246 posts

re: Life Insurance and IRA differences


Thought the whole life plans were a rip off too, but didn't know much about them. So it sounds like I should max out my Roth and get a WL policy.





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Janky
LSU Fan
Team Primo
Member since Jun 2011
7636 posts

re: Life Insurance and IRA differences


Again. This is awesome.





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