re: Over Funding Life Insurance vs. Roth IRA

quote:

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You can have your ROTH funds liquidated in a matter of days.

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While that is true, what if the account holder is a big risk taker and starts contributing when market valuations are high and experiences little growth thereafter? Then the market declines say 35%, and he/she needs the money for an emergency? That becomes an expensive funding mechanism.

It's like a recent thread when someone was asking about rolling/converting a 401k balance from a former employer to a Roth and a responding poster thought explaining the supposed Fed tax impact as if that was the most important thing to consider yet with no consideration of so many other meaningful things that could affect the person's converted assets in later years. Potentially lose creditor protection, what are the poster's goals/timeframe, state tax or not, when retired state tax or not, retiree state income exemptions or not, is this for legacy purposes, spouse/no spouse, children/no children, etc, etc infinitum.

Then again, this is merely a message board.