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Started By
Message
can someone tell me if i should go term or whole life
Posted on 6/12/15 at 11:39 am
Posted on 6/12/15 at 11:39 am
Please let me know what other info you need.
35 years old. Great health
Annual about 70k a year but could be around 100 if something comes through in the next week or so.
Will be debt free except for house in 17 months.
Have roughly 100k in 401k, wife and mine combined.
Have 30k in my Roth
Put 100 into 529 ever month for only child who is 2. Balance is only around 2k as of now.
So term or whole life??
35 years old. Great health
Annual about 70k a year but could be around 100 if something comes through in the next week or so.
Will be debt free except for house in 17 months.
Have roughly 100k in 401k, wife and mine combined.
Have 30k in my Roth
Put 100 into 529 ever month for only child who is 2. Balance is only around 2k as of now.
So term or whole life??
5
Posted on 6/12/15 at 11:45 am to ragacamps
Definitely term.
A whole policy wouldn't be the worst of ideas either.
Get a term, buy a 2nd in 5-10 years and have them staggered.
A whole policy wouldn't be the worst of ideas either.
Get a term, buy a 2nd in 5-10 years and have them staggered.
Posted on 6/12/15 at 11:49 am to ragacamps
quote:
So term or whole life??
Term.
Posted on 6/12/15 at 11:50 am to Big Scrub TX
Buy term and invest the savings yourself!
Posted on 6/12/15 at 12:36 pm to ItzMe1972
After the fees vs. return threads, these are my favorite.
Posted on 6/12/15 at 1:11 pm to ragacamps
It all depends on what you want to do with investments. You need some form of death benefit protection if you dont have any- so term is the cheapest.
However, all of your investments right now you don't have a ton of control. The more control you have over any investment or where you put your money, the less risk you will have. You can only get to 50% of your money in the 401K and can get to the contributions with your Roth.
if you are wanting to diversify your investments with Real estate, land, business, private equity, etc.... then you need to look at a mutual company overfunded whole life policy. You will only earn 3-6% over a 25 year period, but it is called a PLUS asset. You can put money in the whole life plus you can take it out for real estate properties, etc.. and your money keeps growing with uninterrupted compounded growth of 3-6% every year.
Another thing is - to pay for something you either go in debt or you save up for it. You lose opportunity cost when you do both. High cash value life insurance, not traditional life insurance with mutual non direct participating carriers allows you to use the cash, while your cash continues to grow uninterrupted. It is a better alternative if you have 50K in a savings account. Honestly, if is structured correctly, it is a better emergency fund. Essentially you fund an emergency account- you would do the same over a 5-7 year period of time with a high cash value account.
I think everybody (middle class and higher class) should know how to use the benefits of whole life insurance.
It is probably the most misunderstood product out there and the most criticized b/c agents sell it and make a high commission and they do not know all of the benefits that you can do outside of the policy. I believe this should be a foundational piece of everybody's savings to lead to other higher rates of return with stock ownership, rental properties, private equity, business, land, self directed IRA's, etc....
I was all over the place, but I hope that makes sense.
However, all of your investments right now you don't have a ton of control. The more control you have over any investment or where you put your money, the less risk you will have. You can only get to 50% of your money in the 401K and can get to the contributions with your Roth.
if you are wanting to diversify your investments with Real estate, land, business, private equity, etc.... then you need to look at a mutual company overfunded whole life policy. You will only earn 3-6% over a 25 year period, but it is called a PLUS asset. You can put money in the whole life plus you can take it out for real estate properties, etc.. and your money keeps growing with uninterrupted compounded growth of 3-6% every year.
Another thing is - to pay for something you either go in debt or you save up for it. You lose opportunity cost when you do both. High cash value life insurance, not traditional life insurance with mutual non direct participating carriers allows you to use the cash, while your cash continues to grow uninterrupted. It is a better alternative if you have 50K in a savings account. Honestly, if is structured correctly, it is a better emergency fund. Essentially you fund an emergency account- you would do the same over a 5-7 year period of time with a high cash value account.
I think everybody (middle class and higher class) should know how to use the benefits of whole life insurance.
It is probably the most misunderstood product out there and the most criticized b/c agents sell it and make a high commission and they do not know all of the benefits that you can do outside of the policy. I believe this should be a foundational piece of everybody's savings to lead to other higher rates of return with stock ownership, rental properties, private equity, business, land, self directed IRA's, etc....
I was all over the place, but I hope that makes sense.
Posted on 6/12/15 at 4:12 pm to ragacamps
Term and jam up your retirement accounts.
It's really not close.
It's really not close.
Posted on 6/12/15 at 4:16 pm to ragacamps
Definitely term. Whole Life almost never makes financial sense.
Posted on 6/12/15 at 4:28 pm to TDsngumbo
quote:
Whole Life almost never makes financial sense.
it does if you are an insurance agent!
Honestly, you have 100k in your 401k. Have you thought about not having life insurance. You have enough for your burial and the chances of you dying now are pretty small. I personally would just add term to the 529, although I would probably set up a roth for the kid vs. 529.
Posted on 6/12/15 at 4:45 pm to Hawkeye95
Is cheap as term is I would definitely have enough to cover debt and also enough to replace some if not all off lost income.
Posted on 6/12/15 at 6:51 pm to Janky
What does your wife do? How are her income and promotional opportunities? If she's easily self supporting, buy just enough term life to pay off the mortgage and provide little junior with a college education.
Posted on 6/12/15 at 11:04 pm to Chad504boy
thanks
Posted on 6/13/15 at 10:03 pm to ragacamps
You can't go wrong with term.
There are good/great benefits with permanent coverages. But they are very specific to specific needs. Polling advice on a message board doesn't quite qualify a specific need.
If you are truly curious about the pro's and con's, a review with a financial planner may get a better opportunity to understand differences.
There are good/great benefits with permanent coverages. But they are very specific to specific needs. Polling advice on a message board doesn't quite qualify a specific need.
If you are truly curious about the pro's and con's, a review with a financial planner may get a better opportunity to understand differences.
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