Life Insurance and IRA differences | TigerDroppings.com
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thelsutigers
LSU Fan
Lubbock, TX
Member since Nov 2009
3265 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.

Your thoughts


BestBanker
LSU Fan
stuck in a moment
Member since Nov 2011
3788 posts
Online

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.


GoCrazyAuburn
Auburn Fan
Staring up at Vulcan's ass
Member since Feb 2010
16793 posts

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
24626 posts

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.


thelsutigers
LSU Fan
Lubbock, TX
Member since Nov 2009
3265 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.


Janky
LSU Fan
Team Primo
Member since Jun 2011
10160 posts

re: Life Insurance and IRA differences
Again. This is awesome.


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