Posted by
Message
Phil
LSU Fan
Member since Jun 2010
227 posts

Looking into mid life wealth and investing
I met again with my rep that I hold my term life insurance policy with last week. We discussed short term, mid term, and long term savings goals. When it got to mid term/long term, he started to sell me on whole life insurance and used the pitch that I could also use it as mid life wealth since I could pull money from it. We discussed 529 plans as well as other mutual funds that I could invest in in lieu of a 529 plan that offer the ability to pull money from if needed.

His pitch sounded great and had me interested and about to pull the trigger until I started to do a little research online. Since the meeting I am 100% not for going whole life due to the multiple articles online I read about. The articles I read mention that most of the initial fees go straight to their commission and you don't start to see any returns until 10-20 years.

While in the meeting, I mentioned to him that the company that handles our 401k at work advised me to start saving in a separate Roth IRA with some money going toward a 529 plan for my son (being born in July). He immediately advised against it and said there was multiple other ways (better ways) to spend that money for savings.

The bottom line is I am 30 years old, married, and have a kid on the way. I put 4% into 401K with owner match (8% total). I want to build some "mid life" savings as well as start saving for my kids education. Should I kick this guy to the curb and handle it myself by investing elsewhere (Vanguard, etc) in the standard Roth and 529? Or is there better options out there? I am not as investment savvy as many on this board but in the last few days of research I have second guessed what he told me last week.

Thanks for any input.


Paul Allen
Notre Dame Fan
Boca Raton, FL
Member since Nov 2007
47673 posts
 Online 

re: Looking into mid life wealth and investing
quote:

30 years old


quote:

Mid life






Phil
LSU Fan
Member since Jun 2010
227 posts

re: Looking into mid life wealth and investing
I meant starting now to have something built up in 10 years other than my 401k


Replies (0)
Replies (0)
00
Decisions
LSU Fan
Member since Mar 2015
375 posts

re: Looking into mid life wealth and investing
I think most here would agree with you against whole life for yourself.

529's always made sense to me, as far as socking away money for education. You might also consider a college prepaid plan. Basically you're paying whatever the current rate for tuition at a school is now rather than the (likely higher) rate at the time your son goes to school. The only risk is your son not wanting to go to that school.

I can't say I know enough as to whether to kick your guy out yet or not, but if you do so and decide to invest for yourself I definitely recommend studying your potential investments thoroughly and learning everything you can about them before pulling the trigger. It's the Wild West out there.


Replies (0)
Replies (0)
00
Old Money
New York Yankees Fan
Miami
Member since Sep 2012
17167 posts

re: Looking into mid life wealth and investing
I hold an insurance license, stay away from whole life unless you're very rich.


Replies (0)
Replies (0)
30
BayouNation
New Orleans Saints Fan
Member since Sep 2008
1059 posts

re: Looking into mid life wealth and investing
No to whole life.


Replies (0)
Replies (0)
00
specchaser
LSU Fan
lafayette
Member since Feb 2008
1547 posts
 Online 

re: Looking into mid life wealth and investing
I'm not at all a guru on this board, but why not sock more into your 401k? that seems like a good start

fwiw, my first life insurance policy was whole life. I was young and dumb but it now has cash value so I'm riding it out. since then I've only purchased term. another mistake I made was only getting a 20 year term while I was young. At only 30 years old you can probably get 30 year term for cheap.


Replies (0)
Replies (0)
00
Hawkeye95
LSU Fan
Member since Dec 2013
20293 posts

re: Looking into mid life wealth and investing
quote:

Thanks for any input.


This is pretty much stock recommendation

1. Pay off debts/establish emergency fund
2. Contribute 401k to match
3. max out Roth IRA
4. max out 401k
5. Other investing.

I understand the desire to help your children, ok, I don't actually as I don't have kids but the reality is the best thing you can do to help your children is to make sure you are not a burden on them as you grow old and this means saving for retirement before planning to help them.

Once you max out your Roth and 401k, then move onto 529s.


Replies (0)
Replies (0)
20
first pageprev pagePage 1 of 1next pagelast page
refresh

Back to top

logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram