- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Whole Life Insurance, etc
Posted on 4/17/24 at 9:45 pm to Hopeful Doc
Posted on 4/17/24 at 9:45 pm to Hopeful Doc
The "beauty" of whole life insurance and cash value life insurance policies appears in a 30 year window.
The examples in the illustration "sell" what the life insurance companies want to sell.
The problem is that you should treat the plan like a marriage. Because she (the plan) is a bitch if you break up early. She (the plan) leaves no flexibility for success without staying true for the full 30 years.
What kind of "plan" is it if it only has merit if you stick to it for a full 30 years?
Everyone selling whole life insurance knows this to be true.
It isn't a coincidence that the individual was 35 years old with a retirement date 30 years later.
It is funny seeing people get excited about a 360 month "plan" that has a chance to outperform the market.
The examples in the illustration "sell" what the life insurance companies want to sell.
The problem is that you should treat the plan like a marriage. Because she (the plan) is a bitch if you break up early. She (the plan) leaves no flexibility for success without staying true for the full 30 years.
What kind of "plan" is it if it only has merit if you stick to it for a full 30 years?
Everyone selling whole life insurance knows this to be true.
It isn't a coincidence that the individual was 35 years old with a retirement date 30 years later.
It is funny seeing people get excited about a 360 month "plan" that has a chance to outperform the market.
1
Posted on 4/18/24 at 10:37 am to meansonny
You really have to do your homework to understand how whole life will work as a part of your personal finance strategy, not just as an investment. My wife and I have exhausted all our tax advantaged investment accounts. As soon as our first kid was born I took out a whole life policy on my wife (better premium). As long as we pay the premiums, it will give us lots of flexibility in the future. Every year when I pay the premium I always have buyers remorse, but always have to remember it's not an "investment".
In retirement, if we want a loan and rates are through the roof, borrow against the policy. If something happens to one of our kids in the future and they need care beyond our lifetime, policy is in place. If right at retirement the market is crappy and it will hurt to draw on our 401k, we have the policy as a volatility buffer to draw from. As we approach retirement, if our kids are healthy and the market is cruising we don't have to move money into bonds because we have the whole life policy and don't need as conservative of a split. If my wife and I manage to reach a point where we are leaving our kids a sizable amount of money at death, it helps there.
In retirement, if we want a loan and rates are through the roof, borrow against the policy. If something happens to one of our kids in the future and they need care beyond our lifetime, policy is in place. If right at retirement the market is crappy and it will hurt to draw on our 401k, we have the policy as a volatility buffer to draw from. As we approach retirement, if our kids are healthy and the market is cruising we don't have to move money into bonds because we have the whole life policy and don't need as conservative of a split. If my wife and I manage to reach a point where we are leaving our kids a sizable amount of money at death, it helps there.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News