It is not a 'silly' statement, but the consensus of the VAST majority of financial planners, advisers, and other experts not selling insurance. Whole life is a flat out scam loaded with fees, commission, and risk that is only useful in very, very few tax planning situations.

quote:
You are going to get 8% after taxes every year for 70 years in the market? okie dokie.

The S&P has returned 9.75% (dividends reinvested) over the last 50 years, so I think 8% is very reasonable. Who said anything about 'every year' and who said anything about 'after tax'?

If you think whole life is a good investment vehicle for the OP, you either sell insurance or have no idea what you're talking about (or both).

okie dokie....

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Posted by GoCrazyAuburn

Member since Feb 2010

34963 posts

Posted on 1/28/15 at 2:33 pm to Ole War Skule

quote:
Whole life is a flat out scam loaded with fees, commission, and risk that is only useful in very, very few tax planning situations.

Are we talking about UL's or traditional WL? Very different products with very different fees, structures, and objectives. What risk are you talking about? What fees and commissions are too much? Are the commissions not loaded on term policies then too?

quote:
Who said anything about 'every year

Well, doesn't your calculation not assume an 8% rate of return over those years?

quote:
who said anything about 'after tax'?

Well, considering we are talking about whole life insurance, it would make sense to use after tax rate of return if we are going to be comparing things.

quote:
If you think whole life is a good investment vehicle for the OP, you either sell insurance or have no idea what you're talking about (or both).

I never once said it was a good investment. I just asked why is it a bad investment. What rate of return on your money would make a WL policy a "good" investment?

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