re: Life insurance questions\advice

quote:

---

baldona

---

Damn we are doing this song and dance again?

quote:

---

At 64? Over $1 mil and a paid off house.

---

The correct answer is it varies based on retirement goals, expected lifespan and acceptable level of risk in investing.

I need more than $1mil in the bank if I plan on keeping my lake house. Property taxes don't pay themselves

quote:

---

To hit $1 mil, you have to save something like $7,000 a year for 35 years.

---

Except that you aren't accounting for inflation / $1mil today isn't = $1mil in 35 years. Even At federal reserve historically low target inflation rates 2% that $1mil = $~2mil at that rate

If you were able to get market historical return rates (7.5%) you would need roughly $12,000 per year to hit ~$2,000,000

quote:

---

I despise these 30 year plans: life insurance, mortgages, etc.

---

Because you "suck" at saving / finance and don't recognize advantages of being g leveraged at low interest rates

quote:

---

They take out HELOC and refinances to pay for a bunch of crap they don't need and can't afford.

---

Not a 30 year mortgage's fault that people have spending problems

quote:

---

If it takes you longer than 15 years, you aren't working hard enough and saving enough money to prepare yourself properly.

---

This is financially inefficient if you believe your investment rate of return is greater than mortgage interest rate.

There also is liquidity risk and asset diversification problems with having a large chunk of your net worth tied up in one property

quote:

---

But my point is, 15 years is plenty long to do all of those things with proper planning.

---

Ya it is plenty long enough. You just have to accept you are throwing away an opportunity