calminvestor

Thank you "Cash".

P.S. I work for myself. I don't work for Vanguard, nor am I taking proceeds from any book. I'm simply recommending books I read in my downtime. For those that think this is not possible because I doubt your intent, please go to Amazon.com and type in "The Smartest Investment Book You'll Ever Read" - then please see if I am affiliated with this. Then you may come back to this site, apologize, and thank me for the previous sincere advice.

what's the spread then on your commission on whole vs. term? please educate all of us.

1. that's fine
2. those that don't understand interest pay it, those that do understand it, earn it
3. i don't think you're a moron, i don't know you. i just think you don't have life experience.

Those convinced against their will are of the same opinion still. I tried.

Interesting that you think I'm hook, line, & sinker for Ramsey.
Guess it would help to tell you that I disagree with his investing philosophy.
I do agree with his "no debt" philosophy, however.
Where does that put me in your book?

You're not a real investor, my friend. I know this because a real investor listens to reason/the gut and the mind and weighs the two against common sense. Where do you stand?

Yes, whole life is always a bad financial decision. It's costly and it's track record really sucks. Sorry if this seems simple, but it really is.

SacredSalami,
It's not a good vs. evil thing. It's which is a better financial decision.

Intelligence points most individuals to term life insurance for this reason:

Term policy - 35yr old = $33/mo
Whole policy - 35 yr old = $70,80,90,...150/mo

Why not pay $33 for term and invest the rest in a real investment like a Roth IRA that has real advantages? Index funds with Vanguard would be a good start with the extra $ you're not using on that crap whole life. Please read "The Smartest Investment Book You'll Ever Read" by Daniel R. Solin. I promise you won't be disappointed.

Apparently I'm not the only one giving good advice (me and all the other "anti-permanent guys"). As you can see, LSUgolf04 is not happy that I am warning you of the horrible investment that permanent life insurance offers. Obviously his income is dependent on this garbage. This has no impact on my advice.
By the way, I'm a Daily Money Manager and yes, I occasionally do work "for free". I teach budgeting and investing for free at my local libraries as a way to give back.
I'm debt free, happily married for 12 years with 3 happy kids to show for it.
What, besides crap whole life, LSUgolf04, do you have to offer? You're good at sales, maybe, but bad with solid financial advice.

No, permanent/whole life is garbage. It combines insurance with investments - bad idea.

The other guy that posted wants you to contact him because he makes tons of $$ from selling that crap. Ask how much he makes to sell a term versus a whole life. There lies your answer.

foshizzle,

the best analysts cannot forecast what the market will do. the best "trading programs" cannot forecast what the market will do.
And no, major Wall Street firms sell you on this crap about trading and market timing. They invest their money in smart investments - they are institutional investors who use funds like DFA funds and yes, Vanguard.
Try these websites - LINK and LINK
I suggest you read instead of guess in the future. You are very behind the curve when it comes to your understanding of investing. Invest your time into reading and learning. You're still believing that same old crap that allowed Wall Street to put their foot on our necks. Better get going.

who gives a damn what your score is? you shouldn't. oh wait, that's not traditional advice, nevermind...

None. Not a smart investment plan.

The Smartest Investment Book You'll Ever Read by Daniel R. Solin.

Nothing furthur needs be said. I know this is late advice. Read it anyways for end of '10 when you ask this again.

mytigger,

I appreciate the reply. I did not suggest the "Index 500" fund. I am certainly OK with you choosing your own investment plan as I will choose my own. I do not plan on retiring in 5 years as you seemed to suggest. My annual rebalancing plan includes re-assessment of my risk profile as I reach retirement age. If you're saying your timeline is only 5 years, then you may want to consider a low-risk profile with the funds I mentioned earlier with a different asset allocation.
Finally, if your timeline for retirement is more than 5 years then you may want to discontinue looking at your retirement account like it's an E-Trade account. Trading stocks or ETF's and participating in "Actively Managed Funds" is much more detrimental to your total return than any advice I shared with you, for sure. Please go read the book before you take the snippets I gave you as Daniel R. Solin's entire explanation of why you should be in Index Funds. Don't let your emotions get in the way of a good solid investment plan. You're too impatient. I read the book and continue to read. I'm fairly sure that's not "a lazy man's investment plan" as you said. Good day...

A 150 page read is the equivalent of "Cliff's Notes", however, I'll be nice and try to sum it up.

Major Points of the Book:

No one has "beaten the market" (Actively managed funds) over the long term. What does that mean to you? Why try to beat the market? Why not "be the market" (Passively managed funds)? It's returned 11.8% historically. Invest in Index Funds. Index funds simply "track a given index". Boring right? Wrong. If boring means making higher returns, then let my investments be boring as hell! Why index funds? Higher returns and lower expenses. Average "Actively managed mutual funds" charge 1.5% expense ratios as compared to the Average "Passively managed funds" which charged around .2%. What's that mean for you?
Example: $1,000,000 invested in an Active fund costs you $15K per year (Actively managed funds).
In comparison, my same $1,000,000 costs me a mere $2,000 per year (Passively manged funds). That's $13,000 less that I pay for funds that WILL outperform your "Professionally managed/Actively managed funds". I'm sure you can take a wild guess at what that extra $13,000 per year would grow to over 30 years @ 11.8%, right?

90% of your returns are predicated on Asset Allocation. Don't ever forget this...

If you choose low-cost index funds with a company like Vanguard like I do. You only need, for instance, 3 of these low-cost index funds to make up your entire Roth IRA portfolio - sample portfolio below.

Determine your Risk Profile. It's simply your "sleep factor". Need to read the book for specific help with this part (it's important).

Here are the funds for a High Risk Portfolio with their associated Asset Allocations. You could hold these 3 funds in a Roth IRA at Vanguard (I have no financial incentive to tell you this, whatsoever).

VTSMX - 56%
VGTSX - 24%
VBMFX - 20%

Here's a link so you can compare the 3. Take note of expense ratios, then go back and compare them with Actively managed funds. You'll see.

I tried to keep it brief, but the book is full of stellar information that really needs to be thoroughly read to gain a complete understanding.
Hope this helps.

kfizzle85 - the talkingheads securities analysts are hired by the mutual fund companies to keep investors trading their butts off so that they make money. If CNBC knows it's foolish to trade and have funds professionally managed due to fees, then why have the sec. analysts on? Because they pay the bills...Yes, it is financialy pornography!! No different than your health magazine that has a new diet program each month - because it sells! Eat smart and exercise - isn't that the only real thing people need to do? MMMHHH...

My suggestion is to read a book called "The Smartest Investment Book You'll Ever Read" by Daniel R. Solin. Read this before you "do" anything.
You'll be selecting low-cost index funds with the best returns (market returns) that are available in the markets.
Active funds return less and cost more - bad.
Passive funds return more and cost less - good.
Here's the gist of his suggested holdings. Your percentages will vary depending on your risk profile.
Here's the High Risk Profile that he suggests in a Roth IRA, for example:
VTSMX (56%) - expense ratio is .18%/yr
VGTSX (24%) - expense ratio is .34%/yr
VBMFX (20%) - expense ratio is .22%/yr
Rebalance each year to maintain the above percentages. It's that simple.

P.S. Stop watching and reading the "Financial Pornography" - CNBC, Wall Street Journal, etc. - go play with your kids instead as you'll be happier and less stressed about money...