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Originally Posted by GrabberGT
All great and very appreciated info. Here's a new one... What are your thoughts on Roth IRA vs Whole Life Ins. vs the Dividend paying stocks model thats been outlined here. My only investment for my retirement so far is my 401k which I have maxed out at what my company will match. I'd like to start putting away some more for retirement and would like an unbiased opinion. The only opinion I have so far is the Life Ins company.
Thanks
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Life insurance is a savings account for the beneficiary.
As an "INVESTMENT" it sucks bilge water.
A person should have enough life insurance to make sure their family doesn't suffer due to their loss. So if you have a 200K mortgage - and 50K more in debt - buy a 500K term life policy and that will insure the loved ones can live in the house debt free - pay off all other debts and have enough to bury your sorry ass. It's paid tax free - so it's a net net amount. Put the rest into savings/stocks/401K/RothIRA and hope you don't croak.
If you're a big earner - buy a $1,000,000 term life.... which will give the family enough to pay off debts and get started on a life without you. It's not an investment vehicle - it's an INSURANCE POLICY -- it's just there to help people get over the hump. As your investments grow and you age - reduce the face value unless you just like to pay insurance companies.