Originally Posted by Amnorix:
Looks like its based on whole life insurance. Uhh, no thanks. Whole (or permanent) life insurance is pretty expensive as an investment vehicle, with a comparatively lousy rate of return. If you're a higher income earner and have maxed out your 401(k), IRAs, etc., and/or have some unique reason to have whole life, then sure, whatever, but for the vast majority of people, I wouldn't bother with it. Term insurance is substantially cheaper.
All that said, I do have a modest amount of whole life, which I got back in like 2000. Now, about 18 years later, the cash value of the policy equals the amount I have paid in premiums. Now, there was the peace of mind of having life insurance in case something happened to me years ago as well, of course, but still, that's a lousy return where the stock market since 2000 is up about a bazillion percent.
I would have been MUCH better if I took like X% of that whole life premium and put it into term insurance, fixed for 20 years, so I would have the same death benefit as with the whole life, and put the rest of it into index mutual funds or something.
Really? I pay ~$30.00/quarter for $180,000 policy on myself and another ~$10.00/quarter for an $80,000 policy on my spouse. I over pay into the policy by $30/each ($60/$40 per quarter) with a guaranteed minimum 3% return on my cash value. Every 4 years that is re-evaluated if the rate is higher than 3% that is effective for the next 4 years. If it is lower, then 3% is the minimum. IDK about you but that seems pretty damn cheap for a whole life policy with some pretty good guaranteed return or better. Cash out the policy tax free at retirement or take a loan out at anytime.
I also have a term life policy thru my job for about $12/month. [Reply]
Originally Posted by Rain Man:
I probably don't fully understand your options, but if you've got money in an IRA earning 1.5 percent, presumably it's some sort of CD or something. If that's true, don't put any more money into that and pick pretty much any other option rather than sitting on your toilet holding it in cash.
I wanted to dump it in my public retirement account. They won't let me do that. So now I will talk to my 403b. That has much better yield than the IRA. [Reply]
Originally Posted by DenverChief:
Really? I pay ~$30.00/quarter for $180,000 policy on myself and another ~$10.00/quarter for an $80,000 policy on my spouse. I over pay into the policy by $30/each ($60/$40 per quarter) with a guaranteed minimum 3% return on my cash value. Every 4 years that is re-evaluated if the rate is higher than 3% that is effective for the next 4 years. If it is lower, then 3% is the minimum. IDK about you but that seems pretty damn cheap for a whole life policy with some pretty good guaranteed return or better. Cash out the policy tax free at retirement or take a loan out at anytime.
I also have a term life policy thru my job for about $12/month.
I guess I'd have to see the details on your policies (which I don't care enough to do), but something about this doesn't seem right. $175k of whole life coverage should be more on the scale of $50/month. Here's a calculator just to play with the numbers.
Originally Posted by DaFace:
I guess I'd have to see the details on your policies (which I don't care enough to do), but something about this doesn't seem right. $175k of whole life coverage should be more on the scale of $50/month. Here's a calculator just to play with the numbers.
Originally Posted by R8RFAN:
I was just sitting on the toilet counting my stash and thought I would take a pic for all you broke dicks who frequent this site
Seriously here. I hope you aren't a decade out from retirement and sitting on a mountain of cash.
That rarely works out well against inflation and rising healthcare costs associated with aging.
I might be riding something like 60/40 or 50/50 at that time, but all that cash sitting idly by is much riskier than investing conservatively in the market. [Reply]
