Protect Your Assets & Become Wealthy - Life Insurance Truths

[sexymstang]

Like the person that was explaining his policy...if you invest the differecne...the word here is "IF"..how often does originally people ever invested the differences....

[landycis]

You guys that like to invest in Life Insurance policies, why don't you ask people that have become wealthy investing in the stock market- which is more risky than your universal and whole life policies- if they put a dime in the investment vehicle that you suggest? Warren Buffett is just and example. I have no doubt that those policies are very good to the agents that offer them and their companies, but not to the clients.

[magicktrick]

@landycis part of an overall investment strategy, it is smart to utilize life insurance as part of the fixed income allocation. The key is asset allocation. If you want to get rich off any investment, do options and roll the dice. You'll either be rich or broke. But adding life insurance to your overall portfolio lowers the risk while increasing returns. It won't make you rich.

[magicktrick]

@landycis I fell I needed to reply here, as you mention Warren Buffet's portfolio:

Berkshire purchases life insurance policies from individuals and corporations who would otherwise surrender them for cash...

— Warren Buffett, Berkshire Hathaway 2004 Annual Report

There's more to that quote for the annual report, but limited in characters here to reply. Also, many other corporations and banks have life insurance to reduce risk in a portfolio, as does Berkshire

[prcaballo]

@landycis Like most people, this person and your comment reflect the lack of knowledge of insurance products. It is very easy to misrepresent the fact that the market goes up AND down! I didn't see where his illustration of investing took into account the fact that the market goes down and you lose money. Shameful that you put this out there without adequate knowledge and that people actually listen.

[jgilles85]

@doodaid: Ever heard of good solid equity mutual funds and dollar cost avg?

[jgilles85]

@tik93 Ever heard of tax deffered retirement accounts? And you don't lose money if you invest the right way!

[doodaid]

haha, 12%.  Where are you getting 12% these days?

[astroman30]

Life Insurance is a HORRIBLE investment. Stay away from whole/variable/cash policies. The payments are extremely high and you only get an roi of about 3%. Buy term insurance and invest the difference in a roth ira or good growth mutual funds. Seek the advice of Dave Ramsey, Suze Ormon, Consumer Reports, Smart Money, Motley Fool and others who say stay away from whole life policies.

[bittballs]

Life insurance is to be used as part of your investments, not as the only way to save. Not to mention, that Northwestern Ledger that you ran is a very low-rate guarantee. LI is not to be used for short term investing, but it can be used as a supplement to your bond portfolio to maximize it's consistency and create liquid wealth while also growing capital gains free.

[tik93]

12% return on your Investment account....GOod luck you also failed to mention this is taxable, AND your could lose most of your account