Whole Life Insurance as Retirement Planning Investment

[JohnnyJohnson]

Whole life is a very poor investment choice. If you don't have a Roth IRA all ready that is where you want to start no taxes when you take it and their is no forced withdrawal at age 70 like a regular IRA that is taxed.

 

[mbacfp]

Originally Posted by JLawrence08648
The investment portion of Whole Life is a conservative investment. Also investment returns very from company to company and different types of policies, variable, interest sensitive, conglomerate, mutual, stock companies. It is unfair to compare a conservative investment to buy term and invest the difference in the stock market. If you want to be fair, compare buy term and invest the difference in CDs, AAA, AA, or US Gov't bonds subtracting the cost of the insurance from the investment, then subtract the taxes from the investment. Over the long term the returns on the stock market will always beat the returns of CDs.


Precisely why (usually) buying term and investing the difference in the stock market usually works better over time. The conservative investment option is a constraint of the whole life insurance product, though not in the other strategy unless you choose to invest conservatively while buying term. I would rather buy term and make 86% return in your hedge fund even if taxable (well done by the way).

 

[JLawrence08648]

Originally Posted by mbacfp

Precisely why (usually) buying term and investing the difference in the stock market usually works better over time. The conservative investment option is a constraint of the whole life insurance product, though not in the other strategy unless you choose to invest conservatively while buying term. I would rather buy term and make 86% return in your hedge fund even if taxable (well done by the way).


I run a conservatively aggressive fund. I want every trade to be a winner but accept it can't be. I get my dollar kick from options, writing covered calls on stocks, selling calls to buy a stock cheaper, buying calls going no further out than 5 months and prefer 2-3 months. Taxes go up unless it's in a Qualified plan, accounting fees go up, lot of statements, trade notices.

 

[mbacfp]

Originally Posted by JLawrence08648
Originally Posted by mbacfp

Precisely why (usually) buying term and investing the difference in the stock market usually works better over time. The conservative investment option is a constraint of the whole life insurance product, though not in the other strategy unless you choose to invest conservatively while buying term. I would rather buy term and make 86% return in your hedge fund even if taxable (well done by the way).


I run a conservatively aggressive fund. I want every trade to be a winner but accept it can't be. I get my dollar kick from options, writing covered calls on stocks, selling calls to buy a stock cheaper, buying calls going no further out than 5 months and prefer 2-3 months. Taxes go up unless it's in a Qualified plan, accounting fees go up, lot of statements, trade notices.


Sounds a lot like my technique...though my option trading strategy focuses on Delta neutral type strategies. Core/satellite approach would best describe it I guess. Good to meet you on here.

 

[Andrew1972]

Compare price of whole life to term. Then take difference per month and put into compound interest calculator at 8% (really better). Which one is better ?