tommyguns2
Senior Moderators
Staff Member
- Dec 25, 2010
- 6,337
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JR, you and woodwise clearly know what you're talking about. I'm not a big insurance fan, in fact, I've got none. But I understand that it can have a place in the big overall plan.
LK, getting a financial planner (optimally a CFP), is a good idea. While we could all argue until we're blue in the face about what is the "best" plan, simply having "a plan" gets you most of the way there. And implementing that plan before you're getting close to retirement makes things a lot easier.
LK, getting a financial planner (optimally a CFP), is a good idea. While we could all argue until we're blue in the face about what is the "best" plan, simply having "a plan" gets you most of the way there. And implementing that plan before you're getting close to retirement makes things a lot easier.
monsoon
Senior Bacon VIP
- Nov 1, 2010
- 5,037
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Shut your dirty mouth! You mean the guys here don't know everything?!?!?
Perhaps JR has a point. I was only considering the 99% when making my blanket recommendations. I agree that you may want to consult a financial planner, but please not one that sells these crap products. Some of the big company agents call them selves financial planners but really only sell their products. For example, my State Farm agent.
woodswise
TID Board Of Directors
- Apr 29, 2012
- 4,334
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There are many people who are comfortable getting the 5% to 7% return that a whole life policy generates on their investment, who are not super wealthy, and who are not comfortable investing in the stock market. Before mutual funds most of the middle class professionals my family knew (many of whom lived through the great depression) would never consider buying stocks, but would invest comfortably in whole life insurance, bonds, CD's and other safe investments.
There are many people today who will never buy stocks because they see it basically as gambling, and they don't know enough to invest without and advisor, and they don't trust advisors. Life insurance, CD's bonds are all things they will consider.
graniteman
MuscleHead
- Dec 31, 2011
- 6,133
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Not wise to put your future in someone elses hands. I know more than a few guys that have lost fortunes to shiity investment companies and ''financial planners''. My brother in law, a dumb ass but still, lost everything he had with Charles Schwab. In this day and age you need to be active in your finances, invest and forget no longer cuts it. Google is a wonderful tool
Besides if one has a IRA or pension plan, or whole life one is investing in the stock market, he just has no say. Might as well have a say in how your money is handled imo but hey if you're happy with 5% mo power to ya, I'm happy for ya.
woodswise
TID Board Of Directors
- Apr 29, 2012
- 4,334
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Not wise to put your future in someone elses hands. I know more than a few guys that have lost fortunes to shiity investment companies and ''financial planners''. My brother in law, a dumb ass but still, lost everything he had with Charles Schwab. In this day and age you need to be active in your finances, invest and forget no longer cuts it. Google is a wonderful tool
Besides if one has a IRA or pension plan, or whole life one is investing in the stock market, he just has no say. Might as well have a say in how your money is handled imo but hey if you're happy with 5% mo power to ya, I'm happy for ya.
You really don't understand the difference between whole life insurance as a guaranteed annuity versus investing in the markets with financial planners? There is very little risk with the life insurance. The returns are guaranteed. For an unsophisticated investor guaranteed 5% to 7% returns over their lifetimes for them sure does beat the risk of investing in the stock market where in 2008 many people lost as much as 50% of their life savings.
It is only one tool in the bag of investments that people have available to them, but it is the safest and most guaranteed one. The same goes for annuities. You can purchase annuities out there today with 5% to 7% annual guaranteed returns on your money, or you can purchase annuities that are indexed to the DOW or S&P so you are guaranteed those returns on your money annually. For people who don't know how to invest their money in the stock market, or who have no interest in being in the market, and especially for those on fixed incomes and retired, these make excellent financial investments.
There are basically three risks with the insurance / annuity products. 1. You don't get as good a product as you thought (here it is key to know you can trust your insurance guy); 2. the insurance company goes belly up (in which case the reinsurance company steps in so you are good); 3. the reinsurance company fails (if that happens, you are truly f***ed, unless other insurance companies step in as they did in 2008 when AIG failed).
In contrast, there are no guarantees in the stock market or bond market, and you can, and people frequently do, lose everything.
Given the choice between losing everything and having 5% return on my money, you bet I would be happy with 5%.
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woodswise
TID Board Of Directors
- Apr 29, 2012
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