Continue to Invest?

[DJD]

I'm not completely there.......and I carry a TON of term insurance..........10 times what I could afford effectively with WHOLE LIFE.......

AND I was a whole LOT closer to my goals 6 months ago...........**** economy is kicking my BUTT, as well as EVERYONE elses.


Granted those term policies are only good for another 25 years.....(until I'm 65), but most are LOCKED in on premiums........I KNOW what I'm paying, and the difference that I'm not paying on WHOLE life will more than TRIPLE my return on a good investment instrument versus WHOLE LIFE.

The long term plan is for me to be able to self insure my HEALTH, and Life Benefits.

Now granted..........I will STILL carry health insurance of some TYPE after 65, but I suspect my out of pocket for something SERIOUS could be 10 - 50K, but that is OK, as I'm planning for that.

Finally.........I'm currently looking into Long Term Nursing Care insurance.......that will be my next CRITICAL purchase, as the costs of long term care are HUGE.....sometimes as much as 60K or MORE a year.......

Didn't mean to ruffle any feathers....

Later,

Geo

No need for any Healthcare/Long Term Care Insurance since Presbo and Congress will be suppling that free of charge. Yep, no charge at all noone pays for it....it just happens. Don't believe me ask a Liberal.

[BUCKBASSKING]

I just wanted you to know that the stuff you guys say is great for me to hear as I am new to this field. People talking down about the product that a sell makes me research harder so that I can know the truth, and stand behind what I sell. I would never want to sell something that would not benefit someone. I appreciate it and I mean that.

[zx150]

Ask Dave Ramsey. He will let you know.

[cra97]

BuckBassKing, I suggest you research the "New" term Life Policies they are offering now in the industry. They are set-up so that if you do not cash them in, meaning you die, they will pay you back ALL the premiums you have put into them at the end of the term. I will agree with you on one thing here, you will not be able to buy that same amount of insurance at that price again when the give you your money back, but like Geo said in his post, that is where developing a "complete" plan comes into play. Most people do not NEED high amounts of insurance when they get to that retirement age because they have had their lives to accumulate assets and pay them off.
Remember here people life insurance, in its most basic sense, was orginally meant to "bridge the gap" between your working years and retirement years in case something happened to you. I carry enough to pay off all my "debts" for my family, plus college, weddings, ect. that I will not need money for when I am say 65 and all this is paid off. IF you are not set-up to have your family taken care of, lets say you have not saved properly and started a family "later in life", then carrying that insurance past 70 (when Soc Sec now pays out fully) is not a bad idea. I would STILL reccommend Term Life at that point because you probably will not have time to "accumulate" cash value in a whole life policy at that point anyway. Again, these are my views and what I have done/suggested to my clients in the past, doesn't mean there are not a few exceptions, but I would not know what to tell someone to do without sitting down and talking to them about their individually situations.
I again am offering to help anyone who would like out for FREE. I don't work for ANY company now and thus you know you will get my honest UNBIAS opinion to consider. All you gotta do is ask and I will do what I can to help.

Rob

[DJD]

Does this new Term Life Policy have a name? I'll check into that. Any ideas on what it costs for 100k-200k?

[GeoFisher]

Does this new Term Life Policy have a name? I'll check into that. Any ideas on what it costs for 100k-200k?

Return of Premium Life insurance............most major carriers offer some version of it......

STILL not a good investment vehicle.

You pay premiums for 40 years.............1200 a year.......you get that back........and sometimes a little more.....but NOT much.

Take that same 1200 a year for 40 years, and it is worth WAY, WAY, WAY MORE........about 300K more.

Later,

Geo

[Devils Horse]

Ask Dave Ramsey. He will let you know.

Dave Ramsey is the man.

[cra97]

Return of Premium Life insurance............most major carriers offer some version of it......

STILL not a good investment vehicle.

You pay premiums for 40 years.............1200 a year.......you get that back........and sometimes a little more.....but NOT much.

Take that same 1200 a year for 40 years, and it is worth WAY, WAY, WAY MORE........about 300K more.

Later,

Geo

Geo,

I am sorry that sounded like I was suggesting this as an "investment", because I am in NO WAY , meaning to do that at all!! I am suggesting that as a "replacement" for ordinary "term life", which I DO believe has a place in everyones portfolio who is under 50 yrs old (assuming they are not "debt free" or rich) and wants to leave their families with enough to pay off their debts, future "major" expenses (ie. college, weddings, ect), and some to life on until they can get back to a "normal" life after our passing. These would STINK as an investment, for the reasons you mentions, which I agree with you on 100 and 10%. I just hate paying for my term life and knowing I am NEVER gonna see ANYTHING from it unless I die (which I rather not do yet . This is, in my humble opinion, as good alternative way to "pay for the safety of my familiy if I die" and still get my premiums back if I do not. Granted, the trade off here is you do NOT get any interest (at least on the ones I have seen), but you do get what you put into it back at the end which is a WONDERFUL alternative to a "normal" term life where you do not get anything at all back if you still alive when it expires.

Again, sorry if I came off as saying that was an "investment" option, because I really think it should NEVER be considered for THAT reason.

On another note, it is nice to see that there are so many people "contributing" to this discussion, it shows how much we could all help each other with questions outside of just fishing. I am impressed with the knowledge base I see within the responses here on this topic (and, no I am not trying to say I thought you all were dumb, just the average "joe or Jane" on the street probably could not contribute to this thread in a "educated manner"). I am finding myself coming to this thread each day to see what other people think and am very happy to see the responses, some of which are VERY insightful and thought provoking. Please keep thinking about your, and your families futures, as if today is the last day the Lord will give us, because as we can see from recent events, it just might be and then our families will wish we had "prepared" things for them better. I have, to be honest with myself and you all, been sitting around "saying" I need to get some term life and this thread has pushed me into action. I appreciate the nudge and help guys. Good luck and I am around if you ever wanna talk "plans and portfolios".

Rob

[greenriverman1]

I am 53 years old and have in the past year read 2 of Dave Ramesey's books. I was amazed. If I was 20 again I would have a fat bank account by now. If you are in debt over your head read Dave's book. He tells it like it is. After reading his book think about the banks and the bail out.

DA

[DJD]

Share his advice with us if you don't mind. I don't trust advice that much right now, because nobody's got any experience like this.

I'm going to guess what your guy winds up recommending:

Keep a diverse blend of funds and ride it out.

Yep thats pretty much what he said. Met with him yesterday with a follow up next week. He mentioned how the market is doing a little better kinda showing signs of life. His firm as well as some of the funds we are invested in are thinking the bottom has been reached. I guess noone really knows but like he said if you can afford to buy now then do so because what your money buys today will be some of the best returns you will ever see.
I'm an idiot when it comes to this stuff so I'll just ride along and when the country turns around, and it will in spite of Washington, I'll enjoy what I have left.