Investing
Why should you avoid “investing” in life insurance products? Where should you invest? Why?
Why should you avoid “investing” in life insurance products? Where should you invest? Why?
“Investing” in life insurance is a very inefficient way to grow your money over time. Life insurance products (annuities, whole life, traditional life, variable life, etc.) are loaded with high fees that make the agent and the life insurance company a great deal of money off of YOU. Yearly costs can easily run around 2-3% per year. You can do better.
Invest in no-load stock and bond index mutual funds at your workplace (401k, 403b, 457, TSP), in a Roth IRA at Vanguard, and/or in a taxable account at Vanguard. These types of funds can cost you .05% – .3% per year on average. Pause for a moment and look at the difference. That is money that ends up in someone else’s pocket or YOURS. Make it yours!