Even if you are 40, aggressively investing in yourself in a whole life insurance policy can be a great option in this volatile market due to the high dividend returns compared to other investment tools, and the amazing death benefit that can be carried on to your children tax-free.
Since I last wrote a post I have been investing in my current full time job Roth 401K, but guess what the year to date returns are? 4%. Great. I haven’t known what’s next for my retirement savings. I know that I need to find other alternatives to the 401k, as the earnings are so volatile. I know that I’m not saving towards retirement aggressively enough.
My recent choice – whole or permanent life insurance. Good returns, tax free retirement withdraws and interest free or low loans later in life. The most amazing part is the death benefit included that you can pass on tax-free to your children and grand children. So many benefits. You must read carefully about them before you decide for yourself, but I think they are a great alternative with tax-free retirement income potential.
Resources
- Pick up the book Tax Free Retirement by Patrick Kelly to learn more. (Most of its obvious, but the meat is in the last chapter explaining the amazing benefits of whole life insurance.)
- Find out the differences between Universal and Whole Permanent Insurance Options
I’m planning on opening this for my husband, myself and my children even! I’m looking to use Mass Mutual as they are A++ rated and have good dividends over the last 30 years (over 6% to 9%). I found this PDF on their site showing their returns over the past 30 years.
This may actually be a better alternative to a 529 as well. After I get this next chapter of an alternative retirement savings figured out, my next plan is to set up whole life insurance for my daughter as a borrowing option for when she reaches college as well as a great retirement vehicle for her.
I actually stumbled upon this as my grandparents are starting one for me as part of annuity and they get to transfer their dollars tax free to me to fund it. What a wonderful thing to be able to do, I hope to continue that pattern with my children and grandchildren.
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