33, no dependents, unmarried male. Don't get it, yeah I know. I realize this sub is overwhelmingly against WLI, but despite reading all the threads and wiki I think it might still be right for me. Would be great to hear why if is still a bad place to park money with the following rationale.
Current financial practices: contribute to 401k enough to max the company match, contribute to IRA yearly (the max $5500 or whatever), and 6 months' emergency fund in savings account. I have a car loan for around $12k, no student debt or other debt. Aside from the car loan, almost any money not going to rent/food/living expenses goes into my brokerage account. Stocks are my investment, not the life insurance, if I were to get it.
Again, this isn't being considered an investment but rather somewhat like a CD/money market account that could offer enough to match inflation (my bank offers a pathetic 0.55% on MMA). Also I live in an area where home ownership is a pipe dream. An area where if I saved the premiums, it would have no real effect on my ability to own a home.
Here's a quote from a reddit thread:
Whole Life insurance: FUCK WHOLE LIFE INSURANCE. This is the worst investment known to man. Buy term. Whole is a savings account with life insurance attached.
Wait... but that's what sounds appealing. My stocks are my investments, any leftover free cash will continue to go into the stock market. But you're telling me there's an option for a kind of savings account where they actually give you an interest at LEAST equal to inflation, and they'll throw in life insurance for free on top? Why would I choose a savings account giving 0.1%, or bonds which probably lose out to inflation too, with the way things are?
The kicker for me was, the dividend payouts are tax-deferred, and apparently you can actually take out a loan at a low interest rate against the money if desired.
If there is something I am missing I'd love to hear it.
Submitted June 04, 2021 at 02:26AM by oarabbus https://ift.tt/34M6fzk
