Last year a started a new job and I am actually making money for the first time in my life. Because this is the first time this has happened, I have no real idea how to deal with finances and investments and need some advice on a couple of topics. I figure I should lay out my situation if I am going get anything valid.
I am 43. My wife is 48. We have no children. Together we make about $210K. We "own" a house ($137K remaining on a $185K home, 4.625% with 27 out of 30 years left). We currently have about $128K in various 401k funds and about $20K in savings
She has a Roth at work. I have her contributing the max into that. The company also matches, up to 4,000. So we are plugging $22K a year into that. She is a very conservative investor, so we have this and her other funds returning at about 5-6%. She is mostly in stocks that return dividends.
I have no investments options at my job. My existing investments are running very aggressively with a return in the 15% range. I am setting aside $20K a year into a Betterment account, running 90% stocks.
I have a guy who consolidated all our various 401k accounts together and simplified it. He was the one who suggested she max the Roth. But then he had me buy life insurance (I HATE life insurance). His reasoning was that I would over fund it, and borrow money from that over funding when I retire. This makes all the gains on that money in the life insurance tax exempt since it is a loan. So now I am paying $1000 a month into this policy; half to overfunding, half to the coverage.
I feel like I have been conned on the life insurance. Does anyone have any thoughts on this? Should I bail on it early and put the cash elsewhere?
Is there something else I should be doing or something I am doing wrong? How do I leverage this better?
Submitted January 06, 2017 at 10:05AM by dante4242 http://ift.tt/2i0tEp4
