Never Stop With “Obvious Answers”

In my experience, many things that are obviously true are, in fact, not true.

For example, “Whole life insurance is a terrible investment.”  It might have been true once, but not so much now. If you examine a “participating whole life” policy and compare it to other investments with similar volatility, you will discover it is an excellent investment.

Compare the amount in your estate at the end of any year to similar capital invested in a high-grade bond fund. No comparison. The insurance policy wins clearly. It is not hard to reach the end of life, far in the future, and make 4% after taxes. Should you be willing to die sooner to make your portfolio work better, the after-tax yield will be much higher. In my experience, though, few people will die to do that.

A 2,000-year-old thought

“It is impossible to teach anyone something they think they already know.” Epictetus

What if your intuitively obvious truth that whole life insurance is a bad deal is wrong? It might be worth examining that in more detail.

Observation

Everyone dies, and everyone owns assets that will eventually make it into their estate. Why not take those assets and invest them for a higher yield? Just sayin’.

Be in touch for the comparison. It will surprise you.


I help people have more income and larger, more liquid estates.

Call or email don@moneyfyi.com or in Canada 705-927-4770

One Comment on “Never Stop With “Obvious Answers”

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