08.20EUREKONOMICS™ - Money Now, Money Later, Money for Life…
In May of 2008 this blog awakened its readers to an idea that is now being recognized after decades of being dismissed. Fact is, if you had followed this practice through the ’80s and ’90s you would be well ahead of those that followed conventional wisdom.
Jeffrey Kosnett only implies the power, flexibility, and versatility of whole life insurance in his recent article in Kiplinger Magazine. If you want the whole story I recommend the book Money for Life, which explains the idea in full detail and is changing the lives of Americans for the better all across America.
( Page 2 of 2 )From Kiplinger’s Personal Finance magazine, April 2009MYTH 6. Life insurance is not a good investment. This canard spread as 401(k)s and IRAs supplanted cash-value life insurance as Americans’ most popular ways to build savings while deferring taxes. True, the investment side of an insurance policy has higher built-in expenses than mutual funds do. But two factors point to a revival of insurance as an investment. One is guaranteed-interest credits on cash values, which means that if you pay the premiums, you cannot lose money unless the insurance company fails (see “Savings Guarantees You Can Trust,” on page 55). The other is the boom in life settlements. If you’re older than 65, you can often sell the insurance contract to a third party for several times its cash value — and pay taxes on the difference at low capital-gains rates.Truth: A good investment is one in which you put money away now and have more later. Checked your 401(k) lately?
by Jeffrey Reeves, youBEthebank.com, ltd.
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