post in here if you got a 401k/ROTH IRA plan

[Rawtid]

I have a term policy also but with term you are not getting any returns and after the term is up you no longer have the coverage. Term is like renting insurance. If you take out a 20 yr term policy at age 30 you more than likely will outlive that policy and if you try to take out a new term policy at 50 its going to be just as expensive as if you take out a whole life at 30 if not more.Whole life is there forever and it has cash value, by year 10 of my policy my guaranteed growth yearly is more than my yearly premiums so its well worth it and its something I can guarantee my kids will have when I die

If I have a 20 year term life policy the goal would be to build wealth through investments in that 20 years so I wouldn't need life insurance after that. I think it's great motivation to put a decent financial plan in place. "I got 20 years to stack this paper but if I die before then, my people are still straight" That's how I look at it.

Whole life plans are more expensive and if you took the money you were saving by buying a term life and invested it wisely you would have more money with your investments than the cash value. Plus from my understanding the cash value goes to the insurance company upon your death and the face value goes to your beneficiaries. Whole life insurance is basically mixing insurance with investing and that's just not for me but I wouldn't knock anyone that liked them better.

 

[The Bilingual Gringo]

ROTH IRA Crew here. I'm actually going to setting up a separate SEP IRA this year. My 1099 income is killing me.

Term life is better.

I usually agree w/ you on money matter, but this is true, but to a point. A permanent policy should be a must for someone when they're younger. Makes more sense to have something stable in premium for 100+ years and at least you'll have some investment side of it if you need to liquidate it.

 

[Rawtid]

ROTH IRA Crew here. I'm actually going to setting up a separate SEP IRA this year. My 1099 income is killing me.



I usually agree w/ you on money matter, but this is true, but to a point. A permanent policy should be a must for someone when they're younger. Makes more sense to have something stable in premium for 100+ years and at least you'll have some investment side of it if you need to liquidate it.

I posted a reply to dude right above yours but I shouldn't have said "better" but just from what I researched, I would prefer term over whole. I certainly wouldn't knock anyone who got a whole as long as you have insurance.

 

[opulence]

Ugh at ny life increasing my rate smh...I would dip into mine if the penalty was less tho...

 

[The Bilingual Gringo]

I posted a reply to dude right above yours but I shouldn't have said "better" but just from what I researched, I would prefer term over whole. I certainly wouldn't knock anyone who got a whole as long as you have insurance.

I think that's the key more than anything, that someone has life insurance. It's a perfect tool to start wealth building for generations and all that. There are people that are THAT liquid that don't need it, but it's perfect for passive investing and generational planning.

Glad we're on the same page then.

 

[NYK Loyalist]

If I have a 20 year term life policy the goal would be to build wealth through investments in that 20 years so I wouldn't need life insurance after that. I think it's great motivation to put a decent financial plan in place. "I got 20 years to stack this paper but if I die before then, my people are still straight" That's how I look at it.

Whole life plans are more expensive and if you took the money you were saving by buying a term life and invested it wisely you would have more money with your investments than the cash value. Plus from my understanding the cash value goes to the insurance company upon your death and the face value goes to your beneficiaries. Whole life insurance is basically mixing insurance with investing and that's just not for me but I wouldn't knock anyone that liked them better.

Yeah you are absolutely right about buying term and investing the difference. The only issue with that is having the discipline to do it and most people don't. I'm trying to make sure I'm diverse enough to where if the economy crashes when I'm just about to retire I don't lose everything like a lot of people did back in 08'. As far as the cash value going to the insurance company after death that is not how my policy works but there may be companies that do that.

 

[chopchop702]

fukk a 401k.

I like to be in total control of every dollar i have. Maybe i want to sell every stock i own with a mouse click because north korea acts a damn fool.

Maybe i want to hop right back in after it dies down.


I have a roth ira on my own. Not company related.

Im just saying. I like the liquidity and freedom of my money over the company match $$ that i miss out on.

But thats me, and im a stock trader so...

 

[OH SOHH TRILL]

Borrowing your own money at 25% interest

I can borrow from mine for up to 60 months with .05 interest

your plan is raping you b.

 

[OH SOHH TRILL]

fukk a 401k.

I like to be in total control of every dollar i have. Maybe i want to sell every stock i own with a mouse click because north korea acts a damn fool.

Maybe i want to hop right back in after it dies down.


I have a roth ira on my own. Not company related.

Im just saying. I like the liquidity and freedom of my money over the company match $$ that i miss out on.

But thats me, and im a stock trader so...

most plans have something called a "brokerage" option that lets you actively manage the money. if you have the option of a 401k, especially with a company match, and don't use it, you're pouring jelly on yourself.

 

[Rawtid]

I can borrow from mine for up to 60 months with .05 interest

your plan is raping you b.

I'm a pessimist so I try to plan for the worse because shyt always goes wrong. You typically have 5 years to repay a 401k loan but if you leave that job by choice or by force, you'll owe that money within 60 days. If you don't have money to pay it back you're subject to early withdrawl penalties of 10% plus your tax rate which is together is about 25% or more.

Can't/Won't knock anyone that does it but if it's goes wrong...

 

[mannyrs13]

What kind of company match is everyone getting? I get 4% match dollar for dollar. I have been thinking of increasing it to 5% to save more, since its pre taxed. And I still got atleast 30 mos years before I can touch it.

 

[The Bilingual Gringo]

I need open up an IRA. What kinda funds you guys investing in?

I have a ROTH through American Funds, this is what I'm in now:

Fundamental InvestorsANCFX

New Perspective FundANWPX

AMCAP FundAMCPX

New World FundNEWFX

My gains have been in the 18% range annually since things rebounded a few years ago.

 

[BlvdBrawler]

What kind of company match is everyone getting? I get 4% match dollar for dollar. I have been thinking of increasing it to 5% to save more, since its pre taxed. And I still got atleast 30 mos years before I can touch it.

My company matches 5%.

I put 15% in.

 

[mannyrs13]

Smart man. More money to grow.

 

[DemureNatural]

Yep...and my company matches at 4%