Quote:
Originally Posted by dmbbearcat
I worked as a financial advisor until a month ago. I didn't think finance was for me, but reading this thread kinda makes me miss it 
Also want to mention permanent, cash value life insurance here, especially for those in your 20s. I have enough insurance to cover my debts if I die tomorrow, but it's also growing cash as a living benefit. I put $200/mo into my insurance, and the cash will grow enough that I'll be able to put my kids through most of school. It grows roughly 5-6% annually, tax-deferred, and unlike a Roth or 401k, I can withdraw the money whenever I want with no questions asked. Most of it will be used for retirement, but I wanted to mention it in here because nobody else has. It's easily the best place I put money. |
I'd like to learn more about this. I don't have any dependents, so haven't looked into it other than talking to some insurance guys casually. How does it grow 5-6% annually, what is the vehicle?
For the record, you can withdraw
contibutions to a Roth IRA penalty free. So if you had a Roth IRA of $50k and were contributing $5k per year, if you had this year's $5k still sitting in cash, you could withdraw it whenever you want. It's just the earnings you've made that you cannot withdraw.
So there are some out there that say "Hey no big right, use it anytime you have an emergency" and tell you to just let some Roth IRA money sit in cash instead of dealing with a savings account of worry money.
I'm no investment guy and thus no opinion on any of it, but it's nice knowing that you have another fallback if shit ever hit the fan in your life.