Cash Value Life Insurance?

Hello all,

Im currently 22 and have been fairly successful in the sales industry for the past 2 years. I now have no debt and I am looking for the best way to add to the retirement fund. I have money going into my company's 401k on the ROTH and traditional side, but also have been interested in cash value life insurance to supplement my retirement funds. Anyone in here familiar with them or have tips or suggestions? Thank you in advance ๐Ÿ™๐Ÿป
๐Ÿ’ก Education/Resources
๐Ÿ’ต Finance
๐Ÿ›ก Insurance
10
Avon
Politicker
2
Senior Account Executive
Pretty much everyone I know in the personal finance field says itโ€™s the absolute dumbest โ€œinvestmentโ€ you can make.
paddy
WR Officer
1
Director of Business Development
Save up and invest in real estate. If you're in California at least.
CaneWolf
Politicker
1
Call me what you want, just sign the damn contract
Do not do that. Buy index funds.
BmajoR
Arsonist
0
Account Executive
Put your money into the market. I would consult with an adviser on a short and long term plan. Short being something to give you fast cash in say 10 years and then use that money to invest into multi-family real estate and by the time you're 40 your mortgage will be paid off and the rent is pure income.ย 
braintank
Politicker
0
Enterprise Account Executive
It's a scam. Don't do it. Don't work with any financial advisor who advises you to do it.
looper1010
Celebrated Contributor
0
Solutions Specialist
Take care of bills first.ย  Have an emergency fund (6 mo). Then max out all retirement options. 401k, Roth ira (most likely if you're young with a lower salary - less taxes vs. Older and higher salary). Max out your HSA next.ย ย 
Then some general investments (index funds).ย  Save for large purchases.ย ย 
If you have money leftover, then you can splurge on something fun.

Who the hell is selling you a cash value life insurance at 22? Are you terminal, have some kinda illness, have dependents already?ย  Are you not the typical healthy young man? High risk to die soon?


Ozz
Politicker
0
Account Executive
Itโ€™s a scam and just a forced saving account. Index funds are much better and more liquid.
Covfefe4ClosersOnly
0
VP of Sales
As an investment? There are better options.ย 

Firming up a cheaper rate because you are younger and planning it for income replacement for when you have a family in the future? Thatโ€™s a better reason if you can afford all other savings and that.
JDialz
Politicker
0
Chief Operating Officer
There are several kinds of permanent life insurance. You've probably been shown Whole Life, which is likely not suitable.
suhdude
Opinionated
0
Sales Rep
Cash value life insurance is not an investment and anyone who tells you it is is full of shit. It's an alternative to banking and should be used as a place to store your $$ with guaranteed 3-5% tax free growth + the death benefit (what ppl think of as traditional life insurance). Honestly it's best for ppl with a lot of $$ to safely store it and hedge against inflation, not as an accumulation/investment product. Anyone saying it's a 'scam' also has no idea what they are talking about. Do some research on bank owned/corporate owned life insurance and you'll see billions of $$'s put into permanent life insurance.
younghustler860
Contributor
0
Financial Advisor
Donโ€™t forget since itโ€™s not market correlated so you can withdraw from it at a gain during prolonged down markets to avoid locking in losses in retirement in your 401k IRA brokerage account etc ;)
5
Members only

Do you do it for the cash or the cred?

Question
36
I do it for the:
83% Cash
17% Cred
86 people voted
26
Members only

How much of your paycheck are you investing?

Discussion
78
How much do you invest?
52% Set amount each month no matter what
48% Tailored to each month
137 people voted
24
Members only

Your Sales Career is Over! Money in the bank. Where you going?!

Discussion
41
Where?
81 people voted