UnThreaded | Threaded | Whole Thread (18) | Ignore Thread Prev | Next
Author: draknor One star, 50 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 79066  
Subject: Re: Whole Life Help/Question Date: 3/12/2008 10:52 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
2.) Would this be a good route to go, despite the fact that I won't need insurance for at least 5 years (if ever) given my basic financial situation (I know I didn't provide all the details)?

There's a saying I've heard on these boards -- don't let the tax tail wag the investment dog! That is, just because something may have tax advantages, doesn't mean its a better investment than a taxable one.

I don't know anything about whole life insurance, but for someone in your position (fairly similar to mine, actually), I'd recommend increasing your investments in either the 401(k), a Roth 401(k) (if offered by your employer), or put the money into a taxable brokerage account (since you are already maxing your Roth IRA).

As someone else posted, long-term capital gains & qualified dividends are pretty tax efficient (15%, currently), so building up a nice long-term, dividend-paying portfolio will give you great income in the long-term, especially if you reinvest dividends now (when you don't need the income).
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (18) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2015!
Fistula Foundation: A World of Good!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.