No. of Recommendations: 2
Hawkin is right -- we looked at the term life policy for me as well, but to make a long story short it wasn't necessary for our situation given the savings we'd already accumulated and DW's job (and ability to get future jobs). What we *did* do was take out a ten-year term policy on her life ($250K, cost about $270/yr) as she became the primary breadwinner.

Some people will tell you "Oh, but if you can get the money right away, you can invest it and it'll grow." That's true -- but if they've already discounted your lump sum at a rate of 10%/yr you'll have to earn that rate just to get back to what the company would have originally given you at full retirement. Some folks are confident in being able to do that, but others aren't.

Make your decision carefully because, as I said before, it is truly a major life decision. Keep in mind your current and future needs for income (before and after retirement), trust in the company to make good on its promises, how good your investment skills are, etc. Good luck!
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
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.