This is far far less than 6%. $100k investment paying $500 a month equals $6000 a year ~ 6%.It will take years before he even gets back his principal.Such an investment is not designed to pay back principle, just like a CD is not designed to pay back principle. The principle is intended to be left in the account for growth.. Also, in my opinion, there are no AAA rated life insurance companies.There are a few. I don't know why you trust them less than PSA considering the fact that most insurance policies have state guarantees up to $300,000 against default. PSA has no such protection.Even AIG, which basically went bankrupt, did not default on a single policy.Doesn't make one better than the other, just different.
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