No. of Recommendations: 3
Any money you give to an insurer is not an 'investment'...its a contract. Insurers promise to give you something in the future for a lump sum today. These insurance company 'guarantees' are only as good as the financial health of the insurer

Assuming an average annual inflation rate of 3%, in 10 years, $40,000 will have the purchasing power of $29,700 today.

Remember the 3 laws of the marketplace:
1. No one knows what the future markets will do
2. We all invest in the same marketplace
3. Only the US Treasury can print money

How can the insurer offer value over a diversified portfolio of ETFs?

Answer: They can't

Think about it.

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!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.