No. of Recommendations: 17
CCinOC analyzes,

<<If they are retirement funds, why would I liquidate them before retirement?>>>

You may have a life emergency, such as your daughter contracts a rare disease, the cure for which is to be found only in a teaching hospital in Australia. ;-)

There was actually someone at my church that this happened to. He borrowed against his life insurance policy.


You got several things going on here. A rare disease (low probability event) combined with the fact that the cure is only found in Australia (another low probability event) combined with the fact that these two low probability events are coinciding with a big stock market decline. When you do the combined probability calculation, the odds are going to be off the charts - like getting hit by lightning and freezing to death on the same day.

I'm not going to give up half the value of my investment portfolio to an insurance company in an attempt to cover this risk.

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