A quote from an insurance general agent I work with, "Investments make lousy insurance: insurance makes a lousy investment". Well said!
Insurance is designed to protect against an unexpected occurance. Investments are designed to build wealth. While insurance may protect the process of accumulating wealth by replacing for example, a car after an accident or a job ending disability. it is not the way to provide you with funds to retire on. Insurance may provide funds for your families benefit if something tragic happens to you before you can amass capital to pay for education or pay off a mortgage. If you examine a whole life insurance policy, you'll find the return on investment to be far below the average return on any of the major market indices over a five or ten year period of tiime. Granted the market was down 10% this week, but that has happened many times in the past and will happen again in your lifetime. I saw an interesting graphic this morning regarding periods of time after a sell off like this weeks that showed the time to recoup market losses after a week such as this. The periods varied, but they all were relatively short.
The best method to have funds when you're older is to learn as much as you can about investing, set up a game plan, review it often, modifiy it as necessary and stick with it. Buy enough iinsurance to cover unforseen emergencies and then, go enjoy life!
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