Kit said:
@Teal
30 years ago, my parents paid $15K for policies that would be worth far more today in a simple index fund. Whole life just wasn’t a smart move.
The policy on preteens wouldn’t even have been substantial—certainly not the 10-12x annual income you usually want.
@Kade
Usually, policies start at half of the parent’s, but if you overfund, it can grow quickly.
Kit said:
@Teal
30 years ago, my parents paid $15K for policies that would be worth far more today in a simple index fund. Whole life just wasn’t a smart move.
Whole life ensures a payout without a medical exam, which was invaluable for my family. It’s not about getting rich. Sure, comparing life insurance to investing isn’t fair, but it still has a place.
@Teal
My dad could’ve been sitting on a great retirement fund, but instead, he thought he needed a million-dollar whole life policy. Now he’s working at a grocery store in his 60s to get by.
Caden said:
@Teal
My dad could’ve been sitting on a great retirement fund, but instead, he thought he needed a million-dollar whole life policy. Now he’s working at a grocery store in his 60s to get by.
How expensive was his policy?
@Dior
Probably hundreds a month over a couple of decades… adds up quickly.
Caden said:
@Teal
My dad could’ve been sitting on a great retirement fund, but instead, he thought he needed a million-dollar whole life policy. Now he’s working at a grocery store in his 60s to get by.
Did he cash it out or keep it? Seems like there’s more going on here than just the insurance.
Dru said:
Starting to wonder if financial advisors hang around church groups just to pick up clients like my parents…
That’s called affinity fraud.
Dru said:
Starting to wonder if financial advisors hang around church groups just to pick up clients like my parents…
Some people join religious communities just to expand their business. My ex-boss complained that his network wasn’t supporting his new side hustle. It’s wild how people expect handouts.
Dru said:
Starting to wonder if financial advisors hang around church groups just to pick up clients like my parents…
When I was 15, I put my first paycheck into a retirement account with someone from church. Lost it all to fees as soon as the balance dipped. Early life lesson for sure.
Dru said:
Starting to wonder if financial advisors hang around church groups just to pick up clients like my parents…
People in church communities tend to trust each other too much. That’s how folks like Dave Ramsey get away with old advice and make bank on it.
@Hollis
There’s a podcast called Sounds Like a Cult that recently covered Ramsey and his approach with church folks. He’s way more of a grifter than I realized.
Parker said:
@Hollis
There’s a podcast called Sounds Like a Cult that recently covered Ramsey and his approach with church folks. He’s way more of a grifter than I realized.
Following his basic ideas is fine, like getting out of debt. But he makes life no fun by focusing only on debt-free living.
@Briar
If he was so great with money, he’d retire and enjoy life. But I guess he loves hearing people call him with their money problems.
Have you actually talked to them about this?
Reagan said:
Have you actually talked to them about this?
Yeah, but they don’t understand why they haven’t bounced back from their 2022 losses. I tried explaining bond ETFs, and I suggested they talk to the advisor.
@Tanner
Honestly, their advisor’s choices sound typical for older clients who want less risk.
Galen said:
@Tanner
Honestly, their advisor’s choices sound typical for older clients who want less risk.
2022 was rough for balanced portfolios in general. Stocks and bonds didn’t have their usual balance.
@Harlan
2022 was the worst year for U.S. bonds since the 1700s.