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Should I Buy Term Insurance And Invest The Rest

When I was in my early Army days, I bought a few term policies that would be in effect until I was 52. Of course, that is with the hope that I would be retired by the time I was 52. I am 51 now. I will not be retired by 52 unless something incredible should happen.

At twenty one, the guidance I was given was to buy term and invest the rest. There are some advantages and disadvantages to this practice. At 21, If I am working full time, this is a plus. This sample is based on me having $200 of extra income per month. For me, I was a young, Army officer and this was doable. All that means is I didn’t have a girlfriend or a dog, so no miscellaneous expenses.

At $200 a month, A $500k term policy was about $30 a month, and I could convert it to permanent life at any time during the 30 years of temporary coverage. This leaves me with $170 per month to invest. As long as I have enough to take care of regular bills and miscellaneous expense in bank, let’s invest. With that sentence, Create a monthly budget that includes miscellaneous expense and vacation planning. Stick to it.

One good option for the $170 is to start an investment account. One nice thing about it is that it is pretty liquid. Meaning that you could make a withdrawal and get your money within 3 days if necessary. Investment account is much better served if you keep the money in there. They are set up based on your risk tolerance ( conservative, moderate, aggressive). Normally, there are numerous funds to choose from that have at least a 10 year history of success.

In combination with this, I would diversify just a little bit.

I would also look at having a small permanent life insurance policy while they are still inexpensive. If you wait until you are 51 or 30 years from now, you are normally guaranteed your rating, but your premiums will be based on your age 30 years from now. I would review what the insurance coverage would be for $50 per month. This takes care of everything after the 30 years of term. It will also provide additional coverage for funeral expense while earning cash value.

Everything still depends on the person and what they want.

Remember, whatever company you work with should put together a plan that meets your specific needs. If you do not feel that happening, find someone else. When I do financial services, it is based on the three h’s ( honesty,humble, and helpful).

That is the service you deserve. Get with your financial services person early. Every year that passes the rates get higher and you are one year closer to retirement with no plan in place. Get yourself a plan. Take a deep breath. Stick to the plan. Then, plan for a great retirement.

The toughest piece is sticking to the plan. Therefore, a key part of the plan is investing a dollar amount that you are comfortable with. Start low and then go higher as necessary.

Believe that success is based on faith, family, and friends. Currently, licensed in financial services. Enjoy helping people and businesses succeed.

Believe that success is based on faith, family, and friends. Currently, licensed in financial services. Enjoy helping people and businesses succeed.

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