The Most Successful Strategy To Never Retire

Wasted Money

If there was a strategy out there that actually made sure you never retire, would you care to know what it is?

Maybe you wouldn’t care so much, unless of course you were one of the thousands that follow it, and didn’t know it.

That being said, there is a such a strategy, and it has been a mass failure.

What The Financial Guru’s Don’t Tell You


The financial gurus are full of advice. They may differ on small items, but the overall theme is resounding.

Cash value life insurance is one of the worst financial products available – Dave Ramsey

Whole Life insurance. That’s probably on the top of Ms. Orman here’s top hate list – Suze Orman

Buy term and invest the difference. – Dave Ramsey

Get term insurance. Invest in investments like mutual funds ands stocks. – Suze Orman

It makes you feel good inside that the people on TV and on the radio are telling you what to do. How would you feel if Suze Orman invested less than 4% of her money in mutual funds and stocks? According to an interview with the New York Times she does. In fact, while she tells you to take risk, she hardly takes any at all.

They also don’t tell you that there theory works based on 2 things. Mutual funds produce and whole life insurance doesn’t.

The Mutual Fund Myth Exposed

There’s no reason to rely on theory here. The facts say enough. Ever heard of Dalbar? They are a leading financial services market research firm, and they’ve got all the numbers you can handle. Look at the returns for mutual funds in the last 20 years (which is the best case scenario)

Dalbar mutual funds

In the last 20 years the returns are less than 2%. Oh… and that doesn’t account for the taxes either. Then add the cost of insurance. How’s this strategy looking so far?

Whole Life Insurance Gets Even Better

So how does the product that tops Suze Orman’s all time hate list compare? A case study by Mass Mutual, a life insurance company, about life insurance returns, shows that over a 28 year period, the returns were between 4.49% to 6.52%.

Now don’t take into account taxes (because its tax free), and don’t add the cost of insurance (because its already included in the returns).

How To Never Retire

So if you want to ensure that you never retire, the best thing you can do is invest in mutual funds, and buy term insurance. The risk, poor returns, fees, and added costs will certainly be enough to keep you handcuffed to a day job for the rest of your life.

Now what do you think? Do you agree or do you think I couldn’t be any more wrong? Make your comments below. And tweet your opinion.

“Whole Life insurance is better than buying term and investing the difference” – Click to Tweet

“Buying term and investing the difference is better than buying whole life insurance” – Click to Tweet

*Photo credit: http://www.flickr.com/photos/76657755@N04/7214600922/sizes/n/in/photostream/

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Jake

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