Insurance Query?

Question

I started working recently and I would like to invest part of my salary in some kind of investments. Since I am scared to invest in mutual funds and stocks, I thought it would be best to go for an insurance scheme. Please suggest me an insurance scheme to fit my needs? Who offers these insurance + investment schemes?

Answer 1

If you like paying high fees and expenses go with an insurance scheme for investing. You will get to share up to 10% of your money with the salesman and the insurance company.
If you are afraid of the stock market and mutual funds you need to spend time reading and researching investments.
As a starting investor I would suggest that you look at Vanguard funds. You can start out with a short term or intermediate term bond fund such as a U.S. securities fund. These are safe unless the U.S. Government goes bankrupt. You won't get the kinds of returns that a mixed stock/bond portfolio would give you but you will be safe until you gain more knowledge and experience.

Answer 2

You are more afraid to invest than to put into a "scheme"? An insurance scheme, or any other type of scheme, usually involves fraud. That could involve much more risk than a possible loss of principal. You are talking jail time! Plus lawyer fees! If that is your idea of a better investment, by all means, go ahead! You will lose much more than you stand to gain.

Answer 3

I would suggest a ROTH IRA, it is not risky and can earn a great deal over time. You use after tax dollars to invest in it, it grows tax free and once you start taking money out it is also tax free. You do have to wait till you are 591/2 to withdraw without penalty, and there are a few other qualifications to invest in a ROTH. I would call your agent and discuss it.
Annuities can also be an option.

Answer 4

if you're too scared to invest in real assets (ie stocks, bonds, etc), i'd stuff my matress with cash before i 'invested' in an insurance scheme.