I am a single female, no dependents and recently have been consulting a financial advisor. He is pushing me?

Question

to purchase life insurance for investment reasons and retirement planning. Is this a good idea?

Answer 1

All prior answers have shown the responders personal bias about the whole notion of insurance.

If you have no need for the life insurance, you can still justify including a small amount in order to make the funds accumulate on a tax sheltered basis, and allow for future tax free withdrawal. Without knowing more about your situation, I can only say that you can move on from the pushy salesman, and keep on with your information quest.

It is possible for you to include mutual fund type investments in the insurance account, if you like, and enjoy tax benefits similar to a Roth IRA.

I have a website for you that promotes a book I have written to assist people in your situation. It is

www.safemoneyplus.com

I have been told that it is 'amazingly easy reading'. I am happy to further assist you if you need help.

Answer 2

Life insurance is NOT an investment! If the GOAL is investment and retirement planning, there are BETTER, much less expensive ways to save a LOT more money.

OK, here's my advice:

1. Ditch this guy, he's only after the commission.
2. You have NO NEED for life insurance, from what you're telling me.
3. You DO need to start filling up that IRA. Now is the PERFECT time - no other major drains on your cash, like KIDS. I like self directing my IRA through Charles Schwab. If you want a consultant, pay one of those guys a flat fee to help you pick MUTUAL FUNDS. Or grab the May 2005 issue of Consumer Reports from the library archives, they have a HUGE report on recommended funds.

It's good that you have your goal, and you're questioning the method of getting there. Remember, insurance is designed as a BET. INVESTMENTS should NOT be gambling.

Good luck!

Answer 3

Only you can answer that question , but one to ask him, is how he is paid. If he get a fee for the products he sells, then he is going to push what makes him the most $$, and life insurance definitely pays the agent alot. If he gets paid a flat fee, then I would be more prone to trust.
Another thing to consider is does he hold a CFA ? Certified Financial Analyst or CFP, planner ? these credentials go a long way. Anyone can call themselves a financial advisor. These ratings hold the most weight.
Also, if he is pushing you.....why? take your time, you have a long time to retire...assuming you aren't starting this planning when you are 50.
The high pressure should be a red flag.
some of the large well known Investment companies have fee paid programs that allow the advisors to state the flat fee they get up front and allow them to present the best products to you.

For example, I just changed jobs and am rolling over my 401K to an investment advisor. Lots of options, but he was referred to me, has a good track record and was upfront with the asset management fees he will be charging.

good luck.

Answer 4

Unforetunately, the type of advisor you found, I would avoid.

You want an investment counsellor. like you would find at a bank selling mutual funds, or a mutual fund company, (there are hundreds) Staqy away from insurance companies who link everything to insurance including "segregated funds"

My opinion is this..You do not need life insurance, If you are dead, you can't spend the money and you are not responsible for any dependants. Use the premium money to invest in good mutual funds instead

Retirement planning, is not a necessity as long as you are constantly saving and investing and growing a pot of money, That is Retirement planning in it's simplest form.

So try your bank to see if they have no load mutual funds, and what advice to you depending on risk tolerance.
Set up an account that takes money every month and invests in the funds selected for you.
When you get lump sum money, put it in your funds, When you can afford more per monthy, change your monthly payment.

If your bank doesn't do this, Look up Mutual funds in the yellowpages and find a company in your area that you can go in a talk face to face and do what I said to do at the bank.

Answer 5

Stay away from the so called 'financial advisor' who is pushy. There are definitely better ideas than insurance for retirement investments. Check this guy's credentials. Make sure he is a Certified Financial Planner. He has no right to push you. Run away. Quick. Do not even have another conversation with him. He is obviously trying to benefit himself, not you.

Answer 6

the best thing to do is get information on this. read magazine articles on different companies, or listen to ....the dave ramsay show look him up on the internet. ask him a question. a life insurance salesman is not a very good financial advisor at all. he sells trash value life so he can make money off the premiums you are paying. so be careful. find a primerica rep., in your state, who holds a securities lisence, and let him or her show you the best way to do what YOU WANT. you will get an honest and straight answer.

Answer 7

Is he pushing a variable annuity on you? If so then pay attention to fees. Variable annuities are nice in that they invest in your money in the market and allow you to participate in the gains of the market but often charge very high fees making them not great investments. As far as life insurance, I am not sure.

Answer 8

dont let em push you . a life insurance policy is a good idea if you can afford it . but the biggest investment you can make is a house . and if they offer insurance through that jump on it.
they call it mortgage insuance but you still have to die for it to pay the house off .

Answer 9

Find another advisor. Sounds like he's probably looking out for his own financial interests more than yours.

Answer 10

buyer beware remember he is in it to make money and he knows you .. take a break