1. Pay off your debt 2. Invest in your matching 401k 3. Invest in a ROTH IRA 4. Only buy term insurance 5. Don't listen to insurance salesmen trying to sell you trash value insurance
@@astroman30 Correction, Only buy term insurance if you need it and or have family that depends on you. I don't, so I am not going to buy it. 1. Maximize your company match in the traditional 401k. 2. No more that 10% in a Roth 401k 3. Mutual index funds. The problem I have with dumping all your savings into 401k's is that the money isn't liquid. Life and crap happens. What if you need that money down the road and you don't feel like paying a 10%IRS penalty to access YOUR money?
@@theuriah01valid question. I would suggest that your emergency fund is there to be available in the event of an emergency- so you don’t need to borrow or withdraw from your 401k.
@bigbubba4314 And when your "Six Months worth" of expenses run dry? You know that saving money in a bank account is losing money due to inflation? Even if it's a high yield savings account. That's not enough to keep up with inflation. Any bonuses, side hustles, or extra hours I stumble upon will go to Index funds into the S&P 500.
20 дней назад+16
I went to a seminar offering a free dinner- That was a red flag 1. Then the salesman tried to give exaggerated scare tactics about the risks of the stock market- red flag 2 Then the salesman touted whole life and annuities-red flag 3 The salesman claimed to be an "expert" financial adviser"-red flag 4 They had a question and answer session after the presentation. The salesman was asked about his qualifications. He lacked much formal education beyond high school. He was asked what licensing he had. He responded that he had a license to sell life insurance. The crowd let out an audible groan, then they began to laugh! Needles to say he didn't sell anything that night. At least we got a free dinner. Beware insurance salesmen claiming to be "financial advisers". Some of Dave Ramsey's best rants are about how bad whole life insurance is . Or any cash value life insurance for that matter. See Dave's other videos on life insurance.
20 дней назад+5
Another red flag is if someone wants to visit your home to discuss investments. Don’t trust a door-to-door salesman for investments. See if they have a legit business office and a series 7 license for investments.
Series 7 is for trading individual stocks etc. 95% of the public are going to deal with folks who have a Series 6, 63 & or 65. Those licenses are for mutual funds, annuities, 401(k)'s (SEP) IRA as well as Traditional & ROTH IRA's & the 65 is for managed accounts. cash value life insurance salesmen & women do not hold investment licenses. Therefore they are forced to sell this junk to the unsuspecting public. They have no other choice.
@@williamlackey123 You don’t know what you’re talking about. Term and permanent insurance are two different things. Btw, what you call whole life is not the only type of permanent insurance. This is why you should work with a fiduciary consultant and not life insurance agents or RUclips gurus. If you’re serious about understanding and receiving prudent advice, please see a fiduciary licensed advisor. Like me. ☺️
You can always take a personal line of credit on a non retirement brokerage account, it's essentially the same thing but it actually grows at a reasonable rate.
@@MisterfreezeableOpen a line of secured credit with your stock holdings as collateral. I’m not a fan of borrowing money in general but a secured loan is the cheapest way to do it if you need to.
I warned a family member about whole life. They ignored me and then after 5 years, they ran the numbers and realized the couple hundred thousand had been losing money... even though they were sold a 4% "guaranteed" return. Fees overcame the return. It's all a major scam. If you need life insurance, get term. It's cheap.
Have you ever sold life insurance? Have you ever talked to someone who got a term policy at 40 and by the time they were 73 they were paying 250 dollars a month because it renews every 5 years. Doesn't build cash value and it expires at 80. Lost all that money.
@@mattwilhelm4477 This is true of all insurance (like auto insurance for example). If you never have an auto ins claim then you loose out on all of that money paid in premium because it went to other people that had accidents/injuries and to the insurance company profits. Term life insurance is an insurance policy that pays out if a rare but catastrophic event occurs (like an early death well before old age). For instance a father in his 40s might see that sort of policy as a good insurance to protect the rest of his family if he were to be unlikely and die young (like in a car crash). The owner of a term life policy only comes out ahead financially if they die younger than average. As most parents age their mortgage may be further paid down and/or their children grow up to become independent and longer need the parents financial support so they may no longer need to keep renewing the term life policy. I would think there wouldn't be too many situations where it would make financial sense to renew through 60s let along into a person's 70s.
@@mattwilhelm4477from the time you are 40-73 you invest the difference between whole life and term life (WHOLE LIFE IS 20X MORE EXPENSIVE) likely $90-180 for those 33 years in a mutual fund and you will be self insured
@@mattwilhelm4477the purpose of life insurance is to offset your income for your dependents if you pass away. A person who makes good financial decisions should be retired by age 68 and would no longer need life insurance.
Problem is he doesn't allow an actual debate since its his show. Hes got a nice little button below his desk that cuts the other guy off then he gets to say anything as if its the law.
@@sunghong2676 because he's gone through this over and over with whole life insurance agents, there's nothing to debate because Dave is right about whole life, it's a scam.
@@sunghong2676 Years ago there was a heated debate with a whole life pro on this same show. This agent was 20 plus year experience. What is there to debate about a crappy product?? You’re missing the point
@@jonnydoe85 i know theres a low chance but i pray he gets any life or securities licenses aside from real estate and say the things he says and just watch what happens.
@@astroman30 not true… you do own the cash value as long as you are alive. You can liquidate it and walk away at any given time. I 5 years time my policy would pay me more than I ever contributed to walk away. Upon death the cash value stays with the insurance company and beneficiaries get the substantially larger death benefit instead. It’s like a guaranteed lottery win at that point. You don’t get to keep the money you spent on the ticket but you get the lottery winnings.
@@tylerrobinson4422 "Upon death the cash value stays with the insurance company." Doesn't sound like I own it, does it? Why does the insurance company keep it if I "own" it? Sounds like you're drinking too much protein shakes from the salesman who "Pitched" this to you. If you're going to lie, at least try to be good at it.
That is so true, just buy Term Life Insuranse 5% of the price and keep buying Mutual Fund to your Roth IRA with the other 95% let it compound tax free (That’s a FREE Lottery ticket majority of the people don’t see)
The cash value is just the equity you have in the policy. It gets paid out as the death benefit. Unless you took out a loan, it would be the death benefit minus the loan amount.
I used to sell life insurance (for about 6 months before I left because I HATED IT. I didn’t qualify for term life, so I got whole life. It was a 45k policy. It cost 50 dollars a month. I kept it until this year and then I cashed it out. I bought it 12 years ago and when I cashed it out, the cash value was 2600. Painful.
So you bought insurance and when you decided you didn't want it anymore, they gave you some of their money and your pissed about it? Just a reminder, if you bought a term policy and did the same thing you would have got nothing.
So you paid ~$31.94/mo for 12 years for 45k coverage. If you died (thankfully you didn't) the beneficiary would of not only been relieved of any financial burden while dealing with the emotional burden (funeral costs) but also would of received ~6.25x what you paid into it yet you're complaining here on the internet. Everyone knows life insurance isn't an investment. Be happy you didn't have to use it and it sounds like you're now able to self insure.
Telling someone who believes in whole life that it's not a good investment product, is like telling a wine snob that a $200 bottle of wine is not better than a $20 bottle. They'll just never agree, because for them it always goes back to what they believe, for the reasons they choose to believe it.
There is a huge difference between a $200 bottle of wine and a $20 bottle. You dont even have to go that high, buy a cheap $6 bottle and also a $50 bottle and compare. You don't have to be a wine snob to taste the difference. Compare a $6 per lb Chuck Steak to a $15 per lb Ribeye.. same thing.. or that same $15 per lb rib eye to a $100 per lb wagyu
If you're mega rich like the Rockefeller family then whole life has a use case. It's hard to have an industry built around a few rich people. So they find ways to sell the product to people who shouldn't have it.
Rich people have no need for life insurance. It’s set up for poor people. Term is fine and Dave is fine with it. Whole is sold as a financial product but you loss money.
@@1978wisper It’s not because they need life insurance. For the super rich, it can be a vehicle for avoiding estate taxes when passing down property to their heirs. IE, the terrible return on whole life is still higher than what would be passed down if subject to estate taxes. This is the only benefit, and only benefits the ultra rich. One not only has to have enough property to be subject to the estate tax (over $13.99 million in 2025), but enough property so that passing property through the estate tax would be a lower return than passing cash through whole life insurance’s shitty return. It is the one and only positive use case. No one else should ever get whole life as it is a loser in all other instances.
@@SomeGuys31415 the ultra rich are not doing that. They would lose a lot of value in those products. It would be cheaper to pay taxes. The rich avoid inheritance tax by not selling the property.
I have nothing against whole life I have it and after so many years you can tell them your done paying the premium and they’ll start paying you out for cash value until it’s gone
In a $500G DB example, the premium is $430 a month from age 40. Nick lives to age of 90. So with whole life insurance, Nick pays $430 a month for 600 months (50 years) total $258G. Dividend is $130 a year best case for 50 years on the premium paid, or $6500, for a cash value of $264,500. The alternative is to buy term life insurance with extended duration and invest the rest .. a $500G death benefit policy for a 30 year term would be about $60 a month leaving $370 available to save .. $370 monthly in the market at 7% (stock market lifetime average) in a tax deferred account gives me $432G after 30 years. I won’t need a $500G policy if I’ve got $432G cash in my account, so I cancel it, And for the next 20 years my account keeps growing at the full $430 a month. Thus, when I’m 90 the account is worth $1.9 million. Conclusion is clear, do I want $264.5G (whole) or do I want $1.9 M (term and invest) for the same premium output. I choose term and invest.
@@astroman30 If I were to file suit against you in court, My attorney could peel open any retirement account, 401k, bank account, mortgage account, car notes, anything, even a safe deposit box, and find out how much you are worth. If you are ruled against, all those assets are in jeopardy. Your Life policies are between you and the insurance company.
If you're making so much money that you can max your Roth and 401k then paying taxes isn't going to hurt you. Just invest in a brokerage account like you said and pay your dang taxes. You won, you've benefited from our societies investments in infrastructure to allow you to be wealthy, so pay your taxes and contribute back to for future generations.
Yeah, then you rear-end a guy and he sues your car insurance who can only pay out a million, but this guy makes a six-figures a yr and is now a quadriplegic. So, he sues you personally and there is a judgement. Your bank, brokerage and mortgage company ALL hand over whatever the judge says. Meanwhile, your one million dollar WL policy is there ready to help you out.
@@762foryou ah, sure in one astronomically unlikely scenario, it's possible that a whole life policy MIGHT be helpful. Meanwhile for 99% of the population they would be better off just buying term. By your logic, I should buy asteroid insurance....just in case.
12 дней назад+1
I love hearing Dave talk about whole life insurance!
My question is what if a person has a whole life policy that they have had for 20,40,60 years or more is it still worth it to keep it since one has been paying into it for said number of years or it is better to cancel it cash it out take the money and invest it? That is where I am at right now, asking myself that question.
Depends on the following: 1. Are there dependents relying on the income? 2. How much is there in the CV? 3. If you cashed out the CV, what would you do with it?
@@astroman30 Spot on Astro! ..and, * was the policy STRUCTURED for CASH when bought or primarily Death Benefit? *are there annual Dividends paid to the policy owner? * are there RIDERS ie. (Paid Up Additions, Long Term Care, Accelerated Death Benefit etc.) I'd totally agree with Dave for those who only need the basic Term....and that's if the person doesn't outlive the TERM or LAPSES the policy. Most of us who understand the main purpose of Whole Life know that it isn't an investment in the common definition of investment...but it is used as an "investment" of the PROTECTION of the "asset" or CASH that you have. As a WL policy owner, you own the policy, control it, pay NO TAX on GROWTH nor on LOANS, WL company pays DIVIDENDS, NO Market RISK, NO CREDIT CHECK, TAX- FREE INCOME STREAM, THE "ASSET" APPRECIATES and is PROTECTED from Lawsuits acting like a Tax-Free Trust...etc.
Anyone that goes to a seminar is already behind. The people giving the seminar made it because people pay them for seminars. All you have to do is ask the person speaking at a seminar, what seminars did they attend? My guess is they didn't....
Always cracks me up that he says "borrow you're own money" when you're borrowing the life insurance companies money, that way you don't interrupt the compounding of YOUR money.
My lawyer can attach any money you may have in any brokerage account, retirement or otherwise if you owe me money. We could even take your house and cars if need be. Can't touch your life insurance.
Soon after I graduated college I was contacted by a high school classmate who tried to sell me on this "whole life" crap. I was DECADES away from hearing about Dave Ramsey, but a blind man could see it was garbage. I wished him well & sent him on his way.
In a $500G DB example, the premium is $430 a month from age 40. Nick lives to age of 90. So with whole life insurance, Nick pays $430 a month for 600 months (50 years) total $258G. Dividend is $130 a year best case for 50 years on the premium paid, or $6500, for a cash value of $264,500. The alternative is to buy term life insurance with extended duration and invest the rest .. a $500G death benefit policy for a 30 year term would be about $60 a month leaving $370 available to save .. $370 monthly in the market at 7% (stock market lifetime average) in a tax deferred account gives me $432G after 30 years. I won’t need a $500G policy if I’ve got $432G cash in my account, so I cancel it, And for the next 20 years my account keeps growing at the full $430 a month. Thus, when I’m 90 the account is worth $1.9 million. Conclusion is clear, do I want $264.5G (whole) or do I want $1.9 M (term and invest) for the same premium output. I choose term and invest. Thanks, Dave!!
Nick should have found a better agent. An Infinite Banking Concepts Practitoner could have set him up with a lot better performing Policy for $5160 of annul premium.
@@astroman30 I do not have access to illustration software. Since you work or have worked in the insurance industry as you claim in other posts, run your example through your illustration software as follows. Base premium/ term rider, 40% paid up additional rider 60%. Dividend election is to purchase more PUA. Give Nick the longest level term rider possible and then make the policy reduce paid up after the term rider expirers. This policy design will blow the one you set up for poor Nick out of the water giving him more cash surrender value and death benefit with access to the Cash surrender value through loans to do the investment strategy in your example.
@ that is a traditional wl policy that you pos salesmen setup on a daily basis. I gave a conservative 7% on the market accounts. It should be more like 12% since that’s what my S&P (VOO) has been performing since the last 25 years. Yet, I know this is completely over your head since you are a company man.
@@astroman30 So what you're saying is you can't run the numbers to disprove the concept that it is a better designed policy than what you have given Nick in your example. Also, why does Nick have to pay WL premium for 50 years as opposed to the 30 you're suggesting for the investment example? Either cut the Whole life premium off at 30 years or make your investment example re new the term insurance.
Term is the way to go for most people whom actually need insurance, like your husband. Had the term expired you'd have got nothing, however with the money he would have saved from not wasting it all on whole life insurance premiums it likely would have been a decent sized portfolio anyways.
Hello how do you make such monthly?? I'm a born Christian ✝️and sometimes I feel so down of myself because of low finance but I still believe in God. ♥️
You can withdraw up to your basis tax free and then just like the wealthy do, you use the cash value as collateral. You can borrow against your cash value tax free. You still earn interest on your entire cash value. People really should look into this and not just take Dave’s word on it.
Amazing that this video came across my feed today. I'm 46(will be 47 in 2 weeks) and i purchased whole life about 9 yrs ago now. For the last 12 months ive been going back and forth about cashing out the policy as i feel i dont need it. Im not married with no children and dont forsee that changing in the future. I have no debt and my morgage is paid off. I have more than enough to throw me in some dirty or burn my ass up. So i began to question myself as to why im still paying this $100 a month for a policy. Last Thursday I decided to call my insurance company and inquire about canceling my policy. They are sending out the paperwork. Just waiting to get it in the mail. I was still going back and forth on whether or not I'd cancel. After seeing this, I'm 100% canceling and taking my money and investing it. And also gonna save the 100 bucks a month and put it into another emergency fund.
@craigholland2274 well when I was a little younger with no knowledge of insurance, an agent sold me on it. Being older, wiser and out of debt, I realized that it makes zero sense. Luckily, I'm able to cash out my policy and recieve 99% of what I paid in. I guess vetter late than never to come to this realization.
"Sunk cost?" How stupid can you be? Is my auto insurance a sunk cost? Is my homeowner's insurance a sunk cost? NO!!!! Insurance is a RISK MANAGEMENT purchase you snaggle tooth dweeb.
I don't full understand the technical details of what's being discussed, but knowing Dave, and knowing how insurance companies make money, Dave will be correct.
You pay 20x for whole life compared to term, so if you apples to apples comparison it, [$400 a month for whole life] vs [$20 a month for Term plus the difference $380 invested in let’s say an index fund.] Compare the 2 scenarios. In scenario one, you don’t own your cash value because you can only borrow it at interest, the interest the cash value accumulates if you don’t borrow it is around 2%. When you die the cash value goes away. The other scenario, you have the term for $20, with the additional $380 you saved that would have gone to whole life, you can invest it, you own the cash value, and are able to make returns that far outweigh the 2% in theory. More like 9-12% for recent years conservatively. And when you do the compound interest math, you could be looking at 25x more money if you put that $400 into $20 term plus $380 monthly index fund. Yes 25 TIMES. The whole life would net you 25 TIMES LESS MONEY. (The 25x is an estimate but is reality depending on the number of years of compounding interest/payments)
Gotta love how the guy offered up...after you max out X,X,X, then it makes sense to throw money at this . Problem is, the average person cannot max out a 401K and a Roth! These insurance policies on make sense for the people selling them.
Depends on how you structure the policy you can access up to 90% of your cash in the first year. So saying that there is nothing for the first 3 years is not accurate.
By all means, structure one here where the LI company let's you have money in CV in the first year. In fact, name your carrier so I can screen shoot your comment and email them your claim being I have your name. I'll wait.
Can access 90% means you can take a loan out, and pay back with interest and fees. So 100 bucks, can access 90 bucks and pay back more than 90 bucks. Term you'll pay 5 bucks and you still have 95 bucks in your pocket 😂
@ I can take a loan out with no questions asked for 96% of my policies equity(my cash value). What you are forgetting is that because I did a loan and not a withdrawal, all 100% kept growing every single year guaranteed. Go find a savings account paying 5% tax free and a loan at 5% with no requirements or payback schedule. Let me know when you find it. 😂
@@AnAZPatriot obviously if you only want protection for a certain period of time, a term would be more appropriate. But what you need to understand is that certain people get participating whole life to leverage it and buying more assets so the loan rate is irrelevant as long as you earn more. however I'll concede that it's not appropriate for most people.
My financial planner professor when working on my under grad in finance was vocally against whole life insurance & said the agent gets 60%+ commission for year 1. Yr 2 40%+ and yr 30%+ commission ❗️he said the buyer is being scammed. You'll make more investing in the stock market. They insurance salesmen love whole insurance bc of the HUGE commission
Maybe true year 1 but not that much years 2 and beyond. They might get a small % of the premiums paid in. Now, compare that to the btid guy that gets 1-2% of you account value for as long as you keep the account open! It’s not even close. Btid clowns will easily make WAY more off their clients.
Many, many years ago I did buy a small whole life policy and am about to just cash it out since I don't need it anymore (got to convince the Mrs). But maybe it's my policy, but my death benefit is the face value plus cash value. Is that unusual for the industry?
A Whole life agwnt tried to sell me a 100k coverage at $150 a month and after 8 years I'll start accuring cash value. I told them id rather put $150 under my mattress for 8 years
So help me understand, if a person has a $100k whole life insurance policy for decades, and they die, does the beneficiary not get $100k? What am I missing?
Great Question, If the death benefit is 100k, yes. Whole Life also has a "savings" component in it called Cash Value. This could be a substantial amount of money that the customer paid in for all those years of which the insurance KEEPS. Thus, if you would've bought term at an early age and invested the difference (between term and whole life) you would've made waaaaayyyyy more money and be able to keep it.
Depends on what company it’s with. If it’s a dividend paying mutual (client owned) company, the dividends can be used each year to increase that 100k. Many liars, like Ramsey and asstroman that commented, will say the company will keep your cash value when you die. This is a lie. The cash value is merely the portion of the death benefit you own. It’s also the amount the company will pay you if you surrender your policy. It’s your equity. To expect to have the death benefit paid and the cash value is as foolish as selling a house and expecting a check for the selling price AND a check for the equity you had. Hope that helps.
@@firecraig "..the company will keep your cash value when you die. This is a lie" Then further down you write, "To expect to have the death benefit paid and the cash value is as foolish." Well, which is it? If the company doesn't keep the cash value and it doesn't get paid, WHERE DID IT GO? The problem is that you lie so much, you can't even remember what you wrote. You're like fart in a whirlwind with your answers, Greg. POS lying salesman.
@@robcab3725 no. You don’t get the cash value and death benefit when you die with whole life. Not because the company keeps like these morons claim but because all the cash value is in whole life is the portion of the death benefit you own. Your equity.
I took out a $50K single premium life insurance policy (as a favor to a friend) many years ago for $5K. It had a 4% minimum rate of return, and today has a cash value around $37K. I do not think this was a particularly good investment, but it did return something so I can't say it was as bad as putting your premium in a jar under your mattress. When I cash it in, I will owe income tax on $32K of ordinary income, just like an IRA distribution. So, while Dave's statements are a bit dramatic, I agree that there are much better investments than life insurance.
That’s the thing, insurance is not an investment. It’s insurance. This “mixing metaphors” is what gets people because the sales pitch tells you you’d be dumb not to invest and have insurance.
Did you read your contract? You know you have the contractual right to borrow that Cash surrender value correct? Use it like a HELOC WITH MUCH BETTER pay back terms.
Surprised Dave didn’t go into if the CV account ever exceeds the face amount, then it could be considered a MEC, and the govt (tax people) no like-y when that happens
The reason he doesn't mention it is because it would prove that his perspective is false. The existence of a MEC and the fact that the government has continued to try to legislate Whole Life for the purpose of putting limitations on it. There was a time when MEc's were legally still treated the same as a Whole Life Policy. In those days people would have 500k cash value with only 50k of insurance. This was being abused and the MEC was created. The insurance companies pivoted and started adding term riders to still meet the MEC requirements while still having a high cash value design. It's funny to me that people actually listen to Dave on this subject when you could easily read the changes to the tax code regarding cash value and find that his premise is way off. He just gets so many views on these videos he can't have the humility to admit he's wrong in front of a large audience.
@@MiamiDre Yet, very few people hit that MEC which is why most IBC do a 40/60 tier 1 doing $1600 (Chris Naugle) into a PUA. Keep in mind, it still takes about 8 years to break even. Not to make money....TO BREAK EVEN. What a scam. Dividends still run about $300 (or less) per year. I've known some who did a 10/90 and didn't get MEC. Yet, it's all still garbage.
@@MiamiDre AAAAAAMEN Miami! Love me some Dave Ramsey...but regarding WL, this is where he may want to consider the PROVERBS he reads.... Proverbs 15:2 The tongue of the wise makes knowledge appealing, but the mouth of a fool belches out foolishness.
@@astroman30 What exactly is a 40/60 tier 1? I am guessing you're talking about base/term vs Paid up additions split but the tier 1 throws me off. lol, 10/90 split policy's will MEC MUCH faster than 40/60 policies, that's why MOST Infinite Banking Concepts Practitioners won't issue them.
@ecoasis1 What's hilarious is I was watching one of Dave's older videos where he was talking about 401k's and the person called in and said I want a guaranteed fund where I receive just 4% a year without any concerns. Dave mumbled and said that sounds like some type of insurance product. He then woke up from his stupor because he didn't want his audience suggesting what the client actually wanted. He then started trying to compare compound interest without mentioning insurance for the rest of the discussion and only comparing the 4% to the 12% here's the kicker the DALBAR says that over the course of the average investor life they only make 3.1% in the market. Because volatility effects psychology especially for the middle class.
I did a universal 15 pay whole life. Pay on it for 15 years then it is paid off. Pays 5% dividend that you can buy more insurance or get a check. It does cost more up front but it has a payoff date which I liked.
@ it’s like whole life, but whole life you never pay off which I didn’t like.. mine was about $15k for $50k policy. Its paid free and clear now and just grows cash value and death benefit. Its has a fixed 5% interest it pays. It’s a permanent policy so it will be a couple hundred grand when you are old. Some people get them for kids since the younger you are the cheaper. I got mine at 18. You could pay very little for it and have it paid off by the time kids graduate from high school with it able to grow over 60 years.
@JasonPuckett-n2x whole life you can pay off, it's literally called a "Reduced Paid Up" where you can fully pay up the policy and stop paying while it remains in force until the day you die.
@@maxpruger837it was my understanding that the reduced paid up option lowers your death benefit, which seemed like why my agent said you keep paying on it. It seemed like you pay on it till you have enough cash value to cover the cost of the policy. I was happy with mine but I think it is far more expensive than a traditional whole life.
Making touch with financial advisors like Elizabeth Regina Nelson who can assist you restructure your portfolio, would be a very creative option. Personal financial management will be crucial to navigating the next difficult times
Elizabeth Regina Nelson has really set the standard for others to follow, we love her here in the Uk 🇬🇧 as she has been really helpful and changed lots of life's.
Very valuable for people who need insurance policy to protect their dependents. The best part about term is that the younger you are when you need it the lower your premium will be which leaves you more of your own money to actually invest and turn into wealth, which by the time your term expires you probably won't need life insurance anymore since your dependents and your nest egg will have grown up.
What advise do you give for someone young. If they purchase Term Insurance for 20 years, at the end of 20 years, they have to get a new policy at a higher rate.
In a $500G DB example, the premium is $430 a month from age 40. Nick lives to age of 90. So with whole life insurance, Nick pays $430 a month for 600 months (50 years) total $258G. Dividend is $130 a year best case for 50 years on the premium paid, or $6500, for a cash value of $264,500. The alternative is to buy term life insurance with extended duration and invest the rest .. a $500G death benefit policy for a 30 year term would be about $60 a month leaving $370 available to save .. $370 monthly in the market at 7% (stock market lifetime average) in a tax deferred account gives me $432G after 30 years. I won’t need a $500G policy if I’ve got $432G cash in my account, so I cancel it, And for the next 20 years my account keeps growing at the full $430 a month. Thus, when I’m 90 the account is worth $1.9 million. Conclusion is clear, do I want $264.5G (whole) or do I want $1.9 M (term and invest) for the same premium output. I choose term and invest.
Not really, after that 20 years just don't get another one, unless someone will *need* money after you die. Right now I have a nice truck and I have full coverage insurance on it. In many years when it is old and worn out I'll probably still be driving it, but I won't need or want to have expensive full coverage insurance on it anymore. Right now I also have term life insurance so if I die the house will get paid off and my wife won't have to worry about having a place to live. By the time my term insurance expires the house will be paid off and my wife will be getting my pension, so at that point I won't need life insurance anymore.
You don’t have to wait until the end of the term to get a new policy if your circumstances change. I got a 20 year policy in my twenties. A few years later I had kids and needed more coverage, so I got a 30 year policy and cancelled my 20 year one, The rate was a little higher but not significant. (Plus my income was higher so I could afford it) If I’m blessed enough to outlive my current policy, I’ll have a well funded 401K, IRA, and a paid off home at the end of the term so I won’t need as much coverage on my next policy (if any at all). The goal is to be financially well off enough to not rely on life insurance to leave something behind for family.
Whole life insurance starts as insurance and gradually becomes a savings account. Over time, your benefit becomes your savings, which means the portion of your benefit that is actually insurance decreases to zero. You would be better off having term life insurance that actually provides you with money you don't already have and put the money you save into an investment account.
Nope. Whole life is ALWAYS insurance. As you make premiums you own more and more of that death benefit. It’s your equity. Cash value in whole life is NOT a separate savings account like ole Dave claims. It’s like equity in your house. Expecting the death benefit AND the cash value when you die is like selling your house and expecting a check for the selling price AND one for the equity you had built up. Foolish isn’t it? Now watch ole Ramsey block me from this page for calling out his lies just like he did on his facebook page. 😀
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing below the $100k mark and in the first 2 months, my portfolio was reading $234,800. Crazy right!, I decided to reinvest a huge percentage of my profit and it got more interesting.! For over a year we have been working together making consistent profit just bought my second home at the beginning of summer.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@BrandonIvan-c6e However, if you do not have access to a professional like SUZANNE GLADYS XANDER, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
Bullshyt....it has a negative ROR the first 4 to 5 years because the LI company keeps all/most of your cash value. In fact, it takes about 10 years just to break even. Scam.
But the also doesn’t get the cash value investment…..which is what your premiums went to. And that 80k is a death benefit it wouldn’t go to you it would go to surviving spouse or family member
*You work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires*
Um, a 20,000% (200-fold: $2M vs $10k) return from a few months means the risk is off the chart, and moreover likely the behavior that led to someone thinking that was a good risk, will burn the person the next time(s)
Two parts of the equation Dave never addresses when talking about whole life. 1. If you get sick or hurt during a life event and you're unable to work the rest of your life, the company continues to pay your premium for you. 2. The cash value and the death benefit also rises with time. It's not just a $100k policy for until death. This is a perfect example one size doesn't fit all bad advice from Dave. Just like he's against using credit card points/miles. His advice is great for the average American who cannot stop spending more than what they make, but his wealth building advice needs to be taken with a grain of salt.
What he needs to do is specify the audience he is talking to. It’s good advice for those who need to desperately get out of debt and don’t know what to do. Alittle research goes along way. RUclips has a bunch of free advice that’s more unbiased than him.
"...the company continues to pay your premium for you." This is COMPLTELY false. If anyone misses a premium paying into a trash value policy, more than likely, you will be cancelled and the company keeps all past premiums.
insurance is a tool, not a catchall. no single policy type is best for everything. pretending so is dumb. Term makes sense for alot of situations. Whole life makes sense for a lot of situations. using the wrong tool for the job is the problem, not the tool.
If you didn't pay the full 90k then you didn't lose money. If you pay monthly and didn't pay in full then you technically gain the death benefit of $90k plus the interest gains.
@@Vrae2409 Great question, in a UL policy, you have term insurance with a cash value (that takes years to accumulate) component. That term portion has an Annual Renewable Term (ART.) Hence, the premiums go up every year as you age. If you don't pay the rising cost of the premium, money is taken out of your cash value (if any) plus any fees. Miss a premium, they may cancel you keeping all your money inside of it. Most of these policies eat themselves because of the high costs. At the end, when you die, your family only gets the face value of the death benefit. The insurance company KEEPS your cash value. It's a horrible product.
Wait....did he just say the only way to get at the cash value is to cash the policy in???? Wow. I guess all these cash value loans we've been....not real?
I am deep in this mess for 3yrs now. What do I do? I can’t afford to cash out because I will lose almost 20k if I cash out( which I can’t afford to lose). I bought a 1m policy and I pay 711 every month…I don’t have any other reasonable retirement account. What do I do? I think I will break even in the policy in another 3 yrs? It was the insurance aspect that really made me do this and now I regret it
@justinedge2176 First, I’m sorry this is happening to you. Second, don’t take what I’m about to say as advice, because while I am an investment adviser, I’m not your investment adviser. If I were in your position, I’d first get a term policy in place. How’s your health? How old are you? If you’re in good health get the term policy. Then, and ONLY THEN, cancel what you have now. You said that it would take three more years to break even, so there’s been no gain from your premiums; this would NOT trigger any taxes when you cancel. I’m guessing the new term policy would cost around $90 per month. From there take the other $621 and invest it. Before you invest, sit down with an investment adviser, one who does not have the conflict of interest to their advice of selling a product (i.e. life insurance), and go over your goals, timeframes, tax situation and investment objectives. They’ll be able to guide you as to where the money should go based upon the areas that I just mentioned. I hope this helps.
I would rather put all my money in a safe, in cash, than deal with a banker, insurance agent, or investment person. Time is money, convenience is money. There is not a rate of return that will be more than the convenience of not talking to people or filling out paperwork. A million dollars in cash will not keep up with inflation, but, when I need it, I can touch it and that is worth the rate of inflation. A million dollars is still a million dollars
Keeping your money out of the banking system actually helps with inflation. That is one of the reasons people choose to store their capital in Whole life insurance.
Term Life is ACTUALLY more expensive than PERMANENT INSURANCE. It really is sad this was misconstrued. Term expires and NO ONE KNOWS the future of health situations. Its also bad say they ALL LOSE MONEY.
I buy homeowners insurance every year and never made a claim. Did I lose money? Was it a bad purchase? No!!! Insurance is a RISK MANAGEMENT purchase not an investment. Know the difference
I don’t sell life insurance, but I have a universal life policy with guaranteed 500k death benefit. I pay $3333.42/year for that guaranteed benefit policy. If I keep that policy for 30 years and die in year 30, that’s still a 9.511% annual interest rate on my premium for my family in money that I KNOW will be there, whatever life circumstances happen between now and then. At 42 years, the annualized rate is still over 5%. Could that make more money elsewhere? ABSOLUTELY. I understand, and my goal has NOTHING to do with making a good ROI with this premium; however it still represents a conservative amount of growth (like a CD) when strictly focused on and factoring in the guaranteed death benefit. I also have waiver of premium should I become disabled and living benefits for longterm care and such, but my sole purpose is the death benefit and the math involved for the particular amount of money I put in to know that is there. You pay for guaranteed death benefits because they know they will have to pay out. The % of term policies that pay out are extremely low, hence the lower cost. There’s money that you KNOW, and money that you GROW in my book. I’ve watched people outlive and out sick there life insurance and life wasn’t going as planned to say having life insurance was no longer necessary. Because they didn’t lock in, they could no longer afford it, and they could leave NOTHING at that point. Infinite banking and life insurance as an investment is a complete scam to trick you into making them your bank’s replacement, but for those who know WHY they are doing what they’re doing, it has purpose. Most are not millionaires and never will be. Dave changed his financial life and is a great teacher with solid principles, but I also think any of us can fall in love with our own redemption story to the point that good logic in various methods can be too easily overlooked, all things and personal circumstances considered.
"I pay $3333.42/year." Wow!!! Do you know that you could've bought term and invested the difference (S&P) and made waaaayyyyyy more than any trash value policy out there? Do you know about (ART) annual renewable term that's in your UL policy? You were scammed.
@ and my 34 year old pregnant wife just got a cancer diagnosis/emergency surgery in the middle of it. Those are the kind of things that don’t make you regret having it. If you haven’t watched someone surpass their insurability, you can’t have a level headed conversation in the context identified.
@ also, annualized return on the S&P is sitting at 10.37% currently. Again, not too far above 9.511%. I have very aggressive investments in the s&p in various accounts. This is my money that I KNOW.
!!I am at the beginning of my "investment journey", planning to put 385K into dividend stocks so that I will be making up to 30% annually in dividend returns. any good recommendation on great performing stocks or Crypto will be appreciated.
As a newbie investor, it’s essential for you to have a mentor to keep you accountable. Ruth Ann Tsakonas is my trade analyst, she has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns.
I managed to grow a nest egg of around 120k to over a Million. I'm especially grateful to Adviser Ruth Ann Tsakonas, for her expertise and exposure to different areas of the market..
I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $200k passively by just investing through an advisor, and I don't have to do much work. Inflation or no inflation, my finances remain secure. So I really don't blame people who panic.
Without a doubt! Ruth Ann Tsakonas is a trader who goes above and beyond. she has an exceptional skill for analysing market movements and spotting profitable opportunities. Her strategies are meticulously crafted on thorough research and years of practical experience.
how would you recommend i enter the crypto market? I am also looking at studying some traders and copying their strategy rather than investing myself and losing money emotionally. What's your take on this approach? and How can i reach her, if you don't mind me asking?
Dave Ramsey is right. I have three "whole life" policies in which the cash value is greater than the premiums paid. I'd like to cash them in but I'll be taxed on the increase in value. I'm 75 so I'll keep them and let my kids have the money tax free when I die. Not a great investment for me. Fortunately I found Vanguard and have invested well in no-load, low cost funds.
You can take out the cash value up to your cost basis tax free. After that you can borrow against the policy tax free. Just make sure you don't over leverage so the policy doesn't turns upside down.
Dave forgot to tell you you can pull all the money that you paid into the policy out, Keep the "gains" in the policy and still pass death benefit onto your kids.
@@astroman30 Then you miss timed the S&P melt down the day before you retired and lost everything. Now you have no protection or capital to start over with.
We expect a company (life insurance); who bears the risk of us dying, to simultaneously pay us extra (cash value) while we are alive, and then still bear the risk of us dying. How lunatic is that thinking?
Gee, is it a sin to ask for your investment back? I put money in my 401k, SEP-IRA, S&P...etc. Yet, I get to keep it. Sounds like whole life insurance isn't an investment, nor, a good purchase. Sounds like maybe buying term and investing the difference may be the best solution. Here is a great example: In a $500G DB example, the premium is $430 a month from age 40. Nick lives to age of 90. So with whole life insurance, Nick pays $430 a month for 600 months (50 years) total $258G. Dividend is $130 a year best case for 50 years on the premium paid, or $6500, for a cash value of $264,500. The alternative is to buy term life insurance with extended duration and invest the rest .. a $500G death benefit policy for a 30 year term would be about $60 a month leaving $370 available to save .. $370 monthly in the market at 7% (stock market lifetime average) in a tax deferred account gives me $432G after 30 years. I won’t need a $500G policy if I’ve got $432G cash in my account, so I cancel it, And for the next 20 years my account keeps growing at the full $430 a month. Thus, when I’m 90 the account is worth $1.9 million. Conclusion is clear, do I want $264.5G (whole) or do I want $1.9 M (term and invest) for the same premium output. I choose term and invest.
Not really "spouting a line", it's just facts. WL grows tax deferred. Plus only have to pay in about 7-10 years if it set up correctly. It's not meant to be an investment. A couple things Dave, Your sacred IRAs, 401ks, Brokerage accounts, LLCs, mattress or what ever place you think your money is safe can all be peeled away by a judgement, collections, IRS, creditors, Hackers, lawyers. Your money is not safe in traditional retirement vehicles. Good luck trying to get at a contract with an insurance company..
1. ROTH IRAs grow tax free 2. "set up correctly" is a tired phrase you POS salesmen use waaaayyyy too often. 3. Your "sky is falling" on the stock market is silly 4. S&P has averaged over 12% in the last 25 years 5. You ever heard of Zander insurance?
I buy homeowners insurance for life, I buy car insurance for life, and I buy life insurance for life. What I don't do is buy homeowners insurance for a 20-30 year term. And then stop buying it lol
@astroman30 it's not comparable.. you can't compare a product that does not exist.. you have to compare term homeowners to term life.. You buy term homeowners for life.. why don't you buy a term life for like 60 years?
@@astroman30 so you buy term homeowners insurance for life.. But you don't buy term life insurance for life.. lol. Saw your house is more valuable than you?
@@Rshen11 Because Edward, it's called RISK MANAGEMENT. Look at my Nick example and get out of your 3rd world mindset. Seriously, why are you using 2 accounts?
For stock life insurance policies Dave's right, they are bad. However, he doesn't talk about mutual companies. I bought a North Western Mutual Policy back in the early 80s. My premium was $680 per year, I paid that for 22 years, and then I stopped paying. My dividends pay the premium plus add to my cash value. I can cash out now with $88,000 or I can die now and my wife gets $120,000. How was this a bad deal? Life insurance is not an investment, but would I have saved that $680 every year? However, I did have some coverage for my family if I die along with making a few bucks on the deal if I lived.
@@thedude5040 The average home price in 1980 was $64,600 The mortgage interest rate in 1980 was 13.74% A 30-year mortgage with zero down is a $861-a-month payment. I paid $680 A YEAR! Not including taxes and insurance. Where did you go to school? You are a perfect example of why Dave is successful.
Sorry that you got scammed and too stupid to realize it. You could've bought term and invested the difference in the S&P and made waaaayyyyyy more money.
@ As part of a comprehensive retirement plan, I’ll use it when there’s a need for DB & LTC with a possibility of cash value usage. If trying to meet a budget, I will go GUL/LTC. For strictly a cash play or to mimic Roth conversions, I use an IUL. I will premium solve for no more than 20-30 of the client’s total assets. To answer your question, an IUL will yield more than a WL. Access to cash will be tax and cost free.
@ why not a VUL. If it’s about ROR, a VUL will do better. If your money is tied up in an IUL, where do you get cash from to stuff in when the market goes down?
@@firecraig I never use VUL. I work for an RIA and have access to hundreds, if not thousands of investment choices I can use in a brokerage or managed account. When I design a contract, I normally have it funded in the shortest time possible and as close to MEC as possible. Because we recommend using only 20-30% of assets, so adding CV life isn’t a burden on the overall plan.
I'm a simple man. I see title with Dave Ramsey and whole life insurance I click.
😂😂😂😂😂
I avoid.
I seriously want to know what he thinks about it 😂
I do the same except when Geroge is on. I move on to the jext
I love hearing about whole life crap!!
1. Pay off your debt
2. Invest in your matching 401k
3. Invest in a ROTH IRA
4. Only buy term insurance
5. Don't listen to insurance salesmen trying to sell you trash value insurance
stop after 3, once you build some wealth the is little reason for life insurance
@@Matt-uj9wl No chorological order here on these points, but I agree with you.
@@astroman30 Correction, Only buy term insurance if you need it and or have family that depends on you.
I don't, so I am not going to buy it.
1. Maximize your company match in the traditional 401k.
2. No more that 10% in a Roth 401k
3. Mutual index funds.
The problem I have with dumping all your savings into 401k's is that the money isn't liquid. Life and crap happens. What if you need that money down the road and you don't feel like paying a 10%IRS penalty to access YOUR money?
@@theuriah01valid question. I would suggest that your emergency fund is there to be available in the event of an emergency- so you don’t need to borrow or withdraw from your 401k.
@bigbubba4314
And when your "Six Months worth" of expenses run dry?
You know that saving money in a bank account is losing money due to inflation? Even if it's a high yield savings account. That's not enough to keep up with inflation. Any bonuses, side hustles, or extra hours I stumble upon will go to Index funds into the S&P 500.
I went to a seminar offering a free dinner- That was a red flag 1.
Then the salesman tried to give exaggerated scare tactics about the risks of the stock market- red flag 2
Then the salesman touted whole life and annuities-red flag 3
The salesman claimed to be an "expert" financial adviser"-red flag 4
They had a question and answer session after the presentation. The salesman was asked about his qualifications. He lacked much formal education beyond high school. He was asked what licensing he had. He responded that he had a license to sell life insurance. The crowd let out an audible groan, then they began to laugh!
Needles to say he didn't sell anything that night. At least we got a free dinner.
Beware insurance salesmen claiming to be "financial advisers".
Some of Dave Ramsey's best rants are about how bad whole life insurance is . Or any cash value life insurance for that matter. See Dave's other videos on life insurance.
Another red flag is if someone wants to visit your home to discuss investments. Don’t trust a door-to-door salesman for investments. See if they have a legit business office and a series 7 license for investments.
too many salesmen masquerading as "financial advisors"
Series 7 is for trading individual stocks etc. 95% of the public are going to deal with folks who have a Series 6, 63 & or 65. Those licenses are for mutual funds, annuities, 401(k)'s (SEP) IRA as well as Traditional & ROTH IRA's & the 65 is for managed accounts. cash value life insurance salesmen & women do not hold investment licenses. Therefore they are forced to sell this junk to the unsuspecting public. They have no other choice.
NO matter what you tell these agents how bad this product is, they will always try to defend it
There was one agent a while back who conceded some points.
@@WolverineIncognitoI remember! He was a broker from Massachusetts
"Follow the Money" a Life insurance agent who sells cash value insurance, is as honest as a Car Salesman
Whole life definitely makes sense
@@rubenolguin1664that's why I don't sell it as an investment
Haha, so funny that Dave knew instantly that he was an insurance salesman that sells whole life insurance.
Easy to spot those predators.
Just like leftists.
because insurance salesmen are the ONLY type of caller that actually wants to talk about permanent life insurance
Thats the majority of people that understand it enough to ask.
Most people don't unstand basic insurance
My great grandfather put his money in the mattress. But he smoked in bed and the house caught fire.
Whole life is not an investment. It is an insurance
Yes, but it is the "Swiss Army Knife" of the financial world as well.
My wife and I each have term policies. They tried hard af to sell us whole life but we stuck to our guns
Because who wants death benefit that never expires.
@@williamlackey123 Why? What were the circumstances of you declining permanent life insurance? Because Mr. Ramsey told you to? 🤔
@ no. Term is a much better product. Whole life is a big shell game. Term is term.
@@williamlackey123 You don’t know what you’re talking about. Term and permanent insurance are two different things. Btw, what you call whole life is not the only type of permanent insurance. This is why you should work with a fiduciary consultant and not life insurance agents or RUclips gurus. If you’re serious about understanding and receiving prudent advice, please see a fiduciary licensed advisor. Like me. ☺️
@ I own three homes and have multiple accounts with 6 figures in them. I don’t want or need insurance. I want money and assets.
You can always take a personal line of credit on a non retirement brokerage account, it's essentially the same thing but it actually grows at a reasonable rate.
I don't understand.
@@Misterfreezeable basically invest and if needed use it
@@MisterfreezeableOpen a line of secured credit with your stock holdings as collateral.
I’m not a fan of borrowing money in general but a secured loan is the cheapest way to do it if you need to.
You'll get nailed with fees and taxes.
Look it up, I’m not blowing smoke 💨
I warned a family member about whole life. They ignored me and then after 5 years, they ran the numbers and realized the couple hundred thousand had been losing money... even though they were sold a 4% "guaranteed" return. Fees overcame the return. It's all a major scam. If you need life insurance, get term. It's cheap.
Have you ever sold life insurance? Have you ever talked to someone who got a term policy at 40 and by the time they were 73 they were paying 250 dollars a month because it renews every 5 years. Doesn't build cash value and it expires at 80. Lost all that money.
@@mattwilhelm4477 This is true of all insurance (like auto insurance for example). If you never have an auto ins claim then you loose out on all of that money paid in premium because it went to other people that had accidents/injuries and to the insurance company profits.
Term life insurance is an insurance policy that pays out if a rare but catastrophic event occurs (like an early death well before old age). For instance a father in his 40s might see that sort of policy as a good insurance to protect the rest of his family if he were to be unlikely and die young (like in a car crash). The owner of a term life policy only comes out ahead financially if they die younger than average. As most parents age their mortgage may be further paid down and/or their children grow up to become independent and longer need the parents financial support so they may no longer need to keep renewing the term life policy. I would think there wouldn't be too many situations where it would make financial sense to renew through 60s let along into a person's 70s.
@@mattwilhelm4477 did they invest the difference between the term cost vs the whole life cost?
@@mattwilhelm4477from the time you are 40-73 you invest the difference between whole life and term life (WHOLE LIFE IS 20X MORE EXPENSIVE) likely $90-180 for those 33 years in a mutual fund and you will be self insured
@@mattwilhelm4477the purpose of life insurance is to offset your income for your dependents if you pass away. A person who makes good financial decisions should be retired by age 68 and would no longer need life insurance.
Dave vs Whole Life. Should be a good one
Problem is he doesn't allow an actual debate since its his show. Hes got a nice little button below his desk that cuts the other guy off then he gets to say anything as if its the law.
@@sunghong2676 because he's gone through this over and over with whole life insurance agents, there's nothing to debate because Dave is right about whole life, it's a scam.
@@sunghong2676 Years ago there was a heated debate with a whole life pro on this same show. This agent was 20 plus year experience. What is there to debate about a crappy product?? You’re missing the point
@@sunghong2676 Exactly. He's been challenged multiple times to debate this and he refuses because then he doesn't have the bully pulpit.
@@jonnydoe85 i know theres a low chance but i pray he gets any life or securities licenses aside from real estate and say the things he says and just watch what happens.
This,credit cards, and 15-year mortgages are like the only things I can't get on board with that Dave stands on...otherwise, I LOVE Papa Dave
Whole life only "grows tax free" because technically you spend more on it than you get, and you don't pay taxes on a loss.
True, and you no longer own the cash value in the policy.
And yet people buy it!!
@@astroman30 not true… you do own the cash value as long as you are alive. You can liquidate it and walk away at any given time. I 5 years time my policy would pay me more than I ever contributed to walk away. Upon death the cash value stays with the insurance company and beneficiaries get the substantially larger death benefit instead. It’s like a guaranteed lottery win at that point. You don’t get to keep the money you spent on the ticket but you get the lottery winnings.
@@tylerrobinson4422 "Upon death the cash value stays with the insurance company." Doesn't sound like I own it, does it? Why does the insurance company keep it if I "own" it? Sounds like you're drinking too much protein shakes from the salesman who "Pitched" this to you. If you're going to lie, at least try to be good at it.
@@tylerrobinson4422 What insurance company do you work for?🤣
That is so true, just buy Term Life Insuranse 5% of the price and keep buying Mutual Fund to your Roth IRA with the other 95% let it compound tax free (That’s a FREE Lottery ticket majority of the people don’t see)
Only up to 6-7k but sure I don't think anyones debating not putting money into a roth ira or 401k.
@T-elegram-TY_Daveramsey You're not Dave Ramsey affiliated. I'm reporting you.
What happens when people reach 65 that term end and they suffer from an illness?
@@mda0214 exxactly but of course financial advice is different for every person which in this case the dave ramsey crowd believe a 1 size fits all.
@@mda0214 Buy long term care insurance at 60...that's what I do. No trash value insurance needed.
The cash value is just the equity you have in the policy. It gets paid out as the death benefit. Unless you took out a loan, it would be the death benefit minus the loan amount.
"The cash value is just the equity you have in the policy." I defy you to name the LI carrier where it states "equity."
I used to sell life insurance (for about 6 months before I left because I HATED IT. I didn’t qualify for term life, so I got whole life. It was a 45k policy. It cost 50 dollars a month. I kept it until this year and then I cashed it out. I bought it 12 years ago and when I cashed it out, the cash value was 2600. Painful.
No wonder it was "tax free".... you paid $7200 and got back $2600. Yep, no taxes due on a $4,600 loss.
What a scam. Sorry.
So you bought insurance and when you decided you didn't want it anymore, they gave you some of their money and your pissed about it? Just a reminder, if you bought a term policy and did the same thing you would have got nothing.
So you paid ~$31.94/mo for 12 years for 45k coverage. If you died (thankfully you didn't) the beneficiary would of not only been relieved of any financial burden while dealing with the emotional burden (funeral costs) but also would of received ~6.25x what you paid into it yet you're complaining here on the internet. Everyone knows life insurance isn't an investment. Be happy you didn't have to use it and it sounds like you're now able to self insure.
@@paulstutsman “Their” money? Just exactly did “their” money get there? Oops, I forgot, it’s Paulie. Have a great day, Paulie
Telling someone who believes in whole life that it's not a good investment product, is like telling a wine snob that a $200 bottle of wine is not better than a $20 bottle. They'll just never agree, because for them it always goes back to what they believe, for the reasons they choose to believe it.
In most cases, a 200 dollar bottle of wine is better than a 20 dollar bottle of wine.
There is a huge difference between a $200 bottle of wine and a $20 bottle. You dont even have to go that high, buy a cheap $6 bottle and also a $50 bottle and compare. You don't have to be a wine snob to taste the difference. Compare a $6 per lb Chuck Steak to a $15 per lb Ribeye.. same thing.. or that same $15 per lb rib eye to a $100 per lb wagyu
Bad analogy. It is like playing $200 for a cheap bottle of wine vs getting free wine. Yes, you can convince them they are getting ripped off.
If you're mega rich like the Rockefeller family then whole life has a use case. It's hard to have an industry built around a few rich people. So they find ways to sell the product to people who shouldn't have it.
Rich people have no need for life insurance. It’s set up for poor people. Term is fine and Dave is fine with it. Whole is sold as a financial product but you loss money.
What for if you are super rich?
@@1978wisper It’s not because they need life insurance. For the super rich, it can be a vehicle for avoiding estate taxes when passing down property to their heirs. IE, the terrible return on whole life is still higher than what would be passed down if subject to estate taxes.
This is the only benefit, and only benefits the ultra rich. One not only has to have enough property to be subject to the estate tax (over $13.99 million in 2025), but enough property so that passing property through the estate tax would be a lower return than passing cash through whole life insurance’s shitty return.
It is the one and only positive use case. No one else should ever get whole life as it is a loser in all other instances.
@@SomeGuys31415 the ultra rich are not doing that. They would lose a lot of value in those products. It would be cheaper to pay taxes. The rich avoid inheritance tax by not selling the property.
Why can't you do the same thing as the Rockefellers in your life to scale? They had to start somewhere.
I have nothing against whole life I have it and after so many years you can tell them your done paying the premium and they’ll start paying you out for cash value until it’s gone
In a $500G DB example, the premium is $430 a month from age 40. Nick lives to age of 90. So with whole life insurance, Nick pays $430 a month for 600 months (50 years) total $258G. Dividend is $130 a year best case for 50 years on the premium paid, or $6500, for a cash value of $264,500. The alternative is to buy term life insurance with extended duration and invest the rest .. a $500G death benefit policy for a 30 year term would be about $60 a month leaving $370 available to save .. $370 monthly in the market at 7% (stock market lifetime average) in a tax deferred account gives me $432G after 30 years. I won’t need a $500G policy if I’ve got $432G cash in my account, so I cancel it, And for the next 20 years my account keeps growing at the full $430 a month. Thus, when I’m 90 the account is worth $1.9 million. Conclusion is clear, do I want $264.5G (whole) or do I want $1.9 M (term and invest) for the same premium output. I choose term and invest.
@@astroman30 If I were to file suit against you in court, My attorney could peel open any retirement account, 401k, bank account, mortgage account, car notes, anything, even a safe deposit box, and find out how much you are worth. If you are ruled against, all those assets are in jeopardy.
Your Life policies are between you and the insurance company.
In reality you will have 0 due to market losses and selling at the wrong time
And other guy will have 260k
If you max. out your Roth, and 401k you still can put money into a brokerage account. Term life insurance is the only insurance you should get.
and when you have enough net worth to just self-insure you won't even need term insurance anymore.
@@Lon1001 Right. Luckily term life is cheapest for young people so most should be able to self-insure before the premiums increase much.
If you're making so much money that you can max your Roth and 401k then paying taxes isn't going to hurt you. Just invest in a brokerage account like you said and pay your dang taxes. You won, you've benefited from our societies investments in infrastructure to allow you to be wealthy, so pay your taxes and contribute back to for future generations.
Yeah, then you rear-end a guy and he sues your car insurance who can only pay out a million, but this guy makes a six-figures a yr and is now a quadriplegic. So, he sues you personally and there is a judgement. Your bank, brokerage and mortgage company ALL hand over whatever the judge says.
Meanwhile, your one million dollar WL policy is there ready to help you out.
@@762foryou ah, sure in one astronomically unlikely scenario, it's possible that a whole life policy MIGHT be helpful. Meanwhile for 99% of the population they would be better off just buying term. By your logic, I should buy asteroid insurance....just in case.
I love hearing Dave talk about whole life insurance!
You mean lie and tell half-truths?
My question is what if a person has a whole life policy that they have had for 20,40,60 years or more is it still worth it to keep it since one has been paying into it for said number of years or it is better to cancel it cash it out take the money and invest it?
That is where I am at right now, asking myself that question.
Depends on the following:
1. Are there dependents relying on the income?
2. How much is there in the CV?
3. If you cashed out the CV, what would you do with it?
@@astroman30 would she have to pay taxes on it if she cashed it out?
@@astroman30 Spot on Astro! ..and, * was the policy STRUCTURED for CASH when bought or primarily Death Benefit?
*are there annual Dividends paid to the policy owner?
* are there RIDERS ie. (Paid Up Additions, Long Term Care, Accelerated Death Benefit etc.)
I'd totally agree with Dave for those who only need the basic Term....and that's if the person doesn't outlive the TERM or LAPSES the policy. Most of us who understand the main purpose of Whole Life know that it isn't an investment in the common definition of investment...but it is used as an "investment" of the PROTECTION of the "asset" or CASH that you have. As a WL policy owner, you own the policy, control it, pay NO TAX on GROWTH nor on LOANS, WL company pays DIVIDENDS, NO Market RISK, NO CREDIT CHECK, TAX- FREE INCOME STREAM, THE "ASSET" APPRECIATES and is PROTECTED from Lawsuits acting like a Tax-Free Trust...etc.
I wish to God I had a whole life policy that mature. especially the way my policies are set up. The Cash surrender value would be enormous.
@@paulstutsman Get one for your kids when they a very young.
This guy went to a seminar and now bought in fully to the program.
Anyone that goes to a seminar is already behind.
The people giving the seminar made it because people pay them for seminars.
All you have to do is ask the person speaking at a seminar, what seminars did they attend? My guess is they didn't....
Always cracks me up that he says "borrow you're own money" when you're borrowing the life insurance companies money, that way you don't interrupt the compounding of YOUR money.
And where do you think the insurance company gets their money from???
Yes, where does that money come from, sport?
@raquelocasio8588 they invest in assets. Just like we do with our cash value. We also use cash value for money lending.
@@Thewealthwarehousepodcastnice try, the question was where does the money (cash value) come from? Let’s see if you can answer without lying.
@astroman30 not sure how you want it worded in order for you to understand.
This is why I like etfs
My lawyer can attach any money you may have in any brokerage account, retirement or otherwise if you owe me money. We could even take your house and cars if need be.
Can't touch your life insurance.
@ neither can I 😂
This is excellent
Soon after I graduated college I was contacted by a high school classmate who tried to sell me on this "whole life" crap. I was DECADES away from hearing about Dave Ramsey, but a blind man could see it was garbage. I wished him well & sent him on his way.
Same here!
In a $500G DB example, the premium is $430 a month from age 40. Nick lives to age of 90. So with whole life insurance, Nick pays $430 a month for 600 months (50 years) total $258G. Dividend is $130 a year best case for 50 years on the premium paid, or $6500, for a cash value of $264,500. The alternative is to buy term life insurance with extended duration and invest the rest .. a $500G death benefit policy for a 30 year term would be about $60 a month leaving $370 available to save .. $370 monthly in the market at 7% (stock market lifetime average) in a tax deferred account gives me $432G after 30 years. I won’t need a $500G policy if I’ve got $432G cash in my account, so I cancel it, And for the next 20 years my account keeps growing at the full $430 a month. Thus, when I’m 90 the account is worth $1.9 million. Conclusion is clear, do I want $264.5G (whole) or do I want $1.9 M (term and invest) for the same premium output. I choose term and invest. Thanks, Dave!!
Nick should have found a better agent. An Infinite Banking Concepts Practitoner could have set him up with a lot better performing Policy for $5160 of annul premium.
@@paulstutsman By all means, set one up here. Let’s compare.
@@astroman30 I do not have access to illustration software. Since you work or have worked in the insurance industry as you claim in other posts, run your example through your illustration software as follows. Base premium/ term rider, 40% paid up additional rider 60%. Dividend election is to purchase more PUA. Give Nick the longest level term rider possible and then make the policy reduce paid up after the term rider expirers. This policy design will blow the one you set up for poor Nick out of the water giving him more cash surrender value and death benefit with access to the Cash surrender value through loans to do the investment strategy in your example.
@ that is a traditional wl policy that you pos salesmen setup on a daily basis. I gave a conservative 7% on the market accounts. It should be more like 12% since that’s what my S&P (VOO) has been performing since the last 25 years. Yet, I know this is completely over your head since you are a company man.
@@astroman30 So what you're saying is you can't run the numbers to disprove the concept that it is a better designed policy than what you have given Nick in your example. Also, why does Nick have to pay WL premium for 50 years as opposed to the 30 you're suggesting for the investment example? Either cut the Whole life premium off at 30 years or make your investment example re new the term insurance.
I’m not a financial expert but my husband had a term life insurance policy. When he passed away, I received a million dollars. Tax-free.
I'm sorry of his passing. Sounds like an intelligent man who cared about his family.
Term is the way to go for most people whom actually need insurance, like your husband. Had the term expired you'd have got nothing, however with the money he would have saved from not wasting it all on whole life insurance premiums it likely would have been a decent sized portfolio anyways.
@ Thank you. He was.
Sorry for your loss. You are one of the lucky ones. Most term policy holders outlive their term.
@ Yes. He only had a year left.
Thanks Dave!😅
It's a predatory product and they use dishonesty to make it sound like it is of value for their average target customer.
Yes. And they make big commissions on selling it.
@@Lon1001 It’s not a predatory product. Stay away from “advisors” that tell you to put all of your money into life insurance products.
@@josephbranch2342 Just wondering how much commission a term life salesperson gets. Do you know?
Dave discussing whole life is entertainment at its finest.
It's even funnier when you understand he's confusing whole life with Universal life products.
Glory!!!! I'm favored, $255k every 3weeks! I can now afford anything and also support God's work and the church.
Congratulations!! The scriptures clearly states these's going a transference of the riches of the heaven to the righteous. God keep blessings you
Wow, congratulations on your financial breakthrough! Can you share more about the investment that's generating $255k every 3 weeks?"
Hello how do you make such monthly?? I'm a born Christian ✝️and sometimes I feel so down of myself because of low finance but I still believe in God. ♥️
How can I get in touch with KATE ELIZABETH BECHERE to learn more about her investment service?
It's Ms. KATE ELIZABETH BECHERER doing. She's changed my life.
My term policy $30 month for $50 thousand for 20 years
Huh? My term policy is $250k at $27/month.
You can withdraw up to your basis tax free and then just like the wealthy do, you use the cash value as collateral. You can borrow against your cash value tax free. You still earn interest on your entire cash value. People really should look into this and not just take Dave’s word on it.
1. Any loan is “tax free.”
2. Only low life salesmen and idiots sell/buy whole life insurance
@@astroman30”only idiots buy whole life”? I guess 2/3 of all the US banks are idiots……you’re really smart 🙄
Amazing that this video came across my feed today. I'm 46(will be 47 in 2 weeks) and i purchased whole life about 9 yrs ago now. For the last 12 months ive been going back and forth about cashing out the policy as i feel i dont need it. Im not married with no children and dont forsee that changing in the future. I have no debt and my morgage is paid off. I have more than enough to throw me in some dirty or burn my ass up. So i began to question myself as to why im still paying this $100 a month for a policy. Last Thursday I decided to call my insurance company and inquire about canceling my policy. They are sending out the paperwork. Just waiting to get it in the mail. I was still going back and forth on whether or not I'd cancel. After seeing this, I'm 100% canceling and taking my money and investing it. And also gonna save the 100 bucks a month and put it into another emergency fund.
Why do you have any life insurance if you don't have any dependents or obligations? Waste of money
@craigholland2274 well when I was a little younger with no knowledge of insurance, an agent sold me on it. Being older, wiser and out of debt, I realized that it makes zero sense. Luckily, I'm able to cash out my policy and recieve 99% of what I paid in. I guess vetter late than never to come to this realization.
Out of curiosity, how much is the cash payout you'll be receiving?
@@kentonb-1 10k
It does sound like a waste of money at this point
Term is also a sunk cost. You never have access to that money. So, to say it's "cheaper" is a lie.
"Sunk cost?" How stupid can you be? Is my auto insurance a sunk cost? Is my homeowner's insurance a sunk cost? NO!!!! Insurance is a RISK MANAGEMENT purchase you snaggle tooth dweeb.
I don't full understand the technical details of what's being discussed, but knowing Dave, and knowing how insurance companies make money, Dave will be correct.
You pay 20x for whole life compared to term, so if you apples to apples comparison it,
[$400 a month for whole life] vs [$20 a month for Term plus the difference $380 invested in let’s say an index fund.]
Compare the 2 scenarios. In scenario one, you don’t own your cash value because you can only borrow it at interest, the interest the cash value accumulates if you don’t borrow it is around 2%. When you die the cash value goes away.
The other scenario, you have the term for $20, with the additional $380 you saved that would have gone to whole life, you can invest it, you own the cash value, and are able to make returns that far outweigh the 2% in theory. More like 9-12% for recent years conservatively.
And when you do the compound interest math, you could be looking at 25x more money if you put that $400 into $20 term plus $380 monthly index fund.
Yes 25 TIMES. The whole life would net you 25 TIMES LESS MONEY. (The 25x is an estimate but is reality depending on the number of years of compounding interest/payments)
You might want to look up who those mutual life insurance companies that sell whole life are owned by and who they make money for.
@@stevef4930so many incorrect statements. 🤦♂️
Insurance companies make more money off of term policies.
Post more life insurance videos!
Just put the money in a traditional 401k whats so hard about that?
@@imveryhungry112 Nothing at all except then he doesn't get his commision.
Because he was talking about people who had already maxed everything out.
@@Juangaltno he was talking about doing it after maxing out just your ROTH to get tax free growth. He didn’t say after everything else is maxed out.
The problem with that is your money is not liquid once you do that. Life happens, sometimes larger than your Dave emergency fund.
401ks will leave you broke and destitute at the end of your life.
I wish Dave would criticize MLMs as much as Whole Life.....but he never does
Gotta love how the guy offered up...after you max out X,X,X, then it makes sense to throw money at this . Problem is, the average person cannot max out a 401K and a Roth! These insurance policies on make sense for the people selling them.
Depends on how you structure the policy you can access up to 90% of your cash in the first year. So saying that there is nothing for the first 3 years is not accurate.
By all means, structure one here where the LI company let's you have money in CV in the first year. In fact, name your carrier so I can screen shoot your comment and email them your claim being I have your name. I'll wait.
@@astroman30😂😂😂😂😂😂 what a moron. His comment is 100% accurate. Please, keep showing us all how ignorant you are.
Can access 90% means you can take a loan out, and pay back with interest and fees. So 100 bucks, can access 90 bucks and pay back more than 90 bucks.
Term you'll pay 5 bucks and you still have 95 bucks in your pocket 😂
@ I can take a loan out with no questions asked for 96% of my policies equity(my cash value). What you are forgetting is that because I did a loan and not a withdrawal, all 100% kept growing every single year guaranteed. Go find a savings account paying 5% tax free and a loan at 5% with no requirements or payback schedule. Let me know when you find it. 😂
@@AnAZPatriot obviously if you only want protection for a certain period of time, a term would be more appropriate. But what you need to understand is that certain people get participating whole life to leverage it and buying more assets so the loan rate is irrelevant as long as you earn more. however I'll concede that it's not appropriate for most people.
Insurance companies make money by taking your premium and paying out less. Insurance isn't a investment its a bet against the insurer.
UHC is the master of that business model
UHC?
@@alinatamashevich3354
Exactly.
My financial planner professor when working on my under grad in finance was vocally against whole life insurance & said the agent gets 60%+ commission for year 1. Yr 2 40%+ and yr 30%+ commission ❗️he said the buyer is being scammed. You'll make more investing in the stock market. They insurance salesmen love whole insurance bc of the HUGE commission
Maybe true year 1 but not that much years 2 and beyond. They might get a small % of the premiums paid in. Now, compare that to the btid guy that gets 1-2% of you account value for as long as you keep the account open! It’s not even close. Btid clowns will easily make WAY more off their clients.
Many, many years ago I did buy a small whole life policy and am about to just cash it out since I don't need it anymore (got to convince the Mrs). But maybe it's my policy, but my death benefit is the face value plus cash value. Is that unusual for the industry?
You might get an increased DB, but not the CV.
You will not get the face value plus cash. The company keeps your cash
@@andreamoore6701 Just checked my policy from Equitable: Purchased value $100k - Policy value $32k - Death benefit $132k
A Whole life agwnt tried to sell me a 100k coverage at $150 a month and after 8 years I'll start accuring cash value. I told them id rather put $150 under my mattress for 8 years
Then They aren't selling Whole life insurance. Cash Value is generated the moment you pay premium.
So help me understand, if a person has a $100k whole life insurance policy for decades, and they die, does the beneficiary not get $100k? What am I missing?
Great Question, If the death benefit is 100k, yes. Whole Life also has a "savings" component in it called Cash Value. This could be a substantial amount of money that the customer paid in for all those years of which the insurance KEEPS. Thus, if you would've bought term at an early age and invested the difference (between term and whole life) you would've made waaaaayyyyy more money and be able to keep it.
Depends on what company it’s with. If it’s a dividend paying mutual (client owned) company, the dividends can be used each year to increase that 100k.
Many liars, like Ramsey and asstroman that commented, will say the company will keep your cash value when you die. This is a lie. The cash value is merely the portion of the death benefit you own. It’s also the amount the company will pay you if you surrender your policy. It’s your equity. To expect to have the death benefit paid and the cash value is as foolish as selling a house and expecting a check for the selling price AND a check for the equity you had. Hope that helps.
@@firecraig "..the company will keep your cash value when you die. This is a lie" Then further down you write, "To expect to have the death benefit paid and the cash value is as foolish." Well, which is it? If the company doesn't keep the cash value and it doesn't get paid, WHERE DID IT GO? The problem is that you lie so much, you can't even remember what you wrote. You're like fart in a whirlwind with your answers, Greg. POS lying salesman.
depends on the company, some give cash value AND the 100k
@@robcab3725 no. You don’t get the cash value and death benefit when you die with whole life. Not because the company keeps like these morons claim but because all the cash value is in whole life is the portion of the death benefit you own. Your equity.
I took out a $50K single premium life insurance policy (as a favor to a friend) many years ago for $5K. It had a 4% minimum rate of return, and today has a cash value around $37K. I do not think this was a particularly good investment, but it did return something so I can't say it was as bad as putting your premium in a jar under your mattress. When I cash it in, I will owe income tax on $32K of ordinary income, just like an IRA distribution. So, while Dave's statements are a bit dramatic, I agree that there are much better investments than life insurance.
That’s the thing, insurance is not an investment. It’s insurance. This “mixing metaphors” is what gets people because the sales pitch tells you you’d be dumb not to invest and have insurance.
Did you read your contract? You know you have the contractual right to borrow that Cash surrender value correct? Use it like a HELOC WITH MUCH BETTER pay back terms.
No tax on death benefits from whole life insurance.
Right?
For the most part, All life insurance DB is tax free.
I once heard that 'whole life insurance puts a hole in your pocket'. I'll always remember that to NEVER buy whole life insurance.
If you don't understand it then yes don't buy it for sure.
Surprised Dave didn’t go into if the CV account ever exceeds the face amount, then it could be considered a MEC, and the govt (tax people) no like-y when that happens
The reason he doesn't mention it is because it would prove that his perspective is false. The existence of a MEC and the fact that the government has continued to try to legislate Whole Life for the purpose of putting limitations on it. There was a time when MEc's were legally still treated the same as a Whole Life Policy.
In those days people would have 500k cash value with only 50k of insurance. This was being abused and the MEC was created.
The insurance companies pivoted and started adding term riders to still meet the MEC requirements while still having a high cash value design.
It's funny to me that people actually listen to Dave on this subject when you could easily read the changes to the tax code regarding cash value and find that his premise is way off. He just gets so many views on these videos he can't have the humility to admit he's wrong in front of a large audience.
@@MiamiDre Yet, very few people hit that MEC which is why most IBC do a 40/60 tier 1 doing $1600 (Chris Naugle) into a PUA. Keep in mind, it still takes about 8 years to break even. Not to make money....TO BREAK EVEN. What a scam. Dividends still run about $300 (or less) per year. I've known some who did a 10/90 and didn't get MEC. Yet, it's all still garbage.
@@MiamiDre AAAAAAMEN Miami! Love me some Dave Ramsey...but regarding WL, this is where he may want to consider the PROVERBS he reads.... Proverbs 15:2 The tongue of the wise makes knowledge appealing, but the mouth of a fool belches out foolishness.
@@astroman30 What exactly is a 40/60 tier 1? I am guessing you're talking about base/term vs Paid up additions split but the tier 1 throws me off. lol, 10/90 split policy's will MEC MUCH faster than 40/60 policies, that's why MOST Infinite Banking Concepts Practitioners won't issue them.
@ecoasis1 What's hilarious is I was watching one of Dave's older videos where he was talking about 401k's and the person called in and said I want a guaranteed fund where I receive just 4% a year without any concerns. Dave mumbled and said that sounds like some type of insurance product. He then woke up from his stupor because he didn't want his audience suggesting what the client actually wanted. He then started trying to compare compound interest without mentioning insurance for the rest of the discussion and only comparing the 4% to the 12% here's the kicker the DALBAR says that over the course of the average investor life they only make 3.1% in the market. Because volatility effects psychology especially for the middle class.
I did a universal 15 pay whole life. Pay on it for 15 years then it is paid off. Pays 5% dividend that you can buy more insurance or get a check. It does cost more up front but it has a payoff date which I liked.
Universal or whole life?
@ it’s like whole life, but whole life you never pay off which I didn’t like.. mine was about $15k for $50k policy. Its paid free and clear now and just grows cash value and death benefit. Its has a fixed 5% interest it pays. It’s a permanent policy so it will be a couple hundred grand when you are old. Some people get them for kids since the younger you are the cheaper. I got mine at 18. You could pay very little for it and have it paid off by the time kids graduate from high school with it able to grow over 60 years.
@JasonPuckett-n2x whole life you can pay off, it's literally called a "Reduced Paid Up" where you can fully pay up the policy and stop paying while it remains in force until the day you die.
@@maxpruger837it was my understanding that the reduced paid up option lowers your death benefit, which seemed like why my agent said you keep paying on it. It seemed like you pay on it till you have enough cash value to cover the cost of the policy. I was happy with mine but I think it is far more expensive than a traditional whole life.
@@JasonPuckett-n2x What company sells universal whole life? It sounds like you're mixing two separate products.
why cut Andrew off - i wanted to hear what he said !!
I'm glad you made this video it reminds me of my transformation from a nobody to good home, $34k monthly and a good daughter full of love
My advice to everyone is that saving is great but investment is the key to be successful imagine investing $15,000 and received $472,700.
wow this awesome I'm 47 and have been looking for ways to be successful, please how??
Getting advice from an expert when building an investment portfolio is a wise choice , as the process can be quite complex
Making touch with financial advisors like Elizabeth Regina Nelson who can assist you restructure your portfolio, would be a very creative option. Personal financial management will be crucial to navigating the next difficult times
Elizabeth Regina Nelson has really set the standard for others to follow, we love her here in the Uk 🇬🇧 as she has been really helpful and changed lots of life's.
How about term life insurance?
Very valuable for people who need insurance policy to protect their dependents. The best part about term is that the younger you are when you need it the lower your premium will be which leaves you more of your own money to actually invest and turn into wealth, which by the time your term expires you probably won't need life insurance anymore since your dependents and your nest egg will have grown up.
@Lon1001 yes it's so valuable that 99% of the people live pause their Term Policy.. that means 99% of the people never needed it to begin with
Interim life insurance you don't get your cash back now you put in they keep all your money 99% of the time
What advise do you give for someone young. If they purchase Term Insurance for 20 years, at the end of 20 years, they have to get a new policy at a higher rate.
In a $500G DB example, the premium is $430 a month from age 40. Nick lives to age of 90. So with whole life insurance, Nick pays $430 a month for 600 months (50 years) total $258G. Dividend is $130 a year best case for 50 years on the premium paid, or $6500, for a cash value of $264,500. The alternative is to buy term life insurance with extended duration and invest the rest .. a $500G death benefit policy for a 30 year term would be about $60 a month leaving $370 available to save .. $370 monthly in the market at 7% (stock market lifetime average) in a tax deferred account gives me $432G after 30 years. I won’t need a $500G policy if I’ve got $432G cash in my account, so I cancel it, And for the next 20 years my account keeps growing at the full $430 a month. Thus, when I’m 90 the account is worth $1.9 million. Conclusion is clear, do I want $264.5G (whole) or do I want $1.9 M (term and invest) for the same premium output. I choose term and invest.
Not really, after that 20 years just don't get another one, unless someone will *need* money after you die. Right now I have a nice truck and I have full coverage insurance on it. In many years when it is old and worn out I'll probably still be driving it, but I won't need or want to have expensive full coverage insurance on it anymore. Right now I also have term life insurance so if I die the house will get paid off and my wife won't have to worry about having a place to live. By the time my term insurance expires the house will be paid off and my wife will be getting my pension, so at that point I won't need life insurance anymore.
You don’t have to wait until the end of the term to get a new policy if your circumstances change.
I got a 20 year policy in my twenties. A few years later I had kids and needed more coverage, so I got a 30 year policy and cancelled my 20 year one, The rate was a little higher but not significant. (Plus my income was higher so I could afford it)
If I’m blessed enough to outlive my current policy, I’ll have a well funded 401K, IRA, and a paid off home at the end of the term so I won’t need as much coverage on my next policy (if any at all).
The goal is to be financially well off enough to not rely on life insurance to leave something behind for family.
@@astroman30 What happens to the dividend? That is VERY vague. Why is this guy paying Whole life premium for 50 years and term for 30?
Love you peace!
I love how you broke down the XAI317K project in your video! Can’t wait to see it skyrocket!
Go away with your spam.
@@astroman30 but you didn't give enough time for 20 more of them to tell how much money they're making.🤣🤣🤣
🚨SCAM ALERT ‼️
Whole life never made sense to me, I just want life insurance to cover my mortgage if I were to pass
Then yes term would be decent though your whole financial situation would need a look at before giving any financial advice.
Whole life insurance starts as insurance and gradually becomes a savings account. Over time, your benefit becomes your savings, which means the portion of your benefit that is actually insurance decreases to zero. You would be better off having term life insurance that actually provides you with money you don't already have and put the money you save into an investment account.
Nope. Whole life is ALWAYS insurance. As you make premiums you own more and more of that death benefit. It’s your equity. Cash value in whole life is NOT a separate savings account like ole Dave claims. It’s like equity in your house. Expecting the death benefit AND the cash value when you die is like selling your house and expecting a check for the selling price AND one for the equity you had built up. Foolish isn’t it? Now watch ole Ramsey block me from this page for calling out his lies just like he did on his facebook page. 😀
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing below the $100k mark and in the first 2 months, my portfolio was reading $234,800. Crazy right!, I decided to reinvest a huge percentage of my profit and it got more interesting.! For over a year we have been working together making consistent profit just bought my second home at the beginning of summer.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@BrandonIvan-c6e However, if you do not have access to a professional like SUZANNE GLADYS XANDER, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
@@Kendrawebb-m2f Oh I would love that. thank you.
@@BrandonIvan-c6e SUZANNE GLADYS XANDER.
Lookup with her name on the webpage.
Whole life and Dave ramsey=immediate click.
Every time someone wants to tell you how good whole life is, you'll find out they're selling it.
😂😂😂 yeah go ask all the banks in the US that buy tons of whole life that’s it’s no good. 🤦♂️
Not true. I'm not an agent. I'll promote Whole Life insurance until the day I die.
Whole life averages a fixed rate of 4-6 percent in rate of return.
Bullshyt....it has a negative ROR the first 4 to 5 years because the LI company keeps all/most of your cash value. In fact, it takes about 10 years just to break even. Scam.
If you did borrow 20k on a 100k. Of course you will only get 80 if something happens. Because you already took out 20k.
That only make sense.
Wow Jimmy....awesome math skills. Where is your podcast?
I agree. This is Dave just gaslighting the public again.
One size doesn't fit all. Two parts of this equation that Dave refuses to address ever.
@@alinatamashevich3354 LOL.
But the also doesn’t get the cash value investment…..which is what your premiums went to. And that 80k is a death benefit it wouldn’t go to you it would go to surviving spouse or family member
@@mauricescribner7025 Really, the death benefit wouldn't go with me? It can't be burried with me?
Just put the money in a brokerage account. You will have more money.
This call sounded fake.
Agreed.
*You work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires*
wow this awesome 👏 I'm 47 and have been looking for ways to be successful, please how??
Um, a 20,000% (200-fold: $2M vs $10k) return from a few months means the risk is off the chart, and moreover likely the behavior that led to someone thinking that was a good risk, will burn the person the next time(s)
It's Esther A Berg doing, she's changed my life.
I do know Ms Esther A Berg ., I also have even become successful....
So what if I get sick and cannot work anymore? What next?
That fact that he says "investment growth" and "rate of return" proves that he is looking at it the wrong way. Whole life is not an investment.
You're right. It's not even a good purchase.
@astroman30 you probably sell term.
The caller was a plant, not a real caller.
I agree with you. Or it can be a “screened call” to go along with DRs premise towards wolf life ins. 🤷🏽♂️👍🏽💪🏽🙏🏽
Haha the only thing I agree with Dave 100% about
Two parts of the equation Dave never addresses when talking about whole life.
1. If you get sick or hurt during a life event and you're unable to work the rest of your life, the company continues to pay your premium for you.
2. The cash value and the death benefit also rises with time. It's not just a $100k policy for until death.
This is a perfect example one size doesn't fit all bad advice from Dave. Just like he's against using credit card points/miles. His advice is great for the average American who cannot stop spending more than what they make, but his wealth building advice needs to be taken with a grain of salt.
What he needs to do is specify the audience he is talking to. It’s good advice for those who need to desperately get out of debt and don’t know what to do. Alittle research goes along way. RUclips has a bunch of free advice that’s more unbiased than him.
"...the company continues to pay your premium for you." This is COMPLTELY false. If anyone misses a premium paying into a trash value policy, more than likely, you will be cancelled and the company keeps all past premiums.
A waiver of premium rider ensures that the policy premium is paid if the policyholder becomes disabled.
@@divinelyfeminine2612 PUAs are extra.
@@astroman30You just got owned. 😂 Looks like you and Dave need to brush up on your life insurance education.
insurance is a tool, not a catchall. no single policy type is best for everything. pretending so is dumb. Term makes sense for alot of situations. Whole life makes sense for a lot of situations. using the wrong tool for the job is the problem, not the tool.
Exactly, whole life insurance is for tools and sold by tools
@ I’m sorry you’re so excited about being ignorant.
@@PrestonHicks77 I’m excited that you’re sorry in so many ways
@@astroman30You don’t know what you’re talking about.
@@rukiddingmeNJ tell us you sell this garbage without telling us
I have to watch this a few more times to understand but Dave is cooking
He doesn't know what he talking about.
If you didn't pay the full 90k then you didn't lose money. If you pay monthly and didn't pay in full then you technically gain the death benefit of $90k plus the interest gains.
What about universal life policies? Are they the same?
Worst than whole life
@ can you explain why? I just surrendered one, but want to understand why it was a good decision?
@@Vrae2409 Great question, in a UL policy, you have term insurance with a cash value (that takes years to accumulate) component. That term portion has an Annual Renewable Term (ART.) Hence, the premiums go up every year as you age. If you don't pay the rising cost of the premium, money is taken out of your cash value (if any) plus any fees. Miss a premium, they may cancel you keeping all your money inside of it. Most of these policies eat themselves because of the high costs. At the end, when you die, your family only gets the face value of the death benefit. The insurance company KEEPS your cash value. It's a horrible product.
@@astroman30 wow! 🤯 thank you for the explanation!!
Was it a regular UL or was it IUL or VUL?
Wait....did he just say the only way to get at the cash value is to cash the policy in???? Wow. I guess all these cash value loans we've been....not real?
Nice try, he has stated many times that you can BORROW against your own money in other videos. Try harder.
@astroman30 no, he said borrow you're own money. Listen carefully.
@@Thewealthwarehousepodcast”your” Get your grammar correct, nimrod
Whole Life insurance is the main way people pay for funerals, it was never meant to be a investment
A lot better ways to pay for funerals than trash value insurance
Whole life insurance is also where most US banks store their capital.
@ yes…that totally relates to the common man. Nimrod
@@astroman30 If it's good enough for banks, why can't it be good enough for the common man at scale?
I am deep in this mess for 3yrs now. What do I do? I can’t afford to cash out because I will lose almost 20k if I cash out( which I can’t afford to lose). I bought a 1m policy and I pay 711 every month…I don’t have any other reasonable retirement account. What do I do? I think I will break even in the policy in another 3 yrs? It was the insurance aspect that really made me do this and now I regret it
@justinedge2176 First, I’m sorry this is happening to you. Second, don’t take what I’m about to say as advice, because while I am an investment adviser, I’m not your investment adviser.
If I were in your position, I’d first get a term policy in place. How’s your health? How old are you? If you’re in good health get the term policy. Then, and ONLY THEN, cancel what you have now. You said that it would take three more years to break even, so there’s been no gain from your premiums; this would NOT trigger any taxes when you cancel.
I’m guessing the new term policy would cost around $90 per month. From there take the other $621 and invest it. Before you invest, sit down with an investment adviser, one who does not have the conflict of interest to their advice of selling a product (i.e. life insurance), and go over your goals, timeframes, tax situation and investment objectives. They’ll be able to guide you as to where the money should go based upon the areas that I just mentioned. I hope this helps.
here's an idea, call your agent and ask about non forfeiture options.
@ will do
FYI, this is NOT a reflection of Canadian WL policies. Do your research before jumping to conclusions, lots of different types of contracts.
Thank god I don’t live in Canada
@astroman30 were pretty excited about it too.
Draw this on a board live. Pictures are worth a thousand words.
That would not help the radio audience (which is still the majority).
Wrong my cash value grew within the first 3 years at a decent rate
Liar
I would rather put all my money in a safe, in cash, than deal with a banker, insurance agent, or investment person. Time is money, convenience is money. There is not a rate of return that will be more than the convenience of not talking to people or filling out paperwork. A million dollars in cash will not keep up with inflation, but, when I need it, I can touch it and that is worth the rate of inflation. A million dollars is still a million dollars
Keeping your money out of the banking system actually helps with inflation. That is one of the reasons people choose to store their capital in Whole life insurance.
@@paulstutsman how long have you been stupid?
@@azimuthbusinesscenter whatever dude. I'm evidently smarter than you.
I hade universal life only paying 15 a month my cash value grew alot ? Confused
You do know what happens to your cash value when you die?
@@astroman30its paid to his beneficiaries dummy.
@@astroman30well when you die all your cash is gone either way Hahaah
@@double_joseph327 I love my kids and want to leave them the money.
Term Life is ACTUALLY more expensive than PERMANENT INSURANCE. It really is sad this was misconstrued. Term expires and NO ONE KNOWS the future of health situations. Its also bad say they ALL LOSE MONEY.
I buy homeowners insurance every year and never made a claim. Did I lose money? Was it a bad purchase? No!!! Insurance is a RISK MANAGEMENT purchase not an investment. Know the difference
@@astroman30homeowners insurance isn’t an asset. Know the difference
I don’t sell life insurance, but I have a universal life policy with guaranteed 500k death benefit. I pay $3333.42/year for that guaranteed benefit policy. If I keep that policy for 30 years and die in year 30, that’s still a 9.511% annual interest rate on my premium for my family in money that I KNOW will be there, whatever life circumstances happen between now and then. At 42 years, the annualized rate is still over 5%. Could that make more money elsewhere? ABSOLUTELY. I understand, and my goal has NOTHING to do with making a good ROI with this premium; however it still represents a conservative amount of growth (like a CD) when strictly focused on and factoring in the guaranteed death benefit. I also have waiver of premium should I become disabled and living benefits for longterm care and such, but my sole purpose is the death benefit and the math involved for the particular amount of money I put in to know that is there. You pay for guaranteed death benefits because they know they will have to pay out. The % of term policies that pay out are extremely low, hence the lower cost. There’s money that you KNOW, and money that you GROW in my book. I’ve watched people outlive and out sick there life insurance and life wasn’t going as planned to say having life insurance was no longer necessary. Because they didn’t lock in, they could no longer afford it, and they could leave NOTHING at that point. Infinite banking and life insurance as an investment is a complete scam to trick you into making them your bank’s replacement, but for those who know WHY they are doing what they’re doing, it has purpose. Most are not millionaires and never will be. Dave changed his financial life and is a great teacher with solid principles, but I also think any of us can fall in love with our own redemption story to the point that good logic in various methods can be too easily overlooked, all things and personal circumstances considered.
"I pay $3333.42/year." Wow!!! Do you know that you could've bought term and invested the difference (S&P) and made waaaayyyyyy more than any trash value policy out there? Do you know about (ART) annual renewable term that's in your UL policy? You were scammed.
@ someone who clearly has a hard time reading what I said, I can’t have a conversation with. This is not an investment by any means.
@ and my 34 year old pregnant wife just got a cancer diagnosis/emergency surgery in the middle of it. Those are the kind of things that don’t make you regret having it. If you haven’t watched someone surpass their insurability, you can’t have a level headed conversation in the context identified.
@ also, annualized return on the S&P is sitting at 10.37% currently. Again, not too far above 9.511%. I have very aggressive investments in the s&p in various accounts. This is my money that I KNOW.
!!I am at the beginning of my "investment journey", planning to put 385K into dividend stocks so that I will be making up to 30% annually in dividend returns. any good recommendation on great performing stocks or Crypto will be appreciated.
As a newbie investor, it’s essential for you to have a mentor to keep you accountable.
Ruth Ann Tsakonas is my trade analyst, she has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns.
I managed to grow a nest egg of around 120k to over a Million. I'm especially grateful to Adviser Ruth Ann Tsakonas, for her expertise and exposure to different areas of the market..
I don't really blame people who panic. Lack of
information can be a big hurdle. I've been
making more than $200k passively by just
investing through an advisor, and I don't have
to do much work. Inflation or no inflation, my
finances remain secure. So I really don't blame
people who panic.
Without a doubt! Ruth Ann Tsakonas is a trader who goes above and beyond. she has an exceptional skill for analysing market movements and spotting profitable opportunities. Her strategies are meticulously crafted on thorough research and years of practical experience.
how would you recommend i enter the crypto market? I am also looking at studying some traders and copying their strategy rather than investing myself and losing money emotionally. What's your take on this approach? and How can i reach her, if you don't mind me asking?
It’s a long way to Richmond rolling north on 95
Dave Ramsey is right. I have three "whole life" policies in which the cash value is greater than the premiums paid. I'd like to cash them in but I'll be taxed on the increase in value. I'm 75 so I'll keep them and let my kids have the money tax free when I die. Not a great investment for me. Fortunately I found Vanguard and have invested well in no-load, low cost funds.
You may be surprised to find out that your tax bill is very small because you've been ripped off all these years.
You can take out the cash value up to your cost basis tax free. After that you can borrow against the policy tax free. Just make sure you don't over leverage so the policy doesn't turns upside down.
Dave forgot to tell you you can pull all the money that you paid into the policy out, Keep the "gains" in the policy and still pass death benefit onto your kids.
@@paulstutsman which is why I bought term at a FRACTION of the cost and bought into the S$P. No “net death benefit” here. Nimrod
@@astroman30 Then you miss timed the S&P melt down the day before you retired and lost everything. Now you have no protection or capital to start over with.
We expect a company (life insurance); who bears the risk of us dying, to simultaneously pay us extra (cash value) while we are alive, and then still bear the risk of us dying. How lunatic is that thinking?
Gee, is it a sin to ask for your investment back? I put money in my 401k, SEP-IRA, S&P...etc. Yet, I get to keep it. Sounds like whole life insurance isn't an investment, nor, a good purchase. Sounds like maybe buying term and investing the difference may be the best solution. Here is a great example:
In a $500G DB example, the premium is $430 a month from age 40. Nick lives to age of 90. So with whole life insurance, Nick pays $430 a month for 600 months (50 years) total $258G. Dividend is $130 a year best case for 50 years on the premium paid, or $6500, for a cash value of $264,500. The alternative is to buy term life insurance with extended duration and invest the rest .. a $500G death benefit policy for a 30 year term would be about $60 a month leaving $370 available to save .. $370 monthly in the market at 7% (stock market lifetime average) in a tax deferred account gives me $432G after 30 years. I won’t need a $500G policy if I’ve got $432G cash in my account, so I cancel it, And for the next 20 years my account keeps growing at the full $430 a month. Thus, when I’m 90 the account is worth $1.9 million. Conclusion is clear, do I want $264.5G (whole) or do I want $1.9 M (term and invest) for the same premium output. I choose term and invest.
@ Nailed it! 🎯
A better idea. Put your money in a sock…always TAX FREE.
Dave Ramsey's life insurance company (and yes, he does) sells Whole Life Insurance.
No he doesn't, but his sponsor might.
Liar.....Dave does not own a LI company.
Not really "spouting a line", it's just facts. WL grows tax deferred. Plus only have to pay in about 7-10 years if it set up correctly. It's not meant to be an investment.
A couple things Dave, Your sacred IRAs, 401ks, Brokerage accounts, LLCs, mattress or what ever place you think your money is safe can all be peeled away by a judgement, collections, IRS, creditors, Hackers, lawyers.
Your money is not safe in traditional retirement vehicles.
Good luck trying to get at a contract with an insurance company..
1. ROTH IRAs grow tax free
2. "set up correctly" is a tired phrase you POS salesmen use waaaayyyy too often.
3. Your "sky is falling" on the stock market is silly
4. S&P has averaged over 12% in the last 25 years
5. You ever heard of Zander insurance?
@@astroman30try 7.7% since 2000. Not 12% dummy. Keep lying
@ 10.76% you lying pos salesman
I see Dave or jade I click.
If there was an investment that grew completely tax free it would have been outlawed years ago
ROTH IRA
@astroman30 I knew someone would say that, Roth IRAs are tax advantaged. Any money you put into one you've already paid taxes on.
@@Flightcontrol96 Your question is "grows tax free" of which it does. Still better than any trash value insurance policy.
I buy homeowners insurance for life, I buy car insurance for life, and I buy life insurance for life.
What I don't do is buy homeowners insurance for a 20-30 year term. And then stop buying it lol
Good point, Edward Supertramp, except that homeowner's don't offer a cash value. Not comparable
@astroman30 it's not comparable.. you can't compare a product that does not exist.. you have to compare term homeowners to term life..
You buy term homeowners for life.. why don't you buy a term life for like 60 years?
@@astroman30 so you buy term homeowners insurance for life..
But you don't buy term life insurance for life.. lol. Saw your house is more valuable than you?
@@Rshen11 I'm sorry is this edward or Robert? Hahaha!!
@@Rshen11 Because Edward, it's called RISK MANAGEMENT. Look at my Nick example and get out of your 3rd world mindset. Seriously, why are you using 2 accounts?
For stock life insurance policies Dave's right, they are bad.
However, he doesn't talk about mutual companies.
I bought a North Western Mutual Policy back in the early 80s.
My premium was $680 per year, I paid that for 22 years, and then I stopped paying.
My dividends pay the premium plus add to my cash value.
I can cash out now with $88,000 or I can die now and my wife gets $120,000.
How was this a bad deal? Life insurance is not an investment, but would I have saved that $680
every year? However, I did have some coverage for my family if I die along with making a few bucks on the deal if I lived.
$680/yr back then bought a house. You could of had like 20 houses or a pitiful $120k. I'll take the 20 houses.
@@thedude5040 The average home price in 1980 was $64,600
The mortgage interest rate in 1980 was 13.74%
A 30-year mortgage with zero down is a $861-a-month payment.
I paid $680 A YEAR! Not including taxes and insurance.
Where did you go to school? You are a perfect example of why
Dave is successful.
Sorry that you got scammed and too stupid to realize it. You could've bought term and invested the difference in the S&P and made waaaayyyyyy more money.
@@oruwatching I'm a nearly a 32 year old millionaire because I didn't pay for a whole life policy.
@@thedude5040 Not buying whole life saved you millions? Amazing.
BTW, I'm a millionaire and I did buy whole life.
I’m not a big fan of WL. That’s said, Ramsey’s characterization of it is incorrect.
Yes Dave lies about whole life. What about it are you not a big fan of? Just curious.
@ As part of a comprehensive retirement plan, I’ll use it when there’s a need for DB & LTC with a possibility of cash value usage. If trying to meet a budget, I will go GUL/LTC. For strictly a cash play or to mimic Roth conversions, I use an IUL. I will premium solve for no more than 20-30 of the client’s total assets. To answer your question, an IUL will yield more than a WL. Access to cash will be tax and cost free.
@ why not a VUL. If it’s about ROR, a VUL will do better. If your money is tied up in an IUL, where do you get cash from to stuff in when the market goes down?
@@firecraig I never use VUL. I work for an RIA and have access to hundreds, if not thousands of investment choices I can use in a brokerage or managed account. When I design a contract, I normally have it funded in the shortest time possible and as close to MEC as possible. Because we recommend using only 20-30% of assets, so adding CV life isn’t a burden on the overall plan.
@ they pay you better don’t they? 🙄
None of the personalities can handle this call like Dave can.
I AM EXPERT ON MY OPINION --- Ramsey