March 1, 2007
Debt Elimination Plan doesn’t have to be Stressful
Posted by Keith under UncategorizedOne of the things that I am clear about with my students and clients is that implementing a Debt elimination plan is not about replacing one form of financial stress with another. Last night I spoke in Rockwall and we were discussing options to streamline costs to add more money to the Debt Investment. I just happen to have two insurance salesman in the the class…actually one used to be an insurance salesman and the other currently is. And a little disagreement came up on which is better…Whole Life Insurance or Term Life. I truly think that it comes down to whatever you are most comfortable with. I always tell my clients and students, if financial advice is going to keep you up at night, it isn’t worth it. Every financial decision you make should not only look at the financial side of the argument but also the quality of life side of the argument. In our Spend Smart book we talk about the myths and realities of insurance. But no matter what the advice is…get educated and then do what you’re most comfortable with.
Keith Phildius
April 20, 2007 at 5:36 am
I like your advice: ” if financial advice is going to keep you up at night, it isn’t worth it.” Very solid.
The term vs. whole life question is an age-old debate, one which has been around as long as whole life policies! For me, it comes down to this: Insurance is insurance, and investments are investments, and never the twain shall meet. Let insurance do its job, and let investments do theirs!
People who are taking part in the IYD program should be savvy enough to understand the “buy term and invest the difference” concept — whether they are investing in debt reduction or building wealth. Besides, cash values in whole life policies don’t grow anywhere near the pace of actual investments.
For me, it’s a very clear choice.