Safe Investing through cash value life insurance.

Were are we investing our money? Stocks and bonds? Mutuals? Annuities? Most of us invest primarily in our company 401K and then meet annually-sometimes- with an advisor to decide how to allocate those funds. Chances are, you have posted a loss due to the current economic conditions. furthermore, you are being told not to move your funds and to wait for the rebound of the markets. Of course it makes sense, if you are still contributing to your 401K, you are buying shares or units at a much lower rate than previously and with that in mind you should reap the benefits in the long run when the DOW climbs.

Is this really what is happening though? how much money have you lost or are you going to lose. Market timing is the key to wealth, but if we all knew how to time the market, we would all retire young. Instead, the best investment strategy is to hedge your investments with stability. Recently we have seen bond funds doing well, but when economic times are good, Bond funds don't look so appealing. Of course, neither do cash value life insurance policies. But I submit to you they are better than they seem.

Cash Value life insurance is an amazing investment avenue. While the dividend return rate doesn't appeal to most people seeking the next big stock tip that will earn them 20%, it has far more value. Imagine earning 7% on an investment that accumulates on a tax deferral basis. If you already have a 401K or IRA, then you are farmiliar with the concept. However, when you take the money out of those 401K's you have to pay taxes on the earnings and possibly the principle. Now, Cash value life insurance will allow you to take a policy loan out without paying taxes. The best part is that while your premiums are being paid and you are earning a 3 to 1 cash value, your death benefit is ever increasing. So it is a two for one.

This is a great cornerstone to any financial plan. For years, your broker would tell you that you should buy term insurance and invest the rest. Now that your portfolio has lost 40%, the only thing that advice has done is made you broker. If you would have invested in a quality whole life policy with a good insurance company, some of your assets would have been protected. Remember, it's never too late. Times will get better. And they will get worse again. That's the crazy world we live in.