Should I invest in a Roth IRa or Variable Universal Life Insurance Policy?
I have a 401k/ Not married, no children, but my advisor says it is wise to invest in a variable universal life policy while I am young (the premiums are lower) so it builds cash value to aid in retirement plus I will have the death benefit for later on when I am married and have kids. Susie Orman thinks this is a bad idea and that 401ks and Roth IRAs are the way to go. Other people think differently. I am confused on what to do and wonder if people who have actually signed up for a Variable Universal Life policy have actually seen the cash value results when they have retired. My illustration shows about $600,000 cash value when I am 70- that is with a 12% return. I am wondering if I should go with this policy or use the $200/month it would cost to fund this and invest it in a Roth IRA instead or put more towards my 401k. Any serious advice would help!
Public Comments
- How old are you? If you're young, go for the Roth. It grows tax free. If you're in your 20's, you have 40-50 years for it to grow. As for the VUL, yes, it offers a great benefit on paper, but keep in mind that the high expenses of it will eat away at your returns. Also, there is potential big commission for your advisor to make by selling it to you over other options...
