Life Insurance

[CurlyDave]

While I worked for a company I had term life and always paid the extra to bring it to 5 times salary.

Didn't ever have any whole life, because I put money into a 401(k). There is no need for a separate policy with a residual value if I have retirement savings, since if I die I don't need any retirement income. DW worked and did the same.

Now that we are retired, we have no life insurance, but our 401(k)s have been converted to IRAs. There is enough there to take care of either of us.

To me, having no mortgages and no money in stocks is a grave financial error, even in retirement. The certainty that money will be eaten away by inflation is a much greater problem than any risk associated with stocks or mortgaged investment property.

 

[MossRoad]

I still don't understand why anyone would want a mortgage? What's the advantage?

 

[randy41]

the op doesn't really have much need for life insurance does he? his wife is a professor so she earns a ton of money.

 

[murphy1244]

I still don't understand why anyone would want a mortgage? What's the advantage?

I don't get it either. Why would I want debt?

 

[smstonypoint]

I still don't understand why anyone would want a mortgage? What's the advantage?

He was referring to using mortgage debt on investment properties to increase the potential returns to his equity.

Steve

 

[blueriver]

I did not read the whole thread ... life insurance to me seems to be on an individual bases ... I have a policy but often wonder is it enough?

I've been known to tell my wife "Why would I need more, heck the new man is going to get everything ... you expect me to pay him to take you!!"

 

[blueriver]

I did not read the whole thread ... life insurance to me seems to be on an individual bases ... I have a policy but often wonder is it enough?

I've been known to tell my wife "Why would I need more, heck the new man is going to get everything ... you expect me to pay him to take you!!"

 

[KennyG]

I still don't understand why anyone would want a mortgage? What's the advantage?

I have a large 15 year mortgage at 3.25%. I am past "normal" retirement age. I can pay off the mortgage at any time but I'm betting that my stock market investments will average considerably more than 3.25% over the 12 years left on the mortgage.

 

[Deere Dude]

So you cut off your nose to spite your face? And then you invested in the stock market and really went backwards? Okey Dokey. You sure showed him about them new cars huh?:laughing:

Just kidding about the stock market. I didn't have much money and the house was paid off or almost paid off. Put a pittance in the stock market and that goes up and down as you know.

I just couldn't see paying for life insurance for 50 years, month after month, when it doesn't cost that much to stick somebody in the ground. Pay in on a term policy for 40 years and get sick of the payments so you quit making them, you die and don't get anything out of it anyway.

Besides, I have a better use for that money in the mean time, like a JD tractor.

With the house and mutual funds and savings accounts plentiful, when I die doesn't it make sense that a funeral and living expenses for the wife for a time could come out of that? Why pay somebody else like an insurance man and his overhead to do what I can do with a little saving?

 

[k0ua]

Just kidding about the stock market. I didn't have much money and the house was paid off or almost paid off. Put a pittance in the stock market and that goes up and down as you know.

I just couldn't see paying for life insurance for 50 years, month after month, when it doesn't cost that much to stick somebody in the ground. Pay in on a term policy for 40 years and get sick of the payments so you quit making them, you die and don't get anything out of it anyway.

Besides, I have a better use for that money in the mean time, like a JD tractor.

With the house and mutual funds and savings accounts plentiful, when I die doesn't it make sense that a funeral and living expenses for the wife for a time could come out of that? Why pay somebody else like an insurance man and his overhead to do what I can do with a little saving?

If you had put your money into Smith and Wesson Stock, you would have a big bunch of money now. I didn't either, but wish I had.