Life insurance?

[daswolter]

I currently have a Life Insurance policy and as part of my new path in life. (see My declaration in Homesteading) I am going to get rid of the policy and put the funds in an account of some kind as a nest egg. (Don't know what kind yet) But I don't agree with the way the life insurance policies are set up these days. It benefits the companies way to much and I am looking to benefit me and my wife and our new path In life.

Just looking for opinions and suggestions or what you guys and gals do. Any suggestions and opinions are welcome.

[stickbowhntr]

Check out Dave Ramsey stuff lots good advice.

[Jack]

Solid advice stickbowhntr. We have been on the Dave plan for a few years now. Lovin it.

[Deleted]

I have Ramsey's book "Total Money Makeover". If you follow his advice he is good at getting you to overcome debt and save money. He is weak at investment advice.

I would rather invest in assets than in stocks that tend to vaporize. The joke is that you think you are playing a fair game but actually the Wall Street guys have it rigged in their favor. How many people are going to call you and tell you to sell because they got insider information? Nobody. It's like sitting down to a monopoly game and being told you have to pass GO four times before you can collect $200 dollars but the rest of the players collect every time they go around.

An asset to me is something that will keep its value and is useful to me now.

You have to ask yourself how confident you are in the monetary system and go from there. If you are convinced that you can make some profit then by all means invest. If you're skeptical then you are going to want to make investments in things that store value and can be used to benefit you in hard times. Things that maybe thieves will have a hard time identifying as valuable. Dollars and stocks will be worthless at that point.

All opinion, mind you.

[Admin]

Sounds like a good move to me. I don't carry life insurance. Never have, never will. I live NOW so all my earning and spending is done now. My investments go into real estate. I buy rural properties with the buy low - sell high principle and ya know what? It works. I've never seen an investment package that throws those kinds of returns. And as far as worries over capitol gains, there is none. Just make all your hobbies a business so when you buy yourself chainsaws and sawmills and Polaris Rangers and video cameras and build fur sheds and buy traps and all kinds of stuff........ there's no taxable income left.

Or you can trust your funds to the hands of someone else.

[trapperandhunter]

I am alot like JC, I would never own life insurance, it the biggest waste of money.

I have always been good with my own money, and like making money my way not trusting someone else do to it for me.
i am 24 own my own house, bought it dirt cheap, spent around 8K fixing it up and now its worth double what i paid for it. In another couple years i will use my house now as leverage to buy another house dirt cheap and do the same thing to it, I would never buy something that i could sell and get my money back. If i die, my wife can either make all the payments or sell anything see wants, and vice versa. It won't leave her with any debt or myself if she passes, and if i sold everything i would make more than from some old life insurance policy. i work hard for my money and i wouldn't want someone else controling it.

[Deleted]

A term life insurance policy can be had for a fraction of the cost of a whole life or universal policy which would be an "investment." Albeit a bad one possibly. TO me insurance is a tool. It can be misused or it can really be helpful.

Are you the sole provider; does anyone rely on you for a significant part of their livelihood? Like a wife that doesn't make much or children who need to go to a trade school or college? A good term insurance can provide options until they figure out how to keep going without you. You can get a policy like that for the cost of one dinner out for a family per month.

Insurance inevitably has you examining your personal religious or political beliefs. That is why it is best not to get caught up in right or wrong here.

For instance, many people who do not believe in insurance already participate in one of the largest insurance programs in all of history. It is called the Supplemental Security Income or SSI. In 1935, the Social Security Act was passed which included "Old Age Survivors and Disability Insurance."

The IRS called it a tax but the Amish said it was insurance. The dispute was settled after the Amish closed their bank accounts so that the IRS couldn't take their money through the execution of liens. The IRS out of Pittsburgh decided they would confiscate tangible property from the Amish and so one day they seized three horse from Valentine Byler literally while he was plowing his fields for Spring planting. The fight went on until 1965 when the Medicare Bill was passed. In it, an exception was made for the Amish. They never paid SSI again.

Read about it:

www.amishnews.com/amisharticles/amishss.htm

[daswolter]

Trapper and hunter this is my point of view. My wife is not to thrilled about dropping the life insurance but I told her that once we move the land is ours the trailer or house will be ours. I plan on having our possessions and land be our investments. I told her I'm tired of doing things the old way and still getting screwed. So I'm going to do things my way. It's just a different way of living. Thanks for all the suggestions and comments guys.

[Brad H.]

I think life insurance has a place, but ultimately one should build wealth enough to the point that they don't need it. Currently my wife and I have a 30 year term life policy because if something did happen to me I would want my wife and kids to have the same quality of life that they currently have. Raising kids is expensive and I would not be comfortable with how they would have to live if I wasn't around without the cushion of a life insurance policy. That being said, we are currently working to build our wealth to a point where we don't need one someday. Once that day comes the policy would be dropped with the exception of a policy to cover final expenses so my family doesn't get stuck with those. It costs a lot to die these days...

[ctwatertrapper]

I could see how life insurance makes sense for some situations. My mother is in a financially secure situation because of it.

But i too invest only in real estate. I own two rental properties. The profit covers the cost of my primary residence mortgage and most of the bills. Bought everything dirt cheap and fixed them up myself.

[Admin]

Mar 10, 2014 16:37:25 GMT -5 ctwatertrapper said:

I own two rental properties. The profit covers the cost of my primary residence mortgage and most of the bills. Bought everything dirt cheap and fixed them up myself.

Well done man.

[nytrapper23]

I also own rental properties. We got into this for three reasons1. I went thru a carpenter apprenticeship right out of high school and new I could do all and any work on them and not have to hire anyone to do these things,that only cuts into your profit. 2. My wife has owned her own buisness shortly after we met so she was up on all the paperwork , taxes , loans etc. 3. We had just purchased our house , We bought 3 rental properties with in 5 yrs , when they are all full it also paid our mortgage,and left 300-400 $ a month left over. It's going on 15 yrs and our place is paid off, and only 1 rental left to pay on and that's done in oct.

I agree with these guys that real estate. Is the way to go.

[trapperandhunter]

The main thing is if you rent a place out don't expect a huge profit, my plan is to break even , and when I sell that will be 200k in my pocket, give me an investment that gives you that much turn around and ill give you the keys to my house.

[ctwatertrapper]

right on trapperandhunter. you definitely cant turn big fast profit with rentals. Its a long term investment. I will probably never sell though. I plan on using my rental income as a retirement package. Hopefully an early retirement package.  I'm 31 so I got a ways to go before my wife lets me retire.  Until then I'll grind out my day job, keep the tenants happy, and trap a lot of beavers!

[nytrapper23]

Mar 14, 2014 11:32:02 GMT -5 ctwatertrapper said:

right on trapperandhunter. you definitely cant turn big fast profit with rentals. Its a long term investment. I will probably never sell though. I plan on using my rental income as a retirement package. Hopefully an early retirement package.  I'm 31 so I got a ways to go before my wife lets me retire.  Until then I'll grind out my day job, keep the tenants happy, and trap a lot of beavers!

You got it. That's my plan also .Im 46 and everything we have will be paid off by the time I'm 50. And I want to retire at 57-58 and the rental income will be a big part of that.

[Nutso]

I just wanted to add one point to this conversation. Life insurance is for the people who are left behind, not usually the person paying the premium. I hear the point that most of you want to live simply, but with that being said, when was the last time that you priced out even a simple funeral in your area? My Dad died a few moths ago, we had a very simple service (graveside), he was cremated and buried in a box that my brother built. The person who spoke at my Dad's service was an old friend and did not charge us anything. Now with all that being said, it still cost us almost $5000. Thank goodness our Dad had a very small life insurance policy. It covered the cost of the funeral and just a little bit left over...and we could get it very quickly. My Dad had a will leaving everything to my brother and I, but we still have to go through probate in order to sell anything...this is going to take about a year. That is before we can sell anything...not taking into consideration how long some things will take to sell. I can tell you that the funeral home was not going to let us go a year without paying the bill.

So I guess what I am saying is that if you don't want life insurance, that is fine, but be sure that you are not creating a situation that is going to be a hardship on your family after you are gone.

That is just my 2 cents.

[Jack of all Trapping]

Very well said Nutso. I returned my Mom to England when she passed away several years ago. Its what she always wanted since it was her home country. My Dad was cremated and buried up here all in the same year. Neither believed in life insurance. The services,transportation and burial in England was hefty. I am fortunate that I did have the money. The gravestones were also a hefty price. If you do have the money set aside its all well and good. If you don't, please don't leave the financial expense to your kids or family. And that is my 3 cents worth Peace. Jack

[daswolter]

My wife or executor of my estate will have money available to them for that. But I told my wife just dump my dead butt in a ditch as far as I'm concerned anyway I'll be dead and won't care. She knows I want to be cremated and spread over my favorite hunting woods. She always says, "But I want have a place to come visit you." I tell her wouldn't you want to walk through a beautiful woods and know I'm there some where than walk through a slab city. This world don't need my dead butt taking up space on this planet.