I’m a 46yrs old realtor w/6 rental properties and 2 IUL’s. After speaking 2 another Insurance professional I’ve learned you have 2 OVER fund the IUL’s in order for the Cash value to make sense. I. Need a “Simple” process to reach a goal of $500K liquidity in 20yrs.
Hey @Marquis1973!
Well… one of the principles of PFC is to “avoid mixing insurance and investing”. In my opinion you really shouldn’t be talking to an insurance salesman about how to invest. They’re always going to suggest buying more insurance is the right answer, even though it’s likely a horrible deal (but offers fantastic commissions for them). The more I learn about IULs the more I dislike them.
If you want to have $500K in 20 years, here’s your simple plan:
- Invest $1,000/month into an target date index fund
- Wait 20 years.
That should do it, even after accounting for inflation. Here’s a checklist that shows which accounts to invest inside of:
If you’re new to index fund or market investing, I might check out The Simple Path to Wealth. He does a great job of putting things in the right context so you’re in the right “buy and hold” mindset.
And I would take another hard look at those IULs. If it’s me, I’m buying some term life insurance to cover your needs (if you have people who depend on your income) then cancelling those IULs today and dumping that money into an index fund as described above.
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