Comments on: Which is better way to start investments in US , life insurance or mutual funds?

By: nkthen

nkthen — Wed, 17 Mar 2010 10:26:10 +0000

My financial advisor always says this:
1) Insurance first
2) Savings second
3) Investment third

So, if you have no insurance and you want to invest, that’s not too safe.

By: Financial Representative

Financial Representative — Wed, 17 Mar 2010 08:28:12 +0000

Its definitely not life insurance. In life insurance, none of the money belongs to you. Life insurance is a tool to provide income to your family in case you die, not as a savings tool to save for long term goals. If you ever needed to take money out, you have to borrow it and pay loan interest of 6-8%. If you die someday, the insurance company keeps your savings and pay only the death benefit to your beneficiary.

In mutual funds, you have professional money managers to manage your money. They take your investment and they decide what companies to invest in. If you ever want to take money out, you just need to make a call (or do it online) and within 7 days, you will get your money. You don’t need to put this money back because its your own money. Mutual funds has historically earn an average rate of return of 10% in the past 80 years.

In summary, life insurance provides no profit to you. Everything is paid at a loss because the premiums you pay is higher than what you earn in your savings. And this loss is not tax-deductible. In mutual funds, the money is yours and there is various mutual funds out there that can fit your investment objectivies.

By: jsforex.blogspot.com

jsforex.blogspot.com — Tue, 16 Mar 2010 19:10:37 +0000

I always tell my clients that investing is like building a football team. You need to have players who are experts in defense, and experts good at offense. You are their coach. You then allocate 50% each of your investment portfolio to both defense and offense. 50% to debt securities, which could be treasury bills, bank CD’s, real estate; and 50% to speculation in the financial markets (stock market, foreign exchange, futures).

The defense’s job on your team is capital preservation. Your defensive players are your watchdog in the debt securities market. They tell you medium to long term trends in interest rates, when, where and how to invest your asset allocation.

Your offense team will manage your assets in their own specialty field. You will need to monitor their performance on a quarterly basis.

Investing in life insurance and mutual funds are only part of the team–your defense. Neither do not give much profit. If the price of oil has been going up an average of 48.9% each year, investing in mutual funds and life insurance will not keep up with the pace of real inflation. You put part of your investment portfolio there for capital preservation.

To get ahead, build your offense line up. Find experts in the field of trading (stocks, foreign exchange). Talk to them and find one that will suit your needs.

By: sam f

sam f — Sun, 14 Mar 2010 13:32:46 +0000

No investment is good in the current business climate. Hold
on to your money.

AP:Real-estate related costs continue to hurt banks
Monday June 9, 2:14 pm ET
Analyst slashes 2nd-quarter earnings estimates on 22 banks, citing real-estate related costs ?.v=1
NEW YORK (AP) — A Lehman Brothers analyst on Monday cut his second-quarter earnings estimates for 22 national and regional banks, citing even steeper real-estate related costs during the quarter.
Mortgage, home equity and residential construction markets continue to weaken, which will further pressure banks’ second-quarter financial results, analyst Jason Goldberg wrote in a research note.

By: raybellanger

raybellanger — Fri, 12 Mar 2010 00:42:05 +0000

Life insurance companies make money off your money, any way you go with them, Mutual funds have a history you can guess they will continue doing what they have been doing, but why don’t you just look at what good US Companies have been paying in dividends and then there price of there stock, i can show you some that paid 10-15%, you can contact me thru
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By: src50

src50 — Mon, 08 Mar 2010 14:30:03 +0000

Life insurance is not appropriate if your primary goal is investing. In that case, meet your insurance needs with level term life insurance and invest your money elsewhere.

By: Laissez-Faire Guy

Laissez-Faire Guy — Sat, 06 Mar 2010 05:51:33 +0000

I can tell you right now, life insurance products make horrible investments.

The only exception might be fixed income annuities, when you are ready to retire and want to be guaranteed a fixed income.

Otherwise, they are loaded with high costs and high commissions that the insurance agent gets, and tons of restrictions and penalties about when and how you can access your money.

You are far better off investing in no load (no sales commission) and low expense mutual funds, like those from Vanguard, Fidelity, T. Rowe Price and TIA-CREFF. Let more of your money work for you + less restrictions.

By: mylilbubbers

mylilbubbers — Fri, 05 Mar 2010 08:14:44 +0000

Mutual funds, especially when a company offers a match. Life insurance is a scam, specifically when it is called an investment.

By: A nobody

A nobody — Tue, 02 Mar 2010 16:52:08 +0000

Without having more information about your personal information, such as age, current income and other data such as risk tolerance, martial status, and demographics it would be very inappropriate for me or any other person to provide specific investment information in this type of media

There are many people just like you that are, or were looking to invest and those that did bought Mutual Funds and/or Exchange Traded Funds (ETFs). One purpose of mutual funds is to help investors like you, who are either just entering the investment world or who have no investing experience. Once you feel you at least have an understanding of investments you should look into ETFs which are similar to mutual funds but are traded on the exchanges.

Mutual Fund companies as well as ETFs have an entire array of products many will fit your needs. You can go to the MSN.Money website it has an entire section on mutual funds and Exchange Traded Funds. Read about the various products and in doing so you will be getting investment ideas and at the same time educating yourself about investing.

You could also contact the funds companies for more information. I have found that Vanguard Fidelity can meet your needs for mutual funds. The service and information they provide is all free and you will find it helpful.

Regardless of what you decide, do not ever let anyone tell you not to invest, especially those that do not invest themselves.