All Life Insurance Tips

Are there any whole life insurance / Roth IRA options similar to Colorado Banking?

I recently spoke to an investment broker about an option offered by Colorado Banking that offers an IRA with a guaranteed interest rate where the amount you put in ($150 per month) goes toward a 80,000 whole life insurance plan and also into an IRA that would return 319,000 at the end of 45 years. I've done the math and it does work itself out, but I'm curious if there are any companies that compete with the same type of plan.

Public Comments

1. Bad option. (a) Everything has a price and insurance products generally cost way, way too much. (b) There is absolutely no reason to put an insurance product into an IRA. In the very rare event a good adviser would buy an insurance product it would be to shelter the earnings from taxes -- an IRA already does that. You are paying for something you don't need. (c) There is no such thing as a guarantee. I'll bet you a nickle that if you see the actual contract you will sign to set up this account 1) you cannot find the "guarantee" spelled out the way you think it works and 2) the fine print will make so little sense that you will give up reading it before you finish it. Whole life is a waste of money...so is variable life. If you need life insurance, by level payment, term life insurance in the amount and for the period you need it. 45 years...how old are you, 20? You belong in a standard diversified mix of investments offered by reliable, cheap companies like Vanguard.com. Set it up, fund it and forget it. The absolute most any company will guarantee you in plain English and in writing for 45 years is 4% per year. After 45 years without inflation (which is unrealistic), $150 a month will equal about $240,000. If he is telling you $319,000 is guaranteed, he saying twice the reasonable rate: 8%. That simply isn't possible...not with all the other gobblty gook he is throwing in there for you to pay for. He isn't telling you something...likely several very important things. Ask him what his commission is on this product...or how he earns his comission on this product.
2. I agree with the first poster. Whole life insurance is nothing more than a ripoff, just like variable annuities. The fees are too high and only the insurance company benefits. I would suggest a Roth IRA through a brokerage, not an insurance company. http://individual.troweprice.com/public/Retail/Retirement/IRA/Roth-IRA
3. Never use a bank or insurance company for investment plans. Selling a tax differed product into a tax free account (ROTH IRA) should be illegal.... but it is at the very least either decitful (great commisions for the seller) or plain stupid. Please stay away from Banks and Insurance Companies for these type of products (I know I've said this twice... but it's an important point)........ Good places to look; Charles Schwab Fidelity Investments (the broker side of their business) (Many commision free products that are excellant with both) or if you want to pay a commission...... just not the rip off commisions of a life product; Edward Jones (broker) I can not tell you how bad it is to sell a whole life policy into a ROTH IRA..... if you told most professionals... they would cringe.......
4. lifeinsurance.awardspace.info - try this one. I have their insurance and, as remember, they can provide such a service.
5. Woah. Sound like you are being rip off. I don't know how much you are spending on the whole life insurance, but I bet you are spending at least $100 on it. And what interest rate are you getting on your IRA? I have a 20 year term policy with $500k coverage at age 30 and spend only $30/month on it. I also put in $400/month into a Roth IRA and with an average rate of return of 10% over the 20 year period, I would have about $306,278, But if I was in your situation and invested difference of $120/month for the next 20 years with a rate of return of 10%, I would have $91,883. In 45 years, I would have $1.2 million. Or if at the end of the term, I increase my contribution from $120 to $150/month and continue to invest for the next 25 years, I would have about $1.3 million. Yes I know 10% is not guaranteed, but with the mutual funds I seen and currently have, they have average out 10%-14% during the last 25 years (even with the recession we are in right now!) Are you sure you still want to do business with that bank? By the way, I have life insurance and my investments at Primerica Financial Services. You should check them out. If you don't like the company, at least get a financial needs analysis which is a helpful financial guide to help you reach your financial goals. They do it for free.