All Life Insurance Tips

Need help with my Savings Retirement Plan at age 24?

I've got some stocks and money in a Roth 401k. I also hav about $10k on the side to "cushion" on. I told my friend I want to retire with $500k/yr at the age of about 60. He suggest I should not only restrategize whats kind of stocks i have invested, but also consider putting away in a Roth IRA & Universal Whole Life Insurance plan. The Insurance part kind of worries me, cause i have no kids or debt. I might someday, but it wont be for atleast another 5-10 yrs. the only thing that appealed to me about the insurance was that I could take a loan out if need to buy a car or make the down payment on a home at a very low loan rate, and that it wont be taxed. Also, making an interest rate of 11% seemed nice, especially since it beats the hell outta bonds. I spoke to a friend about it, and i heard you can do the same for IRA's & 401k's, making me doubly confused. How should I invest my money and why??

Public Comments

1. Whole life insurance, is generally a poor investment. Yeh, they say they are paying 11%, but what is the expense on this policy to get that 11%?? Question for you here, why do a roth IRA?? Unless you are maxing out your roth 401k, why not just increase your contribution to it (401k)?? Another question - why do a roth 401k at all?? Is a regular 401k, not available to you?? I guess the reason I ask, is for myself, I like the decrease in taxes, I get from contributing to a regular 401k. But of course I don't know what your income is, and maybe you don't mind paying the taxes up front?? For myself, I do 15k into my 401k at work. Anything left over, I either put into my saving account (emergency fund). And then I may contribute to my brokerage account.