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11:03 pm
October 27, 2011


Dominique Brown

Washington, DC

Member

posts 510

 

Frugal Confessions said:

What do you guys think about life insurance policies for husband and wife? We don't have kids, and we do have a mortgage but a fairly low one.

 

It depends. But, I'm 27 and my wifeis 28 and we both have 1 million dollar term policies.  Why?  Because we both make a substantial income and if one of us was to die suddenly I want to make sure our future dreams can be carried out.

6:51 am
October 28, 2011


Frugal Confessions

Houston, TX

Member

posts 1622

Hello YFS!

 

Thanks for the response. It is something to think about; on the other hand, we are pretty low key and low maintenance (not to say you guys aren't), so I guess I just can't see us needing that unless we wanted to be "set for life", you know? I think it is very caring though that you guys want each other to have the best and to still realize your dreams in the event of the horrible happening.

 

On a side note–I see you are in D.C. I love that city!!!

________________________________________

YourFinancesSimplified said:

Frugal Confessions said:

What do you guys think about life insurance policies for husband and wife? We don't have kids, and we do have a mortgage but a fairly low one.

 

It depends. But, I'm 27 and my wifeis 28 and we both have 1 million dollar term policies.  Why?  Because we both make a substantial income and if one of us was to die suddenly I want to make sure our future dreams can be carried out.

Amanda L Grossman

Frugal Confessions

Frugal Confessions @ the Houston Chronicle

email: frugalconfessions@hotmail.com

6:00 pm
November 2, 2011


ultimatesmartmoney

Member

posts 47

I'm sure you are receiving conflicting advice when it comes to life insurance.  I understand why people are recommending not to get life insurance but here is my take…  Since you are very young and very healthy, life insurance will be much cheaper for you.  I would not get term life right now.  You can get term life when you get married and reach early 30s.  Right now is the best time to invest in whole life.  It is more expensive compared to term but if you can somehow afford it, then you are set until you die.  Keep in mind that relatively whole life will be much cheaper compared to if you decide to get it in your 30s.  Good luck.

11:00 pm
December 8, 2011


Larry @ The Skilled Investor

Member

posts 53

Since the subject of life insurance has been dealt with pretty thoroughly, I will comment on the Roth account. It should be free and the places to look first are Vanguard and Fidelity because of the very low cost, broadly diversified index mutual funds you can access.

 

Cut any intermediates out. Despite being an advisor, it is provable that advisors know nothing about the unknowable future that nobody else really knows about, as well. The problem with listening to advisors is that they will tend to recommend funds that pay them in some manner. Your costs go up and your returns go down. If you have any beliefs that advisors or brokers actually know anything, then the Bergstress, Tufano, and Chalmers study is well worth reading and can save you a lot of money over your life. Their careful study demonstrates that brokers add no value and just increase costs. I maintain a permanent link to it here on one of my websites: "Costs and Benefits of Brokers"

 

Finally, on the topic of Roth accounts, only a relatively small portion of the population would benefit from Roth contributions compared to "traditional" retirement contributions, when the traditional contributions would have reduced their currently taxable income. The Roth versus traditional analysis is one of the most complex financial planning decisions, because the payback justification depends on how one lives one's financial life. Furthermore, there are multi-generational considerations, as well, for those most likely to benefit.

 

I have written a bunch of articles on the Roth decision. Start with this one: Roth IRA Retirement Planning and then look at the bottom of this article for links to a other articles on this subject. Most people should maximize current tax reductions rather than make Roth contributions.

 

Also, I remember that Jeff Rose published some good Roth articles a year or so ago. Click on this Good Financial Cents site in his signature above block and search his site for "Roth."

 

Hope this helps.

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11:23 am
December 9, 2011


Miss T @ Prairie Eco-Thrifter

Member

posts 2213

YourFinancesSimplified said:

 

Frugal Confessions said:

What do you guys think about life insurance policies for husband and wife? We don't have kids, and we do have a mortgage but a fairly low one.

 

It depends. But, I'm 27 and my wifeis 28 and we both have 1 million dollar term policies.  Why?  Because we both make a substantial income and if one of us was to die suddenly I want to make sure our future dreams can be carried out.

We are similar to YFS. We have term policies right now that we will eventually eliminate. We also make good incomes and want to make sure things are covered for the future.

Miss T

"Helping you save money, go green, and have fun"

 

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12:39 pm
December 9, 2011


krantcents

Member

posts 909

Although my children are grown, my wife and I have (term) life insurance on both of us to replace income. 

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5:09 am
December 12, 2011


MoneyBeagle

Member

posts 1466

We have life insurance which is offered as a benefit at my job.  I maxed out both the available amounts for my wife and I, and it's still about 40% lower than any policy I would be able to get from a carrier (that I've shopped anyway).  Obviously if they change the benefits or if I leave my job, I would have to get this handled a different way, but it's adequate coverage given that we have two kids. 

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