Saturday, July 19, 2008

Buy Term and LOSE the Difference pt2

Now that I have your attention with the flaws of "Buy Term and Invest the Difference"(in cased you missed it, read the first part of the article..) let's explore WHY I dislike a person who believe this strategy is the best for people 100% of the time. Each of us are unique. We have our own thumb print, eye color, body size, family, gene pool, etc. What would make people like Suze Orman, PFS Agents, or Dave Ramsey think that Term insurance or this type of strategy is good 100% of the time? It is fallacious to think this. This does NOT mean that Buy Term and invest the difference is bad. I think it is a good starting point. My problem is the messages of this strategy are so DOGMATICLY against any other type of financial plan.
Here is the point, flexibility is needed when constructing a financial plan. Since every one's situation is different, their must be products implemented that have flexibility. For example, a two income household earning more that $180k per year can really take full advantage of most of the qualified plans. They would have to look at alternative products, Annuities, Universal Life, Whole Life, etc to accumulate wealth for their family. On the other end, a family earning $70 per year could take advantage of the same products also. It just depends on their goals. So when shopping around for a financial product to fix ALL your needs, stop and think. Financial Products are a part of the OVER ALL financial plan. The REAL product that is needed is the financial plan, not just ad naseaum slogans. If you are confused and need a REAL financial plan, call me today for your customize plan at 888-853-5293 or get FREE info at Do it now!

No comments: