Health & Fitness
Are you getting the most from your investment dollars?
Life insurance as an alternate to investments or along with investments. An analysis of why life insurance is used for multiple uses by investors.
When clients come into my office they often ask how they can get the best return for their investment dollar. They want to know the fastest and most lucrative way to grow their wealth. Usually I won't answer the question until I know what they want out of life and the investment.
I will often refer them to the Investment risk pyramid. This is a basis for determining what is appropriate for someone in determining what investments they should be considering. If you want to determing what is best for you, you must consider the various factors that will influence the results and style of the investment.
Where to start?
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In order to get started I usually recommend a low risk investment with some sort of guarantee. Examples would be some form of life insurance or something with a guaranteed rate of return.
The next level of investment risk would be something along the order of muncipal bonds, corporate bonds, CD's, cash and equivalents.
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The third level would be real estate, mutual funds, stocks, high yield bonds. Investments of a more "risky" nature.
The top level would consist of things like options and other alternative investments.
These are great investments but how do I get the most for my invesment dollar?
In my view I would like something that has a guaranteed return every year and have a certain level of liquidity. I would also like to be able to use the cash growth if I need it in the case of an emergency or borrow from it. I would also like to protect my loved ones in the event that I die prematurely. Wow! That sounds like life insurance. Well it is life insurance and it has been used for over 100 years to protect and grow wealth by people of means.
Why Life Insurance?
Life insurance is certainly not the end all of investments but can and should be used as a basis for protection before you venture out into the roller coaster of the investment world. You know if anything were to happen that your family would be protected.
There are many words written about the subject which are much more detailed than what is mentioned here. If you search online you will get an overload of opinions on the subject. If you would like a personal strategy session on your needs feel free to contact me.
Roy Innella - 610-695-8748 or roy@yourwealthadvocate.com
