Dave Ramsey hates whole life insurance ...(does he know Anything about Insurance) ?

[Mike Siegal]

I don't know much about this guy, only know he gets 'LOTS OF LEADS' because...he's a purported personal finance Guru... (like Suzy Orman....Yeah Right).

NOW DAVE is publicly declaring 'Whole Life' s**ks ~

Does he even know what he's talking about???

[EXTERNAL LINK] - 'Absolutely horrible': Here are the 3 big reasons Dave Ramsey hates whole life insurance — do this with your hard-earned retirement savings instead

???

 

[DHK]

He owns a large 10 pay life policy with Guardian. I wish I can prove it, but I know agents who know the agent that sold the policy.

DR is advocating for his listeners who are largely broke and living paycheck to paycheck. In that case, term is the right way to go at that stage of financial development.

 

[DHK]

Of course the insurance company does NOT keep the cash values at death:

https://www.davidkinderfinancial.co...e-life-insurance-company-keeps-my-cash-values

 

[LostDollar]

From op's link:

Article date: Sun, February 19, 2023

Alternative three: the Roth IRA
"...Withdrawals must be taken after age 59½ and/or after a five-year holding period. ..."

??????????????

 

[Allen Trent]

From op's link:

Article date: Sun, February 19, 2023



??????????????

Yup--that is true if you want the withdrawals to be completely income tax free. If under age 59 1/2 or the Roth is less than 5 years old, you can only pull out your contributions tax free. gains over & above contributions are taxable unless you are over 59 1/2 & the Roth IRA is more than 5 years old.

On very rare occasions, even some taxes are due at death on a Roth if the deceased had the Roth less than 5 years--again, only the gains would be taxable, not the contributions as those are always income tax free from a Roth

 

[LostDollar]

It says withdrawals MUST be taken......

I was under the impression I never had to take a Roth withdrawal if I didn't want to (As long as it is my own Roth).

(And, trying to plan taxes for the next 3 years, I am just learning about the 5 year rule on withdrawals after Roth conversions. That's something I wasn't expecting. But again, I thought that was a wait period before I could take withdrawals, not a period after which withdrawals would be required.)

 

[LostDollar]

If under age 59 1/2 or the Roth is less than 5 years old, you can only pull out your contributions tax free. gains over & above contributions are taxable unless you are over 59 1/2 & the Roth IRA is more than 5 years old.

I thought the five year clock for ALL a person's Roth IRA's (the ones made with direct deposits, not conversions) begins on the start date of the first Roth IRA they opened, not separate 5 year periods for each Roth IRA owned.

 

[Allen Trent]

It says withdrawals MUST be taken......

I was under the impression I never had to take a Roth withdrawal if I didn't want to (As long as it is my own Roth).

(And, trying to plan taxes for the next 3 years, I am just learning about the 5 year rule on withdrawals after Roth conversions. That's something I wasn't expecting. But again, I thought that was a wait period before I could take withdrawals, not a period after which withdrawals would be required.)

You are never required to take withdrawals from your own Roth (inherited Roth do have RMDs)

I think they poorly worded that MUST. I think they meant to infer that for the distribution to be tax free "they must be taken after 59 1/2 & after Roth was 5 years old "

 

[Allen Trent]

I thought the five year clock for ALL a person's Roth IRA's (the ones made with direct deposits, not conversions) begins on the start date of the first Roth IRA they opened, not separate 5 year periods for each Roth IRA owned.

5 year clock starts on your 1st Roth, not all Roth's. If made my 1st contribution in September of a given year, you are considered to have started it on 1/1 of that tax year, so it is really more of a 4 full years after the tax year you first contributed.

It is up to you & your tax person to self report as there is no way for a custodian to know when you first made contributions as you could have rolled your Roth over many times in your lifetime. Rolling over Roth's doesn't restart the clock.

Employer 401k Roth have their own 5 year clock from when you started the plan at each employer as it is a new employer plan each time, not your own individual Roth is

 

[LostDollar]

You are never required to take withdrawals from your own Roth (inherited Roth do have RMDs)

Does that apply to spouse inherited Roth as well as non-spouse inherited Roth?