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Investment is general term, it can be many things, all subject to different levels of "risk".
I use my life policy as my saftey net in combination with investments, collectables, real estate for example. Each "investment" has a certain level of risk involved.
My investments in equities tend to be much higher in risk, with a hopeful possible greater return. Some years this is the case, some years it's not.
What we have invested in collectables first and foremost are because we enjoy the items. The value has risen considerably over time, but is subject to the whims of someone else deciding a certain depression era item is of value.
My real estate is a combination of residence and property. The residence has both increased in value and decreased in the last few years, but is still worth more than purchase price. My property is a funny thing as it has not improved in value much in the 30 years I've owned it but, in the past 5 years Microsoft and Yahoo have built mulitple football field sized internet processor/storage operations within 15 miles of the land. Growth (housing/ business developement) is creeping closer and closer. In a couple more years, possibly this chunk of eastern washington land will be my best investment as I can either develop housing or sell to a developer.
My life insurance fits in this model as my most consistent, secure choice. The risk I take on with my cash value policy is minimal, and the return reflects that. Any comperable investment "loss" by choosing this method of insurance is reduced by it's other benefits that owning the policy provides.
Is whole life a good investment? Yes. and No. It all depends on what your comparing it to and the risk you're willing to take on. It is entirely an individuals perspective and subject to their feelings about risk.
Clear as mud, no?
I use my life policy as my saftey net in combination with investments, collectables, real estate for example. Each "investment" has a certain level of risk involved.
My investments in equities tend to be much higher in risk, with a hopeful possible greater return. Some years this is the case, some years it's not.
What we have invested in collectables first and foremost are because we enjoy the items. The value has risen considerably over time, but is subject to the whims of someone else deciding a certain depression era item is of value.
My real estate is a combination of residence and property. The residence has both increased in value and decreased in the last few years, but is still worth more than purchase price. My property is a funny thing as it has not improved in value much in the 30 years I've owned it but, in the past 5 years Microsoft and Yahoo have built mulitple football field sized internet processor/storage operations within 15 miles of the land. Growth (housing/ business developement) is creeping closer and closer. In a couple more years, possibly this chunk of eastern washington land will be my best investment as I can either develop housing or sell to a developer.
My life insurance fits in this model as my most consistent, secure choice. The risk I take on with my cash value policy is minimal, and the return reflects that. Any comperable investment "loss" by choosing this method of insurance is reduced by it's other benefits that owning the policy provides.
Is whole life a good investment? Yes. and No. It all depends on what your comparing it to and the risk you're willing to take on. It is entirely an individuals perspective and subject to their feelings about risk.
Clear as mud, no?