Insurance Is Not Investing, and Annuity Returns Are Very Low

【Insurance Is Not Investing, and Annuity Returns Are Very Low】CLEC Club

Written date: Jan 09, 2019

Ask your barber whether you need a haircut. Of course the answer will be yes.

Insurance and annuities ultimately return less than investing in indexes.

Some students have insurance-broker friends who even suggest not investing in ROTH401K and instead buying insurance.

Our students of course know that putting money into ROTH and buying indexes is the correct choice.

If you put money into insurance or annuities, and regret it ten years later, your finances will already have suffered major damage. On YouTube, we explain this in "Investment and Personal Finance Basics (2): Are You Investing Correctly? Insurance, Annuities, Low Returns, Not Investments! Do You Understand the Returns of Insurance, Annuities, and Other Financial Products?"

YouTube:

https://youtu.be/so9rrY0Zc4M

If someone claims they can predict the market, they are either ignorant, unaware of their own ignorance, or an even worse fraud. If someone says they can predict whether the market will rise or fall, they can only be one of those three types. You do not need to discuss investing and personal finance with them anymore. Insurance brokers make a living from commissions, not from investing.

No one in the world can predict the market. There is only one person who became the world's richest person through investing: Buffett. But he does not predict the market. Below is a Buffett statement from a shareholders meeting: as long as you believe in America and buy indexes, you will become wealthy.

https://youtu.be/2_lZnp21yUE

So to invest successfully, do not listen to insurance brokers.

To invest successfully and reach financial freedom, you need to buy indexes and invest in the entire U.S. market. No one knows short-term volatility. Investing in U.S. indexes has a long-term fixed annualized return of 9.5%. If you max out ROTH401K contributions every year and invest them in U.S. indexes, after forty years of retirement saving you will have more than seven million U.S. dollars without doing anything else. Is there anything better than that?

Remember: contribute to retirement accounts, buy indexes, hold steadily, do not trade, and you will become wealthy.

That is what I did to reach financial freedom. That is what Buffett did to become the richest person.

Insurance brokers live on commissions, not on investment profits. So what they understand is living on commissions.

Following others, or following yourself when you do not know the successful investment formula, means the future is unknown.

As long as you follow the path of the successful Buffett, you will succeed.