Take a look at this picture:
I know this will sound rhetorical, but does this make any sense?
Given what I have read and what I have published in this blog and elsewhere, driving with a blind fold makes as much sense to me as the old, tired out, down right misleading mantra: “Buy Term and Invest the Rest.” I have said it and thought it for more than a decade, but now I have an academic to back me up.
Professor David Babbel of the Wharton School at the University of Pennsylvania has published a study declaring that the strategy categorically does not work. Listen to what he says, and I quote:
“They rent the term, lapse it and spend the difference.”
This study is academic. Professor Babbel uses rigorous economic modeling and completely disputes “buy term and invest the difference” and shares how the values of his own life insurance cash value have outpaced inflation.
The article and study provide many additional reasons why cash value life insurance is a truly wonderful way to save for retirement. It explains all the peripheral benefits you receive on the
way to retirement. (If you do not have a clue what some of those reasons and benefits are you have either not read what I have published or just forgotten. Time for a refresher)
Dr. Babbel previously worked for Goldman Sachs. He is a highly honored and
credentialed person who believes in and owns cash value life insurance and annuities.
Time to take the blindfold off and give me a call or text (435) 764-1451