Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
Video Transcript: Hello, everyone, I'm Steve Savant, syndicated financial analyst and host of the weekly online talk show, "Steve Savant's Money: The Name of the Game".
I'm answering questions from InsuranceLibrary.com, and the famous question that we get all the time is, "Is the Roth IRA better than a life insurance policy?"
Well it is kind of tales of two cities. Many times, if I want to be in two different funds, I can get both funds inside a life insurance contract or a Roth. Roth has limitations to it as far as how much I can put in to it.
So some people will buy a Roth, and I think it is a good idea, especially when you are looking at placing basic-interest-rate-earned-annuity in to it, or mutual funds. It just depends on what you are using it for. But life insurance, they don't have the same limitations, and remember, it has a death benefit to it.
So when you are looking at it, both of them have to be long-haul in their thinking. They both accumulate tax deferred, and when the money comes out, if set up correctly, it should come out tax-free. It is a great idea, both of them, as a supplementary retirement income play when you are thinking about your retirement portfolio.
Well, that is our consumer question for today. If you have any questions, just submit them to www.InsuranceLibrary.com.
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Video Transcript: Hello, everyone, I'm Steve Savant, syndicated financial analyst and host of the weekly online talk show, "Steve Savant's Money: The Name of the Game".
I'm answering questions from InsuranceLibrary.com, and the famous question that we get all the time is, "Is the Roth IRA better than a life insurance policy?"
Well it is kind of tales of two cities. Many times, if I want to be in two different funds, I can get both funds inside a life insurance contract or a Roth. Roth has limitations to it as far as how much I can put in to it.
So some people will buy a Roth, and I think it is a good idea, especially when you are looking at placing basic-interest-rate-earned-annuity in to it, or mutual funds. It just depends on what you are using it for. But life insurance, they don't have the same limitations, and remember, it has a death benefit to it.
So when you are looking at it, both of them have to be long-haul in their thinking. They both accumulate tax deferred, and when the money comes out, if set up correctly, it should come out tax-free. It is a great idea, both of them, as a supplementary retirement income play when you are thinking about your retirement portfolio.
Well, that is our consumer question for today. If you have any questions, just submit them to www.InsuranceLibrary.com.