How to Build Savings | Whole Life Insurance Vs Investing

We're looking at how to build savings, right? And today we're gonna talk about whole life insurance versus investing. And what does that mean for your overall savings plan? One of the things that I like to look at when we're talking about investing and building savings and whole life insurance and all that stuff is always beginning with the end in mind, right? What is the ultimate outcome that we're looking for? Are you just looking to build up a pile of money? Or is this maybe, hey, I'm saving towards a goal which might be retirement, it might be investing in a home or purchasing a home, right? So depending on your goals, there's different uses for different products. But let's take the retirement planning journey and think about that for a second. One thing I like to think about is, you know, retirement is a journey, right? So in most traditional financial planning, they want you to invest, invest, invest and build up a pile of money. And when you retire, what happens is you end here and you're just gonna live off the interest that that money makes and it's gonna be a wonderful, happy retirement. The trouble with that is that that's not what actually happens, right? Markets go up, markets go down and that living off the principle and just using that interest, it doesn't work out because when the markets go down and you're taking interest, you're actually eating into that principle, right? So it becomes a problem in the journey. The tools that you use to get up the mountain are not gonna be the same ones you want to get down the mountain. The trouble is when you're at the top of the mountain, you can't just call in for new tools, right? You have to have packed your bags properly in the beginning. The point here is that when you're using whole life insurance, that can act as a buffer against the volatility of the market. It can be another bucket of money for you to pull from in retirement that can help you and help your portfolio sustain the shocks of the market that are inevitably going to happen over the course of a 20 or 30 year retirement. So I hate the idea of one versus the other, right? Whole life versus investments and should I just do whole life or should I just do investments? I'm here to tell you that you probably want both in your portfolio, right? It shouldn't be one versus the other. It should be how can they both work in tandem to create the best and most desired outcome for you. Those results are also going to be dictated by what kind of other things you're doing and what you're actually looking for. So if you're looking for high returns and investments, that's where you're gonna get them. Whole life insurance is not going to bring you these rockstar 30, 40% returns, but what they will do is be a steady piece of your investment and your overall financial mosaic. It's a very good tool to be using, but your investments are also important too. And the investment doesn't just have to be stock market. Think about the fact that most people generate their income from small business, right? So your investment could just be an investment into your company, a way to grow your own business to start generating more income. Or you could be looking at real estate. Real estate is another investment opportunity for yourself. So why would I just have real estate and not have life insurance, right? Think about that. It's never going to be one versus the other. How are they all going to play a part for you? So to circle back to the beginning of this, what we're talking about is how to build savings, right? The one thing that can be nice with whole life insurance is you can create a monthly habit of savings through the premiums that you're putting into the policy. Every month, they're gonna get drafted from your account. Could be on a yearly basis, but most successful clients, they set up a monthly reoccurring draft that builds that habit of savings, which is what you're ultimately looking to build. When you're building those savings dollars, once you've built up enough, that's when you really wanna take the look at investing. Have enough dollars saved so that you can strategically invest. Don't just put little bits of money here and there, right? Try to create a systematic approach to not just your savings, but also your investing. Hey, this is Rob Gill over here. Listen, we wanna talk about how to build savings. You wanna take a global look. Are you putting money beyond the match into a 401k? If you are, you may wanna take that difference above the match and shift that over to a whole life policy. That's one little strategy. Another strategy would be, hey, let me increase the deductibles on my auto and my homeowner's insurance. It'll give me a savings because, listen, if I get a $700 Fender Bender, I'm not gonna submit it to claims. I'm gonna pay it out of pocket so my premiums don't go up. Therefore, by increasing deductibles, it'll give me a savings. Let me shift that savings and put it to a whole life policy. Back to Ed for more whole life strategies. One of the things that we created here for you is a financial freedom roadmap, which will help you understand the opportunities that are out there for you, both in using something like whole life and how that can play into your overall investment philosophy and strategy. If you go in the description box below, you'll get access to that free training. And if you like this video, please like this video.