This was a recommendation from my brother, but also aligns towards one of my goals towards building an investment portfolio. To that end, I found this to be extremely informative and very insightful.

I can think of very few things as uninteresting as Life Insurance, but after having read What Would the Rockefellers Do I have a new found appreciation.

Notes

  • Term Life — insurance company wins 98.5% or more of the time because policyholder does not die within the term.
  • Whole Life policy is a cash value fund you can leverage as savings or interest free personal bank. You are an owner and policyholder.
  • Cash Flow Insurance – 9.8% or better annual rate of return. Very difficult to match with IRA, 401k or other investment vehicle. Whole Life policies are less attractive due to long term outlook versus short-term vehicles.
  • Three Types of Financial Accounts: Peace of Mind, Wealth Creation, Living Wealth,
  • Five Types of Personalities: Saver, Spender, Avoider, Giver, Amasser
  • Cash Flow Index = loan balance / monthly payment

This has been altogether a great read and a very healthy introduction into yet again how the system works to the advantage of those who put in the effort to understand the nuances.

As with all things, there is no altruism in money management, and if I took any lesson out of this, it was that educating yourself and finding a truly honest agent is perhaps the most important factor.

Overall a great read for anyone who is interested in taking control of some of their financial future.