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Finance
143

term4sale.com seemed to be the go to site from FWF.

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144

Figure out how much you need. A term policy for a reasonable amount of coverage should not be that expensive at 40 but it is cheaper at 30 for sure. Good luck.

145

Thanks for the help. we will look into this website. Are we going to see big jump in premiums once we cross 40 years. Also wondering, if we need to search with some minimum rating for insurance company to be safe side.

Thanks

146

We are still thinking about how much we need. This is for spouse. I have 2X times my salary covered at work place. I am not sure if we need insurance of 1 million given by insurance agents. I am thinking about something like 300k to 500k. Are we going to see big jump in premiums once we reach 40. Or it is more linear. We didn’t buy any insurance at 30 years. Do you mean, we we will end up paying more at 40 (for 30 years) than taking insurance at 30 years ( for 40 years).

Thanks

147

Consider that your workplace coverage likely ends if you are separated from employment. You may want a policy on yourself outside of work in addition to coverage for spouse.

Others will have more ideas, I am sure, but look at expenses to be covered if your spouse were unavailable to work. ie mortgage(s), household expenses, tuition and other expenses for any children, etc.

Oh, I only meant that it will be more expensive now than if purchased when younger.

I assume you are looking at term insurance, not whole. If so, I would get a term that matches up with the expenses you are trying to cover. ie 30 year term perhaps if you are in the early years of a 30 year mortgage, etc.

Good luck! Hope this helps some.

148

Thanks for the help. We refinanced mortgage to 15 years. Gong to check quotes and contact them. What is the minimum ratings ( A rating or A- at least) we need to check for quotes?
One insurance agent is pushing for whole life insurance. How much return is going to be with whole life. Is it guaranteed to get certain amount of return? is it linked to stock market investing?

Thanks

149

I am not knowledgeable enough to explain why whole life insurance is (probably) a bad idea. Hopefully someone else will chime in. I know from past discussions that you probably want to steer clear of it.

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150

Salesmen typically make a lot more commission on whole life, so a big reason why they push it.

Unless you are high net worth or have other special circumstances, I think “How much return is going to be with whole life” is the wrong question. Typically, most people just folks just want to have income replacement protection in case of death, not “return”…

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151

Right. Permanent (whole or universal) life insurance tries to be both a savings vehicle and life insurance in one package. Because of the savings/investment element and because it’s guaranteed to pay out, a permanent policy is more expensive.

On average you’ll do better with a cheap term policy and investing the difference in premium on your own (preferably in a tax-advantaged account). The term policy will expire and then you won’t have life insurance any more, but you’ll have the investments to either spend or continue to save for your family to inherit.

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152

Hi,
Thanks for the all the information. I am going to buy term policy for spouse (500k for 30 years) and start 401k at work (no match) instead of whole life insurance. I am searching on term4sale website. Cheaper policy is from Thrivent Financial for Lutherans. Is this company only for Christians. Can you guys give me some typical insurance company names and minimum life company rating.

Thanks

153

There are a bunch of aggregator sites such as term4sale.com and quickquotes.com. I always go with A+ or A++ ratings.

Typically you’d want to invest in an IRA before a 401(k), unless you’ve already maxed your IRA contributions or you have a particularly good 401(k) plan.

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154

We want to start 401k contributions for spouse at work. So far we avoided doing it as there is no match from employer. We might not be eligible to contribute $5500 towards IRA. I am assuming that both of us can contribute to $18,500 each with their employer 401k plan. We do not have enough pay checks left to reach $18500 for spouse this year though.

155

Hi,
Can we do both IRA and 401k. IRA has a limit of $5500. 401K, we can contribute upto $18500. There is no emplyer match. But our contributions are 100% vested. Our company plan is with ameritas. Not sure if we can put out money to reach $18500 for this year.

Thanks

156

The 2019 limits are $6000 for IRA (Traditional and Roth combined) and $19000 for 401k.

While the 401k contributions must be made during the calendar year, IRA contribution deadline is the tax filing deadline the following year (you can make your “2019 contribution” any time between Jan 1 2019 and April 15 2020). If you’re trying to max out, keep this in mind and plan ahead.

401k may have a per-paycheck contribution limit. So if you don’t need the money and you want to contribute as much as possible, maybe she can put 50% or 100% of her pay (whatever the limit is) into the 401k.

IRA is better for you because (1) you don’t get a 401k match and (2) you can invest it in whatever you want, not limited by the company plan provider.

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157

IRA has 6k limitation. With 401k, we might able to contribute more. One of the reason we want to start 401k. I am assuming, we can’t do both right?
Also wondering if there are any limitations with term life insurance for people who might not be living in USA in future or non citizens.

158

There are some limits for doing both a 401k and Trad IRA. But you can do a Roth IRA as long as you are under the income limit.

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159

I do no know much about Roth IRA. I will check it out some info. We can start 401k now and also do Roth IRA instead of IRA for this year by April 2020 right? Also wondering if our social security contributions act as insurance.

160

Yes you have until tax day 2020… Roth income limit is 193,000 (combined income). The difference with Roth is that there is no tax deductions when you contribute, but when you withdraw in retirement, there is no taxes paid on the withdrawal ( earnings ).

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161

Our options are, start 401k now and also contribute $6000 for roth IRA or just $6000 IRA right?

162

Depends on income, if your MAGI is under 121,000 you can contribute to a deductible IRA. If you are over that, you can’t contribute to a deductible IRA even if you skip the 401k since your job offers one, it counts against you whether you contribute or not actually.

1 Like