I think you might be much better off hiring somebody to answer this series of questions, because although you may or may not get some good answers here - there's no way to follow up and make sure you understand.
It's your life, and your situation, so obviously you get to handle your problems any way you prefer.
However, if you want specific help from others, it would help those others to know your specific goals, timeframes, and reasons. and then decide on the ways to reach those goals, and THEN question some of the specific goals and how they all tie together.
In looking at the information your provided, your numbers looks promising, and your age is good, and you seem to be doing some smart things, piece by piece.
The thing of it is, depending on how you decide to set things up, you may create an extra $250,000 for you in 22 years. So my thought is that you may want to spend the $250- $500 for a professional to explain all your options to you and help you create a financial plan. It's about 2 to 3 hours of work, at least. there's no way to have that happen here. you'll get answers, but ...for the amount of money at stake I would go to a professional.
So, sorry I didn't answer your question, but there's just no way to give you a correct answer without more information, and about 2 to 3 hours of time.
If Caren's answer is "the silliest thing you've ever heard" you are going to be a burden to others in your retirement! Insurance is INSURANCE, it isn't a "savings plan"!
(What did you THINK those companies selling "Whole Life" are DOING with your money? They are INVESTING IT, keeping aside the tiny bit they need to pay you later, and then THEY keep the difference!)
Term Insurance is not a "gamble", it's a TOOL and a safety net....like your car insurance...
I would shop around for a CFP (Certified Financial Planner) and lay it all out in front of him/her and get an "experienced and professional" opinion of what to do.
Looking for a cookie cutter approach, because of your various ingredients, would not work for you, IMO.
Your main goal should be to avoid paying taxes, either today or in the future and to increase your total net worth.
Buying financial products with high internal fees (both annuities and whole life insurance are in that mix) doesn't make sense for many of us.
But, then again, my advice is worth exactly what I am charging for it.
The good idea would have been not to cash in the annuity. I retired unexpectedly at age 49 for medical reasons. You are at the age where EVERYTHING you do financially NEEDS to make sense. Save 25% of your income. NO risky investments & hold on to whatever you've got. Own your home ,pay cash for your cars.Don't use "credit"-it is "debt". No payment plans on anything. No interest paid to anyone except yourself. Solid plans,no "pie in the sky". Don't take any "hit" in any financial scheme ever. 401k requires the 10 year payout to avoid penalties. Read all the fine print & study everything. Poor planning leads to crisis situations. Short sightedness is an ever present danger. I live comfortably with income from rental property, a 10 year 401k payout & debt free living.Good luck , the you of today takes care of you tomorrow.
leave whole insurance alone,,, get term life insurance if you have dependents that cannot live without your income
whole life is for people that get conned,, ,a complete and utter rip-off
I'm a 40 year old, married male. I'm in the middle of changing my line of work. I just cashed in an annuity, and will be getting a check $25.000. I know I take a hit. This is the amount after. I'm pulling this money for some household expenses but plan on investing about $5,000.
I also have a pension and with the points I have at age 62 I will be getting $2200 per month. I can not move this money. Also with the pension I have $35,000 in an SMA that I can move.
My thought was to take the $5000 and buy a Single premium whole life insurance policy, and transfer the $35,000 to an IRA.
So my questions are:
Does this sound like a good idea?
Do I want an IRA, or Roth IRA?
Is there anything better that I should be doing?
On top of this I have a $100,000 variable universal life insurance policy with a $109 premium, that should (hopefully) have a cash value of $76,000 at age 65.
