If you have term life insurance, you can go ahead and skip to the next video. But if you have whole life insurance — or cash-value life insurance — you’ll want to keep watching to find out how you can make the most of your life insurance policy for your retirement savings.
In today’s episode of Your Money Minute with Tracy Stewart, CPA, I want to share a quick tip on stowing away money from your life insurance policy into your retirement savings. If you have whole life insurance, or cash-value life insurance, there will be a dollar amount listed on your statement — and that number is golden.
Basically, this type of life insurance has a dollar amount — or cash value. AT a certain point, it can begin paying for itself — and that’s what you’ll want to find out. At what point does your whole life — or cash-value — life insurance policy start paying for itself?
When it does start paying for itself, I want you to stop paying your premiums. Take the money you were paying and begin socking it away into retirement savings. Put it in an IRA, a regular savings acount, etc etc — just don’t spend it. Why? Because you’re going to want that money later, and why not save it now, right?
Financial independence is unbelievably liberating! Building up a nest egg to live life to its fullest is the very efinition of financial freedom — and I want to help you get there.
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