Someone blasts me on the Fakebook over my “inane” claims about life insurance:
“Uh, investing and buying insurance sure ARE mutually exclusive if you’re talking about uses for the same pile of cash. You can’t invest your $150k BOTH ways, it’s going to be one or the other.
This could be a way to DIVERSIFY for enhanced SECURITY, but saying that they’re not mutually exclusive is kind of inane.”
…and I thought insurance was the most boringest industry ever.
Guess I was wrong. People going out of their way to sling arrows over something they don’t understand.
But it’s not just know-nothing critics from the peanut gallery.
Butthurt financial planners get their panties in a twist too.
Most of them have nothing nice to say about it. In fact, they’ll go out of their way to lie about it.
Weird. I know.
Funny thing is, I have nothing against the financial planning industry per se. Sure there are bad actors, just as there are bad actors in any indistry (mine included).
But, if you know nothing about investing, a good (key word “good”) financial planner is invaluable.
Likewise, a good insurance professional makes investing easier by providing a good insurance plan (to reduce investing risk and free up more cash to invest).
Even some insurance agents bash whole life.
This I find really weird because we all take the same pre-licensing courses and the same continuing education every year. So…we should ALL know how to use these products.
But we don’t…
…so this life insurance salesman came forth in the thread to announce he only recommend term insurance.
A financial advisor came forth to bash it…recommend investing instead of whole life…and recommend talk to a financial planner (instead of an insurance professional) about life insurance.
A slew of fanboys and girls came out of the woodwork to rally toward “the cause”.
This kind of brainwashing tricks you into thinking you must do either this OR that. It teaches you to view your money as little “baskets” you have to diversify.
It teaches you to make sacrifices now for a hypothetically better future.
Life insurance and investing aren’t mutually exclusive. They aren’t polar opposites. In fact, insurance can free up MORE moolah for you to invest.
Remember yesterday’s email about financial jujutsu?
That’s what all these people were trying to do…argue a position that doesn’t exist.
See…it’s not “whole life insurance vs _______.”
It’s whole life AND _______.
Insurance is a stop gap. It puts a floor on the amount of money you can make.
Not having it is like going out in the rain without your raincoat. Or maybe your umbrella.
Or maybe it’s like picking up one of those women on the street corner without a…
Oh you get the idea.
The problem is ignorance…but not JUST ignorance. It’s also ignorance of their ignorance. They don’t know that they don’t know what they’re talking about.
The technical term for this is “unconscious incompetence.”
I dunno if I blame the ignorance though. This sort of thing used to be taught to students up until about 1913. It took another 30 years for it to become uncommon knowledge.
And now…most of these people are like toddlers trying to tell an adult how to walk.
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