Q. I have no company match for 401(k) contribution, is it a good idea to put retirement money in "index universal life" instead of 401(k) account?
A. For most working families, it is not a good idea to use life insurance - any kind of life insurance - for retirement saving.
It is much less costly to invest for retirement separately, and then, if you do need life insurance, purchase the least expensive form of life insurance - term insurance.
Given that you are not getting a company match, you might consider focusing on funding a Roth IRA first, while your contribution won't lower your taxable income for the year of the contribution, withdrawals from your Roth IRA will be 100% tax-free in retirement.
A. For most working families, it is not a good idea to use life insurance - any kind of life insurance - for retirement saving.
It is much less costly to invest for retirement separately, and then, if you do need life insurance, purchase the least expensive form of life insurance - term insurance.
Given that you are not getting a company match, you might consider focusing on funding a Roth IRA first, while your contribution won't lower your taxable income for the year of the contribution, withdrawals from your Roth IRA will be 100% tax-free in retirement.
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