Spending Year-End Bonuses Wisely
April 19th, 2010 // 7:02 am @ Andrew Rosenbaum
It’s Wall Street bonus time, and the big surprise is what is on so many bankers’ shopping lists: whole life insurance.
After last year’s economic freefall, it’s not just Main Street investors seeking safer financial products; Wall Street players are adding whole life products to their portfolios.
And many of them are using guaranteed financial products to balance portfolio risk.
They’ve seen how other investors protected their wealth with products such as whole life insurance when the economy sank.
Sophisticated investors have begun to question the common belief, “Buy term and invest the rest.”
They see it is a misconception, because (1) most people don’t invest the rest, they spend it, or (2) they invest it in something that they think will produce a high return, but that is more like gambling than investing.
Bonus time is a great time to invest in your economic security.
Consider taking part of your bonus and putting it toward guaranteed financial products that will weather the storm, whether markets go up or down.
Category : Financial Risk &Investing &Life Insurance &Market Volatility &Permanent Insurance &Recession
