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Off Topic : 1) When Does a software engineer start financial planning for retirement since the our Career span is only 15-20 years on average.
2) How much and which schemes to invest to mitigate the risk?
3) How much do we need for retirement? Tata Consultancy Infosys Mindtree IBM Wipro Capgemini Cognizant HCL Technologies
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Our financial advisor has us carrying a whole life plan. It’s a lot per year, but kind of like a forced savings. And you do get it back later if you don’t die, plus interest at a pretty good return. If you do die, it’s a large payout. In general it’s part of our retirement savings plan with the bonus of extra protection if husband croaks prematurely.
The other advantage, at least for our plan, is it covers disability care like an Aflac type thing.
Clarifying that term only pays if you die before the end of the term, if you don’t, they keep the money. Perm/whole life pays out your money at the end either way. But it is a LOT more expensive. Like 10x.
Whole life insurance means it will still pay out after you turn 65, which is when term insurance expires. However, it’s more expensive. So we have a big term payout in case we die before our kids are grown, but only a small payout for whole life so that funeral costs and other basic stuff is covered. For an actual inheritance, you’re better off with a good savings account.