IPB 084: Yes, You Need a Forced Savings Plan


It's not uncommon for people to refer to whole life insurance as a “forced savings plan” or at least it was common back when we started out in the industry. Sounds like a bad thing but is it really?

Sounds like a bad thing but is it really?

We've seen some data that indicates something north of 95% of Americans are weeks away from financial ruin. If they were to miss a paycheck or two, the fit hits the shan…know what I mean?

Now, “north of 95%” isn't any sort of hard data. But who cares? I think we all know it's way more than 50% and that's tragic.

We all need a plan, an accountability buddy or whatever you wanna call it that isn't influenced by human emotion. We all need a mechanical way of putting money away that isn't gonna cut you any slack because you're having a bad day.

We gotta save regularly and most of us (pointing at myself) should be pushing the limits of what we think is possible. 10% is a joke, we should be thinking more in the 50% range if we're really serious.

Do you have at least a year's of monthly expenses put away?

I'm not talking about your 401k.

The 4% (or whatever that number is) that are crushing it financially have a system, do you really believe your superior?  Can you afford to argue with the results?

If you put away too much…what's the downside?

I'm sure you're all wondering, what's any of this have to do with life insurance?

Well, I suggest you listen to this episode to find out.

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