Don't do it. Insurance isn't for the creation of wealth despite what the insurance companies spew. I had a client come in with an old policy with 87m in cash value. Had he just bought the spx, he would have had over 300m today.
Anyone who sells Whole Life insurance as an investment for retirement could and should get in trouble. It is not an investment, it is insurance, therefore, it is an expense. In my opinion a very wasteful expense. One that locks you into a big commitment. If you compare the insurance to Term Life premiums and take the difference in premium and PV the investment using their market projections. The comparison will usually make your draw drop. Buy term. Take the difference and put it in S&P ETF. Have the LIQUIDITY of that capital available to capture future, more favorable investment opportunities. Pay little income taxes while holding (dividends), and currently, only a 15% long term cap gains tax when you sell. (this one isn't as much of a pet peeve, because it is fairly common knowledge that whole life is a bad idea).
Agreed. Employer match is a separate factor to consider. I might buy some SubPrime CDOs if my employer would match me. That doesn't mean SubPrime CDOs are a good investment.
Paid off BIG time for this "termite" leader: http://www.forbes.com/lists/2007/54/richlist07_Arthur-Williams-Jr_DA4B.html