Posts Tagged ‘insurance as a bad investment’

Shit Sandwich - Variable Annuities

Shit Sandwich – Variable Annuities

By The Banker | Blog Posts, How Not To Invest, Insurance, Personal Finance

In my favorite movie of all time, Rob Reiner recalls the two-word alliterative review of Spinal Tap’s unsuccessful second album “Shark Sandwich,” as simply “Shit Sandwich.’ The band members react to this shocking review with resentment, but also with a sense for what newspapers are allowed to actually say. David St. Hubbins: “Where’d they print […]

On Warranties

On Warranties

By The Banker | Blog Posts, Personal Finance, Texas

I’m the least handy person I know. The Fourth Law of Thermodynamics in my household states: “Physical objects that appear to be broken, will remain broken through time and space.” I carry my un-handyness with me through life, including matters having to do with cars. When I came up with a flat rear left tire […]

On Longevity Insurance - Do You Feel Lucky?

On Longevity Insurance – Do You Feel Lucky?

By The Banker | Blog Posts, How Not To Invest, Insurance

For starters, I hate most insurance products that purport to replace investment products. But I had not heard of longevity insurance until this week, so I decided to check it out. Here’s the concept: Pay a big lump sum to an insurance company now (before retirement), in order to draw on a hefty fixed income […]

On Insurance, Part III - Life Insurance Calculations

On Insurance, Part III – Life Insurance Calculations

By The Banker | Blog Posts, How Not To Invest, Insurance, Personal Finance

I previously argued that insurance is useful for risk transfer, but less attractive as an investment.  I also think that under certain conditions – such as responsibility for minor children or limited savings, you need life insurance.  I thought a quick post using compound interest calculations could help illustrate why life insurance can be an […]